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?
{ 7 comments… read them below or add one }
It’s a good idea to try for something that requires less financial capital to start with…gives you more wiggle room to get it started.
Somebody would say we live in a time of garage companies (Microsoft, Google, Apple….), but it’s not something new – check the history of car industry for example. Most of the ‘big names’ began in their barns and backyards. Somebody said: “First come with an idea. There will be plenty of time for the rest”. If you are good, capital will find you, don’t worry – that’s what capital does.
If it’s something you would do for free; go for it. That’s a true passion and something you’ll have the best chance of converting to something successful.
Austin @ Foreigner’s Finances
I’d DEFINITELY gain some tier 1 corporate experience for the first couple years at least, while working on your entrepreneurial business on the side.
But of course, if you never get the opportunity to work for a great corporation, then you might as well still work at whatever job you can and build your business up so you have something.
BTW, what are you doing upon graduation MD?
To add to point 3, I’ve heard experts say that instead of focusing on getting all the necessary equipment and other stuff, it’s more important to get paying clients or generate sales so that you have cash flow.
I agree with that sentiment 100%. The minor details are superfluous until you start earning some money.
I’d say that if you want to start your own business, you must be ready to live on a minimal income for a few years. Reinvesting my profit in my online company for the past 3 years was the best way to ensure its growth without financing and getting stuck with bank (or worst: family)’s engagements.
I currently work full time and grow my business on the side. So instead of working extra hours at work, I put my “overtime” on my business. For 2 years, almost all money was reinvested in the company. We recently started to withdraw a few bucks per month as a “reward” of our hard work.
Working part time will slow down your company progression but will avoid to jeopardize your financial situation (you don’t want to go bankrupt at 25!).