For years, had Thomas Samalionis been working in a steel industry, before he ultimately decided to put his life together and follow his passion.
That’s the life-altering decision he made and became one of the leading entrepreneurs today.
Over the course of years, he has turned to creative musical pursuits dabbling in music production and DJ.
2014s the year when he released his debut EP, namely “Magically” on Italian Label Boiler Underground Records.
Not only has he faced tons of challenges in his career, but he faced each and every one of them with his head-held high, ultimately turning him one of the most successful Instagram influencers and entrepreneurs today.
It’s no secret that people face tons of financial challenges while starting their own business.
In case of young entrepreneurs, it gets even tougher.
That’s because they don’t have any prior experience and don’t exactly know how to control their finances.
In our interview with Tomas Samalionis, we asked him to shed a light on this problem and provide some top tips and strategies to help the young entrepreneurs overcome such financial challenges in their entrepreneurship journey.
Tomas, can you list the most common financial challenges faced by the young entrepreneurs today?
Let’s just admit it.
Running a business isn’t a piece of cake.
Plus, in case of young entrepreneurs, who don’t have a prior experience, it gets a lot tougher.
Most of them are even faced by lots of negativity from their own friends and family, claiming that they will go bankrupt if they begin pursuing their business dreams.
Add self-doubt as well as fear to that!
These are few things that weaken the will of the young entrepreneurs.
And that’s not it.
Here’s a list of the few of the most common problems faced by the entrepreneurs in today’s world:
- Lack Of Persona Capital
- Fewer To No Networking Contacts
- Poor Credit History
- Age Discrimination
- Fearing Debt
- No Safety Net
These are quite some useful pain points that you’ve mentioned. Can we shed some light on each one of them?
That’s exactly what’s required.
Most young entrepreneurs don’t even have a moment’s idea of the challenges that they are currently facing.
In order to come up with a solution, they need to know the exact challenges that they are currently facing.
I’ve seen read tons of blog posts online and watched variety of videos from the “So-Called Experts” in the industry.
But I haven’t ever found them discussing these common problems.
And that’s exactly what I’d like to do here.
That’s true! If you don’t know what the problem is, how do you expect to come up with a solution. And that’s what we will do here. Let’s begin with our first pain point.
What do you think about “Lack of Persona Capital?”
No matter what industry you are a part of or what your business is about, one of the most important things is “Money” itself.
It might even take years before your business makes any type of profit.
BUT! Don’t mistaken this for failure.
As an entrepreneur, you need to begin with a specific amount of seed capital in order to pay for the renting premises, hiring staff, marketing, leasing or buying equipment, etc.
Most of the middle-aged or older entrepreneurs might have built up some savings to pay for all of that.
However, that’s not the case with the young entrepreneurs.
Not only do they face this challenge, but some of them might even be paying off their student loans as well.
They might not even have any kind of emergency funding that will help them get their business up and running.
There are various ways you can equip to earn funding. Right from traditional bank loans to friends and family to Kickstarter campaigns, you can approach different people to get your business up and running.
Don’t focus on building a multi-million dollar overnight.
Such a mindset will ultimately push you to failure.
Instead, I’d advise the young entrepreneurs to stay focused and serve their initial core customers.
Provide them with the best service that they might have ever experience and soon, you’ll see yourself climbing the ladder of success in just no time.
Thanks, Tomas for such generous advice! Let’s move on to our next point.
What are your views on “Fewer to No Networking Contacts?”
You might have tons of your friends starting out too.
You might not have connections in top places or contacts that might help you kickstart your journey.
And that’s not it.
You might not even have people that’d be willing to invest in your business.
And that’s the biggest problem young entrepreneurs face today.
If you already have your business up and running, lack of connections might even lead to you facing problems promoting your products and services as well.
Without anyone’s support, it turns out to be quite a hectic task to reach the top.
For starters, I’d advise the young entrepreneurs to head over to various social media platforms online and showcase their expertise.
LinkedIn’s one of the best platforms where you can reach out to the top experts in the industry.
Plus, it’s really important for them to attend various social meetings and exhibitions to showcase their expertise in the field.
Or you can simply host a webinar to get your journey started.
It’s the digital era we are living in. Various opportunities are lying right in front of us. All you need to do is to learn how to grab one.
That’s true! What do you think about “Poor Credit History?”
Older entrepreneurs don’t face the “Poor Credit History” problem generally.
That’s because they have worked really hard on making their credit mistakes disappear.
That’s not the case with young entrepreneurs.
Most of their financial mistakes are still intact on their credit reports.
That’s what makes it real hard for them to apply for a loan.
In some cases, they face this problem because they are too young.
You need to build a good credit score to avoid such a problem.
This problem is one of the most commonly faced ones faced by the young entrepreneurs.
My one and only advise, in this case, will be for the young entrepreneurs to opt for credit card for borrowers with fair credit.
Can you shed some views on the “Age Discrimination” problem?
Young entrepreneurs are filled with energy.
They don’t hold much experience.
With years passing by, they tend to get wiser and more responsible.
That’s the reason bank managers as well as investors find it really hard to trust the young ones with venture funding or a loan.
To be honest, I believe that the young entrepreneurs are the ones who hold the power to make a major impact.
I didn’t have much experience when I first started out. Ultimately, I knocked it out of the park.
Young entrepreneurs, before they approach a bank manager or investor should have their idea available for showcasing in the form of a document.
Is your idea a million-dollar one?
What are your views?
You need to believe in your idea yourself before you showcase it to the bank managers or investors.
Your confidence level should be sky-high.
You don’t need to sell them the idea. Instead, it’s you who you need to sell them to.
Amazing! Only if I had someone backing me up verbally during my youth, I’d have knocked it out of the park.
Time and time again have I watched the “Fear of Debt” in the eyes of our young entrepreneurs. What are your views on it?
Who likes owing money?
No one does.
As you get older, you’ll realize that certain kinds of debts can turn out to be positive.
It all depends on the loan and the purpose.
If it’s a short-term business loan we are talking about, you need to have everything planned right from repayment schedules to the ARP rates from the beginning.
But as usual, young entrepreneurs feel nervous. They are scared to death of owing a debt.
Most of our young entrepreneurs might have student loan debt as well as mortgage or auto-loan to pay off.
Adding business loan on top of it might make things even worse.
However, if you have everything planned right from the start, you won’t face tons of hurdles along the way.
Life’s all about risks.
It’s up to you to decide:
Let’s get down to our final problem.
What are your views on “No Safety Net” problem?