Starting a business is a daunting task for anyone, but young business owners face unique challenges. In Western Australia, the entrepreneurial spirit is alive and well, with numerous opportunities for young people to innovate and create successful ventures. Here are some tips for young people considering starting their own business.
Grow your reputation
While young people have a reputation for being innovative and coming up with fresh new ideas, they often lack the extensive professional networks and established reputations that older counterparts typically have. This can make it more difficult to gain the confidence of potential clients, investors, and partners.
To overcoming this challenge, focus on building a reputation for expertise and reliability by consistently delivering quality goods or services.
Once you have established your business, you can also look out for award programs specifically targeting younger business owners, to give your business even more credentials.
Access to funding
One of the biggest challenges for young entrepreneurs is securing funding. Traditional lenders often view young people as high-risk due to their lack of credit history and business experience. This can make it difficult to obtain loans or attract investors.
Before pursuing funding, you should understand what banks are looking for when deciding to give you a business loan or if you are thinking about borrowing from family to start up a business, take these points into consideration.
You can also check GrantConnect, the Australian Government’s grants information system, for relevant grants you may be eligible for.
Build a network
Another significant challenge for the young is building a professional network. Experienced entrepreneurs often have established connections that can provide valuable advice, mentorship, and opportunities.
Young business owners can join professional associations, such as local chambers of commerce or business associations, which offer networking opportunities, events, and resources.
Regularly attending local business events, seminars, and workshops can help in meeting other entrepreneurs and potential mentors. You can also network online in groups such as the SBDC’s Facebook group I’m a small business owner in Western Australia.
Finally, you can turn to the experienced business advisers at the SBDC for all kinds of business advice – it’s a free service available to all WA small business owners, and there are many ways to access advice including online appointments.
Get online
You might be much more comfortable with Tik Tok, Snapchat and other newer social media than older business owners, but there are other online platforms to consider for use in business. Utilising online platforms like LinkedIn to engage with industry groups, participate in discussions, and reach out to potential mentors can be advantageous – consider which platforms to put into your mix when starting to promote your business on social media.
Don’t forget, a website is still a very valuable tool for businesses but can be a big investment so choose your website professional carefully or search our workshops for opportunities to learn to build your own website.
Balancing business with personal life
Balancing the demands of starting a business with personal life, including education, social activities, and family responsibilities, can lead to burnout and affect your overall wellbeing. As the person in control of your business, it’s important that you learn to manage your wellbeing and mental health.
Developing strong time management skills ensures that sufficient time is allocated for both business and personal activities.
Tools like calendars, to-do lists, and project management software can aid in this. Establishing clear boundaries between work and personal life, such as setting specific work hours and making time for hobbies and relaxation, is important.
Leaning on friends, family, and professional support networks can also provide valuable support and understanding.
Building your skills
Starting a business at any age requires a commitment to lifelong learning to navigate the many changes to the operating environment, customer expectations, legislation and other things that can impact your business.
The SBDC’s workshops cover a wide range of business topics, with practical, low cost sessions packed with key information and useful hints and tips to help you master topics from business skills and financial management to sales and marketing.
By embracing learning opportunities, young entrepreneurs can keep developing their skills and confidence to increase their chances of success.
Why should you start your business?
According to the Australian Small Business and Family Enterprise Ombudsman, more than half of small business owners in Australia are aged over 50 an only 8 per cent are under 30 years of age. However, small business ownership has many benefits as well as challenges including ‘being your own boss’.
If you are a young person considering going into business, or even starting a side hustle to see if entrepreneurship is for you, don’t forget that the support and resources available through SBDC can be invaluable in this journey, providing the guidance and assistance needed to turn your business ideas into reality.
More information
- Check out all our services to help prospective and current small business owners
- Read our steps to starting a business
- Book into our free Starting a Business workshop
