Posted by Deepshikha Shukla
December 3, 2020 | 5-minute read (931 words)
Many teenagers are inspired to start their own businesses but don’t know where to start. Check out the following 15 best practices that can help teen entrepreneurs get well on the way to building a successful business. These practices can help you minimize risk and increase your chances of success.
Understand Your Chosen Industry
As a young entrepreneur, it’s critical to conduct thorough market research and understand your chosen industry. The better you know the field, the better you’ll understand your target customers, competitor pricing and industry-specific marketing strategies. That way, you can identify the limitations that exist among other similar products and services and try to fill the gap. Market research can help you gain insights on:
- Why people need your product or service
- What problem it can solve
- Who will buy it
- How should you price it
- Where and how you can market the product
Set Realistic Goals
Your goals need to be challenging, but still accomplishable. Striving for short-term goals and tracking their progress along the way can help you achieve the long-term benchmarks and figure out where your business is heading.
Manage Your Time
Time management is essential for efficiently managing a business, and teenagers may be balancing entrepreneurship with school and other obligations. Time to rest and reenergize so you can strategize and come up with fresh ideas for the business. Also, it's crucial to know when you’re overworked so you can take regular time off. Prioritize and learn to take one step at a time when building and growing your business.
Think of a product or service idea that either solves a problem or fulfills a demand. Focus on bringing creativity and innovation to your solutions. Then explore the ways you can position your product or service for market and turn it into a small business.
Seek Legal Advice
Young entrepreneurs need to ensure that they acquire all licenses required to get their businesses up and running. They may find it difficult to understand every law and regulation affecting their business directly or indirectly and maintain compliance. As your business grows, you’ll also need to stay up to date with changing government laws and policies. For setting up your business and running it smoothly, it's a good practice to take regular legal advice from an experienced outsourcing company.
Learn From Mistakes
Young entrepreneurs will often face challenges like competition, demanding customers, inventory challenges, etc. You must proactively take time to acknowledge your mistakes and learn from them. Use challenges as an opportunity to grow and develop your business, and set yourself up for a thriving future. In addition, track your competition to improve your marketing and success strategies.
Manage Your Finances
Manage your cash flow in a way that you can quickly access the financial information whenever you need to. The most common fundraising platform for new businesses is Kickstarter. If you can explain your idea, outline the business plan and model revenue to investors, you may get the funds needed to turn your initial proof of concept into a real, scalable business.
Focus on Marketing and Branding
Use social media as a way to promote your products or services regularly. Branding is crucial when it comes to presenting your business in front of potential customers or investors and measuring their interest. Analyze your social media results frequently so you can understand what does well and what doesn’t. This way you can better tailor your future messaging efforts.
Strategize Your Business Plan
To map out your growth strategy, you should create a business plan that includes your goals and the steps you plan to take to get there. A successful business plan includes short- and long-term goals, a growth strategy and ways to respond and adapt to market changes.
Build a Network
Take advantage of LinkedIn and other networking sites to connect with other professionals and experts in your industry. Leverage a public speaking or listening opportunity at a relevant event for networking with like-minded people. You should embrace the help in terms of advice, resources or funding available through your network.
Look for Expert Guidance
Learning is a lifelong process, and no one person knows everything. Entrepreneurs should take advice from experts and apply it to their businesses so they can expand and adapt easily. A good mentor can help you solve the day-to-day problems you face in your entrepreneurship journey.
Minimize Your Expenses Initially
Having people who are experts in their fields and can work with you is so important. Such a team can help you get through the tough times and grow your business. But don’t spend too much on supplies, equipment or hiring when you start. You can save your money and time by outsourcing tasks like hiring, accounting, tax calculation and marketing to the people who are great at them.
Get Customer Feedback
Share your ideas during product testing and see how your test market reacts. That is the best way you’re going to find customers and get the best feedback. Use negative feedback as a way to tweak your product or service and improve upon it, and use positive feedback to grow your business.
Research what other companies are charging for similar products, then price your product or service accordingly. When you’re starting a business, consider going a little lower on the price to attract potential customers.
Teenagers today have the advantage of being born into a world of accessible, affordable resources and technology that make starting a business easier than it was a few decades ago. Use technology to prioritize your tasks, manage money and handle your other business functions.