Being a young entrepreneur certainly has many advantages, but there are many downsides also. You may have a bombastic idea that you think will lead you on to the path of instant success and money but there are many other elements that are equally essential in setting up a business right from scratch. As a youngster striving to set up a new entrepreneurial project, you will have to face numerous challenges and struggle your way through. The following article will discuss about the problems that enterprising youth have to encounter to set up a business and the solutions to them.
Though they say that age is only a number, it can definitely become a hindrance for budding entrepreneurs where establishing a business is concerned. Here are some of the biggest adversities young entrepreneurs can face –
You may not be taken seriously – Many a times, the reaction given to college students for presenting their business plans can be quite different from that given to a professional with grey hair. This can seem unfair but it happens. Sometimes people may not even believe that you own the business they are so closely affected by. It is your responsibility to demonstrate your sensibilities and seriousness in front of potential clients. You should be able to communicate with the customers and let them know how knowledgeable you are when it comes to running the show. People may laugh it off saying you are too young or that it is only a matter of days, but you have to stand by your dream and prove your passion. The key is to never give them a reason to feel you cannot do it, even if that means working harder to prove yourself. You must remember that it is okay to make mistakes along the way and tumble. Nobody is perfect and even if you happen to fail, do so gracefully. Learn from the mistakes and take them with a pinch of salt. Self-confidence combined with unwavering humility will take you a long way.
You may not have the right training – Not having the right knowledge can be a setback in many circumstances. No matter how worldly-wise you are or how sharp a business acumen you possess, getting the right education is essential. Every successful entrepreneur in today’s date holds a relevant business degree which helps serve as the foundation of his career. You can pursue a degree like an MBA in entrepreneurship to start off on the right foot. This two-year post-graduate course will help you learn the ropes of the industry, attain beneficial knowledge and seek the right practical training. The program will teach you how to develop ideas, arrange and optimize resources, tap opportunities and achieve objectives. The realm of entrepreneurship can vary from single projects to huge undertakings that eventually create job opportunities for others. It can even be extended to social entrepreneurship, knowledge entrepreneurship or political entrepreneurship. A Master’s degree in entrepreneurship gives the students in-depth expertise of not only the academic disciplines but also applied functional sub-domains that are necessary to understand for entrepreneurial success.
It is not easy to secure funding – For young entrepreneurs who are just starting out, it is wiser to choose a business plan that does not require you to invest heavy capital early on. Arranging funding and getting access to the funds, especially from banks, can be a tedious job. Unlike angels and VCs, banks demand to see your financial history in detail and like to extensively analyze your personal credibility. And so launching a venture that requires heavy investment in the form of upfront cash may not always be possible.
The best way to work out your finances is to check out your assets. Another way is to turn to friends and family. You can pitch yourself and your bright ideas in hope of getting financial support from them. If you don’t get any direct invests, you can still seek a loan, which will also help improve your credibility with the financial institutions.
Another route for young entrepreneurs, specially those having poor credit score or those setting up their first company, is to find companies that cater to “high risk” individuals. However, you must see to it that these institutions offer capital but only at a high interest rate.
You may not remain relatable to your friends – No matter how supportive your friends are, they will never really get a grasp of what you are doing or going through. It is possible that even you don’t understand their position. You will find it difficult to understand why your friends spend so much time at the library and complain about having to study or wake up early in the morning. But having a close bond with your peers is crucial for healthy growth and personal development. So keep your entrepreneurial life separate from your social life. You have to be smart enough to strike a healthy balance between both.
Be it a youngster or an older person, the life of an entrepreneur is never too easy, but as a youth you have more energy and drive and also possess the power to make a difference. So here’s wishing you good luck for your entrepreneurial journey!