It’s getting tougher to find – or keep – a job in this recession. Fed up with job hunting, some people are turning to job creating and starting their own businesses.
In an article published Feb. 1 in The Wall Street Journal Sunday, writer Jonnelle Marte gathered some pointers for twentysomethings who are braving the rough economy and becoming entrepreneurs.
The Millennials have a few advantages here: They’re seen as tech-savvy, enthusiastic risk takers with fresh perspectives. But they also tend to lack money, credit histories and managerial experience.
Here are some tips if you’re under 30 and thinking of starting a business from people who’ve done it:
Ask for Advice. You may know your “great idea” inside and out, but you might not know as much about writing a business plan, incorporating a company or managing employees. Reach out to more established business owners by tapping your college-alumni network or finding a business support group.
Be Realistic on Funding. Finding capital for a start-up today is difficult regardless of your age, but you might be set back further by a weak credit history and lack of business experience. To show that you’re serious, write a business plan and have a prototype before you approach a bank or investor. And take advantage of this forced frugality to establish money-saving habits that last.
Search for Targeted Loans. There are loans offered specifically for younger entrepreneurs, sometimes made by organizations dedicated to supporting businesses.
“The amounts might be smaller but it is a source of capital and sometimes it’s enough to get a company started,” said Elizabeth Wilson of the Prudential Young Entrepreneurs Program, which offers loans of up to $15,000 to people who complete their 10- to 12-week course for 18- to 30-year-olds in Newark, N.J., and Philadelphia.
Find a Good Lawyer. There is no way around this one. You can try to negotiate fees or find someone to do the work pro bono, but you need an attorney to help you patent your ideas, incorporate your business and protect your interests when dealing with investors.