On Friday, I attended a business administration advisory
committee meeting. The advisory
committee is a diverse group of business people from the service area who come
together twice a year to provide input to the technical college about programs,
new technologies and processes being used in their businesses, and student interns
or graduates’ (employees) skills (strengths and weaknesses).
During the discussion of programs, I mentioned that the
entrepreneurial programs are a concern because the placement rate (percentage
of completers employed) is lower than preferred. Despite the fact that many entrepreneurial
students have a business idea and develop a business plan during their
curriculum, they often do not have the funds and lack the credit to borrow
money to start the business. One of the committee members suggested that the college develop a student incubation program where students could work on their business with support from the faculty and the college. It was also discussed that students from these programs have excellent skills that apply to any business so regardless of where they may be employed, it could be said that they are employed in their field. Both suggestions were good, actionable points.
Along this vein, it also made me think about how individuals
fund their new businesses. Some people are
fortunate enough to have savings that they can tap, they have something of
value they can sell, or they are confident enough in their idea to refinance their
home and use the equity. Others borrow
from family members. While not
advisable, some risk takers use credit card debt to finance their
start-up. Starting a new venture
part-time while working another job also works for some people or taking on a partner.
Some people get more inventive such as restaurateurs sell
naming rights to chairs, wear t-shirts advertising different businesses for a
fee, pre-selling services and providing a coupon to the buyer, etc. Small business administration loans are also an option. Venture capitalists or angel investors may be interested if you can demonstrate a sound business plan with high growth potential.
