Due to the lottery-like nature of the job market these days, more are opting to work for themselves and start their own business. What's astounding is how most of these are those who just graduated with their BA. Starting a business can certainly lead to success, but it's one of the biggest responsibilities one can ever have. Some of these responsibilities can prove to be more difficult for those who are fresh out of college. Even if you have a degree in business and know what to do, there are a few things to be aware of before getting started. Here are the pros and cons of starting a business right out of college.
Pro: Financial freedom
Once you're out of college, you have financial freedom ignoring the obvious student loan debt. In most cases, new college graduates don't have to worry about paying for housing, utilities, and other bills. This is especially true if you're returning home to live with your parents again. Even if you chip in for these expenses, you're still not paying anywhere near the amount you would if you lived alone. Having financial freedom can make paying for your business so much easier.
If you're reading while still in college, now's the time to compare companies and see who offers the best student credit cards. Student credit cards give those who are still in college a prime opportunity to build up their financial security. They're also how you can start building credit early, which can help you apply for business loans. Before applying for one, however, it's very important that you educate yourself on how they work first. You have helpful guides online that provide you with all the information you need to know about student credit cards.
Con: The high costs
Despite the increased financial freedom, starting a business is a very expensive investment. It's true that every business is different and will have varying costs. However, you can still expect to pay well over a few grand on average. Since you've only recently graduated, there's a good chance you have nowhere near this amount saved. On top of that, it will take some time procuring the funds necessary.
Pro: You'll have a more open mind
Something you may have noticed among business owners who started while still in the workforce is how concrete their ethics are. Having a position in the business sector can make the entire process go smoother. But it can also cause people to be a little rigid in how they do things. Since you've just graduated, you're not burdened by how it should be done or this is the only way to accomplish X and Y. An open mind is absolute must have when it comes starting your own company.
Con: You could face burnout sooner
With how rigorous the whole process can be, saying running a company is difficult would be an understatement. Getting everything set up requires most of your time and focus, which can leave you with little breathing room. As a result, you could potentially deal with burnout. Burnout is a type of fatigue that impacts your physical, emotional, and mental well-being. Trying to meet all your quotas and keep up with demands can be extremely taxing. It can make you feel drained, kill your motivation and stress you out. While it's encouraged to stay on top of things, it's important to remember that starting your own company out of college isn't an overnight process. It can months or even years before everything is in order. Take your time with diversifying your business plan and don't hesitate to make any changes.
Pro: You have easy access to support
Going alone for an occasion such as starting a company can make it 10 times more difficult. Having a support system behind you, like your friends and family, can ultimately motivate you to keep going even when you've a massive roadblock. What's more is that your friends and family may even pitch in to fund your business.
From a technological perspective, things like artificial intelligence and outsourcing can be of great support to entrepreneurs of all types. As artificial intelligence shapes the way we work and learn over time, there are many elements designed to take tasks off the plates of a human and give them to a machine to optimize for efficiency. Same goes for outsourcing. There are specific tasks that business owners should contract out to outside workers so that they can learn room on their own schedules to handle the parts of the business that require their specific attention exclusively.
Con: No prior experience
Perhaps the biggest con of this entire excursion is having a lack of experience. Sure, you may have majored in business during your time in university, but knowledge doesn't replace experience and vice versa. They need to go together to yield actual results.
Pro: You have plenty of time
Financial freedom isn't the only benefit; you also have more than enough time sorting everything out. You're not burdened by constantly fitting tasks into an already tight schedule and just jump right into it. Time constraints can significantly halt the process, so you have a fantastic opportunity by starting right out of college.