Entering the entrepreneurial world when you’re young is exciting. A high-performing e-commerce or Etsy site can also be lucrative, as folks from around the world can find your store and shop for your goods.
Your teens and early twenties are the perfect time to take a risk and begin a business, too. You are largely free from responsibilities such as kids or mortgages and can focus your efforts on growing your brand.
However, you’ll need to get up to speed quickly if you want to succeed in the world of business. As a young entrepreneur, you’ve still got plenty to learn before you can turn a profit and build a brand to be proud of. Investing in your skills and building your business know-how will support your future growth and help you transform your passion project into real profits.
Start-Up Struggles
Setting up your own business is a great way to harness your creativity and earn some extra income. Tapping into your entrepreneurial side early on can help you build skills and develop a start-up mindset, too. This will serve you well in later life, even if you don’t turn your entrepreneurial pursuit into a full-time job.
However, you may encounter some setbacks when trying to create your own business as a young person. In general, young folks have less funds saved up to start a firm and may not have an in-depth knowledge of their industry. This needn’t sideline your entrepreneurial idea indefinitely, though, as you can still raise funds and get up to speed quickly if you’re willing to put in the work.
As a young entrepreneur, you can increase your chances of raising capital via bank loans and investments by creating a detailed business plan. This is crucial, as some folks will unfairly assume that your passion for business is a “whim” that could fizzle out. A clear business plan proves that you understand your product or service, are keyed into the industry, and know how to operate a business properly.
Crafting a business plan can help you avoid major missteps, too. For example, if you’re thinking about starting an online craft store on a site like Etsy, you’ll need to account for things like:
- Space: Where will you craft your products? How will your workspace serve you when you want to scale up your company and sell in greater volume?
- Legal Requirements: How will you register your business? As a sole trader? A partnership? Is your home appropriately zoned if you want to craft in your garage?
- Safety: What kind of insurance do you have? Do you have access to a certified professional accountant (CPA) in the area?
- Billing: How will you take payment? What kind of account will payments be deposited in?
Answering these questions will take care of the bulk of legal issues you could run into. Working closely with a trusted CPA can help you account for legal fees and tax payments, too. This is crucial, as you’ll need to make the most of any funds you have access to. Reaching out to trusted professionals in your industry can help build your network and improve your understanding of business, too.
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Networking
Unlike older entrepreneurs, you probably have a limited network in your field. While some may see this as a disadvantage, it should be seen as an opportunity. In order to find success, you will need to get busy and start making fast friends in your industry of choice.
Rather than waiting for folks to come to you, attend networking events and conferences in your field. Attending conferences does not necessarily boost your income or improve your efficiency as an entrepreneur, but it will help you get to mingle with business leaders in your area. For example, the GrowthHackers conference has featured attendees from Disney, Macy, IBM, and Ubisoft.
When networking, avoid the temptation to hard sell your business or immediately ask for investment. Building a strong network is all about creating reciprocal relationships with folks who have the experience and know-how you need. As a young entrepreneur, try to position yourself as a learner. This will show folks that you care about the long-term success of your firm and are committed to a life in the business world.
Financial Literacy
Developing an entrepreneurial idea for a new business is a solid way to start your foray into the world of commerce. However, if you want to turn a profit and grow your company, you’ll need to improve your financial literacy first. At a minimum, you should be familiar with key financial concepts for businesses like:
- Cash Flow: You may run a profitable business, but if cash dries up your firm will go bust. Learning how to spread out your investments, build your buffer, and protect your cash flow is crucial as a young entrepreneur.
- Break-Even Point: How long will it take you to turn a profit after starting up? Can you survive on revenue alone, or will you need to rethink some of your operations to break even sooner?
- Margins: Understanding the difference between net, gross, and operating profit margins is crucial, as changes to factors like supplier fees will help you side-step potential losses.
- Customer Acquisition Cost: This financial concept shows you how much you’ll need to invest in marketing to gain new customers. It’s not a hard science, but a low CAC is a sure indication that your product or service is in demand amongst your target audience.
It’s especially important to know how to handle finances in a business world that’s increasingly digital. Developing digital financial literacy is crucial for the long-term success of your firm. Understanding your cash flow will keep you from panicking when you notice a dip in your profits, too. Just be sure to continue growing your financial acumen in the years to come, as entrepreneurs benefit greatly from further education.
Education
Pursuing further education while chasing your entrepreneurial dreams may sound like a lot of work. However, if you want to navigate the business landscape successfully, you need to invest in yourself. This is particularly important when you want to grow your firm and take on employees, as you’ll need a wide skill set to manage people, think critically about your industry, and position your company for maximum success.
You don’t necessarily have to go back to school for your MBA, either. There are plenty of accredited courses available online that cost a fraction of tuition fees. Courses that cover key topics like SEO and marketing KPIs can grow your e-commerce business and boost your profits in the short term, too.
If you are already running your business, consider applying for grants and scholarships for further education. As a young entrepreneur, you’re exactly the type of person that university donors are looking for. Funding your education can reduce your debts and help you file for business loans later on, too.
Overcoming your First Crisis
Becoming an entrepreneur requires resilience. You’re certain to suffer setbacks in the early days of your operations and will have to learn on the fly when running your first company. Learning how to compartmentalize your problems will help you manage your stress and make well-considered decisions, too.
You can build resilience to improve your decision-making by learning how to de-stress properly. This is crucial, as many first-time business owners spend their entire day fretting about the success of their firm. Left unchecked, this impulse to overwork will result in burnout and fatigue. Instead, manage your stress and increase your resilience by:
- Rewarding yourself for small victories
- Build a support network of friends and family members
- Learn to identify stress triggers
- Organize your time
These tips will help you retain a calm, composed approach to entrepreneurship. This will support your long-term business goals, too, as you’ll need to be in good health if you want to helm a growing company for years to come. A more resilient approach to entrepreneurship helps you see setbacks as opportunities and improves your mental agility when presented with issues that seem insurmountable.
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Appealing to your Audience
When you first start your firm, it’s easy to get lost in the value it will add to your life. However, if you want to build a brand that lasts, you’ll need to understand the value it can add to your consumer’s life. This is key, as you’ll need a great understanding of your audience if you want your marketing materials to land.
As your firm grows, reinvest some of your profits into market research. This will help you understand consumer preferences and create content that resonates with the user’s needs. Reinvesting your profits into marketing can help you develop new products, too. For example, if you run an online bakery shop and survey consumers, a survey may reveal new flavors that customers are interested in trying.
You don’t need to spend a fortune on marketing campaigns, either. As a young entrepreneur, cost-effective marketing channels like social media and web marketing are your best friend. Just be sure to set aside some time for trend research and SEO optimization, as this will supercharge your marketing efforts.
Closing Thoughts about How Entrepreneurs Can Navigate the Business Landscape Seamlessly
Navigating the business landscape as a young entrepreneur can be challenging. You may be new to fundamental concepts like cash flow and probably don’t have a well-established network (yet!). However, that needn’t stop you from following your entrepreneurial dreams.
Instead, streamline your start-up by working with a trusted CPA and expand your influence via business conferences and trade shows. This will help you avoid the missteps associated with starting a firm and will help you grow quickly within your industry.
GrowthHackers is a leading analytics marketing agency helping businesses from all over the world grow. There is no fluff with Growth Hackers. We help entrepreneurs and business owners navigate the business landscape, increase their productivity, generate qualified leads, optimize their conversion rate, gather and analyze data analytics, acquire and retain users and increase sales. We go further than brand awareness and exposure. We make sure that the strategies we implement move the needle so your eCommerce store grow, strive and succeed. If you too want your business to reach new heights, contact Growth Hackers today so we can discuss about your brand and create a custom growth plan for you. You’re just one click away to skyrocket your business.
