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Several here have noted a “defeatist” attitude regarding starting businesses. But why the defeatist attitude about going to college?
Because these days, a master's degree is as special as a bachelor's degree was just two short generations ago. You have to go to college for SIX years at FAR higher tuition rates (as a percentage of income) compared to how people were able to do it two generations ago.
My dad was able to work over the summer at a job that was relatively average for a teenager and save enough money to pay for one full semester of college.
I went to the same college 35 years later. I had the most lucrative and best-paying summer job of anyone I knew. Even if I saved every penny I made, I could barely pay for more than half a semester.
Furthermore, college is being dummied-down these days so that everyone who has bought into the liberal Democrat mantra of "you are entitled to go to college and get a good education" can do so. I've tutored people for college classes and many a time have I felt that a student who enlisted my services had no earthly business going to college. Some people just can't hack it. Some people will sweep floors for a living because they lack the intellectual capacity to do much better. That's FINE, because we need floor sweepers. The important thing is not to ram down everyone's throats that we must all go to college... but rather to make it a decent living for people to do "menial" (read: stress-free but not especially thought-intensive) tasks like sweeping floors.
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Originally Posted by ohio_peasant
Business ownership requires entrepreneurial temperament and street-skills… grand things indeed. But do please realize: some people have poor street-skills, but excellent book-skills. And I would surmise that the latter is a larger number than the former.
Business SUCCESS requires a silver spoon. If you don't have that, your chances of hitting it big are quite low. Even Mark Zuckerberg had a good start... somehow his family was able to afford to send him to Harvard.
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Originally Posted by ohio_peasant
90% of businesses fail? 55%? I have no idea what the actual number is. But how many college graduates are long-term unemployed or underemployed? 7%? 12%? It’s no stretch to assert that the percentage of failed businesses is much higher than the percentage of failed college graduates.
In my own experience, and in the statistics I read, more than half of college graduates, by midway through their careers, are employed in a capacity largely irrelevant to what they studied in college. I would therefore venture to say that a large number of them are "underemployed".
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Originally Posted by ohio_peasant
What the American educational system fails to comprehend, is that one must first learn how to memorize, before learning how to think for oneself. First, imitation; then, creativity and ingenuity. The same holds for careers and business. First, learn and absorb the state of the art. Then seek to make meaningful contributions to advance it.
We can’t thrive as a society of dog-collar manufacturers and mobile car-detailers.
What the American educational system fails to comprehend is that not everyone will be a rocket scientist. We need to uphold everyone's individual skills and talents, even if that means floor-sweeping, rather than filling their minds with crazy ideas that everyone can be a doctor or the President.
Though it may be tough to thrive as a society of dog collar manufacturers and mobile car detailers, it's far harder to thrive as a society of welfare recipients, which is what we're moving toward. Why would people become discouraged and leave the workforce when they'd rather work? Because WE ARE NOT PROVIDING AN EMPLOYMENT OPPORTUNITY and also because there is no good way for that person to operate a business. Maybe he/she doesn't have any business savvy. Maybe he/she can't afford the startup cost for a business. Maybe he/she doesn't have the intellectual capacity to navigate the labyrinth of laws that govern businesses in this country, a small infraction of only one of which could very easily result in a life-destroying lawsuit.
Think about this too. America has 5% of the world's population, but 70% of the world's lawyers. Tell me THAT isn't a sobering statistic when figuring out whether or not it's a wise bet to go into business for yourself.
I am getting ready to retire and for over 20 of the past 45 years I owned my own business. Approaching age 60 I sold out to work as an employee again because I knew retirement was on the horizon and didn't want the hassles. You need to remember if you own the company you do not run it but it runs you. If you can not accept that fact then just do yourself a favor and continue working for someone else.
It meant working 50 hours a week as a standard but I always got to pick what 50 to 60 hours I wanted to work. If I wanted a day off I just juggled my schedule and did it.
I am a high school graduate and for most of my self employed years I earned the equivalent of six figures in wages and then there were the perks and there were plenty. Cars and mileage for example. I always purchased a new car, paid myself for the mileage and three or four years later got a new car giving the old one to my wife. I went decades without paying for a family personal car.
Before you start know the business very well, all the ins and outs because if it was easy everyone would be doing it. Work for someone else for three, four or five years and then strike out.
Stay out of the food business. Too competitive IMHO.
Pick a business where you won't stay a one man shop. At my highest point I had 25 employees working for me and all I had to do was make $5/hr off each employee and I would have a good day. Most of the time I earned $10 but from 5 employees to 25 it was all good.
Oh, and for those that want to scream out corporate greed and "the man" taking to "the worlds workers" most of my projects were federal prevailing wage jobs which ran from a low of $24.50 to a high of $33.75 per hour in 1998 dollars. Most of those who worked for me earned over $1,000 weekly.
Get in a business that can not be outsourced. I know very little about IT but for unexplainable reason my gut would tell me to stay the hell away from that.
You need to remember if you own the company you do not run it but it runs you. If you can not accept that fact then just do yourself a favor and continue working for someone else.
Ain't that the truth.
When you have your own business, you always weigh the cost of any activity that isn't work in terms of the money you lose by not working at those times. For example, most people could take a vacation and price it only in terms of how much they'd have to pay for entertainment, accommodations, transportation, etc. Me, I had to add $xxxx per week for lost income. At my peak, when I was working so hard that I really needed a vacation, just chilling at home would have cost approximately $200 per day. That's some mightily expensive relaxation. Personally, I felt duty-bound to work and make that $200 rather than slack off and lose out on the chance to make the $200. This is how a business owns you. You may have control over it on paper but it has control over your psyche... which is far more powerful than any document with a fancy raised seal denoting your ownership of the business could be.
If you have a job, you might be stuck at two weeks of vacation per year but you don't lose income for taking that time off from work. It's two guilt-free weeks of vacation. Yeah, I can get more than that per year... but it always comes with a level of guilt.
I guess that's why I walked away from the high-earning business and got to the point where I could afford to live on less... such that I don't have to kill myself working.
I am not advocating skipping college, but I would certainly recommend taking a long hard look at what degree to pursue and the real world prospects with that degree.
Isn't that really the crux of the issue? I mean no offense to the OP but look at what he went to school for...was he expecting actual employment?
When you have your own business, you always weigh the cost of any activity that isn't work in terms of the money you lose by not working at those times. For example, most people could take a vacation and price it only in terms of how much they'd have to pay for entertainment, accommodations, transportation, etc. Me, I had to add $xxxx per week for lost income. At my peak, when I was working so hard that I really needed a vacation, just chilling at home would have cost approximately $200 per day. That's some mightily expensive relaxation. Personally, I felt duty-bound to work and make that $200 rather than slack off and lose out on the chance to make the $200. This is how a business owns you. You may have control over it on paper but it has control over your psyche... which is far more powerful than any document with a fancy raised seal denoting your ownership of the business could be.
If you have a job, you might be stuck at two weeks of vacation per year but you don't lose income for taking that time off from work. It's two guilt-free weeks of vacation. Yeah, I can get more than that per year... but it always comes with a level of guilt.
I guess that's why I walked away from the high-earning business and got to the point where I could afford to live on less... such that I don't have to kill myself working.
I always make a point of looking at equipment while traveling.
I always make a point of looking at equipment while traveling.
That makes it deductible.
Only if you do it for at least three out of the five weekdays in a standard seven-day week. I make it a point to schedule performances when I travel, for the same reason... but you have to be careful. And even if the expense of the trip is tax deductible, it still doesn't change the fact that you lose income from having gone on the trip.
this is an extremely dangerous advice and something I would not recommend at all. You are right in that we do not need education to be successful at business. But why exactly do we need education in the modern society? Apart from finding our true calling, learning the way the world works, etc., education (and more importantly a college degree) is important to secure a job. You may not like your job, but you need money. So what happens when your business fails and you have accumulated several thousands of debts? A job is how you repay them. And for a good paying job, you need a good college degree.
It's nice to live your passion. But you also need to know the flipside of things. And education is the greatest backup to any risk a person can take.
Think establishing a thriving business takes a lot of money, training, or family pedigree? You’re wrong. Two years ago, I mentored a young co-worker who was starting in the tax business. She saved some of the money she earned and for a few hundred dollars invested in the education required to pass the Enrolled Agent exam. After completing the course at Enrolled Agent Exam Review and Study Guide, she succeeded on the exam plus possessed the knowledge and certification of a tax expert.
She started her own tax office last year and earned a good living – especially for someone with only a high school diploma and a few community college courses. This year, she has so much work that she’s hired two college grads with accounting degrees. My only concern as I continue providing consultation to her is that the college grads might not know enough to provide sufficient output; I think she should grow her business by hiring people with high school educations and Enrolled Agent licenses.
It's not like the only 2 options for a high school grad are (1) go to college or (2) try to start a business.
A 3rd option is this:
Live with your parents and get a full-time job right out of high school. That'll fill up your bank account and give you work experience on your resume. Work experience is work experience. 2 years of working full-time as a cashier or warehouse laborer demonstrates that you're able to arrive on time and perform a task adequately for 8 hrs/day, 5 days/wk, 100 wks. That is the most important thing you can possibly demonstrate.
Teach yourself a skill in the meantime. Buy a few books on web development. Or use free resources online to learn about browsers, servers, etc. Build your own website. Add a Java applet to show that you know how to make a functional program. Go on CraigsList and find a listing for a web developer. Some will require college degree; others will say "college degree preferred" or not have any educational requirements. You can surely find a company that will hire you. Send them a resume, a cover letter and an additional attachment that is the source code for the website you built. I guarantee you'll find a job.
Then you'll have professional experience and be able to get a better job.
Is that unrealistic????? Nope. I know several people who've successfully gone that route.
A 4th option is vocational school. My next-door neighbor just went to trucking school and now he's a truck driver and loves it.
But the truth is, it's hard to convince kids not to try the college route. The college route sounds so alluring. It says that you can have the government pay for your room and board for 4 yrs while you sit in fancy classrooms and libraries on your laptop and party on Thirsty Thursday, and somehow be hired into a good-paying job where you get to do cool, important things.
A 4th option is vocational school. My next-door neighbor just went to trucking school and now he's a truck driver and loves it.
But the truth is, it's hard to convince kids not to try the college route. The college route sounds so alluring. It says that you can have the government pay for your room and board for 4 yrs while you sit in fancy classrooms and libraries on your laptop and party on Thirsty Thursday, and somehow be hired into a good-paying job where you get to do cool, important things.
Just about every young person I know who has pursued a trade is working full time in this economy. I had a friend who came back from the military, but couldn't find a job. I talked with some folks and was able to get him a shot in a fabrication shop. For 3 years, he has been operating a metal cutting laser, working up to 55 hours a week. He only makes about $15/hr, but it sure beats flipping burgers or slinging caffeinated beverages.
I worked for a company about 3 years ago in their CNC swiss lathe dept. Each machine costs about 1/2 million dollars (used) and they are extremely productive. The company hired a kid who dropped out of college. Said most of his friends with degrees couldn't find jobs in the Chicagoland area. I kind of questioned his judgement, since he only had 2 more years to complete his accounting degree, but I guess he hated it. Anyways, they moved him over into my dept as a machine operator just before I left. About 6 months after, he jumped ship for another company, making about $16/hr. The kicker is he can work as much OT as he wants. If he comes in on Sunday, the pay is $40/hr so long as 95% of the work is good (not hard to hit on those machines).
With more experience, these folks will be earning better money, but for only a couple years experience, that isn't bad for a trade. The trades are itching for an infusion of young blood, so long as they bring some work ethic... Something they can't teach in school.
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