How To Be A Young Founder
I think a great entrepreneur is learning every day. An entrepreneur is somebody that doesn’t take no for an answer — they’re going to figure something out. They also take responsibility. They don’t blame anybody else. And they’re dreamers in one sense but they’re also realistic and they take affordable steps when they can.
Damon John, CEO of FUBU
Despite the French having coined the term "entrepreneur" two centuries ago, entrepreneurs today find themselves in a situation that is vastly different from what it first meant.
More people than ever before are building their own businesses; and with the rise of robots, AI, and the explosion of digital information, they are faced and entangled with variables never before seen.
These gave way for the more techy bunch of young Gen-Zers to have more sophisticated tools to bring fresh and innovative perspectives; and ideas that can disrupt traditional industries.
In this article, we explore how to turn such opportunities into triumph and how you, too, can build a successful business at a young age.
1. Build a network
To be a young founder, building a network is necessary. Networking is an effective method for meeting new people and building connections with like-minded individuals. It involves exchanging valuable information and ideas between people.
Networks are a key part of anyone's career. They are important when looking for a job and establishing a business. You may have all the skills and education you need, but without contacts, it won't be easy to advance your career.
Networking in Person
Acts of networking can take place in a casual or formal setting, e.g., over lunch at work, at a networking event, or in the office. They should not be confused with other things like professional meetings; they focus more on building meaningful relationships and interacting with people who might become valuable business contacts. They can happen with your colleagues, as well as old friends and complete strangers. It is all about having the intention to support one's own (and others') career paths.
Networking Online
Networking can occur online too. Online communities like r/Entrepreneur, Startup Nation, Cuttles, LinkedIn Groups, and Startup.com bring people together from a range of backgrounds who may have never met otherwise. Exploring the world of entrepreneurship is made more bearable when you engage with people experiencing it firsthand. So make sure to join a supportive and fun community to jumpstart your business. The internet offers many communities for you to connect with more knowledgeable and experienced people.
Check out these 10 Tips for Effective Networking to learn more.
2. Spot the gap
A market gap is an opportunity to offer a product or service that customers desire, but no one is currently providing. It's up to you, the entrepreneur, to identify that opportunity and fill the gap. There were many examples of gaps in the market that successful businesses have capitalized on.
Health-conscious consumers want to be able to shop for fresh, healthy, and natural food in one place, and Whole Foods found a way to provide that. Netflix also identified a gap in the film industry and started competing with traditional video rental stores by offering DVDs by mail over the internet.
Self-assessment
A gap is a source of inspiration for exploring new possibilities. When you're looking for one, remember to assess your strengths. Success may be easier to attain if you consider what you enjoy most and what has been the most fun subject for you. Consider recent feedback, whether it was particularly constructive or not, and see if there are pieces of advice that sound like they could work for you.
If you're struggling with what kind of strengths you can bring to the table, reach out to colleagues for honest feedback. You could also take a professional aptitude test. It can identify areas of strength and those that might require improvement, so you get an honest assessment of what sparks your interest.
Market Assessment
Once you’re done with the self-assessment, start assessing the market. One way to figure out what your potential customers want that’s not currently available is to ask them. You can easily do this by watching out for the trends in the industry you choose and performing market research. Customer surveys can help you get an idea of what has and hasn’t been working while keeping you updated with the current problems people are having with the competitor. You could also do some research by simply looking over the worst reviews of your competitors.
Focusing on market gaps can help you avoid a saturated market and get a commanding headway for your business. So start looking around you and spot that gap.
Check out these Six Ways to Identify a Gap in the Market to learn more.
3. Find your target customer
Understanding your target customers is vital. Customers these days like to feel special, and personalized interactions are what they're looking for. In fact, 80% of consumers would rather do business with a company that offers tailored service.
When you know that your target audience is readers of a publication or people who watch a particular show, it may seem like the number of potential consumers is reduced. But your ad is actually seen by the right kind of people with the right interests. This information should provide a solid understanding of how to approach marketing plans and strategies.
B2B Model
Who would you cater to? What business model will you use? These questions are essential to understanding the segment of customers you are targeting. The Business-to-Business (B2B) model is used primarily by companies selling products and services to other companies, who then sell the products or services to their final customers. B2B businesses come in many different forms. One of them gathers information from partners; the other is for your website to be set up for receiving payments, making contracts, etc.
B2C Model
Business-to-Consumer (B2C) model, on the other hand, is more popular than B2B. It is a good approach for companies who want to sell products or services directly to customers. Sites like Amazon are one of the best B2C platforms out there. Customers can browse the page, select a product, and purchase it anytime, anywhere.
With B2C, one great way to identify customers is to create personas. Using personas is a great way to find the perfect target audience. It allows you to drill down into specific parts of the market segments and learn about the age, profession, likes, and needs of people in them. This is particularly helpful for companies with products and services appealing to a wide range of individuals.
Identifying your customers and understanding their interests is crucial for a successful marketing campaign. Just because someone can buy your product doesn’t mean they’re your target audience. Learn how to carefully analyze market and define customer segments to create a successful business.
Check out these Steps to Find Your Target Audience to learn more.
4. Get a pitch deck together
As an entrepreneur, you know that your company needs financial backing. This is where pitch decks come in handy.
A pitch deck is a formal and persuading presentation that entrepreneurs put together when seeking financing. In it, you can describe your business plan, products, and growth numbers all in one document. It’s an easy-to-present overview of your company that will make strong cases for investing.
It is an opportunity to show off all your business' potential. And a well-constructed one can convince potential investors that your startup has what it takes to be a success.
How do you create a compelling pitch deck?
There isn't a "right" way to make a pitch deck. Still, we looked at the most successful ones out there and saw that they included a great value proposition, the problems their businesses aim to solve, multiple solutions to address them, the revenue model, how the funding will be used, a clear roadmap, the financials, and market analysis.
Wow your potential investors. Wouldn't it be cool if they get excited as soon as they hear your ideas? Tell them stories and passionately explain how you will solve real-world problems of consumers.
Stories to Share
Stories cause us to remember more. There's a reason in-person lectures often start with a story. In business, stories are also powerful: they can make your pitch deck more engaging and memorable. If you use storytelling to hook your investors, then you'll be more memorable. You want them to be interested and entertained so that you can make a winning first impression.
Check out How to Write Great Pitch Decks (With Powerful Storytelling Techniques) to learn more.
5. Start meeting venture capitalists
The world has relied on invention and innovation for decades to buoy its economy, and the spirit of 'can do' entrepreneurship has yielded many success stories of Silicon Valley entrepreneurs. And venture capital plays a huge role in these successes.
A venture capitalist (VC) is an investor who provides funding to startups hoping to get returns. They provide a large amount of funding in return for equity stakes in the company.
Start with research
Successfully getting an offer from a VC partner can begin with research. Before you reach out to potential partners, look through your business strategy and compile a list of firms that would be a good match for your venture. Research which VC funds focus on your industry and your field. This will increase the likelihood of their interest in your type of funding opportunity.
You can start by searching for a specific company name on CB Insights. They offer VC firms and industries data, which will help you with your research. Feel free to look at the 100-Company Data Driven Ranking to see what organizations are currently in the top spots. Joshua Henderson, an expert in VC sales, recommends creating a list of about 20-30 investors to contact. It might be a great idea to track your contacts in a spreadsheet as well
Reaching out
A warm introduction to a VC from your own personal or business network is the best-case scenario, as VC funds are more willing to listen to deals from those in the industry.
But if you don’t have mutual connections to VCs on your target list, it’s worth reaching out with a cold email. This is the more challenging way to secure a meeting. But it’s definitely not impossible.
When sending them a message, make sure to get to the point. Your email subject and design should be clear, concisely explaining what your company offers. You can also send them a teaser email with no attachment to help break through the noise of their inbox. As they have hundreds and thousands of options to choose from, create a message so convincing that potential investors can fall in hook, line, and sinker.
Conclusion
The path to entrepreneurship isn't an easy one. It can take a while, and there might be some bumps along the way, but it can also be very rewarding. In trudging through the murky waters of entrepreneurship, dedication, hard work, and financial backing go a long way. It might take months and years to secure that million-dollar funding check, but with these 5 tips, we hope you are 5 steps closer to your dreams.
Happy business-building!