Tips To Help Youth Entrepreneurs With Their Own Business

By Nomvuyo Bengane

Youth entrepreneurs face many problems when starting their own businesses, but a big challenge that floats under the radar is a fear of money. From not having enough money, being terrified of losing it to being scared of spending it – youth entrepreneurs face problems many of us can’t even begin to fathom.

How fear of money may manifest itself in business

Undercharging for services regularly.
Inability to collect debt.
Inability to create and stick to a budget.
Not checking financial records regularly.
Overspending or underspending.
Inability to negotiate fair deals for your business.
Failure to pay taxes and other creditors.
Avoiding sales.
Hiring incompetent staff because you do not want to pay for skilled, experienced personnel.
Disengaged staff because they are underpaid.

Your business may suffer in these ways

Experience a crippling cashflow problem.
Stagnate as money is not re-invested into growing the business.
Develop a bad reputation and/or bad credit record as money is hoarded instead of paying creditors and staff.

So how do you overcome this? It’s about how you value yourself. Self-worth dictates what you earn. You cannot charge more than you believe you are worth and you cannot build more wealth than you believe you deserve.

8 Steps to overcome your fear of money

1. Understand your beliefs and fears about money

Identify the triggers of fear of money and your responses to your fear. What new beliefs about money do you want to adopt? Establish and imprint these new beliefs.

2. Money is there to satisfy your needs

Do you need money to give your children a good education? Connect with that need instead of the money.

3. Build your self-confidence

Read this article to help you do this.

4. Fair exchange

Learn the principles of value and fair exchange and apply them consistently. Fair exchange is the healthy balance between giving and take. It’s about ensuring that all parties to a transaction or other interaction involving give and take feel satisfied that they have received good value for what they have given.

5. Be financially responsible

Create financial policies and procedures for credit management, payment terms, and debt collection. Be disciplined and stick to them.

6. Manage your spending

Draw up a budget and make checking cash flow a regular habit.

7. Save money

Create a cash cushion that will keep your company afloat for when there is a sudden economic downturn.

8. Ask for help

Support yourself by engaging your business coach.