Business Tips for Young Entrepreneurs

When we started Burnt, we had very little. No big cash reserves, no external financial backing and no specific experience in building a brand.

The one thing we had was a clear vision. We knew exactly what we wanted to do.

We wanted to create a brand that bridges the gap between high-end performance and fashion. We wanted to create product that can be worn to run a sub 3h marathon and fashionable enough to wear as a lifestyle product. That’s it.

I’m going to try and give actual, real-world tips and not vague statements like “you need to work hard” etc. This means some of it might not be want you want to hear but rather what you need to hear.

Let’s get into it.

1. Don’t Be Money Hungry

A big mistake I see with new entrepreneurs is that they want to start a business to make money instead of creating something to solve a problem, fill a gap in the market or serve a customer better. Sure, to have a healthy business you need to make money but if that is at the core of why you start, let me tell you you’re in for a disappointment. Especially in retail. It takes years and years to build up to a financially stable business.

2. Find your why

Ask yourself, why do you want to venture into the world of entrepreneurship. Look, to be 100% honest, I believe the word entrepreneurship has been extremely glorified over the last couple of years. To be very clear, there is nothing wrong with a normal job that you love. It’s secure, the stress is much less, and you can build a great career for yourself. On the other hand, if you would like to roll the dice and dive into the world of entrepreneurship you better have a very solid “why”.

3. The details matter

Many big business leaders would disagree with me on this, saying that you should only focus on bigger picture tasks that drive topline revenue, builds brand perception and the list goes on. In my profession, I truly believe that the details are the things set you apart from the rest.

Why? It shows that you care. Brands need to have their own personality. There is a reason customer don’t engage with big corporates. They lack heavily in the personality department. The sale is nothing more than a transaction. Part with x to obtain y.

You need to build a relationship with your customers and show them that you care, by investing in the details.

4. It’s easier to sell it if you’d buy it

In my perspective, it’s really, really hard to care about a product, service or business for that matter, who’s products you don’t 100% believe in. How do I value investing in a business? I ask myself, “would I buy it”.

Sure, ideas and opportunities might come your way that falls outside this scope but for me this approach has never failed.

If I know I’ll buy it, I know how to market it, I know what level of customer support I expect, I know the price I am willing to pay for it and I know how to make it better. 

5. Don’t just look at the flashy ideas

Social media has glorified many industries. Take retail for example. It’s probably one of the hardest businesses to get off the ground, yet it looks shiny and flashy on socials.

It’s expensive to acquire stock, you need warehousing, you need a large workforce to scale and you can’t take your foot of the brakes for a second or you're behind. Yet so many people want to start a fashion brand because that is what they see on Instagram.

We forget about the businesses that might not be so glamourous but that can really have huge upside. Be open minded when considering what industry you want to enter.

6. Don’t take a cent out of the business 

Sure, take enough to get by but don’t go buy a fancy car or increase your lifestyle drastically. Invest everything you can back into the business. It’s going to mean a lot of tough years, but the upside is immense.

7. There is always a better way to do things 

I see so many businesses become complacent. They do something well and then they continue doing that thing for the next 5 years.

Every day you need to wake up hungry. How can I make this process better? Surely this can be improved? I know we just launched this new software but is there not maybe a better one out there?

 Ask yourself these questions every single day.

8. If it feels wrong, it usually is

 This translates directly to trust your gut. In most cases you’re going to have to do things you’ve never done. In some cases, there will be little data to help and you’re going to be faced with big decisions that you will have to make.

How I approach this:  I do my research, I do proper due diligence, I consult with the team and then as a final hurdle I listen to my gut. If it feels wrong, I don’t do it.

This has worked for me 99.9% of the time. 

9. Know your numbers

 Finance is a major part of business. Love it or hate it, the truth of the matter is, if you start a small business, you’re most likely going to have to do the finances yourself or a part of it at least. Learn to love it.

 Even if you have a co-founder that handles the finances, you need to know them as well. You drastically pull up your decision-making handbrake if you don’t understand your way around an income statement, a balance sheet, gross margin, customer acquisition cost and a cashflow sheet. The latter being the most important in my opinion.

 If you don’t understand it, learn it. There is no way around it.

Then once your business is established and your growing, these tips might be useful:

1. Hire the person, not their degree

 I believe in good people. Sure, a qualification is great but there is nothing better than a great person. One with drive, one you can trust, one willing to learn and grow.

I’m a firm believer that if you hire a great person with the right attitude and you invest in their training and learning, they can do anything.

Sure, in some cases you will require to hire very task specific employees but for the most part in my career I’ve backed the person, and it’s basically paid off every single time.

2. Praise publicly, correct privately

 Another tip on the people side of things. As you can tell, people are a major part in scaling a business and you need to look after your people.

 I suggest you really take this heading to heart. No matter who you are, people love praise when the deserve it so as a leader give them that in the public domain. The opposite is applicable when you need to correct them for a mistake they’ve made. Don’t shame or embarrass people. Talk to them one on one or in smaller groups.

3. Grow parallel

 Growing a successful company does not happen in a vacuum. You can’t excel in one department and be terrible in another. You can’t reach true scale without growing all facets of your business at the same time.

 If you don’t do this, you will run into bottle necks and roadblocks that can really set you back.

 For example: you can’t ramp up marketing campaigns, roll out retail stores and launch new products without also hiring the workforce to manage these projects. You can’t sign the lease for a massive warehouse before optimising the systems you’ll use to efficiently manage that space. You can’t order 10x your usual amount of stock if you don’t have a plan to move them.

 It’s a hard thing to master but be mindful of it and make sure you pay attention to all departments of your brand.

That’s it for now. I hope this helps and good luck!