Another benefit of being a young entrepreneur is that young people usually have less commitments, and so are less likely to be tied down, therefore having a more adaptable attitude to work.

Starting young means that, assuming the business does well and flourishes, the long-term rewards can be very lucrative. Gaining such business expertise at a young age equips people for their future working life.

What to consider before starting a business?

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Of course, running a business is not a walk in the park. It can be stressful, hard work and rarely without risks. You need to assess how well you know your market and chosen area before diving straight in. You should be knowledgable and passionate about your area.

Starting a business takes a certain amount of investing in the first place, usually this means using savings, or applying for a start-up business loan. It is advisable to check out what kind of support you can get as a young entrepreneur starting up a business. Check out the Prince’s Trust and Bright Idea Programme which provides financial support to young people.

External factors such as the economy can impact on how easy or difficult it will be to start a business – how well is the market doing at current, and how sensitive is your sector to economic dips and turns?

You should also consider how competitive the sector is; if the business is localised, take a look at other businesses in the local area and how well they are doing, consider which areas have a demand for your kind of business.

What about property development?

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Property development is multi-faceted. It consists of buying up property, developing it through renovation, and selling it on for a profit, or renting it out to tenants. It includes property consultation, construction, architecture, design and renovation. The property developer will see the project through to the end.

It is a potentially very lucrative business to get into, with huge profits. If you have an eye for detail and design, and enjoy taking on a project which you see through to the end, it might be right up your street.

Property is a broad area; it can be residential, commercial or holiday accommodation, and the options don’t end there.

Challenges of property development?

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Like any business, property isn’t without its potential risks. The market is forever changing, and you never know quite what is around the corner, whether a downturn in the market. Brexit for example,  lead to a lot of what-ifs, and uncertainty in the business world and the property sector was impacted.

• Property development includes making long-term commitments to projects, and if they don’t work out, you could be faced with large debts. It is important to be financial stable before considering property development.
• An increase in interest rates has had an impact as well as the increase in construction costs; do your research into this before taking on your business.
• There are a lot of people out there purchasing property to develop – you are against many other investors out there who are your direct competition.

Every business comes with pitfalls, so don’t let this put you off. Many have made a very successful career out of property development.

Tips!

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• Network – Utilise people you know who may be able to support or help you in any way – whether it’s financially, digitally, marketing or simply giving advice.
• Attend networking events for your particular industry – these are useful for making contacts.
• Brush up on marketing – marketing on and offline is crucial in today’s tech-focused society
• Be PATIENT. Things won’t happen overnight, and it takes time to grow a business. Most business people start from the bottom. Alan Sugar started out selling car aerials which he bought with his £50 savings and is now a billionaire.  
• Know how to delegate – if you have other staff, ensure you can delegate tasks out effectively.

Young property entrepreneurs

CityAM spoke to some young property developers about their experiences in the sector:

Adir Group

Coming from a law and finance background, Gal and Tania both decided they wanted to work for their selves at the tender ages of 23 and 24. They subsequently set up G&T, and renovated luxury flats in central London. One of which was the highest selling property in Islington, at the time.

The pair “focused on prime property, rather than super prime” and found their niche in the crowded market. The pair stated that they were met with apprehension from other professionals due to their age “People see your age and wonder what you know about life,” and Tania had to deal with being female in a male-dominated sector, but this didn’t put them off.

They are currently switching to an emerging market for co-operative live work schemes aimed to young people. “We want to make it easier for first-time buyers,” says Gal. “We want to work on projects we feel more connected with”.

The Collective

Reza Merchant came up with the idea for his business at university. It provides a unique, ground-breaking and sustainable model to property based around a young demographic. He believes that property isn’t keeping up with how young people today live and work, believing that new builds don’t feed the needs of the young. His properties are based around communal living; they contain co-living communal work and relaxing spaces that multiple occupants can enjoy, in an aim to combat loneliness.

Pin & Pin

These 2 brothers chose to veer away from the home market and look abroad. They saw Croatia as a place growing in popularity for holiday rental, yet the market wasn’t overcrowded with competition like areas such as Spain. “We could see a definite gap for a high-end product”.

They faced challenges with Croatia’s tough red-rape, which differs largely from the UK, but ploughed on with their goal.

Since then, they have made several investments in holiday villas around the Dalmatian coast. The pair oversee all aspects of the property development, and have strong ambitions for the future of their business.

As you can see, there is a lot to consider before entering the thrilling business world, particularly the property sector. More and more millennials are turning their sights to setting up their own business, and it is a very exciting time to enter the field.