Ah the difficulties of being a young entrepreneur and demonstrating that you are responsible, intelligent, mature, in-control, and committed. When dealing with banks, other institutions, and business contacts, I try to focus on two things:
1. Solid information (market, product, industry, etc) to demonstrate expertise.
2. The theories and concepts of management, business, finance, etc. to demonstrate a depth of understanding.
The Wall Street Journal published a story (WSJ Story) about the obstacles a young entrepreneur encounters and presented five strategies for dealing with those obstacles.
1. Be persistent
Follow-through, commitment, determination, and perseverance are strong pillars for an entrepreneur. Time and hard work are required to launch a business, any business, and if you are young, then harder work and perseverance may be critical.
2. Partner up
You never have to go at it alone and there are many opportunities. You can seek experience, expertise, and maturity in a partnership. You can also find a partner who can open more doors than you previously even considered.
3. Hire the connections
Money is a major consideration for most entrepreneurs and especially young entrepreneurs, so hiring an expensive consultant or a well-connected lawyer may be out of reach. Any cost should be assessed with a return on investment (ROI) matrix. That connection may be the difference of being in business or sitting at home with merely a dream, so the cost may be worth it.
4. Stand out from the crowd
In business, a competitive advantage is pertinent and focusing on the competitive advantage helps to shield a young entrepreneur from unduly speculation. A differential advantage is common, but an original idea is better than merely a different idea. Work hard to develop a new, original business and then place focus on that idea.
5. Launch it anyway
The critique of venture capitalist, banks, or investment firms should never determine if you are going to go into business. You must believe in yourself and be ready to follow step number one and launch your business anyway. You may find that in a short period of time, investors and others may be more open to supporting your business after you have initiated the launch.
Whatever your strategy for overcoming the obstacles you encounter, the best strategy is always to plan, write it out, and then execute it.
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