How to Start Your Own Small Business After College...

With continued uncertainty in the job market and an economy still in recovery, starting a business straight out of college is an option that graduates are increasingly considering. In fact, around 60% of recent graduates say they would like to start their own business.

There is no such thing as a career for life anymore.

61% of graduates are unable to find work in their field (according to Forbes) and over 70 graduates applying for each graduate position. However, one way of gaining skills and experience without having to rely on getting a job in an increasingly competitive labor market is to start-up your own business.

But is there a way to improve the start-up rate by encouraging more recent graduates to start their own business?

And is starting your business straight out of college a good idea anyway – or is it more sensible to get some experience in a ‘real job’ first?

The Pros
Financial Freedom

OK, college debt aside, the reality is that for the vast majority of graduates, there is a relative amount of financial freedom.

Most recent graduates haven’t yet stepped on the housing ladder – and so have no mortgage payments that they have to cover each month.

They are also less likely to have dependents than older start-up entrepreneurs and, crucially, those who have just graduated aren’t yet used to earning a certain amount of money each month either.

This gives college graduates a far greater ability to live ‘lean’, taking home less pay than they would need to if they had other people relying on their income.

Many new graduates also have the ability to move back in with their parents – if they even left home in the first place. More and more young people are moving back in with their parents to save up the deposit for a mortgage. A graduate start-up entrepreneur can do the same to help them to reduce their living costs while building a business.

Let’s face it, if you’ve got a husband and 2 kids, the thought of moving back in with Mom & Dad is less appealing – not to mention that it might not even be feasible.

Time

Recent graduates are more likely not to be working in full time employment, and so have more time to spend working on building a business than someone who is trying to get their start-up off the ground while still holding down a job.

Studying for exams means many graduates are still in the habit of pulling long days and nights and – without having to work a job the next day or get up to take the kids to school.

This means that you have time on your side when it comes to developing and building your business, and you certainly have the edge over other start-up entrepreneurs who will have other competing priorities on their time.

No Baggage

Coming straight from college and into a start-up means that you’re less likely to bring any baggage from previous jobs with you. As a result, you may be more open to new ideas and new ways of working because you don’t have any preconceptions about what ‘works’ or ‘the only way to do things’.

When it comes to starting with a clean slate, this is one of those examples where a lack of experience can be a good thing and will work in your favor.

Stand Out

Yes, it’s true, 3 out of 4 start-ups fail.

But start up graduates who find themselves in the position in the future where they are applying for a job for whatever reason, will be in a position with potential employers. After all, they can demonstrate that they have the ‘get up and go’, the creativity and the tenacity to start a business, which will make them stand out from all the other applicants.

College graduates who have run their own business will also be far more likely to have gained a well-rounded set of skills as they will, at some point, have had to do everything in their business.

This unique well-rounded skill set not only shows potential employers that this person is willing to try their hand at anything to get the job done, it makes them stand out more than the average employee.

Lifestyle Choice

Starting a business straight out of college means that you can build the lifestyle that you want from day one.

Sure, starting a business is hardwork.

If that’s your choice, you will work long hours and will have to do work that you really don’t want to do. But there are lifestyle benefits of controlling the work that you do that you just wouldn’t get in a job.

In the long run, graduate entrepreneurs have the potential to have higher earnings than their peers and – through a greater work-life balance tailored specifically for them – chances are they will enjoy a far higher sense of well-being too.

Build a Business You Love

As well as creating the life that they want, graduate entrepreneurs also have the opportunity to make a difference to the world by building a business that they are passionate about.

The most successful businesses are rarely focused on ‘how can I make the most money possible?’ but are usually shaped around ‘how can I make a difference to the world/this particular problem?’.

Starting your own business means that you’re not just earning the green stuff while you help someone else build their company. It means that you start making a difference to an area that resonates with you right from the start of your career.

Why wait to graduate?

If you’re reading this while you’re still in college and already have a burning desire to start a business before you leave, the good news is that you don’t need to wait until after graduation to start up.

The entrepreneurial world is full of examples of people who started their business while they were in still in school – from Bill Gates to Mark Zuckerberg and everyone in between.

Research by the Young Entrepreneur Council found that of 1,000 college students, 36% were side-preneurs – they were already running their own side hustle while still in college.

Starting a small business while in college to earn an extra income comes with a unique set of benefits over getting bar work or working in a store to pay your way through college.

Running a small business – or freelancing – involves marketing, building and growing a business, and running the finances and cash flow to keep a business going.

You could earn income through a side hustle to gain the necessary business skills that you’ll need in the longer term. For example, by building a business from a hobby, perhaps making jewellery and selling it on Etsy; by becoming a tutor and promoting your services around town; by setting yourself up as a dog walker; or by offering freelance writing services.

All of these might not be the business that you want in the long run, but they will help you to learn about promotion, marketing yourself and how to tailor a business to meet market demands.

Access to experts

Recent graduates have access to a large number of experts already.

Think about it. You’re in college – or you’ve just left and you still have warm contacts there.

Speak to college professors who specialize in marketing or business or entrepreneurship. Another idea is to speak to your alumni department asking them to put you in touch with entrepreneurial alumni who might like the idea of helping out a fellow graduate from their alma mater.

Colleges are full of people with a huge range of expertise. Use the connections that you have there to your advantage.

Access to Support

While a recent graduate may not have the professional networks that a more seasoned executive enjoys, they have access to other networks that will help them to support and grow their new start-up.

Recent graduates may potentially live closer to their families – especially if they’ve moved back home to cut costs.

They are also far more likely to still be in touch with college friends than those who have been off building their careers – and their families – for many years after graduation. Competing priorities mean that more established executives are likely to be far more time-poor when it comes to their social lives.

This means that recent graduates can combat the physically draining longer hours of running a business – and the steep learning curve that they are facing – by having greater access to their personal support network of friends and family.

If that applies to you, then make sure that you use this lifeline.

Surround yourself with cheerleaders. They may offer a particular insight into the business – or they may just have your best interests at heart.

Starting a business is hard work. Starting a business with no support network is even harder. Be kind to yourself and get your cheerleaders onside from the start.

Potential Partners

Chances are that you’ve spent your time at college surrounded by like-minded people. Perhaps you made some great friends who have the same ambition as you to start their own business. And guess what? They’re also likely to have all of the advantages that you have that I’ve just listed above given that they’re coming straight out of college themselves.

Founders of snapchat, Evan Spiegel, Bobby Murphy and Reggie Brown, met at Stanford while Microsoft founders Bill Gates and Paul Allen met at school (although they didn’t start the company until after dropping out of college a decade later).

You may already be studying alongside your fellow future business partner. So take a look around.