Startup Advice: Start a company as an undergrad
Photo by ma vie en rouge
My business partner Yu-kai Chou and I started companies while we were undergrads. Not only did we have a great experience that added to our skillsets, but more importantly, we were able to find out what the entrepreneurial life was like before we commited to it full-time.
Here are the benefits and advantages of starting a company as an undergrad:
1. The safety net
As an entrepreneur, you will fail. The great thing with failing as an undergraduate is that you have your university safety net. You can take your failure as a complete learning experience; just another class you took for extra-curricular activities. You don’t have a mortgage to pay, student loans to pay, and you’ll most likely still have your parents support. Milk this time and take advantage immediately!
2. There are potential mentors everywhere
Find a professor that you admire and let him know about your startup idea. More likely than not, your professor will gladly give you advice or refer you to someone who can help you out. More importantly, a lot of professors previously worked in industry so they can potentially connect you with a lot of influential people. If you don’t have any professors with startup experience, go sit in at an MBA class until you find a professor you admire. Talk to him and make him your mentor!
3. Start a team with your peers
Not only is your university full of great potential mentors, but you also have a wide selection of peers that can hop onto your team. If you have a good friend that seems to have the entrepreneurial spirit, go ahead and start a company with him. There’s nothing better and more fun that starting a company with your best friends. Don’t have entrepreneurial minded best friends? You can go to the engineering school if you need a programmer, the art school if you need a designer, or the communications school if you need a business developer. Network within your university!
4. Leverage organizations
This is what Yu-kai and I did super well. We leveraged our business fraternity Delta Sigma Pi, we leveraged the organization we founded on campus called Bruin Consulting, and we leveraged the entrepreneurial MBA community by joining the Entrepreneurs Association. Find the business organizations on your campus, join them, and leverage your contacts to build a team, get mentors, and refine your idea. Remember, don’t start your company alone; you are exponentially more powerful with a solid team.
5. There is always more time as an undergrad
You can try to argue with me on this one, but as an undergrad, you have WAY LESS responsibilities and A LOT MORE time to do what you really want to do. Think about it: you don’t have to go to class, you can read business books during class, there is no wasted time on travel (if you live on campus), and there is no 40 hour work week. Utilize this time to work on your startup.
6. Beef up your resume and shine above your peers
You SHOULD have a corporate internship as an undergrad. Instead of adding another corporate internship the next year though, you should compliment your experience and resume by starting up your own company. You will gain a myriad of skillsets that you will not acquire while working the corporate world, and more importantly, you will stand out above your peers because most of them will NOT have started their own company. This can be the X-factor that gets you your dream job out of college.
7. Understand the lifestyle before committing to corporate
Out of all the benefits and advantages, this is #1 … or #7. Whatever, save the best for last, right? You need to know the entrepreneurial lifestyle before you jump into it post college. The nights are long, the pay is non-existent, and the passion has to be there. Once you have that experience, it gives you a complete understanding of your potential career paths. Take the leap, because the safety net is there and the experience is more valuable than anything else you can do in college!
That girl isn’t wearing any pants!
It’s a wonderful thing, ain’t it?
I’m going up in March btw! Definitely hanging out
Jun Loayza’s last blog post..FDTV Episode 24 - Promote your talents on youtube with Olivia Thai
Great advice! I am sort-of starting up a business as an undergraduate, and I agree especially most of these points. Definitely having a safety net is extremely important when you’re attempting to start a new venture. And the connections you gain from being on campus - from individuals, professors, friends, student clubs, as well as from the great corporate connections that your university has are really invaluable when you’re starting from scratch. I’ve found the connections on campus to be the most helpful thing.
However, I don’t completely agree with the idea that there’s always more time. As an undergrad, your primary focus is on studying - that’s what you’re paying for. Depends on the university and the major, but I feel like trying to get a good GPA takes up a LOT of time. In addition, you have commitments to other extracurriculars and it’s sometimes difficult to have just ONE thing you’re focused on. And finally, I was talking to someone recently (a professional, starting a nonprofit) and she told me that she knew someone who was starting up his own microfinance wholesale lending nonprofit (similar to what we’re trying to do), and he had to work full time for 18 months before he could provide his first loan! This scared us because there are so many complications involved that it was difficult for someone working full time to do. How could we as students do the same thing, working part time? It’s difficult, and I’m sure it’s because we’ve chosen a particularly difficult idea…so I guess the best idea is to simplify, and better results will follow. Still, I feel like working full time you can accomplish SO MUCH more.
Akhila’s last blog post..The most difficult job ever?
@Akhila - Yu-kai and I had more time during our undergraduate years because we weren’t exactly the best of students. Sure we got decent grades, but we spend 30 hardcore hours the week before the final studying. Therefore, we had A LOT of time during the school year to start organizations, join fraternities, and start companies.
Being a full-time entrepreneur is definitely more effective. But, being part-time as a student is still very possible. It’s possible to work on your start-up for 40 hours, go to class for 12 hours, and do your extra-curricular activities as they fit in your schedule. Sure, you have to sacrifice GPA, but in the entrepreneurial world, your GPA means absolutely nothing.
Thanks for your insights Akhila!
Jun Loayza’s last blog post..FDTV Episode 24 - Promote your talents on youtube with Olivia Thai
Thats true - I guess when you’re an entrepreneur, you have to re-prioritize - and part of that means not caring about your GPA as much and putting all your time into your business. Splitting your time between various activities, school, and business would just result in a half-hearted attempt to start a business. I guess entrepreneurs really do think differently! Thanks for your reply
Hello. Great job. This is a great post. Thanks!
I think starting a business takes work, but I don’t think every business fails. Both of my parents started their own companies, and are very successful. What advise do you have for starting a LLC when you live on campus? What registered street advice do you use?
Not EVERY business fails, but I guarantee you that your first business WILL FAIL. Heck, maybe your first three will fail. But I encourage you to keep on pushing.
As an undergrad who lives on campus, you can use your home address (your parents) or your school address as well. I would use your home address just because it’s more permanent.
Hit me up by email at me [at] junloayza.com if you have any specific questions