Strategies for Starting a Business: Advice for the Anxious Collegian Who Cannot Wait to Get Started
By David Minor
Young entrepreneurially minded men and women often wonder how in the world they will ever get started as an entrepreneur. They know they want to start a business but just do not know where to begin. They worry about what the business will be, where they will get their money and when they will start their business. If this sounds like you, don't despair, most young entrepreneur wannabes fall in this category. Following this advice will help you develop your long term strategy.
First of all, please don't lose sleep over the when's where's or how's of starting a business just yet. And by all means do not be over anxious to get a business started. Most companies are started by people who are quite older than you and waiting 6, 8, 10 or even 20 years is not uncommon. To me the perfect strategy would be to try and get your business started in 5-10 years.
Obviously there are examples of recent college graduates who have started businesses but they are few and far between. Many times these are young entrepreneurs who have developed some experience in their chosen fields while they are in college and have very small businesses that they simply take to the next level.
As a general rule however it would be best to develop a good long term strategy than to be impatient and jump in to something when you are not ready. The fact of the matter is recent college graduates even with a great entrepreneurship education as their foundation are still very inexperienced in business. Learning about starting and managing a business in the classroom and via internships is great but is a far cry from the real deal. This is true as it relates to general business knowledge and skills or industry specific business knowledge and skills. Personally, even though I felt like I was pretty good in my chosen field and had a successful run, I would be hesitant to start a company in another industry unless I had a talented team who understood the industry.
Some of the best advice I can give you is to go out and get general business and industry specific experience. Go get a job in an industry that you think you may want to someday start a business in and learn as much about the field as you can. It is probably no surprise that most businesses are started by people who are working in an industry and either sees an opportunity in that industry or a related industry. There are not too many folks who start businesses in fields they know nothing about. People who buy franchises do this but they have support of a franchisor and get the industry specific training they need to be successful. More on franchises as an entry strategy later
Another option to consider is to try and find a small business where the founder may be interested in bringing on an apprentice to eventually take over the business. Believe it or not there are folks out there like that and there are many acquisition strategies you could take to make this happen.
Buying a franchise is another entry option and is one you could conceivably do at a very young age if you can access the resources. Franchises are especially good for inexperienced entrepreneurs because with the franchise fee comes training and on going management support.
You could also consider buying a business as your entry strategy if you have access to capital. This could be especially good if you have worked in the industry and understand the ins and outs of the industry. If you have not I would only advise this strategy if you could lock up the management team or ensure that the previous owner would be available to consult.
The most important counsel I can give you is to save, save, and save some more in the years prior to starting your business. This is because the majority of the time most of your start up capital is going to be your savings. Most recent college graduates do not save enough money so when a business opportunity presents itself they cannot leave their jobs because they do not have a nest egg as "running money". This is probably the number one reason people do not go start businesses when they want to. They just cannot afford to leave the comfort of their existing situation.
The key is to develop a strategy, be prepared, and always be on the lookout for potential opportunities. Being opportunistic and having low personal overhead and financial obligations is critical! Strategizing while in college and doing the kind of things mentioned in Ash Huzenlaub's article titled "Making the Most of Your Collegiate Entrepreneurial Experience" will also help you in your journey tremendously. The bottom line is you can do it! We know you can do it! And we are here to help you!
Good luck and may you... "Become the One You Dream You Can Be"
David Minor
William M Dickey Entrepreneur in Residence
Director, Neeley Entrepreneurship Program
Texas Christian University
