Tips for Young Entrepreneurs to Start a Business Right

Key takeaways

• Embrace failure as part of the learning process, and keep going after setbacks.
• Define your target market so you can build products and marketing that fit real customer needs.
• Manage your money with a simple financial plan, steady savings, and a bill pay tool like Melio.
• Find a mentor and lean on your community for honest advice and steady support.

What is a young entrepreneur?

A young entrepreneur is someone in their teens, twenties, or early career who starts and runs their own business. They often trade years of experience for energy, fresh ideas, and a real willingness to take risks.

We asked our community of small and medium-sized business owners on Instagram what they’d teach a young entrepreneur. Here are our four favorite tips, plus our take on each one.

Tip #1: Failure is part of the process

Failure is part of building a business, not the end of one. Every successful company has seen both better and worse days. Being a business owner means taking huge risks every day, whether it’s betting on a certain product, a new employee, or a unique strategy.

Not everything you try is going to be successful. You need to learn to embrace these failures as part of your path to business success. Through them, you will get to know your audience better, refine your offerings, and grow your business.

So, don’t be afraid to try something new and fail every once in a while, as long as you’re willing to do both of these things again. And again. After all, that’s what the entrepreneurial spirit is all about.

Tip #2: Know your target market

Let’s state the obvious: no business can succeed without customers. That’s why defining and understanding your target market is such an important part of every business plan.

In this process, you need to figure out who your potential customers are and what they need. Start by looking at:

• Where they live or work
• Their lifestyle and daily routine
• Whether they have kids or pets
• How they get around, by car or bus

What you’re looking to understand are the issues they’re facing in their day-to-day. Then, you can start planning how you intend to solve them and improve your customers’ personal or professional lives through your business.

A well-defined target market will help you create a marketing plan, decide where to set up shop, and figure out what your offering needs to include to bring a smile to your customers’ faces.

Tip #3: Trust your own intuition

We know this sounds like a weird tip in an article full of advice from other people but it’s actually very accurate.

Starting a business means putting yourself out there and it can make you feel very exposed and vulnerable. Succeeding in business requires tough skin and a lot of confidence in what you’re doing.

We’re not saying you shouldn’t take advice. But, you also need to trust your instincts and not let other people bring you down with good intentions. If you believe in your product and your business, stick to it—you’re halfway to success already.

Tip #4: Money management is key

We know what you’re thinking. Like most entrepreneurs, you’re not really in it for the money. Your business is your passion and it really is what gets you up and out of bed in the morning.

That may be true but even a small business owner’s gotta eat, right? So, let’s talk about money and why the way you handle it matters.

Good money management gives you enough cash flow to handle the day-to-day, plus unexpected emergencies or opportunities. It makes your business more resilient. It also means your money won’t run out just when you need it.

Wondering where to start?

• Create a financial plan that includes projections of your sales, expenses, cash flow, and budget.
• Save a little every month, so you always have enough available cash to manage expected and unexpected expenses.
• Use a bill pay platform like Melio to manage accounts payable and receivable (AP and AR) in one place, so you can protect cash flow and never miss a due date:

• • Improve cash flow by using a credit card to pay your business expenses.*
  • Track all your payments, incoming and outgoing, from one place.
  • Schedule payments in advance so you never miss a due date or pay too soon and deplete your cash.

Find mentors and lean on your community

You don’t have to figure everything out alone. The right people can save you time, money, and a lot of stress.

Look for a mentor who has run a business like yours. Ask questions, share your plans, and learn from what they got right and wrong.

Lean on your community too. Friends, family, fellow founders, and loyal customers can offer honest feedback and support when things get hard.

Start your entrepreneurial journey with Melio

Starting young takes courage, curiosity, and a little help along the way. Keep these tips close and give yourself room to learn as you grow.

When you’re ready to take control of your business payments, Melio can help you manage bills and get paid in one place, so you can focus on building.

Young entrepreneur FAQs