There is no secret formula in starting, running, and growing a successful brand. You may enroll yourself in an educational program to teach you the basics of business management. You might even have the best mentors to guide you in your entrepreneurial journey. But no matter what you do, you will face various business challenges that will test your resiliency as an entrepreneur.
Being young while starting and running a business can bring unique challenges that many older entrepreneurs did not have to go through. For millennial entrepreneurs, financial challenges are not the only issues they will face. In today’s modern world, the business challenges younger entrepreneurs are likely to go through are as follows.
Keeping Millennial Consumers
Today’s consumer market is mostly made up of millennials. Unlike older generations, they are more dependent on technology. They utilize the internet, test products in-store, check reviews before buying, and value the recommendations of others before making a buying decision.
Knowing what millennials want will give you a better idea of how you can attract this generational cohort, retain their loyalty, and entice them to market your brand on your behalf. One thing you need to know about millennials is their tendency to be community-focused. As mentioned earlier, they value online reviews and often seek the recommendations of family and friends before choosing a brand and buying a product.
The first thing you can do is to build brand awareness by establishing your social proof. This form of marketing uses the psychological phenomenon wherein consumers are likely to do the same thing others are doing. Adding social proof to your brand can help you entice millennial and Gen Z consumers who are always active on social media channels.
Creating a sense of community can help you keep millennial consumers engaged. One way you can do this is by choosing the right online community platform with the best features for your business and your goal. For best results, choose one that enables you to harness and interpret data to get to know your customers better and better monetize your community.
It also helps that you start putting to practice their desire to support sustainability. You can do this by adhering to more sustainable business practices. Using their advocacy for sustainability can make a big difference in keeping their interest and maintaining their loyalty towards your brand.
Soaring Cyber Insurance Rates
We now live in an age where businesses can no longer afford the power of technology. We use business websites to boost brand awareness, social media pages to keep customers engaged, and other online tools and platforms to improve business productivity and efficiency. This made many bad guys turn to cyber hacking techniques, often targeting businesses.
This made investing in cyber insurance a must-do. The problem is that the rising demand for cyber insurance caused the rates of cyber liability insurance services to rise. This only means young entrepreneurs need to set aside cash each month just so they can afford to protect their businesses against cyber threats.
The key is to find the right coverage and insurance provider. It is a must that you first assess your cyber insurance needs. Then, you consider different ways of financing such insurance needs.
You can try the following tips to make way for your monthly cyber liability insurance.
- Shop around and compare rates
- Consider package insurance
- As much as possible, pay premiums in advance
- Find ways to cut operational costs without risking your brand’s profitability
- Train employees on cyber security practices lessening risks
- Examine cyber insurance each year and reconsider your coverage
Millennials have been called many times, with older generations saying they are lazy, entitled, irresponsible, and not being entrepreneur material. Facing age stereotypes can quickly demotivate millennial entrepreneurs who often face discrimination both in the workplace and the business landscape. Not having enough years of experience and lack of credibility can make establishing yourself as an expert a more difficult task.
It is important that you don’t let ageism faze you. Stay professional and continue educating yourself and gain experience until you earn their respect. Focus on what you do best to radiate confidence and gain that reputation you know you deserve.
Every generation faces unique challenges that can influence their ability to succeed in their own game. When it comes to running a business, young entrepreneurs these days face ageism, rising insurance rates, as well as attracting and retaining modern consumers’ changing needs and expectations. The good news is that there are different strategies you can consider taking to address these challenges. You can use this short list as a guide when managing these three common business issues.