So, you’ve decided to start a business, even though you’re young and don’t have much experience. That’s okay — in fact, it’s better than okay. There are a ton of advantages to starting a business in your 20s and 30s, including higher long-term potential gains and (generally) a higher level of energy and enthusiasm.
However, before you get too deep into your entrepreneurial endeavor, there are a few important things to know about starting a business before you’re 30:
1. There are substitutes for experience.
Whether you’re crowdfunding, looking for private investors or funding your business yourself, as you look for that first round of clients, you’ll find that early supporters will be basing most of their first impressions on the depth of experience youoffer. Unfortunately, this is going to be one of your biggest weaknesses: You simply won’t have nearly as much experience as other people in your field, and investors will question whether you can pull this thing off.
Don’t be discouraged; there are actually substitutes for experience (you read that right!). For starters, if you don’t have experience of your own, you can get some secondhand, by partnering with someone who has the background you lack, or by working alongside a mentor willing to share his or her expertise.
You can also offer investors hard evidence, social proof or a demonstration of your talent to compensate for your lack of experience. As long as you realize what your weaknesses are and find a way to make up for them, the “experience” factor shouldn’t be a problem.
2. Credit matters.
Before you start a business, you should have your personal finances in order. But before you can start building credit in a business, you need to have personal credit, and that’s something not a lot of twentysomethings have.
Without personal credit, you’ll have a harder time persuading investors to…