Millennial entrepreneurship will be a prominent topic in 2022. Millennials, born between 1982 and 2000, are increasingly interested in starting their own businesses, even if they haven’t become small business owners yet. According to a survey by EY and the Economic Innovation Group, 78% of millennials see entrepreneurs as successful, and 62% have thought about starting their own businesses. Interestingly, while 55% believe their generation is more entrepreneurial than previous ones, data shows that millennials are actually less likely to be entrepreneurs compared to other age groups. By the age of 30, millennials owned fewer businesses than Gen-Xers or Baby Boomers did at the same age.
Why Millennials Are Choosing Entrepreneurship
Millennials, or “Millennipreneurs,” are drawn to entrepreneurship for reasons similar to other age groups. A survey by Wells Fargo found that 40% want to be their own boss, 21% seek flexibility, and another 21% want to work on something they’re passionate about. However, like many entrepreneurs, millennial business owners face financial challenges. Forty-two percent say they don’t have the financial resources to start a business, and two-thirds are already dealing with long-term debt, whether from student loans, car payments, or mortgages.
Despite these challenges, millennials are optimistic about the future. They are more likely than older small business owners to have formal business plans, as well as strategies for dealing with cyber-attacks, disasters, and business succession in case of emergencies. While they might approach business differently from previous generations, the passion that drives them is the same. Still, everyone needs support.
Practical Tips for Millennial Entrepreneurs
While starting a business has become easier in today’s connected, digital world, rushing into it can lead to failure. From financing to managing customer leads, there’s a lot to learn if you want to be a successful business owner. Learning from the experiences of others can be invaluable as you start your journey.
If you’re a millennial thinking of starting your own business, keep these tips in mind:
1. Focus on Customer Service
Start by thinking about the problems your customers face and how your product or service can solve those issues. Consider the kind of experience you want your customers to talk about. By keeping your focus on what the customer needs, excellent customer service and a positive experience will naturally follow.
2. Persistence Pays Off
Persistence is crucial when starting a new business. You’ll face roadblocks, challenges, and moments of doubt. However, sticking with it, even when things seem uncertain, is key. When I started my first business, I came from a corporate background and knew nothing about entrepreneurship. But I was determined to learn everything I could to succeed. Even when things looked bleak, my determination kept me going.
3. Know What You Are Selling
It’s essential to have a clear understanding of what your product or service offers to customers. People want to know exactly what they’re paying for. As a business owner, you need to be well-versed in the details, benefits, pros, and cons of your offerings and be transparent with your customers. This is especially important in competitive industries, where new businesses are constantly emerging. Stand out by providing valuable information, a clear picture of what your customers are getting, and reassurance that you’ll be there when they need your services.
4. Separate Business and Personal Expenses
It’s easy to overlook this tip when you’re just starting, but it’s important to separate your business expenses from your personal ones. While it may seem convenient to use your personal account for initial expenses, it’s better to set up a business account from the start. This will make things much easier down the line.
5. Provide Value with Free Tools
Social media has changed the way businesses reach their audience. Don’t just promote your business; focus on providing free, helpful content that builds goodwill with your audience. Offering value before asking for anything in return will help you build a loyal following that knows, likes, and trusts you, making them more likely to do business with you.
6. Cut Your Living Expenses
Preparing for a potential shift in income is a crucial part of planning your business. Reduce your living expenses as much as possible before starting your business. Starting a business often takes longer and costs more than you anticipate. While this can be challenging, it will pay off in the long run by giving you more time to make your business successful.
7. Know Your Competition
Understanding your competition is key to setting yourself apart in any business. Research what your direct competitors are offering and at what price. Identify gaps in their offerings – these gaps can help define your business. When you know how you stand out, you can better market your products and services, allowing your business to grow and thrive for years to come.
