Once college graduation is over with, many young people will opt to venture off on their own instead of entering the corporate world. There’s nothing wrong with either option… as long as it’s what you truly want to do with your life. If you happen to be one of those ambitious young people that would prefer to pursue an entrepreneurial venture and start your own business instead of going straight to work, then please read this article first.

1. Consider saving up first.

With the rise of various online work, it’s now fairly easy to make money without having to spend lots of money. You will however want to have a little bit of money saved up to play around with various business ventures (from online to physical service). Before you tap out family & friends for money, look for angel investors, give your soul to a vulture capitalist (just kidding!), you’ll want to exhaust your own personal savings/sweat equity first.

Aside: I just spent $200 on getting my own newsletter setup. Having money saved up, makes these types of business transactions easier to perform. If you need a few dollars to invest into your business (outsourcing or expanding) you won’t want to let a lack of money stop you.

Many of the internet entrepreneurs that I interviewed for my money makers series admitted that they held on to at least a part-time job for the first few years where they tried to get their business off the ground. There’s nothing wrong with taking a full-time position within a company so that you can save up some capital for your business. If you want to devote more time to your new business, then you could at least try to hold a part-time job. The key here is that you have some money saved up so that your new business isn’t solely financed with debt.

2. Try using your God-given skills.

Instead of looking for the next “out-of-this-world” idea, why don’t you try using the skills that God gave you to make some money? We would all love to create the next Facebook or Plenty of Fish (I wonder what the creator has seen over the years), but realistically speaking we all just want to make some money. The whole point of an entrepreneurial venture is to have the freedom to make money on your own, the way you want to. Imagine mixing in your skills with some cash? Imagine getting paid to do something you’re already good at?

Some examples…

Before you try to create the next ab-roller, try freelancing your services as a personal trainer.
Before you try to create a portable guitar, consider giving guitar lessons to guys that want to learn guitar to impress chicks.

You get the point.

3. Don’t get too capital intensive right off the bat.

What do I mean by capital intensive? I strongly urge that unless you come from a rich family or you inherit a boatload of money, that you should NOT try to open a McDonald’s franchise as your first business. I know, I know, that you’re probably thinking,  ” you need money to make money.” Is that expression even correct anymore? You may need money to expand your business or to grow to new levels, but do you really need a million bucks to start a freelancing business?

The key here is to not get too carried away with hopes and dreams of opening a booming restaurant in the downtown district right off the bat. Start slow and see where the journey takes you.

What else was missed? Any additional tips for aspiring entrepreneurs?

As you grow through college and think about how you will earn an income for the rest of your life it is really easy to draw a blank. In fact I do it all the time. I have a bunch of career ideas in my head one week then I talk to a person in the field and I decide that maybe those options are not for me and all of a sudden I draw a blank.

The good news is that there is one lecture from Entrepreneurship class that I will never forget. The professor that teaches the course is an entrepreneur himself and he loves to share his knowledge in the classroom setting. He often joked that the course was a discount for us since he charged plenty more money for his public speaking seminars. Enough of the introduction, time to go over the 3 questions college students need to answer before starting their career:

What can you be the best at?

Is there something you can do that nobody else can be as good as you? This may not be an idea you’re crazy about or one that sounds like a cash cow but something that you can be really great at. It’s usually something you’re born with and able to excel at an early age.

What drives your economic engine?

Is there a certain skill or activity that you have that could earn you tons of money? Some people have the uncanny ability to speak publicly or to play a certain instrument. These options lead to an income that will definitely drive your economic engine. The only thought you need to seriously ponder is if you are truly passionate by the means you can earn an income.

What are you passionate about?

This is the one where you won’t immediately see the financial benefits right off the bat. It’s a specific skill or piece of work that you would do for free but yet you could somehow earn a living off it. Some have the opportunity to play a sport for a living (very rare) while some get to write about topics they love for a living. If you can find a way to earn a decent income off an activity you’re passionate about then you will probably live a much more enjoyable life than the majority of your college buddies.

Whenever I have career doubts I pulled out a piece of paper and try to answer these 3 questions. I usually come up with a list consisting of many great ideas. Today it’s your turn!

Getting the money needed to start a business takes work. But that doesn’t mean that financing isn’t available. The key is knowing where to look for the money you need. To give you somewhere to start, I compiled a list of ten places to find startup funding for a small business. There are pros and cons to each offering, but they are all worth considering:

Your savings account. Entrepreneurs often take money from their savings for initial startup funding. This is a great idea. When you use your own money, you don’t have to worry about paying anyone back right away. However, if you decide to go this route, you’ll want to make sure you “lend” the money to the business and pay yourself back later–with interest.

Family. Borrowing money from family to start a business is a time-honored tradition among entrepreneurs. Interest rates are often lower and terms can be much more flexible–especially if you have a rich uncle who doesn’t need the money repaid immediately. And if you pose the deal as a win-win situation (i.e. you agree to pay your lender more in interest than a bank would if the money was just sitting in a savings account), you may be able to get the majority of your funding from a private business loan.

Your network. Relatives aren’t the only people to turn to when you need startup fuel. Friends, mentors, business associates, and other people who are in your network can also be considered viable options. Just be careful who you borrow from in a downturn. You don’t want to take money from anyone who is counting on being repaid immediately.

Angel investors. Also known as strangers with money, angel investors use their cash to help aspiring entrepreneurs like you get started in business. These investors can be found in every industry. Some join together to form associations and syndicates. You can find an angel investor in your area by visiting Angel Capital Association online or by doing a simple Google search. One word of warning though: some angel investors are really scammers in disguise. Do not ever pay anyone to simply listen to your pitch. A real angel or angel group will do this for free.

Seed funding firms. Also known as “business incubators,” seed funding firms are similar to angel investors. They give entrepreneurs startup money and expect to be paid back at a later time. But, unlike angel investors, seed funding firms do not do this sort of thing on the side; helping startups is their main business. You can find seed funding firms by doing a Google search.

Local funding. Looking for funding within your local community is just plain smart. There are many local government agencies and non-profits that have community development programs. These programs sometimes offer grants or other types of funding to new businesses. In many cases, there are even special programs for entrepreneurs who are women or minorities.

Government grants. Although it can be incredibly difficult to find straight-out grants from the state or federal government to start a business, there are a few grants available. In most cases, these grants are reserved for non-profits and other businesses that provide some sort of public benefit. If your business venture falls into that category, you may be able to get one of those elusive grants. Visit business.gov and sba.gov for reputable grant resources.

Your bank. If you’re like most entrepreneurs, you probably want to avoid taking out a loan to fund your new business. Unfortunately, this might not be the most realistic approach. Bank loans are sometimes necessary to get things going. If you do need a loan, consider contacting the financial institution you bank with on a regular basis. Your bank knows you and has a business relationship with you. They may be much more willing to give you money than a bank that doesn’t have a standing relationship with you. And if things go sour, your local community bank may be easier to work with than some alternatives.

Social lenders. Also known as social finance companies, social lenders match borrowers who need money and investors who are looking for a fixed rate of return. Some of these lenders are backed by credit unions and other institutions. Nearly all of them are a win-win for the borrower and the lender. The most prominent social lenders operating today include Zopa and Prosper.

Small business financing alternatives. Because small business loans can be difficult to get if you don’t have the right capital or the right credit rating, you may need to look at a business financing alternative. A number have cropped up in recent years. The best example is probably On Deck Capital, a company that uses cash flow to determine loans versus tax returns or credit ratings.

Guest post submitted by Karen Schweitzer. Karen writes articles about associate degrees for AssociateDegree.org.

Imagine you have the perfect business idea and the only thing stopping you is the fact that the project is going to cost more money than you may have anticipated. Before anything gets going you must raise capital to fund the project. So now you’re wondering how does one go about raising capital?

• Figure out why you need the money. You must determine whether you really need extra funding or if you are better off running a smaller operation until you turn a profit.
• Get ready to answer questions. You will be drilled from every direction possible when it comes to asking someone for money so get ready to answer every imaginable question.
• Compare & contrast all methods possible for obtaining funding. The different methods of acquiring capital is a topic that I’m going to save for the next post. The key point here is that you must determine which source would be ideal for your business and stage you are at.
• Put together a solid team. Find a marketing guy, find an accounting guy, find a technical guy, and find a person that will ensure you all work together. Not saying you need all of these people but it would help if you have a team of people with many diverse skills. It also doesn’t mean that you need 4 different people because one person could be excellent at accounting & marketing and so on.
• Work out a strategy relevant for your source of funding. Obviously your approach will have to vary depending on how much money you are looking for and on whom you plan on asking.
• Do not give up until someone accepts your proposal. This process may take many months and possibly many years. No matter how many people turn you down do not give up.

Now that you have considered many potential business ideas, factored in the recession into your plans, and figured out how you are going to go about hiring your staff, you are ready to start making the big bucks. Well once again it is not that easy. This is bad news for our generation because we all dream about getting rich quick but be patient. Right before you jump into that new side (or full time) business of yours there is a checklist of crucial ingredients for success that you need to look over:

• Proof of concept. Of course after your college graduation your parents will be eager to tell you how great your new business idea is. I’m sure your friends will also be the first ones to tell you that they love your new idea. In fact, you may receive praise from all of the people around you. You will probably start to think that you have the world’s greatest new idea because everyone seems to like it. The cold truth is that these people either a. don’t have the heart to tell you the truth or b. will like your new idea no matter how foolish it is. The trick is to get a third party unbiased approval of your new idea.
• Scalability. With all of the hype out there about passive income and working from home, who actually wants to work? Simply put scalability refers to reducing variable costs with each unit sold. A simple example is when you create software it requires months of research and then the only additional direct cost is the blank cd. Also when you write a blog you only have to post once and the same post can be viewed by many people all over the world. The goal is to make your product as scalable as possible.
• Selective information. I have never done a formal count but one could only imagine there are over 1283599 sites out there on every possible topic. What does this mean? Two words. Information overload. As a new entrepreneur it is important you can separate between “interesting” information and “important” information. When applying newly learned information just make sure that it truly does apply to your situation.
• Viral marketing. In a nutshell, get the word out about what you can offer! Word of mouth is all you may have when you’re a little company trying to compete in a competitive market.
]]> http://studenomics.com/entrepreneurship/successful-business-venture-checklist/feed/ 5 http://studenomics.com/entrepreneurship/hiring-mistakes-that-could-lead-to-failure/ http://studenomics.com/entrepreneurship/hiring-mistakes-that-could-lead-to-failure/#comments Wed, 25 Mar 2009 20:44:30 +0000 MD http://studenomics.com/?p=711

You have been out of school for a few years and now it’s time to use all of that money you saved up to open up your own business- perfect! Everything is ready to go and all you need is to hire someone- no problem, right? Well that’s the thing, spending money foolishly is the main reason many new business ventures never make it past the first year. Outline below are a few hiring mistakes that could lead to your new business failing before it even gets off the ground:



Hiring someone as a favor. An acquaintance or friend of yours is hurt by this current recession and it may seem like the right thing to do. You may feel like a good human being at night but when your new business venture struggles financially, how good will you feel?

Hiring someone to be general help. It’s too much work for one person to try to run a business venture at first but only hire help for specific work, not just a general employee.

Hiring someone just because you know them. It may seem like a dream come true to be able to work everyday with a good friend of yours but how will your friend react when you order them around? Or if they mess up and you have to discipline them? Once the “honeymoon” phase of working together is over you will discover the bitter reality of working with a close friend.

Hiring for a job that you dislike. So you’re a Psychology major and absolutely hate the thought of accounting. It makes perfect sense to hire someone as an accountant but do you really know what you’re paying for? Your lack of interest in the job could lead to you either overpaying for the work or not receiving the quality you desire.

(Credit: Entrepreneurship class last semester, the only class I would pay attention in for 3 hours straight due to the interesting material.)

]]> http://studenomics.com/entrepreneurship/hiring-mistakes-that-could-lead-to-failure/feed/ 2 http://studenomics.com/entrepreneurship/reccesion-entrepreneurship/ http://studenomics.com/entrepreneurship/reccesion-entrepreneurship/#comments Tue, 24 Mar 2009 15:35:03 +0000 MD http://studenomics.com/?p=703

After hearing about the entrepreneurship theme many readers emailed me asking if it was appropriate to discuss such a topic during a recession? Readers questioned whether entrepreneurial activities are worth pursuing during an economic downturn? Since I was being faced with these questions I figured it would only make sense if I did some research and talked to others about the subject. Upon speaking with professors, fellow students, people online, and friends engaging in true entrepreneurial activities, I came to the conclusion that it is definitely worth starting your own business during a recession. For lack of a better term I will spend this whole article discussing Recession Entrepreneurship.

Things you should know:

No/minimal profits. Depending on the business venture there is a strong chance you won’t be raking in the profits for the first little while. Even if you do make a slight profit don’t expect to be buying a new BMW any time soon.

Difficult to gain traction. Reality will hit you and you will realize that your business is not exactly recession proof. It will be difficult to gain the first boost of sales or a solid market position.

Growth may seem impossible. It will feel as if your business is not growing and will never grow. The truth of the matter is that profit should not be your only measuring stick when you’re viewing the progress of your business.

Benefits of starting your own business venture during a recession:

Master your skill. You can use the current recession to become the very best at what you do. When the economy rebounds you will have hopefully mastered your skill to the point that people have no choice but to use your services due to the high quality you offer.

Gain recognition. People may not be able to afford your product or be willing to give up their hard earned money but they will definitely be aware of who you are. From seeing you around and from word of mouth you could build up a distinguishable reputation for yourself.

Prepare for your future. Short sighted thinking often gets us into trouble, which is why starting your own business today is a long term investment that will hopefully earn you a decent income one day. You have to be willing to accept the fact that you won’t see those returns you are expecting until a few months or years down the road. This may require that you keep your current full time job for the time being.

]]> http://studenomics.com/entrepreneurship/reccesion-entrepreneurship/feed/ 4 http://studenomics.com/entrepreneurship/can-you-be-an-entrepreneur-within-an-organization/ http://studenomics.com/entrepreneurship/can-you-be-an-entrepreneur-within-an-organization/#comments Mon, 23 Mar 2009 14:49:10 +0000 MD http://studenomics.com/?p=699

Instead of jumping straight from career talk into entrepreneurship talk I figured today would be the perfect chance to discuss the middle ground- the entrepreneur within an organization. Is it really possible to be an entrepreneur within a large company? Simply put the answer is yes and for those of you that thought it was impossible I would like to introduce a new term to you- the intrapreneur. What does this weird word intrapreneur mean? According to Intrapreneur.com the definition is listed as:

A person within a large organization who takes direct responsibility for turning an idea into a profitable finished product through assertive risk taking and innovation.

Instead of trying to describe the term I wanted to list the most effective ways you can apply entrepreneurial skills to your current place of employment:

Volunteer to work on some of the more difficult projects. Every workplace has those tasks that are so difficult and time consuming that everyone avoids them like a bad kisser. Try being that one person that actually volunteers to do these tasks (not always but most of the time) no matter how long and tedious they may seem. Your efforts will hopefully get noticed by management and your fellow employees. Another reason for striving to complete difficult tasks is because a true entrepreneur turns adversity into opportunity, meaning that each problem is just another challenge.

Be passionate about every task that your perform. Not every assignment that you work on will be glamorous, you may even at times be stuck performing a very simple task or one that requires minimal effort. Either way don’t let it be known that you take these tasks lightly. Sure typing out the next weeks schedule may seem boring but complete the task flawlessly to show that you take your work seriously.

Be a leader not a follower. Do not wait for a subordinate to give you directions to begin working on something. Do not seek approval from your fellow employees when it comes to your work ethic or attitude in the workplace. Be the first one that tries something new or the first one to get the latest project rolling. Motivate others around you to work harder than they normally would and bring out the best everyone.

Embrace change. Do not be afraid of emerging technologies or new processes in the industry. Learn to adapt to change so that you do not fall behind the times and get left behind in the dust. You don’t have to worry about keeping up with every new iPod that gets released but it would be beneficial if you learn how to use new software at your job before anyone else does.

Be willing to put the company first. Sometimes you may have to act in the best interest of the company regardless if it is feasible or convenient for you. This may require some personal sacrifices such as staying behind at work to complete a task instead of going out to get drunk with your friends.

]]> http://studenomics.com/entrepreneurship/can-you-be-an-entrepreneur-within-an-organization/feed/ 6 http://studenomics.com/entrepreneurship/the-biggest-lies-about-entrepreneurship/ http://studenomics.com/entrepreneurship/the-biggest-lies-about-entrepreneurship/#comments Tue, 13 Jan 2009 07:43:15 +0000 MD http://studenomics.com/?p=460

So you completed College, worked a full time job to raise some capital, thought of a perfect business idea, and now it’s time for you to live the life by being your own boss. Well unfortunately entrepreneurship is not all its hyped up to be and instead of learning the hard way you could learn by reading this article. Before you become the next Richard Branson give this list of the biggest lies about entrepreneurship a read and then decide if you are trying to become an entrepreneur for the right reasons.



1. You should quit your day job. While working on your own could earn you some nice extra change it is usually not enough to survive on, especially for the first few months or even years. A side business should be started in your free time and not by quitting your job so you could devote every minute of your life to an idea that is not a steady source of income. Especially considering the current state of the economy, you should probably never quit your day job, no matter how great you think your idea is.

2. You will make more money than you could at your regular job. This is usually not true (obviously depending on what your day job is) because you will typically have to wait until your business has gained some decent traction before you will see any profits. Once you do start earning money you will realize that it is not all yours. After you pay your corporate taxes, rent fees, insurance fees, and any other fees that may be associated with your business you will end up with a less than expected profit.

3. You will work less hours. This is probably the biggest lie about being an entrepreneur just because there is no such thing as going home for the day. Most business owners think about their work 24 hours of the day and it takes up more time than is even fathomable. Once you work on your own you will become responsible for everything and there will be no such thing as going home early or calling in sick. Obviously there are businesses that consume less time than others but gone are the days of a steady pay check and job security.

4. You won’t have to answer to anyone. Just because you work for yourself it doesn’t mean that you don’t answer to anyone. As soon as someone loans you money you will have to explain to that person how you spend every penny (depending on the type of investor). You will have to deal with suppliers that may increase prices as they please. You will have to deal with customers that will make certain demands, and if you are not willing to meet these demands than someone else will. Sure you won’t have a formal manager to report to every morning but you will always have someone to answer to.

I don’t mean to scare you away but after talking to many great entrepreneurs in one of my Entrepreneurship courses I was able to come up with this list of the biggest lies about entrepreneurship. If you give yourself a reality check before starting that new business venture then you will set yourself on the right path.

]]> http://studenomics.com/entrepreneurship/the-biggest-lies-about-entrepreneurship/feed/ 5 http://studenomics.com/entrepreneurship/7-questions-from-an-investorventure-capitalist/ http://studenomics.com/entrepreneurship/7-questions-from-an-investorventure-capitalist/#comments Fri, 14 Nov 2008 06:16:13 +0000 MD http://studenomics.com/?p=112

Have a great business idea? Ready to make millions and millions of dollars? If yes, then chances are all you are missing is the initial capital required for your start up. Obtained all of the possible favours from friends and family? Still not enough money? Unless you come from a really wealthy family, odds are you are going to have to obtain the financial resources you need to start your business from an investor/venture capitalist. These people technically offer lower rates than most banks, only problem is that they may take control of a hefty percentage of your business. The whole whether you should obtain funding from an investor/venture capitalist is a different article in itself, this article deals with the 7 most common questions that a venture capitalist will ask you before they provide you with any money.

1. How will you spend my money? You must clearly outline that you have a financial plan in regards to how you plan on allocating the money to survive until you the profit point.

2. How much is your business worth? A lot of thought must go into this answer because you must prove why you feel you are worth what you claim. Money investment, current revenue, and potential revenue are usually good indicators of what a business is worth.

3. Why you? You must justify why you are the ideal person for the proposed venture. This is where your marketing skills really come into play. The most common approach is to provide extensive details on your background and accomplishments.

4. What are your goals? Before anyone will ever give you any money they want to ensure that your goals are aligned with the goals of the investor.

5. How did you come up with this? The investor wants to gain a grasp of your thought process and exactly how original the idea is.

6. How big is the market? The investor wants to know what the chances are of this venture becoming profitable, which usually depends on the current size of the market. There is nothing wrong with a market full of many competitors, as long as every company is currently experience exponentially growth and profitability. In some cases a market may be empty because there simply is no room for the product, not because you are the first mover.

7. What’s your skin in the game? Before the investor provides you with their own money they want some form of a commitment from you. Usually the investor looks to see how much of your own money you have put into the venture. Why should the investor provide money to the venture if you are not willing to?

These are the 7 most common questions that you must have answered in your mind before you even consider bringing forward a new business proposition to an investor/venture capitalist.

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