Gen Z is one of the most entrepreneurial generations in history. A 2021 survey revealed that about 60% of teenagers would rather start their own business than work as an employee or in a traditional job.

For those Gen Zers who are working, around 43% are already engaged in freelance and gig work, according to a 2022 survey. The changing nature of the workforce and the global pandemic, which pushed many young professionals into gig work, have contributed to the rise of a generation of future business leaders.

Starting a business is challenging at any age. However, Gen Z entrepreneurs are uniquely positioned to launch successful small businesses in today’s economy.

Here’s a detailed guide for Gen Z entrepreneurs on how to start a small business.

Consider the Realities

If you’re planning to start a small business, you need to be truly passionate about it. This may seem obvious, but it’s easy to overlook in the daily grind. Running your own business will demand much more of your time and energy than working for someone else, so your passion must be strong enough to sustain you through years of hard work and uncertainty.

Conversely, if you’re passionate about your pursuit, consider the impact of turning that passion into a business. Many small businesses begin as hobbies (like making crafts and selling them online), and it’s important to ask yourself if your love for the hobby will endure the transition. What you enjoy doing in your free time can become stressful or financially draining when it turns into a professional endeavor.

Identify Your Unique Selling Point (USP)

Many Gen Zers already possess skills that can make them successful business owners. Social media, coding, photography, and video editing are familiar to Gen Z and extremely useful in running and marketing a business. However, since these skills are common among Gen Z, they don’t stand out as much. Identifying the unique skills you bring to the table will help your business stand out among other Gen Z entrepreneurs.

In business terms, this is known as a “unique selling point” (USP). It’s the reason customers will choose your business over your competitors. Evaluating your unique strengths or ability to solve specific problems will help you identify a USP.

Research the Competition

Once you have a business idea, it’s crucial to research your competition. What will you offer that these businesses don’t or can’t? Can you provide products or services at a more competitive price? Can you deliver something faster or at higher quality?

If you plan to open a brick-and-mortar location, you also need to research local competitors. Is your store too close to another store offering similar products or services? If so, how will you ensure customers choose you over them?

Choose the Right Business Model

Businesses come in various forms, and one of the first and most important decisions is choosing a business model. A business model is essentially how you plan to make money with your business idea.

Here are some common small business models:

– eCommerce: Selling products or services online through a website or mobile app. This model allows you to operate almost anywhere but might miss out on the benefits of a physical location.

– Brick-and-mortar: Operating a physical business from a storefront. Many beloved small businesses use this model, which may require significant upfront costs.

– Bricks and clicks: Combining physical and online sales, offering options like buy online, pick up in-store (BOPIS), or exclusive online items.

Other models include subscription services, software as a service (SaaS), business-to-business (B2B), and franchising.

Be Flexible

As a Gen Zer, you’ve already mastered the art of adapting. Economic uncertainty and a rapidly changing digital world mean you’re always ready to change directions, learn new skills, or drop something that isn’t working. This mindset will serve you well in running your business.

Once you solidify your idea, be ready to make changes and handle unexpected challenges. This doesn’t mean your business should lose its identity with every change but that you should be prepared to navigate the challenges you’ll face. Your brick-and-mortar store might perform better online, your customers might love an unexpected product, or one of your business’ TikToks might go viral, bringing a flood of new customers. As a small business owner, no two days will be the same, and your ability to be flexible and solve problems quickly will be invaluable.

Clover can help you get started on the right path to starting a business. Our POS systems and business management solutions are designed to help you accept payments, sell more, and save time. Contact a Clover Business Consultant today to see how we can meet your unique business needs.