Small Business Advice | Start-Up Tips for Young Entrepreneurs

Small Business Advice | Start-Up Tips for Young Entrepreneurs

With the UK’s Scouts Association announcing the launch of an ‘entrepreneurs’ badge, it seemed like an appropriate time to talk about the trials and tribulations involved in starting up a new business under the age of 21. The most notable recent young entrepreneur is Mark Zuckerburg, co-founder of Facebook. Zuckerberg set up his multimillion dollar business while at Havard University, and it would seem that the UK has the potential to launch similar talent into the business world; the recent BBC television series, Junior Apprentice was a serious showcase of the amazing, young entrepreneurs that reside on these shores.

It’s clear that there are numerous teenagers and young adults in the UK that have the potential to be successful business owners. Within this post I wanted to discuss the approach and obstacles that the next Alan Sugar is likely to come across when starting up a business. Firstly, the process of starting up a business is roughly the same for everyone, regardless of age. Below are four main areas that require consideration in the early stages of starting a business.

  • Idea: Every good business starts off with a good idea. This doesn’t need to be original as some of the best companies come from recycling an existing idea but doing it better
  • Research: Sound research provides the foundation for any successful business. This can range from market research to testing your idea against an existing company that is following a similar path
  • Name: Naming your business requires creativity and forethought. Not only does it help build your brand but it helps provide potential clients and customers with a first impression of what your company is about. However one areas of difficulty is avoiding issues of copyright infringement – using the same name as someone else – and also using words that require prior official permission otherwise known as sensitive words
  • Plan: Once you are confident that there is a gap in the market for your business, the next step is to make a structured plan.  A business plan is effectively a written document that describes your business, its objectives, its strategies, the market it is in and its financial forecasts. This is not just for personal use as it can help secure funding from a bank or private investor. In the future it can also help with measuring success within your business

Alongside the issues considered above, young entrepreneurs may face additional challenges because of their age, such as the legal and financial complications below:

  • Legal: From a legal point of view, anyone under 18 is classified as a ‘young person’ but this should not deter young people from starting their own businesses. However it may affect your ability to conduct some areas of business because as a minor one is legally unable to sign or be held to a contact. Therefore getting someone over the age of 18 to help you may solve this situation
  • Financial: Getting funding for your business may be the biggest hurdle to overcome. As a young adult you will tend to have little or no track record of borrowing money, and it is more than likely that you will have no assets i.e. house to use as security for a loan. Moreover, if you are under 18 even with the aforementioned, you will be ineligible for any form of loan. However, there are a number of funding and finance schemes available from private sources that can help you raise much needed funds. As a starting block, check out The Prince’s Trust, Community Development Finance Institutions and Shell LiveWIRE

 If you’re a budding entrepreneur looking to set up a business, I hope this post has been useful. While none of the above is a blue print for creating a business for young adults, I hope it provides you with some good resources and contacts for support in your adventure and highlights some potential pitfalls. The UK is a hotbed for small businesses, so don’t be afraid to take that initial step, you might just regret it if you don’t.

So if you’ve read this post and are considering starting a business, leave a comment below, I’d really love to hear from you.

All the best,

Gordon

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