Generation Y Entrepreneurs

The Benefits of Starting your Own Business

By: Megan Gartrell, Staff Writer

The landscape for employment has shifted. With a struggling economy, more youth attending post secondary education and fewer employment opportunities, a college degree no longer guarantees a job. Nor does taking the leap into the world of employment mean a lifelong commitment spent in one office. That kind of job security has become a rarity. The odds of spending decades in the same position have dwindled. Most post grads will undergo numerous career changes and jobs in their adult lives unlike previous generations.

Big companies are downsizing and competition for positions is stiff, however; this isn’t necessarily negative because it’s leading youth to discover their talent for business and these Generation Y budding entrepreneurs could be the boost needed to kick start the economy. Statistics Canada shows 3 per cent of small business owners were under the age of 30 in 2007, and as the population ages, this number is expected to grow.

Young minds have the energy and drive to want to build new careers and find success by following their own paths. No longer will they wait for that dream job to come to them, instead they will create and develop their own. If you can’t join them, surpass them.

Who hasn’t daydreamed about coming up with the next Google or Facebook and the money that accompanies a fresh idea? For most the thought of being your own boss is enticing enough to strike out on your own. But what does it take to be a successful entrepreneur? Is having a clever business idea enough?

Characteristics of Success

The good news is becoming a business owner doesn’t require joining an exclusive club. Entrepreneurship has no legal or particular requirements, but some people are more likely to succeed than others. Not everyone is cut out to own his or her own business. Launching a business takes guts, focus, money, and time with no guaranteed success. With that in mind, successful entrepreneurs must posses certain characteristics.

If you find yourself constantly hitting the snooze button, or struggle to complete tasks without someone prodding you, running your own business may not be your best option. Successful entrepreneurs are extremely self-motivated. Having a clear vision and knowing exactly where you want to go and why will help drive that passion to wake up early each morning and get to work. Only 1% of the work is done by coming up with the idea for the next Pinterest.

In a CBC news interview with five young Canadian entrepreneurs, April Glavine, founder of Lean Machine Inc. said, “You are your own motivator, so tenacity is imperative. There’s nobody setting your schedule, so if you don’t believe in yourself and if you don’t do it, who will?” Glavine’s Moncton-based company leases vending machines stocked with healthy snacks to high schools and health care facilities. Her passion stemmed from her reactions to the alarming rates of childhood obesity. “I really felt that this was my place and I believed in the fact that I needed to start this,” she said. Glavine is a good example of having the ambition to solve a specific problem and the self-confidence to believe that she is uniquely positioned to make a positive change. Passion is essential when things aren’t going according to plan, which often occurs in the newborn stages of a business. You must be willing to sacrifice your time.

Besides passion and a tireless work ethic it is imperative for a young entrepreneur to be flexible and agile. Knowing when to take that calculated risk and recognizing new opportunities when they arise should be second nature. And if failure is a word that makes you cringe, then you should pull the escape hatch now. Chances are you will fail more than once. An entrepreneur must be persistent in the face of failure when others simply opt out. And learn from setbacks. Run tests on products and talk to customers to see how the business can be reoriented. A certain level of edge and tenacity is key. A lot of people will tell you no before you hear that coveted “yes.” J.K Rowling had Harry Potter and the Philosopher’s Stone rejected by twelve publishing houses before Bloomsbury Publishing House finally said yes.

Timing and luck also play a role when launching a new business. In markets like fashion, music and gaming, where timing is everything you need to move quickly to execute. Evgeny Tchebotarev, another entrepreneur from the CBC article and co-founder and creative director of 500px, a web-based platform for sharing photographs said, “Start early. I’m only really at the beginning right now with this product and I’m guessing it will take another five years or so before we get to a really big level.” The technology sector is extremely fast moving and volatile so you can’t drag your heels when it comes to initiating ideas. This also means being able to articulate your ideas. Your new “boss” is the customer so the ability to communicate your ideas to people is vital.

Good entrepreneurs also tend to be multi-skilled. Before the business expands you may be expected to juggle numerous roles including marketing director, accountant and IT manager. It can be easy to lose focus of what your strongest skills are and when this happens remember what strengths you bring. Do not lose that creative impulse. Owning a business means shaping and designing in ways others haven’t explored.

You have the idea and the personality, what next?

First things first, you must define your idea and come up with a business plan. A business plan will outline the steps you need to take, how much to spend, and your goals. It summarizes the sense of your business in a single document. A solid business plan is useful when trying to ascertain financial help. It creates a map for investors, bankers, and other interested parties to use when determining whether or not your business is viable. Especially for a young entrepreneur, it is important to convince people you are serious about your idea and you know how to make that idea work. Looking professional and organized is all part of that process. There are numerous free business plan templates available online.

Having a business plan also means shaping the structure of your business. Most small businesses are operated as a Sole Proprietorship, General Partnership, or a Corporation. Do you want to go in as a lone wolf or take on a partner to help manage the workload? Next, brainstorm a company or product name and then register it. Often having a catchy name can help mold the vision of a business.

Like any big project the proper amount of research is key. Find out if there is a market for what you have to offer and know who your competitors are. Is someone already selling a similar idea? You need to know how you will keep customers purchasing your product over someone else’s.

Probably the scariest unknown regarding start-ups for young entrepreneurs is financing. It is critical to find the right kind of funding for your business. You must be selective and smart when seeking money or it could turn your dream business into a nightmare. You will need money to create your product, pay staff, build inventory, and do marketing and sales. There is also federal and provincial licensing, local safety and health regulations, environmental protection rules, liability, employee deductions and labour standards to consider. Money comes in many forms: taking equity out of your home, government grants, tapping credit cards, and friends or family loans. Knowing which is the right path can be daunting. It never hurts to seek advice from those who have been through it before.

For young entrepreneurs having a mentor to ask questions and learn from is especially helpful. In an article for Forbes Magazine, Ryan Terpstra, founder of Selerity said, “I can’t stress enough the importance of strong mentors when embarking on the journey of building a company. I’m a firm believer in learning from people’s success and, more importantly, their mistakes. Individuals who have gone through the exciting but trying process of starting a company have a great deal to offer entrepreneurs.” Mentors want you to do well. They are a source of knowledge that can’t be found in books. In a world where competition is inevitable, having someone in your cheering section can make the difference between success and failure.

A business can never succeed without effective marketing. In today’s day and age getting a name out there means knowing your target audience and developing a message that will resonate with them. Branding and advertising have changed thanks to the social media world. Become a Twitter, Facebook and Instagram expert. Have a website that is visually stunning and straightforward. Be fun and creative and allow customers to interact in marketing campaigns.

Benefits of Owning a Business

Despite the hard work involved, starting your own business can be a very rewarding experience. You get to build something from the ground up and be there for every step and every stumble. It could be creating a program for literacy among children, or turning someone’s yard into a unique and breathtaking space, whatever your passion it will be a chance to shape and flesh out your ideas. Remember how good you felt when you created an entire city out of Lego, or baked that pottery dish with your handprint? There is a sense of pride that accompanies building something.

Having your own business provides a freedom to choose whom you work with and what your workday will look like. There is a community that is built when owners and customers have access to one another. Connections and relationships emerge when there isn’t a giant office jammed with cubicles with telephones manned by machines. There are opportunities to provide jobs within the community and the chance to give back. And depending on your attitude you might be the coolest boss on the block. Perhaps office attire will consist of jeans and printed t-shirts and Thursday meetings will take place in the local park. The outlook completely depends on your vision and that is an exciting prospect.

With any big risk there is a chance of failure, but if you have the right personality, a great business plan, and the research behind your idea in place, starting your own business may be the best career move for happiness and success.

Megan is a freelance writer/editor living in Victoria B.C. whose passions include fiction, poetry, music and dance.

Sources

Photo courtesy to Under30CEO, hashtagsmag, Entrepreneur.com, Empower Network,

Service for Youth, Government of Canada – Starting Your Own Business

Inc.com – Top 10 Reasons to Run Your Own Business

Prenhall.com – Behind the Book

Forbes.com – To Build a Great Company, Find Great Mentors