Here are some more insights following from our last article for young people in business. The Property Management Collective mentor individuals who strive to make a difference and support them through starting or growing their business and investment opportunities.
One Unit Economics
Many young people dream of how they will make millions. Instead, think of how you will develop and sell one product or one hour of service and make a profit; everything will build from that.
Vision, Mission, Strategy, and Tactics
Develop a clear mission for your business. Get your economics of one unit accurate and simple. Write down your strategic goals making them measurable with numbers and a timeline. Your strategy can be presenting a product at a lower cost than your competitor, having a better focus on the consumer market, or differentiating it in the marketplace.
Wealth Creation, Risk, and Uncertainty
In an entrepreneurial endeavour, wealth is created by building a business that has a profit and can be sold for a multiple of earnings. Being an entrepreneur without ownership can be a nightmare-other people make the profit on your insights. The sooner an individual understands the difference between salary and profit, the better.
Financial literacy is a subset of entrepreneurship education. It’s important to understand that giving time, energy, and money to your business is an investment that will help you to meet your goals. It is imperative that every young person learn basic record keeping, and how to read income statements, balance sheets, and cash flow statements. Return on investment (ROI) is calculated by dividing the profit from a venture by the amount of the investment. And “breakeven” is important because it tells you whether or not you can afford your marketing plan.
Preparing appropriate sales material is as vital as learning to be an active listener. What problems does your product solve? Who is your audience? Answering these questions is important. Good sales-call procedure will give you feedback on your product and help continue to improve it.
Communications strategy is a key asset for a young entrepreneur to understand. The key concept here is to learn the craft of story development. A story is helpful if people can understand it and it motivates them to buy your product or service.
Learning to pick people that you can work with successfully, training them, and providing them with incentives is absolutely essential for success. Playing sports or engaging in any other activity that involves teamwork will help build these skills.
Being respectful and educated on different cultures will be critical to success. Travel for young people is also important, to develop an international perspective and knowledge of foreign markets.
Failure and Success
Many business ventures do not work out, often through no fault of the entrepreneurs. Your business success or failure will not be a reflection of your self-worth. Be prepared for setbacks in any venture you undertake. Be mentally strong and positive at all times. Plan for the possibility of closing the business and learning from the setback. Get experience in a field before starting a business in it. Uncontrolled growth can also lead to mistakes and business failure.