Beyond Campus: Why College Students Should Dive into Entrepreneurship
Launching a small business during college may seem like a daunting project students can’t afford to do between studies. However, with the right approach and resources, it can be a rewarding venture that could set the stage for an aspiring entrepreneur’s future success.
In this blog post, we’ll explore more about launching a side business as a student, particularly the complexities surrounding funding. Learn the best options when growing your venture as a young entrepreneur.
Why Launch a Startup Business as a Student
Building a startup in college is not just a bold move, but a strategic one. It offers numerous benefits that shape a student’s future in significant ways. Below, we list why college students must consider joining the entrepreneurial field.
College often comes with fewer financial responsibilities than life after graduation. Plus, students could access various monetary support to help them fund their startup. Some of those funding options will be discussed later in this blog.
With that, students can take calculated risks and fail without shouldering the heavy burden of any financial commitment. It will allow them to experiment continuously and learn extensively to improve their startups.
Soft skill improvement
Being a leader requires various skills like effective communication and time management. Students who start a business as early as college can improve such skills and become better entrepreneurs and professionals later.
Even if their ventures are one-offs, developing all the crucial soft skills early will help them ensure success in a corporate setting, whether as a manager or individual contributor in their professional career.
Running a business offers various uncertainties that help build an individual’s resilience, creativity, and adaptability. These skills and qualities will become valuable for different scenarios in their professional and personal lives.
Financing Options for Students Who Want To Start a Business
Now that you’ve decided to run a business as a student, it’s time to learn all the best options to fund your venture. The good news is that there are many choices available for aspiring entrepreneurs. Here are the best ones.
Crowdfunding is a modern financing model involving many individuals who collectively fund a project, business, or cause through an online platform. In this option, creators, volunteers, and entrepreneurs must showcase their ideas or ventures to crowdfunding sites to attract investors or donors.
If online users find the pitch or cause invaluable or relatable, they can donate and show support. That means a compelling story or a unique idea is a must to attract potential contributors.
Some of the best crowdfunding platforms available today are GoFundMe, Patreon, Kickstarter, and Indiegogo. These are perfect for aspiring entrepreneurs who want to fund their ideas.
Angel investors are high-net-worth individuals who financially support startups in their early stages, typically in exchange for ownership equity or convertible debt. These people are often seasoned entrepreneurs or industry professionals who want to help launch promising business ideas.
Aside from capital funding, angel investors can offer mentorship and valuable networks to give startups more support. They do so because they take considerable risks to fund a new business based on a pitch, meaning they want to provide as much help as possible to ensure success.
Grants and loans
As mentioned above, students can access various funding sources to propel their business from ideation to realization. Among these many excellent options are grants and loans.
Grants are significant non-repayable funds awarded based on merits or specific criteria. Securing one doesn’t just offer capital funding but recognition, too. Because of their high standards, grants can be votes of confidence that further elevate a student’s venture. This can inspire young entrepreneurs and open doors for growth opportunities, like partnering with new investors.
Meanwhile, applying for a loan is also an excellent way to secure capital funding for your startup idea.
While the prospect of having more debt may seem daunting for a student, it can teach you a thing or two about handling your finances responsibly. Many young entrepreneurs often go with refinancing student loans to fund their ventures.
Family and friends
Among the most flexible options when funding your startup is borrowing money from loved ones. Family and friends may lend you money with little to no interest at all.
Unfortunately, while this may seem the best choice for students, asking for funding from family and friends should be cautiously approached. If your venture experiences financial setbacks or challenges, it may lead to a significant conflict with your loved one.
Additionally, family and friends who invest in your business may have expectations about its success. This might pressure you as an entrepreneur and affect your decision-making process, which you can’t afford while balancing your studies with your venture.
Only consider this option as a last resort. That means, try all the abovementioned choices before going with this one.
Launch Your Business Early
Becoming a business owner while in college is a bold decision that could lead to personal and professional growth. With strategic funding, resources, networking, and time management, you can secure your startup’s success in time for graduation.
- S Prev