So you have this brilliant idea for a business. You may have gone as far as mapping out your business plan, gathering your best networking contacts, and have looked into Small Business Loans. There are many classes to take, YouTube and other online webinars, and maybe you even registered to learn all you could about running a business. I mean, maybe that’s why you’re taking a peek at this blog! The big question remains, “Do I need a college degree to start this business?”.
This debate has been going on for quite a long time, whether entrepreneurs need college degrees to succeed, or whether the time and money spent earning that diploma is better spent launching your business. With college costs and student debt skyrocketing, the newest consideration is whether student debt is preventing would-be entrepreneurs from starting a business.
Drowning in Student Debt
Let’s take a look at the numbers. A recent study shows that a person who graduates with $30,000 in student loans is 11% less likely to start a business than a person who graduates with no student debt. $30,000 is nearly the average student debt load. As of 2018, 42 million students have a debt amount of $100,000 or less, with most of these borrowers between $10,000 and $25,000. That’s quite a bit of cash!
The best time in your life to start a business has been considered your 20s and 30s. At this point in life, most people do not yet have a mortgage to pay, children to raise, or a spouse to consider in the equation. However, individuals in their 20s and 30s are likely to have looming student debt payments, unlike Generation Xers or baby boomers.
With good solid job opportunities being difficult to find, the young adults today are stuck between a rock and a hard place. Ironically, with more college-level entrepreneurship courses and entrepreneurship degrees than ever, getting a college degree could seem even more helpful for starting a business.
Startup or School?
The choice is different for every person, and highly depends on their circumstances, target industry, personality and so on. If you are looking to become your own boss and deciding whether you should enroll for a degree, consider these factors:
- What is your Business Concept?
If your sights are set on a business in the professional services industry, you may need to get a specialized degree in your field. However, there are some types of businesses that only require an apprenticeship program and work experience – such as carpenters.
- What education alternatives do you have?
We live in a very advantageous time, where online education is a click away. From YouTube tutorials to Ted Talks, Lynda and various professional webinars and online workshops, you have many options outside of the traditional college setting – depending on your industry of course.
- What other advantages would you get from college?
Don’t be so quick to cross a college education off your list. First examine what opportunities you would glean from college that you wouldn’t have access to otherwise. This includes Professors – amazing resources and networking contacts to have in your book. Peers in similar industries, as networking contacts and moral support. Along with specialized learning materials, the contacts you make in college are some of the best reasons to invest your time and funds into a college.
- What is your financial situation?
Think about how much money you have available, whether you have capital for either college or a startup and calculate the numbers. Take into account your existing financial obligations and create a picture of your financial state – present and potential. Not only are there loans available for education, but also for Start-Ups and Small Businesses. Maybe in your financial situation, you will find that the best bet for you is a No-Doc Loan? We have many options to help you explore, if that is your case.
- Is now the best time?
We know that you are excited to start your new business, but don’t be afraid to consider the timing. Some businesses are best launched by a younger person; for others, you need a bit more life experience. Perhaps this is one reason entrepreneurs in their 20s are less likely than older business owners to build high-growth companies, according to a paper Age and High-Growth Entrepreneurship. Would waiting to start your business benefit it in the long run?
Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.
Apply on our website to find out if you qualify, or call today for a free consultation: 1-888-294-2584