If you’re a millennial in America right now, you probably know that anything can happen! Anyone has the ability to start their own business or purse a dream they have. Sure, having a decent savings in place makes the move easier, but working full time and starting your own business on the side can be done. City Girl Savings was founded by a millennial (Raya Reaves), and if she can do it, anyone can! We’re sharing four important things to keep in mind before you take the leap and start your own business!
#1 Success Doesn’t Happen Overnight
If it came easy, everyone would be doing it. Starting your own business is a great accomplishment, but there is much more to it. In the beginning, there are long hours, tight budgets, limited sales, and minimal response. In fact, studies show that most start-ups don’t see a profit until 3-5 years after the business opens. The important thing to note is that consistency is key. Consistency is what sets you a part from the others. Hoping for an immediate return will likely result in giving up. If you’re consistent, even through the tough patches, success will come.
#2 Seek to Solve a Problem
The best way to guarantee success in business is to provide a solution to a problem. For example, City Girl Savings provides a solution to the problem of a lack of budgeting skills. A person who doesn’t know how to budget properly and control their spending could be forced to live a stressful life. City Girl Savings works with people who lack those skills to help them get on financial track. When they are on financial track, they can live a positive, fulfilling life. Lack of financial knowledge is a huge problem!
What problem does your product or service solve? Who has the problem and how do you spot those specific people? Identifying your ideal customer market will allow you to develop content specifically for them. When you can speak to the people who need you, they are more likely to seek you out. If you are speaking to everyone or a market that is too broad, your message could get lost.
#3 Don’t Be Afraid to Invest in What You Don’t Know
While millennials should be involved in every aspect of their business, especially during the start-up time, there is nothing wrong with seeking and paying for help. If you don’t know how to manage your company’s books or accounting, hire a small business CPA. If you don’t know how to create marketable content for social media, hire a social media marketer.
If you need legal counsel, pay for it – this is something you definitely don’t want to skimp on! The point is, although your budget may be tight, investing in others that can help you do it right the first time makes a world of difference.
#4 Getting Funding and Investors May be a Challenge
According to CNBC, “Fifty-seven percent of campaigns on the popular platform Kickstarter fall short of their funding goals or flop completely.” Millennials don’t have as much credit and financial history as the older population, which makes it harder to tap into savings, draw equity from a home, or obtain a loan from the bank.
If funding or securing investors doesn’t work out, it’s important to have a savings in place, especially if you leave your day job to start the business. When your personal finances are in order, you can feel confident in your ability to take care of the finances of the business. If possible, it’s best to avoid high-interest debt that often comes from credit cards.
If you are considering starting your own business, keep the four need-to-know items above in mind. Get ready to work hard, stay consistent, and shell out some cash! Are you thinking about starting your own business? What is stopping you? If you already have a business, what are some pointers you can share for those looking to take the leap? CGS readers would love to hear what you have to say! Post a comment below to share your tips or questions!
5 thoughts on “4 Things Millennials Should Know When Starting a Business”
Excellent post! Number three is huge and I’m glad that you mentioned it that you don’t want to skimp out on this. 👏🏼
I LOVE this: “#1 Success Doesn’t Happen Overnight – If it came easy, everyone would be doing it.”
Thank you for sharing this uplifting message! Stories of overnight success are *everywhere*, but in reality, it’s a tiny percentage of businesses that actually do this. Small, steady progress will take you places. Keep working hard, and change what’s not working.
Yes, I totally agree with what you said. I think that success doesn’t really happens overnight. You have to work hard for it. You have to earn it. Thanks for sharing this article.
I also believe that once you engage in business you should know how to handle money. Money is the one which is rotating in business. I think that controlling yourself to spend more will give you a comfort in finances and your business will have a healthy cashflow.
Yes, I totally agree with what you said. I also believe that success doesn’t happen overnight. We have to earn it and work for it. Thanks for sharing this article.