Q. I’m a recent college grad with a true entrepreneurial spirit. Since I’m currently unemployed, I’m thinking of starting my own business. Unfortunately, I have debts rather than investments. What do I need to consider before I put “CEO” on my resume?
A. Before you can decide how to make a living in these difficult economic times, you have to identify your priorities. It’s tempting to put being your own boss at the top of the list. Unfortunately, you need to consider some very unsexy items too: paying back your school loans, getting health insurance, and paying your basic living expenses.
How quickly you can start your own business will depend on three things: first, how well you can control your expenses. Second, how much you’re able to save. And, third, how much you personally need to contribute to your business enterprise.
Few can afford to work full time in their own business immediately after graduation. Does that mean, then, that you have to dust off your “interview suit” and act the part of perfect recruit? Hardly. But if you want to become your own boss as quickly as possible, you’ll need to have a business plan and a strategy to achieve your goals. Back of the envelope calculations no longer work! And forget 40 hour weeks: to survive you’ll be lucky not to be sleeping under your desk with spreadsheet in hand.
Apart from financial considerations, new grads need to know what they don’t know. Running a t-shirt business in college is light years away from running an indie-rock company with a payroll and marketing expenses. Since you’ll probably have to work initially for someone else, focus on finding a job where you can learn the skills you don’t have. If you’re fortunate enough to find one of the all-too-rare investment banking jobs, you can pick up very useful information about how companies are funded. Accept a job at a small start-up, and you can undoubtedly learn from someone else’s mistakes.
An alternative to working in the corporate world is to pursue a day job while continuing to develop your own business. Remember, it’s difficult to put 100% effort into two demanding occupations, unless they are directly related. Tanuja, who had a contract to write a book, worked in a public relations firm during the day and wrote by night. But it ended up being too stressful. She quit the PR firm to waitress, so she’d have the mental energy to write her novel.
It’s tough being unemployed, and also not being in a position to start your own business, but the important thing is to use your time wisely. Get into good work habits by devoting at least eight hours a day to either looking for a job, or doing research to help develop your business. And spend as much time as you can building connections–through your family, your community and your alma mater. When you can get other people as excited as you are about your ideas, they’ll often bend over backwards to help.
A similar article was first published in SmallBusinessProf.com