Anyone Start A Business At A Young Age?

[JEDI]

Originally posted by: lchyi
I got this serious urge to eventually work for myself. It doesn't help that I've been reading about it either, it just makes it tougher to think about the realities of opening a business. Has anyone here done it or know someone that has done it in their early twenties?

Thinking as a bank, there is no way in hell I'd give a lump sum of cash to that age group unless it was for educational means (in process R&D right?) and yet it seems like if the business goes under, he/she still has the rest of their lives to recover without too much emotional/physical strain with family, kids, and other responsibilities.

Just thinking aloud...

started one at 24. fed/state weekly/monthly/quarterly paperwork was a PAIN!

and i didnt make enuf to justify a processing service to do that stuff.

 

[Flyback]

Originally posted by: lchyi
That's what I'm talking about Flyback. Give me the harsh realities. Grade A+ post. The risk and the discipline of myself is something that I really want to challenge I'm glad you brought that up.

I really don't mean to sway you guys from not ever trying. It is definitely worth trying to reach your goals in life and rewarding once you reach them. I'm an believer that you can achieve everything you set out to do with a little hard work. Not everyone comes from an equal background, but you can overcome that in life (sure it may take a little more time).

You really need to ask yourself if its wise to start a business with your friends and whether or not its worthwhile starting a business without an idea already.

Some people would tell you its very stupid to start a business or plan on one without an idea ahead of time. I agree to an extent, but at the same time I disagree. Many people, for example, have great ideas but never put them to use. It is much easier to come up with great ideas if you already have discipline and determination (rather than the other way around).

Set realistic goals for your business. Maybe try something reasonably "stable" for your first venture--not some risky--not something before its time. Don't try and invent the next Google, YouTube, MySpace etc.

Risk has higher reward, but you can still get reward from going the "safe" route. Try something with a low overhead and low risk. After you've had some experience and built up your personal savings, try more risky ideas.

This isn't to say you can't do something great and/or very prosperous and/or something that changes the way people live in your first time out--many people have done this as history tells us.

Additionally, never underestimate your business knowledge. Many people would have you think that you need an MBA to own a business. I disagree. People who get MBAs WORK for the successful business owners. As Paul Graham stated in his past essays, if you look at the Forbes 50 companies, there are only four MBAs heading those companies--the first one starts at #22--Phil Knight, CEO of Nike (his writing was at March 2005, I don't suspect the list has changed all that much). People who get an education in business are useful no doubt, but they aren't likely the visionaries or business owners themselves.

If you are a resourceful, hard worker and have some good ideas with the discipline to carry it out, then you will succeed. That goes for just about any task in life, though, not just running a business.

BTW what is your college major and those of your friends?

 

[GTaudiophile]

PM Anand!

 

[AgaBoogaBoo]

Depending on what you do, it isn't easy. If you plan it out well and execute it just as well though, it should work.

At first, in the beginning, it may not seem that bad, but in the first 2 years there's a lot of maturing in the business and formation of policies, groundwork being laid out towards the end of that period for a longer time, meeting tons of people, etc. There's quite a bit of work involved and if anyone thinks it's "easy", they're wrong or are missing out on something major, IMO.

As for at a young age - a lot of people give it a try, I think if they stick with it for 5+ years, they succeeded in overcoming issues outside of the business. What do I mean? At this age, going out and partying and such are pretty common, especially on the weekends. Depending on what you're doing, that may or may not happen, you shouldn't really even expect to have all your Friday nights to do whatever you want. Depending on who your clients are, you may have to finish up work that night to meet deadlines.

For those who lack ideas - look at what you're good at, and find a way to make money off of it. A few examples:

1. If you're good at math/science/reading/etc., maybe you could be tutoring?
2. If you're good at golf, maybe you could give lessons? If you're not very good, you could maybe teach proper techniques to people just starting and refer them to someone else when they get better.
3. Find something to sell! Becoming a distributor/wholesaler is not as hard as some would think, companies want to sell their products!

I guess some of those things aren't really business oriented as some might see it, but that's how I see some of those things myself.

 

[AgaBoogaBoo]

Originally posted by: gsethi
Struck a business deal when I was 24. Took ~5-6 months to close Escrow (seller was sllooowwww). Running it right now and am satisfied, infact, looking to expand more now (already in talks for another same business, hoping that it will go through next month - negotiating purchase price is the hardest)

Took loan from my father + excellent credit helped me get Business line of credit as soon as I opened business account. Remember, you have to put lots and lots of time and there are always some unexpected expenses that you have never thought of, so be prepared for them.

I want to bold that for people for whom it's their first business, you'd be surprised at how many different things there are, however I suppose it all depends on what kind of operation you want to run... you can always the 'shady' versions of other companies and the difference in service is very clear.

 

[Special K]

How do people come up with unique business ideas? I guess there is no formulaic method, otherwise everyone would have one. I don't have a burning desire to start a business, although I wonder what it would be like.

The one thing I know for sure is that I could never start a business based on some well-established model (a bar, restaurant, grocery store, etc.)

I would be inclined to start something based on my field of study (IC design), but after having been in grad school for awhile, my impression is you have to be the next Einstein to come up with a unique idea in that field (or any highly technical field, for that matter) that could be used as the springboard for a business. I have been here for a year and a half now, and feel like I have only scratched the surface of the topic. I wouldn't be anywhere near capable of coming up with a new idea of my own that couldn't already be done by Intel, AMD, TI, or any of the other major IC manufacturers out there.

 

[lchyi]

I'm definitely not venturing out with friends. I know how money/contracts/etc. can destroy friendships. My personal major is Management Science, a radical departure from most people on ATOT.