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How to Start a Business Straight Out of College
{This is a guest post from regular expert contributor, Deborah Sweeney of MyCorporation.com}
Starting a business right after graduating might seem insane…
After all, that is supposed to be when you secure that first, real job of your career – when you begin climbing up the corporate ladder. But as a regent of a university near my company, I see a lot of entrepreneurial potential in our recent graduates. They have tons of good, novel ideas, and good schools always instill a solid work ethic in their graduates.
Now, you probably won’t strike it rich with your business straight of college, but running a business is an awarding, fulfilling experience. There are just a few things you need to do before you toss off your robes and get to work.
Steel Yourself
I’m going to be completely honest – you are going to face a ton of incredulity. Heck I still face skepticism, and I’ve been running my company for half a decade!
Be ready to answer loads of questions, because nearly everyone you talk to is going to want to know why you’re founding a company instead of working for one. Rather than begrudgingly answer the coming onslaught of queries, use it as an opportunity to perfect your pitch. Know your projections, your costs, and have a solid plan laid out. By the time you run the gauntlet of family and friends, you’ll be able to face any potential partner or investor.
Learn to Bootstrap
University is, unfortunately, expensive. And you probably have loans taken out already. Don’t take out any more if you can help it – you need to pay down your student loans as quickly as possible. Plus you probably don’t have a lot of credit history, so loans are either going to be hard to secure, or ridiculously expensive. Go without whenever you can.
I’ve always been a major proponent of bootstrapping, so make what you have work. Instead of hiring people, do as much for the business as you can. Rather than buying a new computer or renting office space, work from home and use the old laptop that got you through school. Save. Save. And then save some more.
Start Small
Running a business is exciting, and when you start to actually make money, you may feel the urge to expand or hire. But that isn’t a great idea when you first start out. A good rule of thumb is to have a few months of working capital in the bank before expanding. In the meantime, work like a freelancer. Run the company, do the work, and be your own marketer. The internet is a great resource for finding work as well, just try to stay local while you are first starting out. Build word of mouth, and you’ll find your market will
Keep Close to Your Network
Finally, and I cannot stress this enough, don’t underestimate the utility of your university. Keep in contact with your peers, your professors, and the other people you’ve worked with over the last four years. Tons of new business owners would kill for a network full of people as useful as an old business professor that can give you advice, or a classmate that can help close a good deal with a vendor they work for. Keep the network alive, and stay in touch with everyone you can.
I’m always surprised at how much doubt new college graduates face when starting a company. After all, this is one of the best times to roll the dice and see if you can build a successful business. Student loans are an issue, but most college graduates are flexible, energetic, and ambitious. They also have four years of education and training fresh in their mind, and an indispensable network of advisors and peers at their disposal. If you feel an entrepreneurial call, treat it like any other good opportunity after graduation, and go for it.
About the Author:
Deborah Sweeney is the CEO of MyCorporation.com. MyCorporation is a leader in online legal filing services for entrepreneurs and businesses, providing start-up bundles that include corporation and LLC formation, registered agent, DBA, and trademark & copyright filing services. MyCorporation does all the work, making the business formation and maintenance quick and painless, so business owners can focus on what they do best. Follow her on Google+ and on Twitter @mycorporation.
Great advice here from Deborah. Entrepreneurship is the single greatest way to build massive wealth.
Take note: every single expert on the YoPro Wealth podcast has been an entrepreneur. Every single one of them! That should be a strong hint and push to make you go in that direction, as well.
So, ready or not, this is how you start a business straight out of college. As she says, entrepreneurship is both awarding and fulfilling. Do it! You won’t regret it.
Learn from some other great entrepreneurs in my first book:
Make Money, Live Wealthy: 75 Successful Entrepreneurs Share the 10 Simple Steps to True Wealth
How to Prepare for a Stock Market Crash
When I started investing heavily, the stock market was exciting to me. It was a game, and one heck of a challenge!
It was fun, but at the same time, it was also scary as hell.
I watched CNBC. I read the Wall Street Journal everyday. I had 3 monitors going and wanted more.
I was going to be a professional trader – the next Gordon Gecko or Jordan Belfort.
Then, I started, and it was hard. The emotions set in. The government was hitting the debt ceiling. I didn’t know what to do, and neither did anybody else in the world. I made money, then lost it all. I made thousands then I would lose $10,000 overnight. The market was in shambles, and so was I. I was spent. So, I stopped trading altogether.
And then I went to work. I learned the game. I became a student, and developed a plan.
Nowadays, my investing is the opposite of what it used to be. It is as exciting as watching paint dry. I watch the news literally zero minutes each month. I don’t worry about a stock market crash… because I’m prepared.
Now, I want to help you get prepared. I want to help you make your investing as exciting as watching paint dry so that you can 1) make more money, 2) stress less, and 3) go on living the life that you want to live.
Does that sound like a plan?
Good. 🙂
To get started, I asked a number of experts how to prepare for a stock market crash. Their advice will save you a lot of time and money, so read it closely and apply it today!
“First, we should define “crash.” To most, the term implies a decline of severe magnitude. The key missing element is the duration of the impairment, or how long does it take to recover?
A second consideration is whether the market was overvalued prior to the crash. There hasn’t been a stock market crash that began with stocks at historically reasonable valuations that persisted more than 5 years. The risk of a crash depends on valuation. The average PE ratio in 1929 was about 60 times earnings; 16 is considered average, and implies a 6.25% earnings yield. That’s reasonable.
Today, the PE for the S&P500 is 18.94 (as of 9/26/2014 according to the Wall Street Journal), and that’s a little above normal. It implies 
expectations that the economy and growth will continue to accelerate from the anemic post mortgage crisis recovery.
So how do you prepare, just in case? The conventional approach to hedging to stock market is to incorporate bonds into a portfolio. You own bonds for either of two reasons; either you need income, or you want to reduce the volatility of a portfolio. Currently the ability of bonds to generate income is diminished by Fed policy. While bonds may still provide some stability in the event of a crash, it is widely recognized that interest rates are likely to rise and that will reduce the value of outstanding bonds with fixed coupons. Choose your poison.
An alternative strategy is to focus on the likely duration of a downturn in the stock market, and plan for expected liquidity needs for that amount of time. A key benefit of financial planning is that it identifies liquidity needs. During this period of low interest rates, one can substitute a reserve strategy (often called the Bucket Approach) to provide for anticipated liquidity needs for as long as a crash/correction might be likely to persist. This frees the remainder of the portfolio for investment with a longer time horizon, and with focus of fundamental metrics like valuation and macroeconomic factors.
I share one other big thought. The conventional approach to investment management starts with a typical 40 question risk profile. The answers are scored and tallied to give a Risk Quotient. The profile indicates which model portfolio is used to manage assets, which puts the client’s emotional IQ in the forefront of investment strategy.
Emotional investing does not lead to the best investment results. I believe a goal of an advisor should be to help clients overcome emotional biases and invest with an eye toward a more cognitive approach, rather than pander to clients’ weakness. Plan for liquidity for 3 to 5 years. Notice the market recovered from the mortgage crisis in about 5 years. Depending on one’s circumstances, one might extend the reserves if market valuations (risk) rise; and even reduce reserves during a post-crash period when equities may be cheap. As Buffett said, be greedy when others are fearful, and fearful when others are greedy.” – Robert Dalton Higgins, Principal, Dalton Financial LLC
————————————————————
“Should you prepare for a stock market crash? This depends on a few things. First, what is your outlook?
Stocks have come a long way since the economic meltdown of 2008-2009. One could argue that US stocks are ‘fairly valued’ at this point.
Secondly, what is your current asset allocation, and when you will need the money you are investing? If your stock allocation is fairly low and you are a younger investor, you may not need to make much of a change. [Read more…]
Why People Fail at Flossing and 401ks
[This is a guest post from contributor Kevin Conard of Blooom]
Twice a year I look at the dentist and tell her that I floss. She knows I don’t floss. And I know she knows, I don’t floss. But I stare at her anyway and tell her that I, do indeed, floss.
You see, the dentist and I have this mutual understanding. She knows that I know it’s good for me, I know I should do it, and the plain and simple truth is that it will never happen. She doesn’t press the issue or call me out, she just nods.
So this begs the question, if after knowing all the benefits, why don’t I floss?
Is it too confusing, not really. I can tie my own shoes and start a lawn mower, so this pretty much qualifies me to floss.
Is it scary? Not really.
Is it painful? Not entirely.
Is it time consuming? In the scope of things…no. But I’d have to say this would be my best excuse and one shared by many. After all, we all have emails, texts, kids, bills to pay, soccer practice to race to, a lawn and dogs to take care of…who has time to deal with flossing? And don’t get me started on floss-threaders or water picks.
I would say people fail at 401ks for a lot of the same reasons. For some it’s too scary, too painful, but for most it has to do with time. No one has time for it.
Here’s a quick example, let’s just say you are an “overachiever” (by my standards) and you floss once a day. Let’s say this takes 30 seconds to do. In one year you will spend 3.05 hours flossing. Are you spending 3+ hours a year on your 401k? The answer for most people is a resounding, “No!”
In fact, 57% of 401k participants wish there was an easier way to figure out the right 401k investments.* A well-constructed 401k takes time. And it really is something that should take a lot more time than flossing. If you can’t find time to floss, where are you going to find the time to make sure you are making the right decisions with your 401k? Here’s the nice thing, unlike flossing, you can get someone else to do it for you…and lucky for you, we know where you can get help: blooom. [Read more…]
25 of the Best Personal Finance Books
Reading without a doubt changed my life…
And the list of the best personal finance books below have changed millions of other people’s lives as well.
My football coach in college told me that the smartest people in the world read at least 1 book per month. At the time (of course I was drowning in school work), I thought that was crazy. Who has time to read?
Well, it isn’t about having time. It is about making time… And it is well worth the effort.
It wasn’t until I was 24 and given some books by my boss as my first assignment that I really caught the book bug. From there, I didn’t look back. Over the next 2 years I consumed 2 books per week via audio, Kindle and print. That was the turning point in 1) changing my mindset, and 2) really opening my eyes to what was possible – financially and beyond.
The reason books are so great because you get access into the stories behind the story. You get to see how the most successful and wealthy people in history think and act. You get this access all for very cheap, if not free.
When you talk about a great investment, books have to be at the top of the list!
I asked a bunch of experts what the best personal finance books are, and here are their responses:
Think and Grow Rich (2 Votes)
“The key lesson is that the world is filled with abundance and opportunity for those who control their thoughts and emotions and turn them into positive actions.” – Kevin Cahill CFP, CLU, President and Founder of Canadian Legacy Builder
“It is a brilliant book, but the underlying theme is if you visualize it and work hard for it you can have it.” – Blake Janover, CEO of Trusted Nutrients
Simple Wealth, Inevitable Wealth
“His strongest points are:
- Owning a diversified portfolio of equities over the long-term does not carry significant risk of capital loss. The diversified portfolio of equities is subject to volatility, but volatility passes away under long-term time horizons and should not be conflated with risk.
- Building wealth through the steady accumulation of equity mutual funds is simple, and the result of this behavior, over a lifetime, is inevitable wealth.
- Bonds will not build wealth.
In fact, here’s a list of some of the best, with my reviews linked. – Michael Taylor, Bankers-Anonymous.com
The Giving Tree
“The classic children’s book, The Giving Tree, has taught me a lot about personal finances. Like the titular tree, it’s entirely possible for a parent to give too much, to overextend themselves and jeopardize their own future for someone else, and this is something I see all the time in my work.
I always advise parents, just as airlines tell you to make sure you secure your own oxygen mask before you help someone else, make sure that your finances are taken care of before you start worrying about others. If you don’t take responsibility for your own finances, no one else will– a child can subsidize their higher education, for example, but you can never subsidize your retirement. Always make sure your own financial health is your number one priority.” – Elle Kaplan, CEO and Founding Partner of LexION Capital
Make Money, Live Wealthy
The beautiful thing is that when you write your own blog, you put your own book on the list! Coming this November is my first book: Make Money, Live Wealthy. 🙂
After interviewing 75 successful entrepreneurs, I realized that although the details of their stories are much different, they all go through the same sequential steps to obtaining true wealth. So, this book guides people through the 10 simple steps to true wealth, one piece at a time. Get your free copy today before it is too late! [Read more…]
Best Careers to Make More Money – Part 2
{This is part 2 of Best Careers to Make More Money. Check out part 1 here.}
So, what are the best ways to make more money?
Well, there are a few great options that numerous experts and I strongly recommend. The first is…
Be a salesperson! – Rob Wilson
1. Sales
“I’d suggest that people who truly want to build wealth go into sales. There’s a reason that you don’t see physicians, attorneys, consultants, etc. at the top of the Forbes list; they sell their time and that is only so scalable. Most wealthy people have products to sell and have other people selling the products for them.
Even if you are an employee, however, selling is the best way to build wealth. You can’t outsource salespeople.
In addition, the metrics you are judged on are very black and white. Either you hit your goal or you didn’t. If you did, you’re good, and you’ll stick around and make great commissions.” – Rob Wilson, financial advisor and host of Movers & Shakers podcast
You’ve heard many guests and I say it before, and you’ll hear it again: sales is critical to your success (whether you’re selling yourself, your ideas or a product), and it is transferrable to any industry or career.
2. Entrepreneurship
If you want to make a ton of money, where do you ultimately end up? Entrepreneurship.
“I believe the best career to make money is business ownership – entrepreneurs who turn their businesses into huge successes are often able to build massive wealth.
I think that having a legal background can also be incredibly beneficial – not in the sense of practicing law (not a fantastic way to build massive wealth), but rather for the confidence to start, run and manage a business.” – Deborah Sweeney, CEO of MyCorporation
We all want money and time freedom, and there is no better vehicle to achieve that than through some form of entrepreneurship.
“I’ve not found one single mutual firm, one single real estate investment, any gold, silver, anything, that has given me higher returns than:
1) Me, investing in myself.
2) Starting a new business.
Go start a business. Go learn a skill set, become the best you can in that space. And look at the amount of money that people are willing to charge for the value you bring to the table. There’s no other opportunity better than that to create wealth — not small wealth, but real wealth.” – Patrick Bet-David, host of Valuetainment weekly
3. Investing
Investing, in my opinion, is best started on the side so that you can start small, fail, learn and improve, and then eventually become a pro at it. It is hard to start at it full time successfully – whether it be the stock market, real estate, or anything else.
The upside of trading is unlimited earnings. – Steve Burns, author of New Trader, Rich Trader
Ultimately, however, given the unlimited potential and scalability of many investments, this is one of the best careers to make money, bar-none.
Action Item:
- The best of all may be a combination of all of the above: start a business, learn sales, make money, and then put that money to work for you through investments. The result, if done well, is a successful and lucrative career! Begin by brainstorming and learning exactly how you can do each of these well!… (as in, keep following YoPro Wealth for how to do these! :))
Best Careers to Make More Money
{This is Part 1 of a 2-Part Series}
The question is, what do you do for your career?
Do we go after money, or what we know? Or do we follow our passions? There are so many options to choose from!
Well, to find true wealth – financially and beyond – the answer is, ‘yes.’ You will likely want to be cognizant of all of these things.
The best careers often offer high earnings, but with low stress and flexible schedules. Doesn’t that sound like a good combination?
Well, Randstad USA runs data regularly on what these careers are. They run a “hot jobs list” that essentially looks at the number of candidates interested in a type of job vs. the number of jobs available for that title. The higher the ratio, the hotter the job.
“Of these jobs, the ones with the highest salary and the lowest hours—and possibly the most stress-free—would be the easiest to become wealthy.
I mention low stress because when you get paid to put in less time you’re able to focus on other endeavors. For enterprising people this will mean hobbies that may one day turn profitable, the opportunity to focus on investing their capital into appreciating assets or even side-work if they’re particularly dedicated to what they do.
Seasonal careers are especially great for allowing for amplification of wealth through other endeavors (which is why accountants are on the list below).”
Here are a few of the careers (no particular order) that fit into what is mentioned above:
- Pharmacists
- Physicians
- Mobile app developers
- Web developers
- Process engineers
- Data scientists
- Accountants and financial auditors
- Hospitalists
- Machine operators
- Maintenance technicians
“It takes an enterprising person to accumulate wealth. It’s not all about the job, but a low-stress and high pay job coupled with a really driven person is certainly a likely recipe for success.” – Randstad USA
| Career | Salary | Job:Candidate Ratio |
| Pharmacist | $112k | 2.6 |
| Physician (General) | $221k | 10.1 |
| Mobile App Developer | $106k | 6.1 |
| Web Developer | $80k | 2.1 |
| Process Engineer | $76k | 2.3 |
| Data Scientist | $100k | 3.6 |
| Accountant/Auditor | $70k | 3.1 |
| Hospitalist | $175k | 100+ |
Source: Randstad USA
Many of these are outstanding options to consider, but do require a certain education. However, some careers, especially those covered in Part 2 as well as the developers can be learned and started at any time (not to say going back to school is impossible, but you get the point).
Podcast guest, Barrett Brooks, says that he is teaching himself coding right now so that he can be as valuable as possible in any realm.
There are a 3 key industries that I tell anyone to really focus on, and you can see it proven in the data above:
- Health
- Wealth
- Technology
You can argue that there are other very important sectors (i.e. energy, education), but these are the top 3 sectors to focus on in my opinion. They’re growing and changing at faster than ever rates, directly impact people, and are important for each and every person. If you put those three things together, they are highly lucrative.
The world is aging, the need for financial education and freedom is as wanted as ever, and we’ll still be in the technology boom for centuries to come.
But stay tuned for Part 2, where a few experts and I talk more specifically about the specifics of what you want to learn and do to become massively wealthy.
Action Items:
- Check out Randstad US’ “hot jobs list” and job search.
- Share this with someone you know who is trying to figure out what industry or career path to choose!
The Experts on Investing – Part 5
{This is Part 5 of a 5-Part series. Check out the other Parts here. Please note that all information on YoProWealth.com is for informational purposes only. See a full disclaimer here.}
The wealthy do something well that the majority of others do not do so well… they invest.
Investing can be hard, scary, and complex. Many don’t know what to do, nor do many even know where to start.
So, to help you master this touchy subject, I asked a bunch of experts for some helpful investing advice.
Their responses follow.
Grant A. Webster, CFP®, AKT Wealth Advisors LP
The best investment advice I have ever received is to never let emotions lead you to make dumb investment moves.
As a young financial planner and investor, there are many times when the markets have made me feel uncomfortable and nervous-but in reality, the short term bumps in the market are meaningless. Don’t make irrational investment choices like selling when the stock market dips, buying the “hot stock” of the week, or thinking of investments as a “get rich quick” vehicle. [Read more…]
The Experts on Investing – Part 4
{This is Part 4 of a 5-Part series. Check out the other parts here. Please note that all information on YoProWealth.com is for informational purposes only. See a full disclaimer here.}
The wealthy do something well that the majority of people do not do so well… they invest.
Investing can be hard, scary, and complex. Many don’t know what to do, nor do many even know where to start.
However, it is an essential part to obtaining massive wealth. If you’re interested in having more money in your life, investing is likely to be a top priority for you (see the power of compound interest here).
So, to help you master this touchy subject, I asked a bunch of experts for some helpful investing advice.
Their responses follow.
Rick Van Ness, Author and Educator, FinancingLife.org
“A Penny Saved Is Two Pennies Earned” was the first game-changing investment advice that resonated with me. This was the title of a chapter from a book by Andrew Tobias 35 years ago. Tax rates were higher back then, but this taught me the importance of saving.
More recently I’ve been guided by investment advice from the champion of common sense investing, John C. Bogle, who says, “When it comes to investing, unlike with most things in life, you get (to keep) what you don’t pay for.” He is referring to the importance to keep investing expenses, and any fees for financial advice, at an absolute minimum. [Read more…]
The Experts on Investing – Part 2
{This is Part 2 of a 5-Part series. Check out Part 1 here. Please note that all information on YoProWealth.com is for informational purposes only. See a full disclaimer here.}
The wealthy do something well that the majority of the Middle Class do not do so well… they invest.
Investing is hard, scary, and complex. Many don’t know what to do, nor do many even know where to start.
However, it is an essential part to obtaining massive wealth. If you’re interested in having more money in your life, investing is likely to be a top priority for you (see the power of compound interest here).
So, to help you master this touchy subject, I asked a bunch of experts for some helpful investing advice.
Their responses follow.
J. Massey, Investor, Entrepreneur, Author, Speaker, Cash Flow Diary
The best investment advice I could ever give is to invest in real estate. But first you have to invest in yourself and gain the tools and knowledge that allow you to do so.
The very first thing I suggest to people ALWAYS is to invest in themselves. They don’t have to attend college to get the know-how to be a great real estate investor, but they do need to educate themselves through books, audio courses, video courses, workshops if they have the budget and by joining mentoring and mastermind groups. In short time they can change their lives… and that’s no joke. That’s not pie-in-the-sky thinking. [Read more…]
