5 Things To Know About Starting A Business In Your 20s

By Michelle Wanjiku

James* decided to start a business after 2 years of looking for a job in the IT industry without success. Now, he earns around 6oK shillings every month from his video game and movie shop business. Self employment is becoming very popular among young people due to the difficulty in finding jobs nowadays.

So what is it that you should know about starting a business in your 20s?

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Here are a few things you need to know about starting a business in your 20s

1. Experience and expertise matters a lot.

One of the biggest challenges for anyone in their 20s who wants to start a business and is looking for investors is the fact that they lack a lot of experience.

Investors want someone who is experienced in their field as they believe they are more likely to come up with good profits. So you should expect having to defend your expertise.

However, there is no need to be discouraged, there are substitutes to experience that will enable you to get investors.

Use your talent to show that you are capable of making your business great. If you do not feel like this will be enough, you can even partner up with someone who has the experience. Get mentorship which will help you succeed in your venture.

The main point is knowing your weaknesses and working to strengthen them.

2. Youth favours risk.

As a young person you have the luxury to make mistakes. Therefore taking risks is something you should be willing to do.

Whether you end up making wrong investments or your business flops, you still have more time to recover.

This is therefore the time to take calculated risks because whether they pay off or not, it will be a good learning opportunity.

3. You have time

There is no need to start big. Starting a business is an expensive and risky move. Hence, you should start slow and take your time.

Having a big business is what most people dream about, but even the big companies started out small.

You have the time to grow your business; there is no need to rush. Businesses that start and grow gradually have a better chance of surviving for long as opposed to those that take the fast route.

There is no point in being too impatient. Take your time

4. This probably isn’t the end.

So many first businesses don’t make it and the ones that do open up the way for other opportunities.

When you decide to go into entrepreneurship, you will most likely end up having more than one business. Therefore believing that your first business will be your last is a lie.

Whether your business is a success or not, you will end up venturing into new business opportunities as well.

This means, it is important that you keep an open mind and look out for opportunities.

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5. The capital you have matters most.

Before you start a business it is important that you save enough money to cover part or if possible even all the costs.

It is almost impossible to get investors to fund your business 100%. Not to mention you will have very little stake if it is funded by someone else.

Strive to get some amount that will entitle you to a good portion of the business before you approach investors.

Remember, people are more likely to take a risk by investing in your business if they see that you are also willing to take the risk.

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Before you start a business it is important to put your finances in order. It might take a while for the business to start producing profit and you need to be well prepared for such a scenario. Planning is an important part of ensuring your business is a success.