For young entrepreneurs, turning an idea into a business is exciting, but there’s a lot to learn. If you’re just starting out, read our guide to help launch your business.
Young entrepreneurs are on the rise in the UK, with 24,000 people under the age of 25 starting businesses in 2021.
The pandemic has contributed to this increase, as many re-evaluated their career paths and seized the opportunities that arose during Covid-19 lockdowns to start their own ventures.
Tips for Young Entrepreneurs
Choose a Business You’re Passionate About
Whether you want to start a mobile dog grooming service, open a tearoom, or develop new software, loving what you do and becoming an expert in your field is crucial. Think about what excites you and do your homework to understand all aspects of the business. Immersing yourself in the industry can help you spot market gaps your new venture could fill.
Gain Valuable Experience
Gain experience in the industry, even if it’s through short-term volunteer work. This experience will help you understand areas of the business you may not have been familiar with.
Learn from Others
Seek advice from those with experience in the field and learn from other people’s stories about starting a business in the same industry. This can help you avoid common mistakes and deepen your industry knowledge. Many business owners are eager to help newcomers and can be a valuable source of advice.
Understand the Market
Researching your potential market thoroughly is crucial to executing a successful business. Investigate your customer demographic and understand their needs and responses to your product or service. This insight will help you tailor your offerings to better meet customer needs.
Know Your Competition
Understand your competition by finding out what other similar products and services are available, their pricing, consumer responses, and how your product or service is different. Identify what you can offer that is better. If you are a new business competing with established ones, ensure you understand how your venture can bring something new to the market.
Expand Your Business Knowledge
No matter how well you know your industry, you need to understand how to run a business. Learn as much as you can about finance, manufacturing, and operations before setting up your business.
Prepare to Make Sacrifices
Success rarely happens overnight. Be prepared for hard work, sacrifices, and determination to turn your idea into reality. Stay focused on your goals and be willing to sacrifice time and money to achieve them.
Welcome Constructive Feedback
Accept honest feedback from friends, family, mentors, and customers. This will help you understand your business better and make necessary improvements.
Write a Detailed Business Plan
Spend time researching and writing a comprehensive business plan. Break down your goals, understand your budget, devise a practical schedule, and prioritize tasks. A detailed plan helps set a realistic timeframe to meet your targets gradually and effectively.
Apply for a Young Entrepreneur Start-Up Loan
Once you have a solid plan, seek the necessary funding. A Start Up Loan is a government-backed personal loan that can help get your business off the ground. You can borrow between £500 to £25,000 with a fixed interest rate of 6% per annum, repayable over 1-5 years.
Choose a Mentor
Connect with people who have started their own business and learn from their journeys. Watching inspiring TED talks, attending exhibitions, lectures, and conferences can also provide valuable insights. Start Up Loans offer successful loan applicants 12 months of free mentoring to help them succeed.
Be Adaptable to Change
The road to entrepreneurship is challenging, so it’s important to stay flexible. Successful entrepreneurs know how to navigate unexpected challenges. Be prepared to adjust your plans as needed.
Rest to Recharge
Don’t think that taking time for yourself is detrimental to your goals. Avoid burnout by prioritizing your physical and mental health. Disconnecting from work and spending time with loved ones, exercising, practicing mindfulness, or enjoying a film can all benefit your professional growth. You’ll return to work feeling restored and motivated.
Learn with Start Up Loans and Get Your Business Off the Ground
If you’re thinking of starting a business, check out our free online courses in partnership with the Open University. Our courses include:
– Entrepreneurship – from ideas to reality
– First steps in innovation and entrepreneurship
– Entrepreneurial behavior
Plus, free courses on finance and accounting, project management, and leadership.
Disclaimer
Reference to any organization, business, or event on this page does not constitute an endorsement from the British Business Bank or the UK Government. While we strive to keep the information current and accurate, we do not guarantee it. The information is for general purposes only and does not take into account your personal situation. Always consider if the information applies to your circumstances and seek professional advice when needed.
