Starting up a business is always challenging for everyone, no matters how old you are.
Entrepreneurs of any age have to face all the problems and negativity before starting up their business. The entrepreneurs are there to face all the negative problems of family members as well as well-meaning friends as they are there to think that you are the one who will bring up their business dream. The entrepreneurs have also a sense of fear and self-doubt that will they be able to do the work or not. Starting a business and following you and yours family dream needs a lot of determination, strength and internal support of family.
Along with all this, there are so many other problems such as financial problems etc. that are faced by the young entrepreneurs often but are not faced by the old business persons due to their experience. So, here are five challenges that are faced by the young entrepreneurs before starting up a business.
Lack of personal capital
Every business idea, whether it is for selling products or selling services has one basic need that is money, for starting up the business. It can even take years to get profit in the particular business you have opted but this doesn’t mean that it won’t mean that they will not get successful. Every entrepreneur needs some amount of money or thing to start-up their business, renting premises, marketing, buying equipment, leasing equipment etc.
Persons who are starting their business at middle age or older than that age can have built up some earnings to start-up with their own business but in contrast, young people or young entrepreneurs are just at their earning stage so they don’t have anything to start-up with their business. As they are the ones who are still there paying off their student’s loan. So, this is the most common problem that is faced by the young entrepreneurs.
Fewer Networking Contacts
When you start up a business at any age you need some of the high profile contacts that will help you in investing with you in your business. If you are starting up a business at a young age then you don’t have so many web connections and high profile people or businessmen with you that will help you in starting up a business by investing their money. This is one of the major drawbacks of starting up a business.
With few numbers of connections, younger business persons can lack a natural way of promoting their business. So, this is another thing that is very much important before starting up a business.
Poor credit history
In general, the older you are that much high is your credit history as because you are well experienced and have solid and high credit ratings. This is due to their youthfulness also.
But young entrepreneurs are not in the same situation as like older entrepreneurs. If you are a young person then you don’t have much credit rating just because of the fact that you have to give your students debts also. Young entrepreneurs do not have a good credit history because they are still young. If the young entrepreneurs have their own credit card then also they don’t have good credit ratings. This is just because of less experience and little knowledge about the business you are starting up with.
Younger people might have good energy, but older ones are wiser and very much well responsible. This advantage for older people is to convince the investors that how much well experienced are you in work. Young entrepreneurs can see that investors are very much reluctant to trust them with a loan or venture just because of the fact that they are too young for all this.
Not even a single person likes the feeling of owning money, but as soon as we grow older we realize that some debt should be kept positive, for the loan and other purposes. A short-term business loan that is taken out by a person with careful planning and repayment schedules and with right APR rates can be the best/excellent method to deal up with your startup capitals and cash flow issues.
Therefore, young entrepreneurs are still there who are scared and nervous about getting into debt. For many of the young entrepreneurs is not about fearing for the debt it’s just an issue of fear that is piling too high. Many people who are starting up their business at age of 20s or 30s are still paying off their student loan debts. So, adding up a business loan on their head can result in a daunting situation for them.
These are situations that are faced by entrepreneurs mainly by young entrepreneurs before starting up a business.