With unemployment consistently on the rise, especially in the youth sector, it is not a bad idea for young people to put up their own businesses instead of waiting for the results of their job applications. However, putting up a business is a monumental challenge in an equally challenged economy. Peter Day, a renowned presenter of Radio 4’s Business, shares valuable lessons he learned from interviews with young entrepreneurs, a knowledge that he has accumulated over many years of interviewing successful young people who managed to turn the odds in their favor.
Lesson 1: HARD TIMES PROVIDE BUSINESS OPPORTUNITIES
As successful businessmen would always say, there is no real right time to put up a business. Whether it is recession or the country is in an economic boom, businesses are risky. However, their ideas were focused on a specific niche and specialization and this is how they managed to shrug off their doubts.
The benefit of starting a business in a downward economy is the fact that the economy is due for a rebound. Recession is always temporary and putting up a business during this period gives you the opportunity to buy materials at a bargain. As the economic outlook becomes better, so will your business.
Lesson 2: FOCUS ON IDEAS YOU UNDERSTAND
One pitfall that many young start-up entrepreneurs make is that they focus on the academic side of things. They conduct a lot of research with the sole purpose of identifying what to sell. This is a very clever way to approach things, but this almost does not improve your chance for success. The advice of experts is to start looking at things that you need. If you have necessities that nobody can properly address, you might as well step up on the opportunity and close this consumer gap.
Lesson 3: YOU DO NOT NEED SPECIAL TOOLS
A computer is a simple, yet very powerful tool to launch a business. It can edit movies, edit songs, develop software, run accounting, and so on. A computer, coupled with the Internet, opens a huge door of opportunity for you. It allows you to collaborate with people around the world at almost no cost. Your laptop can connect you to thousands of employers who need somebody to get things done remotely. With a clever approach in online marketing, you can significantly boost your presence in the web.
Lesson 4: CASH IS KING
As all businesses need capital, you need an adequate amount of cash to start-up. It is not wise to start a business on 100% debt because this liability will eat away at your profits. Besides, a bank loan is close to impossible because you have no business history. It will be risky to borrow on collateral considering that you have no proven history of business success yet.
Lesson 5: Hire the Right People
Once your business is up and running, it’s crucial you hire the right people. Make sure you run a CRB check on all interviewees if you intend to hire them. You can do this check via Clear Check. They are a highly recommended and reputable company who provide in-depth background checks on potential employees.