Younger entrepreneurs have certain traits that give them a leg up on older competitors. Learn to recognise what they are and how you can leverage them for success.
What does it take to transform a passion project into a full-blown successful small business, especially if you are two female entrepreneurs under 26? That was the case for Ebany Mclees and I only 18 months ago when we launched ELLORE. Joining forces with a mate to fulfil my entrepreneurial dream was a match made in small-business heaven.
I’ve always wanted to have my own business and always loved fashion and feeling good about what I wear every day. I love that I was able to fulfil both desires at once. With ELLORE, the two go hand in hand.
“People today are emotionally savvy and if you tell the world why you are passionate about something you will get a lot of support.”
The dream began in a coffee shop on the Mornington Peninsula, with the amazing collaboration of a competitive creator and a woman of ambition. We mapped out the plans for our brand over the next 12 months.
Strength from youthful purpose
Being so young did not hinder our passion for success. In fact, if anything, I think it fuelled it.
I believe Gen Z small businesses are led more by purpose than profit and when people believe in your business’s purpose, the profits will come. Most of the major trends we see in sustainability and innovation are fuelled by youth culture, by Gen Z and young people.
People may believe that purpose and profit are conflicting subjects. This might have been true in the past, but when done properly, purpose and profit don’t conflict with each other. When brands have an authentic purpose, share it with the world, and truly stick to it, people are more than willing to pay a small premium. This is true of both Millennials and Generation Z.
Being young was an advantage because we are in the same age group as our target audience. As a Millennial (Ebany) and a member of Generation Z (myself), we grew up around technology and social media, and in today’s age of promoting your business, social media is the backbone of it all.
While Ebany and I know there is a glut of fleece wear and leisurewear offerings in Australia, as a small business, we also know clearly what our points of difference are – a must in this world, to maximise our chances of success.
Shoring up weaknesses
Another important element of our continued drive to succeed is having a mentor in our lives. You don’t know it all and mentors have been through everything you are struggling with. Your mentor can offer advice, support and guidance, which can help you improve your business and take it to higher levels far quicker than you could have on your own. You can share ideas and problems with your mentor and they can act as a sounding board to help you make decisions with more confidence.
Success also required a business plan. For Ebany and I, planning was not our forte, but we did try our best to ensure we had certain plans put in place to optimise our success. Our business plan was simple to start, based on a google search for what you need. Your plan doesn’t have to be anything too intimidating, just use it as a guide to get your business off the ground.
Social media is your friend
Marketing has, luckily, been pretty easy for us, since social media is everything and we grew up with it. Our marketing plan started with making one Instagram post a day, five to 10 Instagram stories a day, one TikTok a day, and sending one email a day. This allowed us to be across the two biggest social platforms for our demographic and nurture our email subscribers. Between the two of us, this was very manageable.
It is very important to make social media your friend and not your foe. Be authentic. If you’re trying to be something you’re not, or sell a product for something it isn’t, you’ll get called out and that’s not pretty. So, be yourself, be honest, show the value you bring with the knowledge you have about your industry.
Tell people about your purpose. People today are emotionally savvy and if you tell the world why you are passionate about something you will get a lot of support, as people can tell you’re doing it for the greater good. Post things your audience will enjoy, study your audience – what they interact with, what influencers they watch, what their days look like, what products they enjoy using – and incorporate all of this into your marketing so you are relatable to consumers. Lastly, set a manageable posting schedule and remain consistent with it.
How to complement each other
Having two similar personalities like Ebany and myself in a small business has its advantages. We know our lanes and we try to stay in them best we can. Ebany is the brains behind the business, managing budgets, warehousing, inventory and fulfilment. I, on the other hand, look after the creative aspect of the business, managing marketing, social media, PR, collaborations and photoshoots. We collaborate on many tasks but understanding our core roles is fundamental to getting the wheels to turn each day and knowing where our value lies in the business.
We thoroughly enjoy what we do every day and get joy from delighting our customers. Ebany is always lifting up people and encouraging those around her to do their best, bringing light and laughter even in the hardest of times. We celebrate all big and small wins, which makes us feel proud of all our accomplishments. But our favourite thing by far is when we do in person pop-ups and I get to laugh and connect with our customers and community.
Three dos and three don’ts
Here are my top three tips for young people who want to start their own small business:
- Quality over quantity – always: Whether it’s the pieces you stock, posting a TikTok, making an Instagram feed or sending an email, it’s always quality over quantity – don’t just put content out there for the sake of it.
- Don’t over-order on stock: It’s far better to sell out of an item and put it up for pre-order than to have 500 units of something that nobody wants.
- Communication is key: Whether it’s with your customers, manufacturers, agencies, business partners or investors, make sure you talk through everything. Say how you feel so everything comes out as best as it can.
And here are the three things you must avoid at all costs:
- Not putting your customers first: Without your customers, you don’t have a business, so whether they need help with sizing, a return, or simply want to talk to you, they are your number one priority. Treat every customer like your first and the rest will follow.
- Undervaluing your product: Ensure you understand the cost to make, store and ship your product. Do your market research on all your competitors and work out your profit margin. Undervaluing your products is detrimental to your business.
- Not understanding your cashflow from day one. Cashflow is king and without understanding the basics of how to invest money to make a profit, you will quickly learn how easy it is to spend money and how hard it is to acquire a paying customer.
This article first appeared in issue 40 of the Inside Small Business quarterly magazine
