FINIMPACT: RESOURCES AND TIPS ON HOW TO EMPOWER AND SUPPORT YOUNG ENTREPRENEURS

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FINIMPACT: RESOURCES AND TIPS ON HOW TO EMPOWER AND SUPPORT YOUNG ENTREPRENEURS 

Summary: Finimpact gives a detailed article on resources and tips that can empower and support young entrepreneurs.

Who’s a young entrepreneur?

A ‘young’ entrepreneur is aimed between 18 – 24 for statistical purposes. However, we will take a look at how child and teenage encouragement can assist the youth get set up for success at a later phase of their development. While many believe that the entrepreneurial spirit is dying, consider that a Gallup poll revealed that:

  •  77% of kids want to be their own boss.
  • 40% want their own business.
  • 42% say they will invent something that changes the world.
  • 91% say they are not afraid to take risks.

The issue may be that they are not getting enough support from their wider environment, as the entrepreneurial spirit seems to be going strong. Most of the students surveyed did not have a credit union account and only half agreed that the school teaches them well about banking and finance. More statistics on global entrepreneurship are given below (on younger entrepreneurs as opposed to kids).

The Best Ways to Train and Mentor Young Entrepreneurs 

It goes without saying that young entrepreneurs are the lifeblood of the economy. Because they eventually grow up and become adult entrepreneurs who really bolster the economy. But training young entrepreneurs is not such a cut and dry process.

How can you train somebody in 2015 for an economy in 2020? Not even the most brilliant investor in the world such as Warren Buffet or George Soros could predict such events as COVID 19. Of course, they can diversify across sectors, but this is because they have such huge levels of wealth. Young entrepreneurs need to take more risks, as their wealth will compound with time. This is a basic tenet of investing.

The single best way to train a young entrepreneur is to make them ‘Antifragile’, a term initially coined by options trader Nassim Taleb. Essentially, you make them able to thrive and adapt to an environment where you cannot rely on static principles. An antifragile entrepreneur actually thrives in chaotic environments, where there is less certainty on the outcome.

Training an entrepreneur to be antifragile, however, is an entirely different story. The short version of training and mentoring entrepreneurs centers around 3 core principles:

  1. The reading of high-quality entrepreneurial books at an early age (more on this below).
  2. An attitude of creative experimentation and consistency from an early age.
  3. Close association with successful entrepreneurs and like-minded individuals at an early age.

More details on why these 3 principles are so essential are explained in detail below. Needless to say, the younger an entrepreneur starts on his or her journey, the better. And few, if any, entrepreneurs succeed without failing on multiple occasions. It is better to fail early and try again than to try late and give up.

Best Tips for Millennial Entrepreneurs

The following are some of the best tips for young entrepreneurs and business people looking to build wealth quickly, and then hold it for a long time horizon where it can grow steadily. Younger entrepreneurs can afford to take more risks and can look to get creative, while older entrepreneurs will look for diversification and consolidation.

1.  Choose Your Friends Wisely

As the well-known adage goes, you are the sum of your closest five friends. Young entrepreneurs need to associate with like-minded individuals. This principle applies across fields. If you want to become an American Football player, you need to associate with friends who are obsessed with succeeding at football. Their influence will rub off.

Setting up businesses with other people is correlated with increased success, especially for startups, an area where lots of millennial entrepreneurs will be looking towards. But setting up a business with an irresponsible person will lead to issues down the line. Make sure to set up with someone you really trust. Starting a business as a co-founder can give you a much needed psychological boost as you are not simply doing it alone, and it will foster teamwork and collaboration skills.

2. Find a Mentor

This is related to the first point. A mentor can really serve to point you in the right direction. They have been through everything that you have, multiple times. They will also be a valuable network partner who can hook you up. Many new entrepreneurs make the dreadful mistake of ignoring this tip.

This could be a generational tendency with a do it yourself at all costs attitude. But it is not just millennials that are guilty of this, but the entire social class of entrepreneurs. And this is an excellent characteristic to have for an entrepreneur. It is better to be bold and assertive and learn through failure to use mentors than never to try at all.

3. Get Comfortable With Failure

The fact of the matter is that you cannot predict the market. You cannot know if your business is going to succeed. In fact, it is likely to not succeed. The very best entrepreneurs started early, sometimes with lemonade stands. It is the quickest way to learn good business principles. You learn more from failure than you do from your success. Failures are the stepping stone to success. So if a business fails in your twenties, as many do, then dust yourself off and start again.

Related to this point is that you need to become a self-starter and take 100% accountability for your own actions. Your results need to be tied to your effort. Entrepreneurs need to learn to turn $1 into $2. Just being fed stimulus and grant programs can lead to incompetence if it is not used correctly. Learn to succeed in any environment and to make do with what you have now and again. Positive psychology, competence, and active work will make you a better human and a better business person.

4.  Use Indirect Success Techniques

There are many tools and strategies you can use to succeed. But success is more than merely the ‘technicals‘. Consider affirmations, visualization, and meditation as integral techniques to succeed. Have a vision of where you are going and contemplate it often. Do not fall into the habit of pushing forward at all costs until you make it.

The business world does not care how much effort you put in if you are not wise in how you spend your resources. Many entrepreneurs have fallen foul of entrepreneurial burnout in their thirties and late twenties. Take at least one full day off and ensure you are getting enough sleep and wholesome nutrition. This will pay off in the long run – do not trade success for health.

5.  Write a Business Plan

Writing a business plan is an excellent tool as it will familiarize aspiring entrepreneurs with all many aspects of the establishment of a business. A business plan is typically a document between 8 and 15 pages outlining the core values of the business, how it hopes to acquire funding, the experience of the founders, the target market, and so forth.

A mock business plan can be created if you currently do not have a business. As you start to write the business plan, you will come to spot certain blind spots in your ideas and you can refine it until it is a pure gem.

6.  Get Comfortable Speaking

Like the business plan, public speaking will help you to clarify who you are and what your business is all about. It will also bolster your confidence and rhetoric skills. Most people find public speaking to be incredibly nerve-wracking, but it is a very powerful self-development tool if you stick with it. To succeed in the realm of business, you will need to get used to speaking with people (not to mention arguing and negotiating with them). All people, not just potential investors, respond well to power and confidence. 

7.  Understand Money, Not Just Work

It is vital to understand the very basic tenets of money. Why you want it, what you can do with it, and how it grows and compounds with time. It is also important to understand the difference between being an employee and an entrepreneur. Not everybody has the characteristics to become an entrepreneur. But it is still useful to understand savings and investments to a degree. Time is always the greatest investment, and if money is saved from an early age, the benefits can be enormous. Start saving and compounding wealth today.

The mindset should be to have a lifestyle that is engaging and dynamic, and this can be done with an understanding of how money works, and how you can get money to work for you – not the other way around. This is why many investors are so adamant about building real estate and rental wealth, as it is passive income that generates for them week by week, month by month, and year by year.

8.  Start Right Now, but Slowly

Many new entrepreneurs make the mistake of ‘waiting’ to become an entrepreneur. But the process does not start when you are finished college! You spend money every single day! Every time you purchase something, you engage in a business transaction!

If you start saving and investing from an early age, even with small amounts, it will become a trend. You will form automatic success habits that last a lifetime. If you earn $150 a week, get into the habit of saving $15 and investing $15. This follows the golden principle of investing 10% and saving 10% of income. Over time, it will result in the accumulation of great wealth.

Other than this, there are many things you can do, just get started. Write a business plan, start an online business, look for creative ways to make money, brainstorm, pool resources with friends, etc. if you look at the autobiographies of most Ivy League entrepreneurs, you will see they started business programs while in high school and university. Do not wait to start

The Psychology of Entrepreneurship 

What is often overlooked in terms of successful entrepreneurs is their initial mindset. Many of them knew what they wanted to do and went for it. In the overall scheme of things, a determination to succeed and an assertive ‘shark’ mentality are what makes for real success. This kind of attitude can be fostered to a degree but is largely a function of the character of the individual.

However,  this is certainly not the whole story, even if it is an essential building block. According to JBCNS School, the 10 characteristics of a successful entrepreneur are:

1) Creativity

2) Professionalism

3) Risk-taking

4) Passion

5) Planning

6) Knowledge

7) Social Skills

8) Open-mindedness towards learning, people, and even failure

9) Empathy

10) The customer is everything

Clearly, what goes into the ‘mix’ of entrepreneurial success is quite diverse! For a young entrepreneur, it is possibly best to emphasize teamwork, collaboration, and networking. If they do not contain all of the necessary ingredients, then they can acquire them through shared characteristics. This is the best way forward, as it is too much to ask for a young entrepreneur to have truly honed these skills with little business experience. Slow and steady wins the race. History is rife with tales of people who acquired wealth quickly and lost it even more swiftly.

 

Read more here

Source: www.finimpact.com

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