As youth unemployment continues to prove problematic to under 25s in the UK, young people are searching for ways to make their own money. Starting up a motor trade business at a young age can seem daunting and comes with a whole set of challenges but where successful, is incredibly rewarding and sets individuals up for a great career.
Find your funding
One of the main challenges to a young entrepreneur is lack of funding. Without being able to show any evidence of experience or business acumen, it can be tricky to convince people to invest. The vast majority of young entrepreneurs are able to secure private investment from friends or family but other possible options include crowdfunding, bank loans, the Government Start Up Loan Company or the New Enterprise Allowance Scheme. The Prince’s Trust Enterprise charity is well known programme for helping to support young people through grants and loans of up to £7500. The important thing is to nurture a strength of character that is never willing to let a lack of funding get in the way of a dream.
Where to start
Start-up costs don’t need to be prohibitive. An aspiring engineer wishing to market their mechanical skills in a garage setting will need more money than an enthusiastic mobile car valet but starting the business small doesn’t mean failure, everyone has to start somewhere. Modest beginnings can lead onto great things.
Insurance matters
After successfully securing funding for your venture, you may then hit another barrier when it comes to protecting your business with a motor trade insurance policy. Young motor traders insurance can be expensive and sometimes difficult to find, but not impossible. The panel of insurance providers specialise in motor trade insurance and can offer you a number of options but be prepared to pay a little more in the early days. Statistically, it is higher risk to insure an individual under 25 than someone older and more experienced. But, over time, be assured that premiums will reduce and the cost will decrease.
Carry on training
Whilst it may be tempting to take on all the work you’re offered initially, you need to ensure you carry on training, as the combined experience and education of further education while you’re working on your business will make you a good prospect for a long-lasting business.
Finally, have confidence. While no successful motor trade business was built in a day, being young certainly doesn’t exclude you from building a successful business that will take you right through to retirement.