Consider that 40% of millennials who have a side hustle say it produces half their monthly income.
That’s a hefty chunk of cash for young entrepreneurs turning their ideas into marketable businesses.
Now imagine what that figure could turn into if you dedicated 100% of your time to your entrepreneurial endeavors.
If you’re drawn to the idea of entrepreneurship and want to turn your side hustle into a full-time career, read on to learn the steps you need to take to become a successful young businessperson.
The Benefits of Becoming an Entrepreneur
While some consider entrepreneurship to be riskier than full-time employment, it comes packed with benefits.
Firstly, entrepreneurs enjoy total freedom and autonomy over their workload. Not only do you get to choose how much you work, but you also choose what you work on.
Research has shown that the more autonomy you have over your job, the happier you are. With this in mind, entrepreneurship presents you with a chance for ultimate career fulfillment.
Plus, entrepreneurship gives you total control over your schedule. This allows for complete flexibility that will let you schedule work around your home life. This is an especially useful perk for people who have extra responsibilities, such as young children.
On top of that, entrepreneurship could give you the chance to earn a higher salary. The federal minimum wage is $7.25. This equates to a monthly salary of $1,160 for a 40-hour-week.
In contrast, the average monthly income from side hustles is around $1,122. Imagine how much more your side hustle would be worth if you dedicated as much time to it as your full-time job.
Your health and wellbeing are also reasons why you should consider entrepreneurship. Self-employed people report having the highest levels of wellbeing over any other type of employment.
In other words, working for yourself makes you healthier and happier.
Follow These 7 Steps to Become a Successful Young Entrepreneur
While becoming an entrepreneur may give you higher levels of job satisfaction and increase flexibility, it’s not going to be a walk in the park.
To accelerate your journey to becoming a successful entrepreneur, make sure you follow these handy business tips.
1. Find a viable niche
It’s one thing to have a good idea, but it’s another to have an idea that stands out.
Unfortunately, too many beginner entrepreneurs attempt to go head-to-head with established brands.
Before launching an idea, think about whether there’s a niche for your product or service.
To find a viable niche, you need an idea that would attract a notable following that doesn’t have too much competition.
One way to find a niche is to consider your own passions. Try and think of a solution to a problem that’s previously gone unsolved.
For example, look at Bigfoot Over Boot Slippers.
For many gardeners, it’s a real pain to remove your boots every time you want to come inside to get a drink. These slippers slip over your boots to solve the problem of dirty floors.
Once you have an idea, do some market research to discover your competition and find out whether there’s a viable audience who would be interested in your idea.
2. Research your audience
It’s not enough to have a killer concept — you need to find the people who want it.
To create demand and market to the right people, you need to have a strong sense of who your target audience is.
Start by using social listening tools like Keyhole. 51% of marketers use social listening as a way to get data about consumers quickly.
You can track social mentions of key phrases and industry-related topics to see what your general audience is looking for and what problems they’re having. This helps you tailor your products and campaigns to meet those needs.
It’s also wise to track intent data, as 53% of marketers say that intent data makes it easier for them to define their target customer profile.
Intent data is behavioral data from your website and social media accounts that show you how visitors are behaving. This gives you a better idea of the types of people buying your products. You can then customize those products and campaigns to appeal to these specific kinds of people.
3. Create a culture of self-learning
Founder and CEO of FUBU, Daymond John, famously said: “As an entrepreneur, you never stop learning.”
This is because entrepreneurs take full responsibility for the direction of their company and the decisions made within.
To make the best decisions possible, entrepreneurs must foster an educational spirit within themselves. This helps drive you to continuously build upon your own knowledge and expertise to better solve the challenges you and your business face.
Try using websites that offer study guides like StuDocu, and online courses like Coursera. These resources give you insight into new fields and help you to learn from experts with more experience.
4. Encourage and value feedback
Acquiring new customers is expensive. In fact, more than 60% of marketers admit that their customer acquisition costs have grown over the past three years.
In this sense, it’s wise to focus on keeping existing customers to extract future income from their loyalty rather than always chasing new people.
The problem is that 80% of consumers say that they’d change to another brand if they had just one bad experience.
This is why it’s so important to encourage and act on feedback.
By encouraging customers to leave reviews and provide feedback, you can work out where the common problems are and prioritize your time to fix these issues.
Make sure you offer customers a feedback survey when they complete a purchase and direct them to a platform where they can leave reviews. Check this feedback regularly and respond to it directly to show your willingness to improve.
5. Automate processes to scale more easily
When you’re starting out as an entrepreneur, you often have to wear all the hats. Not only is this extremely time-consuming, but it can also lead to burnout.
Luckily, plenty of low code development platform options can help you automate many of your manual, repetitive tasks and save time.
In fact, 52% of business leaders believe that 10-30% of their daily tasks could be automated, while 78% believe that automation could save them up to 30 hours per month.
By saving time on manual processes, you can turn your attention to more important matters that lead to business growth. As 85% of business leaders agree, automation gives them and their employees more time to focus on what really matters to the company.
6. Outsource to experts
While an entrepreneur never stops learning, this doesn’t mean you have to learn the ins and outs of every position within your company.
You don’t need to be an expert marketer, specialist accountant, and professional human resources (HR) agent to run a successful business. You need to be the coordinator that brings all the different cogs together to form a smooth-running machine.
Sometimes it’s smarter to outsource these jobs to experts outside the company. While you may form your own in-house departments as your enterprise grows, it’s often easier and cheaper to go outside to third-party companies while you’re building up your brand.
For example, why not look at outsourcing to PEO companies to take care of your HR needs or hiring an accountant to run your books?
Creative thinking as an entrepreneur is important to enable you to continue growing your business.
According to Nelson Sherwin, manager of PEO Companies,”Too often, business owners are so focused on continuing to do what they’ve always done, and they don’t step back every now and then to think about how to go about creating more streams,” he says. “In almost any entrepreneurial endeavor, there are additional streams to be found if you learn to analyze the issue.”
7. Iron out your finances
While more than a third of small businesses say that they have enough cash flow to run their company for a month without turning a profit, 90% would have to close their doors if the situation occurred for more than six months.
As Peter Ashall, CEO of Zone V, puts it: “A significant problem is cash flow. Big distribution companies have payment terms, which are usually 60-90 days. As a startup, that means you’ve got to wait that long before any cash comes in.”
Make sure you’re handling your finances correctly by keeping up-to-date accounts that manage your cash flow. Otherwise, you might find yourself partnering with a company like Credit Saint to fix your broken credit.
And if you can’t afford an accountant, try using accounting software like Quickbooks.
The entrepreneurial life can be extremely rewarding. Not only do you get complete autonomy over your workload and time, but you can also generate a healthy income that isn’t limited by company salary bands.
Remember, though, the responsibility for your company’s growth falls squarely on your shoulders. You’ll need to spend a lot of time learning new tactics and refining your business systems in order to keep on top of everything at once.
If you need more tips on creating a successful business, read more at Digital Journal.
Author Bio: Emmy Jenkins is a specialist technical writer with vast experience in SaaS, business, and marketing. When she’s not building better systems in her veggie garden, she’s obsessing over how her readers can build better systems in their businesses and personal lives.