What Challenges Should Young Entrepreneurs Prepare for When Starting a Business?

What Challenges Should Young Entrepreneurs Prepare for When Starting a Business?

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More of today’s younger generation is entering the business world very early. Some started their own business in their 20s. Others started in their teenage years and already managed to make a name for themselves.

Samantha Zumwalt, a resident of Garland, Texas, is 16-year old when she became an entrepreneur. She makes and sells her own slime creation. In 2018 alone, her slime business reached six figures.

Zumwalt’s story is just one reason why more young people want to try out running a business. During the pandemic, many started their own small business in their own homes. Know that if you plan on doing the same, there are undeniable challenges you are likely to face as a young entrepreneur.

Finding the Right Funding

One of the first few things you will need to get started is enough funds for your startup. As a young entrepreneur, chances are you only have your family and friends to ask for initial funds. But sometimes, your family may not have enough to spare for your startup and your friends may be uninterested to help you out.

Instead of relying on your small circle, consider expanding your network. Did you know that Ahmet Ertegun was able to launch Atlantic Record because of his dentist? His family dentist gave him a loan of $10,000 to launch his business.

Young entrepreneurs can try a fundraising platform to ask strangers to help fund their business. Many people would be willing to spare their extra cash to strangers on the internet for whatever reason. Just make sure you write a compelling reason for asking for funding to get more funds.

Young entrepreneurs should reconsider using credit cards to finance their business. You want to wait until you have more stable earnings before using such cards. Failure to pay these off can impact your ability to secure funding in the long run.

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Finding the Right Suppliers

Getting the right supplier for your business can be a tough job. You have a limited budget to work on but need high-quality materials to produce salable goods. The good news is, finding suppliers are now easier than ever.

One of the easiest ways to find suppliers for your business is through online research. Search online suppliers’ directories and check their reviews. Also, consider the pros and cons of hiring a local and overseas supplier.

Let’s say you require industrial metal supplies for your different projects. Hiring a local supplier will give you the advantage of a more sustainable partner. Find one that has a good reputation and can accommodate small business owners with custom supplies and fabrication services.

Unrealistic Expectations

You have high hopes that your business will be a big hit. You have a unique business idea, a supportive network, and even got the funding needed to start a business. But getting your hopes up is a dangerous game to play when running a business.

You may be able to succeed in making money after only a few weeks or months of operation. But you should avoid expecting continuous success after this. Keep your expectations high but controlled and prepare for the worst.

Keep a close watch on your finances and continue learning about the ropes of the market. Watch out for the latest trends and ask your customers what they want more from you. Don’t forget to keep a close watch on your competitors.

Finding Customers

You won’t know how hard it can be to find customers unless you start marketing your brand. Sometimes, your loved ones are the ones who won’t believe in your business idea. You are very lucky if your family and friends are very much willing to be your first customers and will recommend you to their acquaintances.

With a small company, it can be hard to market your brand since there the bigger and more established brands have more budget and influence. One of your advantages is that you can have better pricing since household brands often charge more. You can start by marketing your brand to your local community and promote your products on social media.

Consider reaching out to local influencers who have enough followers. They are more willing to help smaller businesses by posting their products on social media. You can send them free products that they can use, and their reviews can be enough to get you more clients online.

Starting a brand as a young entrepreneur can be tricky. You have so much to learn and so many things to experience before you can taste success. But building a successful brand is not impossible. Believe in your business idea, stay focus and motivated, and be innovative enough. Your hard work will pay off with the right combination of hard work, strategies, business ideas, staff, and partners.

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