Table of Contents
- 1. Confusing Innovation with Monetization
- 2. Millennials Don’t Stay In The Game Long Enough
- 3. Not Consulting The Right Mentors
- 4. Not Using Money Wisely
- 5. Too Much Self-Reliance
- 6. Not Knowing The Market Well
- 7. Working With The Wrong People
- Book Recommendations
- 1. Innovation on Tap: Stories of Entrepreneurship from the Cotton Gin to Broadway’s Hamilton by Eric B. Schultz
- 2. The Harvard Business Review Entrepreneur’s Handbook: Everything You Need to Launch and Grow Your New Business by Harvard Business Review
- 3. The Young Entrepreneur’s Guide to Starting and Running a Business: Turn Your Ideas into Money! By Steve Mariotti
Oh, the rush of young blood! That burning desire to do something and fulfill your dream, prove yourself and make people sit up and take notice, sounds familiar? That’s the millennial entrepreneurial spirit! A raging fire of ideas, the will to do something great and become an overnight success. But are these traits enough? Is it enough to simply have the will and spirit to start a business? What about the business’s survival? What happens when your business runs out of steam? Now we are talking.
As people, we have a tendency to get excited and carried away. Often, we don’t think about the practicalities of life and that’s where we end being disappointed. Starting a business is no joke. There’s a lot at stake, jobs, money, livelihoods, etc.
There are several reasons why Millennial Entrepreneurs don’t make it but let’s not take away the credit from them. Even thinking of starting your business requires courage. However, recent stats show that many millennial businesses are starting with a boom but go bust real soon. Let’s find out what are the reasons for this. If you are a budding entrepreneur or an existing one, we are sure this blog will put things in perspective for you.
1. Confusing Innovation with Monetization
According to David Meltzer, millennials have great ideas but very little knowledge and experience about how to monetize those ideas by transforming them into sustainable business models. He argues that millennial entrepreneurs are actually innovators, unlike the older baby boomer generation who have experience and skill to convert innovations into profitable businesses.
2. Millennials Don’t Stay In The Game Long Enough
Failures and setbacks are part of life and more so business. Millennial entrepreneurs don’t take failure too well and throw in the towel too soon. However, staying in the business long enough will tell us what works and what does not. A business has a learning curve on a daily basis; there is always something new to learn every day. So, when there are setbacks, shutting shop should not be the answer. Stay in the game and do whatever it takes to survive.
3. Not Consulting The Right Mentors
While there is no doubt that millennials entrepreneurs are smart, they may depend too much on their smartness and downplay the experience of older and more seasoned mentors. Only intuition and instinct or “following your heart” is not enough to start a business much less sustain it. So wise up, check out the right people in your business space, try to get your foot in the door to arrange a meeting with them and be ready to spend considerable consulting fees. Trust us, this investment will surely get you high returns!
4. Not Using Money Wisely
Most millennial entrepreneurs don’t want to invest a lot in starting a business and eventually end up wasting money in high profile events, influencer marketing, investing in gadgets, an expensive office space, etc. Instead, hire the right people even if it means they demand higher salaries and/or like we mentioned above, spend funds to get advice from the right people like mentors and consultants. Think about what each tool will bring to your business and then decide what to invest in. What will an expensive office bring you in the initial stages? Expensive rent and high operating costs. What will an expert mentor bring you? The right network, sound financial and management advice.
5. Too Much Self-Reliance
Just because you’re a startup does not mean you have to do everything by yourself. In the beginning, when things are new and exciting, you’ll feel great being busy all the time and thinking of yourself as a multitasker. All that’s great but it doesn’t quite cut it when you want to progress and scale your business. With time, you will need more people, in many cases people who are smarter than you, to give you a hand and handle serious responsibilities. Very often, millennial entrepreneurs fail to see this and rely too much on their own skills and expertise. In the bargain, they end up being exhausted and lose their way.
6. Not Knowing The Market Well
Millennials are so excited to start their new ventures, they often skip the hard groundwork needed to build and sustain their business. As mentioned before, simply having ideas and passion don’t cut it. Knowing the tricks of the game, having the right connections, guidance, etc. is extremely important for your startup to survive. Getting to know your customers and their preferences, in other words your ‘market’, is imperative. If you don’t know who you are making your product for, then how do you expect to sell it and earn profit?
7. Working With The Wrong People
Millennials may just become too soft when it comes to saying no to a friend or family member. This is true of many millennials who are running startups or their own businesses because they feel obliged to get their family member or best friend on board as a token of appreciation for their help, or if they’re looking for a job or simply because there’s a comfort level. Family members may also try to play a significant role in decision making simply because they have invested money. However, this may prove disastrous as being an entrepreneur’s family member is no criteria to lead a business! So work with the right people and don’t let emotions get in the way.
Millennial entrepreneurs are smart, outgoing, and brimming with ideas. However, most often these qualities are not enough to launch a business let alone run it and make it succeed. Entrepreneurs must also invest in certain skills, tools, and resources like expert mentors, funds, business acumen, etc. Of course, drive and passion are also necessary but useless if they don’t bear any fruit.
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
Here are some book recommendations on how to succeed as an entrepreneur: