7 Great Tips for Young Budding Entrepreneurs

Entrepreneurs fill a vital role in society. They start businesses that create jobs, improve our standard of living, drive innovation, and bring new technology to the market. We need to cultivate young entrepreneurial types, though many are discouraged by the statistics and the challenges of starting a new business. Here are seven great tips for young budding entrepreneurs.

Define Your Market

A common mistake that many entrepreneurs make is trying to serve everyone or too large a market segment. Instead, define a market. It may be a general service or product for a local market, or it may be targeting a narrow niche not otherwise being well served. Stick to a market that would be both interested and profitable. If you know who you’re serving, you can better determine the right price point based on that market.

Have a Plan

Your business needs a plan. Have a clear vision of what your business will and will not do. Set milestones for growth and development. This will help you focus on core areas of your business and make you accountable. You’ll be able to plan what needs to be done and stay on top of it.

Manage Risk

Starting a new business involves risks. Keeping it going entails managing risks. Mitigate risk by starting out with the minimum viable product, the most basic design for your product or the core service you’re going to offer. You can always add value-added services or features to the product line later. By starting with the minimum viable product or service, you minimize the investment required to startup and the cost of failure. Remember that you can re-evaluate prices as you improve or grow.

Some people are afraid to start a business because of the risk. Entrepreneurs are not fearless; they simply conquer their fears. Take action when you come across an opportunity but take steps to manage the risk so that a mistake doesn’t wipe you out.

Get Your Finances in Order

Financial problems destroy many startups. Spend wisely. Minimize debt and realize that it is safer to grow slowly. Maintain good credit. Don’t assume you’ll get help from angel investors. Recognize that there will be trade-offs and sacrifices to be made.

Be Honest

Don’t promise things to customers you can’t deliver. Don’t overextend yourself and hope you can keep your promises. If you don’t have the time or money to commit to a project, say so. While you’ll have to challenge yourself, pushing yourself too far results in burnout. Be realistic with cash flow estimates and honest about what your financial obligations. Find work you care about but recognize when you aren’t giving it 100%.

Market Both On and Offline

Young entrepreneurs tend to jump into social media marketing. That’s not a bad thing since social media is cheap and can be a powerful resource. However, too many young people only engage in social media marketing. Don’t overlook tried and true classic marketing methods and consider hiring public relations experts to help you get the word out.

Seek Out Advisors and Role Models

Find good people to help you. While this is essential advice when you’re hiring employees, the same is true when you seek a mentor or business advisor. Look for inspiration from other young entrepreneurs. For example, you could learn from the Sprouse brothers. Cole Sprouse net worth 2016 was around eight million dollars. Learn how others succeeded so that you can copy what works and avoid the mistakes others made.