Building and sustaining a business in a tough local economy, against a global market that moves fast and competes harder every year, takes more than a good idea. Karl Westvig, CEO of Retail Capital, which provides funding and working capital to small businesses, offers this advice for young entrepreneurs.
1. Listen to your customers, not just your own instincts
Just because you would buy your product does not mean others will. Find out what your actual audience needs, which products and services they use, which ones they avoid, and why.
2. Be resourceful about funding
A lack of funds stops many young entrepreneurs before they start. Look beyond conventional bank loans toward the flexible funding alternatives now available to small businesses.
3. Success is more than profit
Businesses built around genuine environmental and social impact, not just margins, tend to build stronger long-term customer loyalty.
4. Put in real time
A business does not build itself overnight. Underpromise, overdeliver, keep your commitments, and market consistently, not only through social media.
5. Plan your funding strategy in advance
Prepare thoroughly before meeting investors. Think through the hard questions in advance, and keep revising your business plan as circumstances change.
6. Disrupt before you get disrupted
Staying on top of your market matters even after early success. Resting on an early win can leave the door open for a competitor to take your position.
7. Be patient about scaling
Premature scaling is one of the most common reasons fast-growing startups fail. Growth is good, but only at a pace your business can actually sustain.
8. Budget properly
Cash flow problems usually come from spending too much, collecting too slowly, or simply not tracking income and expenses closely enough. A watertight budget prevents most of this.
9. Expect to make mistakes
Mistakes are part of building a business. Learn from them and use that knowledge to refine your plans rather than treating every setback as a failure.
10. Treat it as a mindset, not just a job
Entrepreneurship works best as a genuine way of approaching problems, not simply a way to pay the bills.
Frequently asked questions
What is the biggest funding mistake young entrepreneurs make?
Limiting themselves to conventional bank loans. Flexible funding alternatives exist specifically for small businesses that do not fit a traditional bank’s criteria.
Is scaling quickly always a good sign for a young business?
No. Premature scaling, growing faster than the business can actually sustain, is one of the more common reasons promising startups fail.
How important is customer feedback compared to the founder’s own vision?
Very important. A founder’s belief in their product does not guarantee others will buy it, so understanding actual customer needs early on matters more than personal conviction alone.
Build with patience, not panic
None of this advice removes the difficulty of building a business in a tough economy, but a clear budget, a realistic pace, and genuine customer focus give a young entrepreneur a real chance of lasting.
Further reading: What Young Entrepreneurs Really Need to Succeed | Department of Trade, Industry and Competition for official small business support information
Originally published in June 2019. Updated September 2026 to confirm Retail Capital’s current position under the Tyme Group and tighten this advice for young entrepreneurs. The core guidance remains sound.
