The number of young people taking the plunge and starting their own businesses has risen dramatically in recent years. This is thanks to accessible online marketplaces and marketing tools.

However, it is sometimes easy to forget that running a business is a complicated endeavor, and if you are not prepared for what is to come, then you only increase your likelihood of failing. Therefore, we have put together our top five tips for young entrepreneurs to help you avoid the common pitfalls and mistakes.

Ensure You are Financially Stable

Before opening the doors to customers – whether that is virtually or physically – you need to ensure that you are financially capable of doing so. It is almost guaranteed that, during your first couple of years, you will be sinking a considerable amount of money into getting your company off the ground.

However, it is important to ensure that you can financially survive as an individual before you attempting to survive as an enterprise. It is no use being the CEO of a company if it causes you to lose your home.

There are options for stabilising your financial position, like doing a student loan refinance, personal loan debt consolidation, and other debt reduction techniques.

These financial tactics could reduce monthly payments, or pay down debt faster, potentially freeing up money to alleviate pressure on day-to-day expenses. It's important to do your research and seek financial advice to get the best arrangement.

Understand Your Product

Another thing you must be certain of is what exactly your product is and why customers should want to purchase it. You may have already come across the term USP, or Unique Selling Point.

Essentially, this is that one thing about your product or service that makes it stand above the competition – that one thing that no one has seen before and is the reason they should pay attention.

Your USP will more than likely be the backbone of your marketing strategies when you are getting started, so you need to be 100% sure of what it is. Otherwise, how will you convince a potential customer that they need whatever it is that you are selling?

Develop a Business Plan

Knowing where you want to go with your business is important, as it will allow you to put in place the foundations for what you want to achieve from day one. Therefore, it is crucial that you develop your business plan, and consider where you would like to be in 5 years’ time and 10 years’ time.

Also, within this, set yourself goals that you want to achieve by a certain point in the business. These will act as a benchmark against which you can analyze your progress and the success of your business at regular intervals.

Do Your Research

One of the most common pitfalls that many new entrepreneurs fall into is failing to adequately research their chosen area of business. It is not enough to simply open a shop and start selling. You must be aware of what your competitors are doing, what customers are buying, and how much these products are being sold for.

Customer research and market research will give you these answers, which you will then be able to use to modify your business plan and product to ensure that it is as appealing and as marketable as it can possibly be.

Make Time for You

Last, but certainly not least, another common mistake new business owner’s make is not making time for themselves. It can be enticing to want to throw all your time and energy into your business during the early years. However, this opens the door for burnout and fatigue, which cannot only be detrimental to your business and its progress, but also to your overall health and wellbeing.

It is paramount that you set aside time for your own leisure, whether that be spending time with friends and family, watching a movie, or reading a book. Whatever it is, ensure that it is not associated with your business to allow yourself to switch off and get some well-earned rest.