JustMoney shares 15 tips for entrepreneurs who lack both funds and business skills to make informed money decisions.
The personal finance site that helps South Africans make good money choices says starting a business with limited resources is daunting, but it can also be incredibly rewarding in the long term.
This comes after PwC’s South African economic outlook report released in September stated that seven million South Africans aged 15–34 were unemployed in the second quarter of 2023.
The research further indicated that the youth unemployment rate will continue to rise this decade. The private sector is unable to provide the required jobs, and entrepreneurship skills are needed to boost self-employment.
“Starting a business without formal education or existing business skills is challenging, but it’s not impossible,” said JustMoney.co.za marketing manager, Shafeeka Anthony.
“Formal education and business skills are an advantage, but a strong work ethic, adaptability, perseverance, and a willingness to learn can help you overcome many challenges,” Anthony said.
Anthony further highlighted that the majority of successful businesses began as small and home-based operations, and people need to use their skills, such as craft-making or tutoring, to be successful
“Many entrepreneurs have paved their own path to success with a combination of determination, resourcefulness, and a willingness to learn,” Anthony said.
Here are some entrepreneurial tips to empower young people with limited formal job prospects:
Identify an opportunity: Consider what you enjoy and are good at.
Clarify your ideas: Develop a business plan. Outline your vision, goals, target market, competitors, and projections.
Start small: Use your existing skills and connections to get your business off the ground.
Learn continuously: Use free or low-cost resources, such as online courses, books, YouTube tutorials, and podcasts, to acquire the knowledge and skills you need. Focus on marketing, finance, and management.
Build a support system: Share your ideas with friends and family.
Network: Connect with mentors and advisers in your chosen sector. They can provide guidance, share insights, and help you avoid common pitfalls.
Focus on customer satisfaction: Listen to your customers’ suggestions and concerns, and be open to adjusting your products or services. Build strong relationships so that your customers become loyal supporters.
Stay informed: Keep up with industry trends and market changes to make informed decisions and stay competitive.
Manage finances: Track expenses and income to ensure your business remains viable.
Collaborate: Be open to partnerships that can bring skills and resources to your venture. Connect at business events and join online communities.
Embrace online platforms: Use social media, e-commerce platforms, and websites to reach a larger audience. Building an online presence is cost-effective and can lead to substantial sales.
Seek funding: Grants, competitions, and small business loans are available for young entrepreneurs. Research and apply for these.
Be persistent and resilient: Stay determined, adapt to changing circumstances, and persevere.
Embrace failure: Don’t be discouraged by setbacks; use them as opportunities to learn and grow. Many successful entrepreneurs faced multiple failures before achieving success.
Be adaptable: Flexibility is essential for business survival.