How can a business plan help ensure the success of young entrepreneurs?

How can a business plan help ensure the success of young entrepreneurs?

Being an entrepreneur at any point in life is a particularly daunting prospect. If you are intent on your business idea being your sole source of income, your entire way of life is relying on your entrepreneurship being a success. This is particularly valid for young entrepreneurs. It is not that all risk doesn’t gift reward, but there are unique obstacles that young entrepreneurs face which can in many cases put them off going into business. Here, we will look at what these barriers may be and how a thorough, well-detailed business plan can help overcome them.

Obstacles young entrepreneurs face

Many of the hurdles young entrepreneurs can face in today’s business landscape, are the circumstantial factors they are dealt. Whether you are fresh from university or have decided to pursue your business goals after leaving school, chances are you’re not going to have a lot of capital. Investment is the key foundation to building your idea and it’s a lot easier if you already possess the money to fund it. Many young people don’t have a lot, if any capital to put into their business and this is a substantial obstacle which can put off many.

In addition to the monetary hurdles, the age of a young entrepreneur can in itself be a limiting factor. Not so much that young entrepreneurs are less able because they are younger, but with their youth comes a lack of experience. You may not have had the benefit of working in your industry for a number of years and therefore may only have a small network of connections. The combination of a lack of experience and a limited contact book can present a significant obstacle if you need to turn to someone for help and guidance. It can also mean that many parties in your industry don’t take you seriously, including investors.

Preparation is key

Although these issues may seem daunting to prospective entrepreneurs, they are by no means unassailable. The most fundamental solution to most obstacles in business is careful and meticulous planning. A business plan is an essential element to any entrepreneur not just those who are blessed with youth. But for those individuals who are presented with obstacles which their older and more experienced counterparts may not face, a business plan should be an essential requirement.

If you’re unsure whether your idea is good enough to be successful, creating a business plan can be the reassuring hand on your shoulder. Does your plan answer the question: is your idea something that provides value to others? Hand in hand with this, comes the financial planning to see whether or not your idea is viable. With this section, you can approach potential investors with the confidence that you can make your idea a success. You should come away with a rational and well thought out plan which lays out how your idea will stand out from the crowd, how much money it will need to start and even where you forecast the business to be in 10 years’ time.

A business plan can give you the confidence that your business idea can be a success but can also present you with the reality that it may not be as feasible as you had envisaged. If you would like help with writing a business plan, get in touch today! Contact us online using the form on the right or call 01604 420 420.

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