sRisky Business: The Downside of Starting Young
Many young entrepreneurs like cutting corners and hate playing by the rules — and that’s often why they’re successful. But experts warn that those same qualities can also doom a fledgling business.
From: Inc.com By: Angus Loten
While preparing to pitch his social networking site to a group of venture capitalists, 27-year-old Geoff Cook accidentally knocked over a full glass of water on the boardroom table, soaking himself and his presentation materials.”It’s hard enough being taken seriously at these meetings when you’re a little younger,” says Cook, a co-founder of myYearbook.com, a New Hope, Pa.-based social networking site for teens. “Luckily, I was able to dry off before we got going.”
Getting bankers, investors, and others to take them seriously is just one of many challenges younger entrepreneurs face that their older counterparts are often spared. Yet, most of these can be overcome by following a few simple rules, business coaches and mentors say.
Consider that most would-be teenage business owners can’t even enter into contracts or take out loans without their parents or an agent co-signing the agreement, says Hank Kopcial, executive director of the National Federation of Independent Business’s Young Entrepreneur Foundation. “They’re simply not of legal age,” he says. “It’s an extra step older entrepreneurs don’t have to take.”
Other typical problems include weak or no credit history, few peer-to-peer mentors, and even fewer corporate connections. And don’t forget time-management issues. (Should I analyze market research or study for tomorrow’s history test?
For the entire article go to Inc.com
Corra can see how flying by the seat of one’s proverbial pants can lead to amazing innovation in business as well as colossal flops. Some entrepreneurs are barely experienced drivers, yet along business people. So it is small wonder that many will eventually hit that speed bump that they cannot surmount.
Nothing is a substitute for experience. Except for maybe innovation. At least when innovation works it is a good substitute for experience. Up to a point. And then maybe the lessons young entrepreneurs learn the hard way will serve them well in either their next venture or in the broader workplace.
Not matter what, there should be some qualifiers. A good pre-employment screening package may have its limitations when the focus is younger people. Chances are it is tough or impossible to obtain business credit reports on their fledgling businesses. But education can sure matter, as can their criminal records. So, if you are lending them money, or becoming involved, as a savvy and experienced business person, check them out before you hire.