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How to Encourage Youthful Entrepreneurship

How to Encourage Youthful Entrepreneurship

Way back when, setting up your own business generally meant going to a bank to arrange a loan, spending an inordinate amount of time networking in-person and figuring out how to find and manage a staff.

Today, however, with a wealth of online tools at the disposal of anyone with an internet connection, it’s easier than ever to start a business with very few costs. Twenty-somethings are especially poised to take advantage of this shift, given that they tend to understand these tools. What’s more, whether they ultimately wind up employed at a massive corporation or go the full way on their own, experimenting with entrepreneurialism teaches a host of skills that will be crucial in our globally competitive workspace, where just being “good enough” isn’t going to cut it.

What Entrepreneurialism Does for Youth

Entrepreneurs tend to be jacks of all trades. They must be willing to learn as they go, shift with the market and work until they drop. Encouraging twenty-something entrepreneurialism means:

1. Teaching employable skills.

Take a look at any given job description today, and you’ll see a single buzzword repeated throughout: innovation. Employers want motivated employees who are creative, willing to “disrupt paradigms” while working with little management. However, they still need those employees to possess a number of more traditional skills, like communication, organizational and time management skills. And, hey, if they also happen to be good at marketing and sales, all the better.

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Whether you like using and developing these skills or not, all entrepreneurs must master them if your business is going to get anywhere. If sales doesn’t come naturally, then the entrepreneur must either figure out a creative way to get around it (like designing an even better online sales system) or just dive in and get over that fear. Not only does doing so show potential employers that you have developed that specific skill, but it also shows a willingness to take risks in the name of personal growth. If that doesn’t make someone employable, I don’t what does.

2. Nurturing creativity and teaching youth how to fail.

There’s a reason why these two things are sandwiched together: creativity and failure go hand in hand. To be creative, you have to look beyond everyday constraints to those things no one has ever thought of before — or they have, and decided they weren’t worth the risk. Doing so will inevitably come with a lot of failure, from which the entrepreneur must pick him or herself up and move on, having evaluated the failure and gotten him or herself ready for more directed experimentation.

While schools do fail students, they’re not the best at teaching student how to fail. In fact, in the academic realm most students strive to avoid failure at all costs. That’s fine when it comes to memorizing and mastering known information, but it doesn’t promote the kind of thinking that’s going to rescue humanity from its deepest crises — or make anyone a profitable company.

Entrepreneurialism forces young adults away from their knee-jerk failure avoidance behaviors. This will have enormous benefits in the ability to think creatively and pursue new avenues, which extends beyond work and into personal lives. A true entrepreneur is someone who sees failure as an opportunity for reinvention.

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3. Teaching the young how not to settle.

Entrepreneurs don’t just settle for what they’re given. Being an entrepreneur is akin to being an artist — never fully happy with where you are. Combine dissatisfaction with curiosity and you get someone who is constantly on the hunt for new ideas — and who pursue those that are most worthy. Whether you stay in the entrepreneurial world or not, embracing a spirit of entrepreneurialism will prevent the young from simply accepting less than ideal employment situations just because “that’s the way it is.” That drive will inform a lifetime of good work.

4. Doing this all within a relatively safe framework.

The younger an entrepreneur is, the less he or she has to lose. There’s generally no house to pay for or family to support. Yes, there may be student loans, but if they get going while still in college, they may still be on the parental dole and benefiting from scholarships, or there is at least no pressing need to pay loans back instantly. Even better, more and more colleges are offering courses in entrepreneurship as well as startup funds, so there’s less to lose and more to gain than ever. Netflix CEO Reed Hastings just announced that he will be sending $14 million to a Seattle startup that encourages more entrepreneurial education.

So, How to Get Going?

All of that said, there’s no getting around one key fact about entrepreneurialism: it’s hard. Or tiring, at the very least — especially when balanced with school obligations. That budding young entrepreneur is definitely going to need as much support and advice as they can get. Here are a few tidbits to pass on.

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1. Find the Focus

One of the best things new young entrepreneurs can do is find their focus. Of course, finding that focus may very well mean experimenting first with this kind of product and then the next as they “beta test” and find the most viable audience. But that shouldn’t be taken as sanction to offer a million different things, just because the given entrepreneurs find them interesting. New entrepreneurs can start simply by writing down problems or annoyances they see as they process they world, as well as ideas for fixing them. Then they should take those ideas to family and friends to see if they seem viable, and do a little research into competitor offerings. Having narrowed down to a focus, new entrepreneurs will find it easier to test the market with various manifestations of their product and go from there.

2. Sort Out Pricing

Competitor and audience research is also key for determining the price of the product or service. Many budding young entrepreneurs are idealistic about how little they can charge, especially for a web-based product, but competitor prices often reflect real world realities, like just how much it costs to host a popular website each month. It’s also important to consider other factors, like building in room for growth and just how price-sensitive any given audience of consumers will be.

Again, this is a place where entrepreneurs should really be encouraged to experiment, not fear failure, and be ready to shift course.

3. Set Up an Online Store

Whether this specific new startup will operate solely in the online space or not, having an online store will be crucial for most businesses. Today’s consumers expect to be able to get whatever they want online, and they’ll simply go elsewhere if they can’t get it from that budding entrepreneur. However, consumers will also turn away if an ecommerce store doesn’t feel trustworthy or easy to use. As such, from both a design and a sales perspective, it’s usually easiest for a time-limited entrepreneur to build their shop on a third party platform Check out Amazon webstore’s small business spotlights for some great examples. Platforms like this will integrate easily with their site, and will also handle all of the tricky shopping cart and credit card processing for them. What’s more, with a service like Amazon, products will automatically become searchable on the Amazon site, gaining the product even more exposure.

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4. Market Via Email and Social Media

Even the best product or service won’t sell if no one knows about it. Thankfully for busy young entrepreneurs, marketing is easier than ever with tools they already use every single day: email and social media. Email marketing begins with a newsletter signup list on the company website. From there, entrepreneurs should put together an editorial calendar to help them regularly brainstorm ideas for content they can post on their blog and email out to their list, as well as any accompanying promotions. This should of course accompany regular activity on social media platforms, as well as attendance at any campus or local events to let target customers know all about the product.

5. Think Hard About Time Management

Being an entrepreneur requires juggling many different balls at once. That means time management is key, especially for enrolled students. Entrepreneurs should take time every week to plan out the week’s schedule, making sure to build in time just to relax and do something other than relentlessly pursue their business goals. In general, it’s best to focus on one thing at a time, rather than trying to multi-task. For some entrepreneurs, outsourcing basic labor like data entry or even higher level tasks like accounting will go a long way towards lightening that load.

The Takeaway

Whether that startup becomes a billion dollar behemoth or fails after just a few months, entrepreneurialism has a wealth of lessons to teach our nation’s youth, from financial literacy to creativity. Encouraging entrepreneurialism is good for the economy and even better for the young. So what will you do to encourage a young person into entrepreneurialism today?

Featured photo credit: Shutterstock via Shutterstock

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Last Updated on January 2, 2019

How Personal Finance Software Helps You Get More Out of Your Money

How Personal Finance Software Helps You Get More Out of Your Money

Do you know what mental health experts point to as the biggest cause of stress in the United States today? If you said “money,” then ding, ding, we have a winner!

Three out of four adults today report feeling stressed out about money at least part of the time. People are either worried about not having enough money or whether they’re putting the money they do have to use in the best possible way.

Your money is either in charge of you or you’re in charge of it, there’s no middle ground. Using some type of personal finance software can help alleviate some of that money stress and better allow you to manage your money effectively. Without it, you may just be setting yourself up for constant financial worry. Life is already tough enough and there’s no need to make it more difficult by simply hoping your money issues will all work out in your favor. Hint: they won’t.

This guide will help you to understand how personal finance software can better assist with both accomplishing long term financial goals and managing day-to-day aspects of life.

Whether it’s tracking the savings plan for your child’s college fund or making sure you won’t be in the red with the month’s grocery budget, personal finance software keeps all this information in one convenient place.

What Exactly is Personal Finance Software?

Think of it like the dashboard in your car. You have a speedometer to tell you how fast you’re going, an odometer to tell you how far you’ve traveled, and then other gauges to tell you things like how much gas is in the tank and your engine temperature. Personal finance software is essentially the same thing for your money.

When you install this software on your computer, tablet, or smartphone, it helps to track your money — how much is going in, how much is going out, and its growth. Most personal finance software programs will display your budget, spending, investments, bills, savings accounts, and even retirement plans, levels of debt, and credit score.

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How It Leads to Financial Improvement

It shouldn’t come as a surprise, but people who regularly monitor their finances end up wealthier than those who don’t. When you were a kid, keeping track of all of your money in a porcelain piggy bank was pretty easy. As we get older, though, our money becomes spread out across things like car payments, mortgages, retirement funds, taxes, and other investments and debts. All of these things make keeping track of our money a lot more complicated.

Some types of personal finance software can help make things a little less complicated, setting you up to meet financial goals and taking away some of the stress associated with money.

Even if you already have a Certified Financial Planner (CFP) some type of personal finance software can be of great benefit. Whereas CFPs focus on the big picture of your money, they don’t handle the day-to-day aspects that determine your overall financial health.

It’s also not nearly as complicated as you might think and can take out a lot of the tedium that comes with doing everything on an Excel spreadsheet or with a pad and pencil.

Types of Personal Finance Software

When it comes to personal finance software, it generally fits into two categories: tax preparation and money management.

Tax preparation software such as Turbo Tax and H&R Block’s software can help with everything from filing income taxes to IRS rules and regulations and even estate plans. Plus, there’s the benefit of filing online and getting your refund check a lot faster than if you were to mail off your forms after waiting in line at the post office.

For the purpose of this article, however, will be focusing more on the personal finance software that aids with money management.

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Money management personal finance software will help you to see the health of your cash flow, pay down debt, forecast for expenses and savings, track investments, pay bills, and do a host of other things that 30 years ago would have practically required a team of accountants.

When to Use Personal Finance Software

So far we’ve gone over what exactly personal finance software is and how it can be a benefit to your money. The next logical step in this whole equation is determining when it should be used and how is the best way to go about getting started using it.

Below are four of the most common and practical ways to use personal finance software. If all or any of these apply to you and your money, then downloading some type of personal finance software is going to be a smart move.

1. You Have Multiple Accounts

There’s a good chance that when it comes to your money, it’s in more than one place. Sure, you probably have a checking account, but you may also have a savings account, money market account, and retirement accounts such as an IRA or 401k.

If you’re like the average American, you probably have two to three credit cards as well. Fifty percent of Americans also don’t have loyalty to just one bank and spread their money across multiple banks.

Rather than spending hours typing in every detail of every account you have into a spreadsheet, many programs allow you to easily import your account information. This will help to eliminate any mistakes and give you a bird’s eye view of everything at once.

2. You Want to Automate Some or All of Your Payments

Please don’t say that you’re still writing out paper checks and dropping each bill in the mailbox. While it’s noble that you’re doing your part to keep postal workers employed, we’re 18 years into the 21st century and you can literally pay every bill online now.

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There’s no need to log into every account you have and type in your routing number either.

With personal finance software you can schedule automatic payments and transfers between all of your imported accounts. Automatic transfers will help to make sure you have the necessary funds in the right account to ensure all bills are paid on the appropriate date. Late fees are annoying and do nothing but cost you money. It’s time that you said goodbye to them once and for all.

3. You Need to Streamline Your Budget

Perhaps the best feature of personal finance software is that it allows you track everything going in and out of your virtual wallet.

Nearly every brand of personal finance software out there has easy-to-read graphs and charts that allow you track every cent you spend or earn, should you choose. You might be pretty amazed when you see just how much you spent on eating out last month or if you splurged a little more than you should have on Christmas gifts last year.

Every successful business on the planet has a budget and using personal finance software can help you trim the fat on your spending in ways that affect your everyday life.

4. You Have Specific Goals to Meet

Maybe it’s paying off debt or saving for up something like a European vacation. Whatever your financial goal is, whether it’s long-term or short-term, personal finance software programs are one of the savviest ways to go about reaching those goals.

You can do everything from set spending alerts to notify you when you’re over budget to automating what percentage of your paycheck goes to things like retirement investments. The personal finance software that you choose should show you exactly how close you are to hitting those goals at any given time.

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How to Get Started

From AceMoney to Mint and Quicken, there ’s no shortage of personal finance software apps out there. Many of these programs are free to download and will allow you to pay bills, invest, monitor your net worth and credit profile, and even get a loan with the swipe of a finger.

Other programs may only offer you limited services and will require a one-time fee or subscription to unlock all that they offer. These fees can often vary from as little as two dollars to 50 bucks a month.

It’s best to start off with the free version and then gauge whether you’re able to accomplish everything you’d like or if it’s worth exploring one of the paid options. Often times the subscription programs come with assistance from financial planning and investment experts — so that can be a real benefit.

When deciding which personal finance software program to use, it’s also important to look at how many accounts you wish to monitor. Certain programs limit the number of accounts you can add. Be sure that if you have checking, credit card, and investment accounts to monitor, that you choose a service that can monitor them all.

Finally, when looking around for the right personal finance software that meets your needs, make sure that you’re comfortable with the program’s interface. It shouldn’t be expected that you recognize every single feature instantly, but if the features don’t seem readable and manageable to you, then you’re not as likely to use it and get the full benefits.

Final Thoughts

Personal finance software can go a long way in helping you to take control of your money and meeting your financial goals. It’s important to note, however, that some focus more on budgeting and expense tracking while others prioritize investing portfolios and income taxes. Explore several different programs and read reviews to find the one that’s right for you.

In this day and age, managing one’s personal finances in a secure manner that allows the user to have a real-time visual representation of their money is easier than ever before. With the numerous applications that are out there — both free and subscription-based — there’s no reason that every person can’t take control of their money and ensure they’re making smart money moves.

Featured photo credit: rawpixel via unsplash.com

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