Essential start-up tips for young entrepreneurs

For aspiring, young entrepreneurs, turning an idea into a business enterprise is exciting, but there’s a lot to know – if you’re just starting out as a younger business founder, read our helpful guide to help get your business off the ground.

Young entrepreneurs are rising in the UK, with 24,000 people under the age of 25 starting businesses in 2021.

The pandemic is one reason for the rise in young entrepreneurs, with many re-evaluating career paths and taking the opportunity that arose during Covid-19 lockdowns to strike out with their own ventures.

Choose a business you’re genuinely passionate about

Whether you want to start a mobile dog grooming business, open your own tearoom, or develop innovative software, loving what you do and becoming an expert in your field is crucial.

Think about an area you’re passionate about and do your homework to understand all areas of the business.

Taking the time to immerse yourself in the industry can help you identify gaps in the market your new venture could fill.

Read our guide on how to spot a gap in the market.

Gain valuable experience

Take the time to gain some experience in the industry, even if it’s short-term voluntary work.

The experience will identify any areas of the business you may not previously have been familiar with.

Learn from others

Ask for advice from those experienced in the field and read up on other people’s experiences of starting up a business in the same industry.

Contacting others can also help you gain a deeper knowledge of your industry and can even help you avoid mistakes others have made.

Many business owners are keen to help others get a foothold in their industry and can be a useful source of help and advice.

Understand the market

Thoroughly researching your potential market is crucial to executing a successful business.

It’s worth taking the time to investigate your customer demographic and put yourself in their shoes; you’ll gain an insight into how they respond to your product or service and why it meets their needs.

Read our guide on how to price your products and services.

Know your competition

Familiarise yourself with your competition by finding answers to the following questions:

• what other products and services like yours are in the market already?
• what price are they currently going for?
• what is the consumer response?
• how is your product or service similar or different?
• what can you offer consumers that is better?

If you are a new business set to compete with established businesses, you need to be confident you’ve done your homework to understand how your venture can bring something new to the table.

Read our guide on how to do your competitor research.

Expand your business knowledge

However well you know your chosen industry, you need to spend the time understanding how to run a business.

Learn as much as you can before setting up your business in key areas such as:

• finance
• manufacturing
• operations

Read our guide on starting a business on a small budget.

Prepare to make sacrifices

Don’t believe every business overnight success story you hear about, as chances are they involved a lot of hard work and disappointments along the way.

Prepare yourself for a lot of hard work, sacrifices, and determination to make your idea a reality.

Stay focused on your goals and be willing to sacrifice time and money to make them happen.

Welcome constructive feedback

Welcome honest feedback from supportive friends, family, mentors, and customers; this will help you understand your business and implement improvements in the future.

Write a detailed business plan

It’s a good idea to spend time researching and writing a comprehensive business plan.

Break down your goals, understand your budget, devise a practical schedule, and prioritise tasks.

Moreover, a business plan can help you set a realistic timeframe to meet your targets gradually and effectively, thereby helping you plan a realistic timeframe to achieve your goal.

Download our business plan template.

Apply for a young entrepreneur start-up loan

Once you have a concrete plan in place and are steadfast in your commitment to your business, the next stage is to acquire the relevant funding.

A Start Up Loan is a government-backed personal loan that can help start-up businesses get their idea get off the ground.

You can borrow anywhere between £500 to £25,000 as an unsecured loan with a fixed interest rate of 6% per annum which can be repaid over 1-5 years.

Find out now if you’re eligible for a Start Up Loan.

Choose a mentor

It’s worth making contact with people you know who’ve started their own business and learning about their journey and the things that did and didn’t work.

It might also be a good idea to watch inspiring TED talks, and attend relevant exhibitions, lectures, and conferences to acquire as much knowledge as possible.

As a bonus, Start Up Loans offer successful loan applicants 12 months of free mentoring and special offers to equip them with the tools to succeed.

Find out more about mentoring from Start Up Loans.

Be adaptable to change

Embarking on the road to entrepreneurship is challenging, so it’s a good idea to adopt a flexible mindset to stay on course.

Successful entrepreneurs know how to navigate the journey no matter what.

Take Netflix, for example; the billion-dollar giant originally started as a mail-order DVD rental company but had to grow with technological advancements, so it adjusted its strategy and became a global streaming media enterprise instead.

Sometimes plans don’t come together as expected, so be prepared to make diversions along the way.

Rest to recharge

Don’t think that relaxing and taking some time for yourself is detrimental to achieving your goals.

Being too busy and making little room for rest or recreational activities can lead to burnout – both mentally and physically – which could cause a dent in your progress and result in harm to your wellbeing.

You’re the key investor in your business, so you must always prioritise your physical and mental health.

Disconnecting from work and spending time with loved ones, exercising, practising mindfulness, taking a trip away, or simply enjoying a film are all beneficial to your professional growth.

You’ll feel mentally restored, energised, and motivated when you return to business.

Read our guide on the best wellness businesses to start.