10 Success Hacks for Millenial Startups Local research reveals that more than half of South Africa's millennials would rather be entrepreneurs than employed. Here are ten steps to seeing your startup dreams come true.
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Many millennials dream of owning their own businesses. A 2018 study by Ernst & Young has found that 58% of Americans who fall in the 20 to 34 age range see themselves running their own companies.
The same counts for countries like China. A survey by JWT Intelligence shows that 74% of close to 400 million Chinese millennials would start their own business if they had trouble finding work.
And even in South Africa, the Deloitte's 2019 Global Millennial Survey has found that 58% of young adults here say they want more than working for someone else's company. They want their own business.
But what does it take to be, and remain, a successful entrepreneur in the struggling local and global economies that are moving lightning-fast and becoming more competitive by the day?
1. Listen to your customers
Just because you would buy your product does not mean others would, too. For your company to take off, you will need a sustainable base of customers who are convinced they need, want and deserve whatever it is you are offering.
Find out what your audience's needs, which products and services they are buying and which ones they shun, and most importantly – why?
2. Be funding wise
38% of millennials who responded in the Ernst & Young's 2018 Millennial Economy report said a lack of funds is preventing them from starting a business. The fact is that there is money out there.
Expand your quest for finance beyond conventional bank loans, explore convenient, flexible funding alternatives.
3. Success is more than profits
Stand out by building a business that positively impacts the environment and drives socio-economic well-being. Responsible and sustainable ventures perform better.
A 2014 analysis of S&P 500 companies has found that corporations with sustainability strategies have an 18% higher return on investment than those that do not.
4. Put in the time
Starting, running and growing your business is not for the faint-hearted. Don't expect miracles to happen overnight. Your business won't build itself.
Work hard, under-promise, over-deliver, keep your promises, promote your company everywhere (not just on social media) and develop a thorough marketing campaign before launching.
5. Plan your funding strategy
Raising funds needs to be a strategy, one which requires you to plan. Prepare for meetings with investors by thinking of every question you might face. Analyse and revise your business plan as you go along.
6. Disrupt, don't be disrupted
The 2019 GEMS report suggests the drive to introduce new products and services that disrupt the market is what is driving entrepreneurs. This means you must always stay on top of your game.
Resting on your laurels after being the first in your field may result in someone else disrupting your model, pushing you out of the market whilst you are not paying attention.
7. Be patient
It is a misconception that you need to scale your business as soon as you can. Whilst there is nothing wrong with growing, explosive growth too soon can be a threat if you cannot keep up with the momentum. A study by Startup Genome found that 74% of high-growth start-ups fail due to premature scaling.
8. Budget like a pro
Cash-flow problems happen when you are spending too much, because you are not getting debtors to pay you, or because you are not making money.
Draw up and stick to a watertight budget, tracking all your expenses and income, and spend your money wisely to prevent these issues.
9. Take mistakes in your stride
You will make mistakes, and that is okay. Learn from them and use this knowledge to fine-tune your plans to build a stronger, more resilient and financially stable business that can make the difference you want it to make.
10. It is a mindset
At the end of the day, entrepreneurship is a way of life, not just a way to pay the bills. That is at least what 90% of millennial business owners surveyed in oDesk's 2016 Millennials and the Future of Work say. Treat your business as your purpose and raison d'être will make your journey towards success a whole lot easier.