Gen Z is quickly becoming known as one of the most business-minded generations. In a 2021 survey, around 60% of teens said they would rather start their own business than work a regular job as an employee.
For those Gen Z individuals who are already working, about 43% are doing freelance or gig work, based on a 2022 survey. With changes in the job market and the effects of the global pandemic, many young professionals turned to gig work, helping to shape a generation of future business owners.
Starting a business is never easy, no matter your age. Still, Gen Z entrepreneurs may have a special advantage in today’s economy. They often bring strong digital skills, creativity, and a fresh way of thinking that can lead to strong and successful small businesses.
This guide shares helpful steps for Gen Zers who want to start their own business.
Think About the Realities
If you’re thinking about starting a small business, it’s important to truly care about what you’re doing. While that may sound simple, it’s easy to forget during the busy day-to-day tasks. Running your own business will likely take up more time and effort than a regular job, so your passion needs to be strong enough to keep you going through tough and uncertain times.
At the same time, if you love something enough to turn it into a business, you should also think about how that change might affect your feelings. Many small businesses start as hobbies—like making crafts and selling them online. It’s worth asking yourself if your enjoyment of that hobby will stay strong when it becomes work. Doing something in your free time is very different from doing it full-time, and if you’re not careful, something you once loved could become a source of stress, or even financial trouble.
Figure Out What Makes You Stand Out
A lot of Gen Zers already have useful skills like using social media, coding, photography, or editing videos. These can all be helpful when running and promoting a business. But because so many in your generation also have these skills, they may not help you stand out on their own.
That’s why it’s important to take time to figure out what makes you and your business different. This is often called your “unique selling point,” or USP. This is the reason customers would choose your business instead of someone else’s. Looking closely at your own strengths, or how you solve a specific problem in a unique way, can help you find your USP.
Look at the Competition
Once you have your business idea, it’s time to look at who else is out there doing something similar. What can you offer that they don’t—or can’t? Are your prices more affordable? Can you offer better quality or faster service?
If your business will have a physical store, research the nearby stores too. Is your location too close to someone offering the same kind of product or service? If so, think about how you’ll attract customers to choose your store instead.
Pick the Right Business Model
Businesses come in many forms. One of the most important early decisions you’ll make is choosing the business model that works best for your idea. A business model is the way you plan to make money.
Here are some common models for small businesses:
- eCommerce: This model involves selling products or services online. You can run the business from almost anywhere, but you may miss the benefits of having a physical store.
- Brick-and-mortar: This means having a physical store that customers can visit. Many popular small businesses use this model, though it usually requires more money upfront.
- Bricks and clicks: This combines both physical and online stores. For example, a business may let customers buy online and pick up in-store or sell special products only through their website.
Other small business models include subscription services, business-to-business (B2B), software as a service (SaaS), and franchising.
Stay Flexible
As someone from Gen Z, you’re likely already good at adjusting to change. You’ve grown up during uncertain times and in a world where digital tools and trends are always shifting. This mindset can be a real strength when starting and running a business.
Once your idea is in place, be ready to change if needed. That doesn’t mean changing everything all the time—but being open to new ideas and able to solve problems quickly will help you stay ahead.
For example, your physical store might get more online sales than in-person ones. Or a product you didn’t expect to be popular might become a top seller. Maybe a TikTok video about your business goes viral and brings in more customers than you ever imagined.
Running a business means no two days will be exactly the same. Your ability to adjust, stay calm under pressure, and think creatively will be a huge help as you face new challenges and grow your business.
