The number of young entrepreneurs in the UK is up and it looks like it will continue to rise in the future. It seems almost everyone these days wants to launch a company and be their own boss. Young people are three times more likely to face unemployment than the rest of the UK, the highest figure in the last 20 years, and with one in five 18–34-year-olds having an entrepreneurial idea, it’s unsurprising that the number of young Brits running a business is growing.
Having a vision is one thing, but maintaining a successful business is a completely different ballgame. It’s not easy for a young entrepreneur to enter the market, and you are likely to face challenges, including lack of experience in investment management and unawareness of the market’s flow. Read on for some tips on achieving your business goals as a young entrepreneur.
Understand your Market
One of the main reasons a new business fails is lack of understanding of their market. Before launching your company, it’s essential to determine your target market and research it thoroughly. Knowing who your target audience are before you begin can help you to identify an ideal price point and determine what kind of marketing your potential customers will respond to.
In some cases, you may even find the product or service you’re planning to launch is not actually needed or wanted. While this can be disappointing to discover, it’s much better to find out before you invest a lot of time, effort, and money into your business.
Consult an Investment Manager
Once your revenue has reached a certain point, you may want to consider making investments to grow your capital. Investing is a tricky business and not without its risks, so consult an investment management firm for the best advice on how to increase your wealth and avoid losing out financially. It’s important to make careful, calculated decisions when investing money, so ensure you are fully informed and aware of the financial risks before jumping into anything.
Sort out your Finances
There are several important financial and tax responsibilities you must adhere to when launching a new business. The first step is opening a business bank account, as you cannot generate any income or make any purchases for your company without one.
Take some time to research the available banking providers carefully before opening an account. It is likely your business will be with your chosen bank for its lifetime, as it can be difficult to switch once you are a few months into trading.
Ensure you have a good understanding of your accounting and tax responsibilities for your company. It’s essential to be certain you are legally compliant to avoid an expensive fine from HMRC.