In recent years there has been a significant increase in the number of 20-somethings across Australia who are turning their backs on traditional forms of employment and making their own way in the business world (and seeing great success). Franchising in particular is an excellent way to jump-start business success, allowing young investors to pour their passion into a tried and true business model. But the world of small business is not all smooth sailing, so let’s take a look at some of the pros and cons of starting a business in your 20s.
The Pros & Cons of Starting a Business in Your 20s
- Pro: Time & Energy – One of the wonderful things about being young is that you have fewer responsibilities to worry about, and lots of energy with which to pursue your passions. Fewer responsibilities means you’ll have plenty of free time to devote to the growth of the new business.
- Con: Financing – Securing financing can be tricky when you’re in your 20s. Young adults tend to have fewer assets than their older counterparts, making them less than ideal candidates for bank loans. Often young investors will need a parent or friend to co-sign a loan to guarantee payment to the bank before loan approval.
Financing Tip: Some franchisors have existing relationships with the banks to help you get financing if you are signing up as one of their franchisees.
- Pro: Passion – Far and away one of the greatest positives of being a young business owner is your passion. It is a sad reality that as people age, all too often their passions and dreams become less of a priority. Take pride in your passion and channel into your work as often as you can.
- Con: Experience – If you’re in your 20s you might not have as much experience as someone who has been in business a long time. If you are opening at franchise this isn’t so important because all the processes and procedures are set out for you, but if you’re starting a business from scratch it can certainly be a set-back.
- Pro: Fresh Perspective – As they age, most people get stuck in their ways, especially when it comes to business habits. As the new kid on the block, you’ll have a unique perspective on the business world that could be a huge advantage as you explore and expand your business.
- Con – Networks – As we age our professional networks tend to grow, so an older business owner may have the advantage of having more contacts to leverage for business success. You can offset this con by joining a franchise business that will have a pre-existing network of support to help you succeed.
The moral of the story? Starting a business in your 20s can be a wonderful start to your adult life and set you up for many years of success down the line. Choosing the right business opportunity can help you balance out the negatives associated with entering the business world at a younger age.