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Serial Entrepreneur and Go BIG
Founder Wil Schroter's Blog!
Start a Company When you are Young
Author: Wil Schroter
Wednesday, June 13, 2007

If even remotely qualify as being a young person, go start a company. This is the one time in your life where you can bet the farm without worrying about the consequences. If you succeed, you’ll win big. If you fail, the consequences are so minimal it barely matters.

Now you may think that it can’t be that easy. You might think of a million reasons that you’re not ready to start a company. And while some of them may be valid, there are a few incredibly valuable reasons why starting a company while you’re young is the most important thing you can do.

The “Real-World Experience” Myth

Most people want to wait until they have enough “real world” experience to start a company. They assume they are going to collect sage-like wisdom that can only come with old age and lots of job experience.

If you think you need a ton of experience to drop everything and found your own company, consider this question: “What do Bill Gates (Microsoft), Steve Jobs (Apple), Sergey Brin (Google), and Max Levchin (PayPal) all have in common?”

Answer: they all started billion dollar companies before they were 25.

Don’t get me wrong, experience in your given field can increase your chances of success. But while it may make your life easier along the way, it’s by no means a make-or-break requirement.

If there are areas of your business that you don’t feel comfortable tackling, such as the finances or legal issues, there are plenty of people that you can reach out to for some advice. You don’t need to learn every aspect of running a company to get an idea off the ground.

The Gary Coleman Effect

A long time ago when I was starting my first company (I was 19) a good friend of mine said that I had the “Gary Coleman Effect.” You may remember Gary Coleman as the child actor from the comedy series Diff’rent Strokes, although if you’re 19 now, you probably don’t know who that is. Maybe today it’s called the Dakota Fanning effect.

As a child, Gary Coleman was a considered a fantastic actor because kids his age rarely expressed such talent. No one could believe such a young kid could be so funny on camera. Years later it would be discovered that little Gary was a really, really bad actor. Yet at the time, his young age amplified what were otherwise mediocre talents.

The same applies when you’re young and starting a company. In the event that your company takes off like the perpetually 21-year-old Mark Zuckerberg’s Facebook has, you’re considered a genius. On the other hand, if your startup tanks the world simply says “Hey, he’s 21 years old, what else would you expect?”

Being young provides a period of your life where you get double the points if you succeed and lose no points if you fail. What you’ll learn later in life is that this opportunity is almost never offered again.

Nothing to Lose, Everything to Gain

If you look at it in a very pragmatic way, the older you get the more liabilities you saddle yourself with. Before you know it you’ve got a high-paying career that’s too hard to walk away from, a family to support, and a big mortgage to pay.

The younger you are, the fewer liabilities you have. That means you can take incredible risks without having to worry about the liabilities that life introduces later on. If you’re a college kid living on less than $1,000 worth of expenses it is the best time in the world to get started. No matter what happens, you can always find a job to cover your overhead. It doesn’t work so easily when you have $10,000 per month in expenses!

Aside from the limited financial risk, you’ve got the upside of an incredible amount of potential experience. In your first job out of college (the first one is always crappy) you’re going to learn a little, but at only at the pace your employer offers you. If your manager leaves you doing mindless tasks for the first few years, you’re not learning nearly fast enough.

On the other hand, if you start a company, like it or not you’re going to have to learn as much as you can as fast as you can possibly digest it. It’s like hitting the fast-forward button for your career. Even if the venture doesn’t work out, you’ll gain more experience in one year of starting a company that you could possibly gain in a year working for someone else.

Start Young While You Still Can

The funny thing about your youth is that it can be your single greatest strength and weakness at the same time. You’re too young to realize how much you don’t know and yet don’t have the experience to realize why it would matter. So seize the opportunity while it stands without consequences – it’s the last time it’ll ever be this risk-free!




Trackbacks to this story
Start a Company When you are Young - What are you waiting for. Start a business.
From: bizdig.com | 6/13/2007 at 11:00 AM

Comments About this story
Wil:

Great Post.  I agree completely.  I think this is even more so in the IT industry because it is always in a state of rapid constant flux.  There are new technologies emerging almost on a yearly basis if not monthly, so waiting to gain experience to start your company is not necessarily the best option.   In fact you'll notice that some websites now have a beta label - meaning they'll always be in a state of constant change.

I've been creating websites since my high school days and throughout my college years.  Last year, at age 24, I decided to start offering Website Design Services for businesses.  And now I have my own Website Design Company that my clients refer to everyone, and it is now listed on the First Page for Google and other search engines.

I'm glad I was able to do this so early on in my career.  I wish all other young and the not so young entrepreneurs great success. 


 
Posted by: Sam 6/13/2007 at 11:40 AM

screw that! you can start a company at any age, and as people live longer (as you discuss in a recent posting) they will never retire and they will need to find ways to make income in their older years. plus when you are young, you lack the wisdom that comes from experience. when i look back on my early days when i was young and first started my company, i am embarassed at the crap i output as advertising materials. i am thankful that i have better experience now. i freak out when i see people starting companies now and see the stupid mistakes they make because they are too young to know any better. i thnk anyone can start a company at any age. with age comes wisdom. i mean if you are young, don't let that stop you from starting a company. maybe i'm missing the point?
Posted by: steve 6/13/2007 at 9:52 PM

Steve, no doubt you can start a company at any age.  I'm just pointing out that when you are young you get a nice little benefit of your youth.

I made tons of mistakes when I was young, but fortunately I got them out of the way when I was young.  I'm still making mistakes, not just the obvious ones that I got through early on!

Posted by: Wil S. 6/14/2007 at 7:50 AM

I did exactly what the article explained.  Started early and I worked at the business until the margins got too slim to make it worth the risk involved.  Now the pendulum has swung the other way with large liabilities, huge mortgage payments, wife and a kid etc.  I am looking for something secure to pay the bills and fund the retirement, but my heart will always lie in owning my own business.  Once I get set up, I will start something again that I can pursue on a part time basis.  I enjoy the web site and will save it under my favorites page.

John
Posted by: John K. Lina 6/14/2007 at 11:41 AM

Agreed. When you're young, you have nothing to lose, or little. And you have inexhaustible stores of energy. But I'm 62 with little to lose, and young at heart. And I started a company last year, which has yet to go big. I put all my available capital into it and I'm searching for investors. And it's keeping me up at night. My nails are bitten to the quick. Yet, I persist. I think FlirtySomething.com is one of the best online dating sites ever. With any luck, it will get the juice it needs to properly bring it to market and support its ongoing development....Old people should pursue dreams too. Doncha think? 
Posted by: charla 6/15/2007 at 10:29 AM

Agreed. When you're young, you have nothing to lose, or little. And you have inexhaustible stores of energy. But I'm 62 with little to lose, and young at heart. And I started a company last year, which has yet to go big. I put all my available capital into it and I'm searching for investors. And it's keeping me up at night. My nails are bitten to the quick. Yet, I persist. I think FlirtySomething.com is one of the best online dating sites ever. With any luck, it will get the juice it needs to properly bring it to market and support its ongoing development....Old people should pursue dreams too. Doncha think? 
Posted by: charla 6/15/2007 at 10:29 AM

Absolutely right on the button Wil.  I've just had the guts to start my own company at the young age of 53.  This is after years of "wanting to do it".  And to make it "worse", years after teaching business at tertiary level!  Now as a financial advisor and broker, I teach people to buy their investment properties and get a business started when they're young, single, no or least debt, and full of "go get them" attitude.  Avoid feeling sorry for yourself later and start young.  Cheers 
Posted by: Rapi Ieremia 6/17/2007 at 4:45 AM

I started my business last year at the age of 20.  There has been some bumps along the way and we're still trying to get some traction, but this is the most fun I've ever had and I've learned an incredible amount.  If our company went under tomorrow, I'd still do it all again in a heartbeat.

Thanks for the support.
Posted by: Mark 6/18/2007 at 9:07 AM

@ Mark - look at it this way, you can start/fail 20 more times and be just fine.  The road is long my friend, don't be afraid to bet the farm a few times.
Posted by: Wil S. 6/18/2007 at 11:08 AM

Hi Wil,

Thanks for your posts.  Any positive advice is
great.  I recently started a business and I
am 16 years old.  It is an Educational website
to help 3rd-6th grade students with English
book tests.  My idea is practice before your
teacher's written exam at school.
Any ideas on how to keep the buzz going?


Elizabeth
http://booktestonline.com
Also, can access my blogs on the home page 
Posted by: Elizabeth 6/19/2007 at 8:07 AM

I agree...I started my first (successful) company when I was 14 and sold it when I was 16 - worked about 8 months in sales and then started an IT consulting company and got a job offer before I graduated high school at a company, where I am now, I am the youngest person at the company and the only one that doesn't have a college degree in my position.  I have been with the company for 2 years now and I am about to turn 20, so I figured it is time to get back in the game and I am working on a few new start-ups that I have been thinking up for the past 2 years.  Hints how I found your site.
Posted by: Dustin 6/20/2007 at 8:16 PM

I agree...I started my first (successful) company when I was 14 and sold it when I was 16 - worked about 8 months in sales and then started an IT consulting company and got a job offer before I graduated high school at a company, where I am now, I am the youngest person at the company and the only one that doesn't have a college degree in my position.  I have been with the company for 2 years now and I am about to turn 20, so I figured it is time to get back in the game and I am working on a few new start-ups that I have been thinking up for the past 2 years.  Hints how I found your site.
Posted by: Dustin 6/20/2007 at 8:18 PM

Hmmmn im totally impressed by the article you have released...i have a big time ambitiom to startup a company of my own....but im stuck with a problem of capital & idea....i mean i dont have the clear cut info about how to startup & what basic procedures to be followed...
the 1st thing i liked in u were your attitude & enthusiasm...
Plz..........help me out....!!!

    your true follower
     karthik                                                     Thank u....
Posted by: karthik.R 2/18/2008 at 7:32 AM

Hmmmn im totally impressed by the article you have released...i have a big time ambitiom to startup a company of my own....but im stuck with a problem of capital & idea....i mean i dont have the clear cut info about how to startup & what basic procedures to be followed...
the 1st thing i liked in u were your attitude & enthusiasm...
Plz..........help me out....!!!

    your true follower
     karthik                                                     Thank u....
Posted by: karthik.R 2/18/2008 at 7:33 AM

dustin's story is very powerful. it touched me i also want to start my on campany the problem is i dont have any idea on how to start, and i dnt even know anything about business. please help!
Posted by: nomusa 2/27/2008 at 3:00 AM

I have no idea what I am doing,

March 9, 2008 I started my company Venue Entertainment, LLC in Washington and I have gotten a lot of help from SBA, and I think I have a great business plan, but I have no idea how to get investors or financing. I really want to keep the ownership of the company and make sure it lasts for years, but I really don't know how to go about it. I just know I need a database system for the company $8000 and a $10000 budget for putting on events next year.  

Currently, I have a fulltime job that is in a completely different industry than my company, but I make enough from it to save 500-1000 a month to invest into the company. Unfortunately, my personal credit is bad, so I can't invest much more into the company than that because of all the bills I pay which isn't much more than $1000 a month, since I still live with my parents. The problem I have is that my company is still young and I have bad credit, so I don't know if anyone will take a risk on my company.

The company is cash-basis which is nice, but at the same time, having a budget avaliable for events will help avoid postponing renting venues, booking preformers and overall...just doing small events to build funding. With a descent budget, we can plan 10 strong events during the summer and advertise them all at the same time on our website and else where, instead of how we do now, which is post one or two at a time. 

Can anyone help?
Posted by: Jeremy 3/16/2008 at 7:45 AM

very insightful. the author is a genius who deserves the nobel prize. getting older has a million liabilities. when your young, you can hit a home run or fail without any regrets. i started 3 companies when I was 16, made a killing, lost a killing and then moved on to the next. i'm 21, and will be starting another this summer.

thanks for the advice.     
Posted by: Mike 3/26/2008 at 8:55 PM

Hi... thats a nice post and felt glad to read the replies too. I am 25, graduated, done job for more than a year and a half. In the meantime, have thought of some gr8 ideas with a potential to grow big. But wat u said seems correct. I have grown a little older and now I have some liabilities.. my education loan to pay back. I have the idea but dont have finance, on top of that i can't start with self finance coz I dont have much savings due to the loan. So, I am kinda stuck here.

Also, can any1 tell me wat happens if you got the seed capital from some angel but still the start up dint work, god forbid.. what happens next? Will I need to work all my life to pay back the angel's moneyl? or still I will have something to start again?
Posted by: chakresh 3/31/2008 at 11:17 AM

Dear Wil Schroter

      
       I was recently thinking about starting a business when I came across your page, I read it, and felt even more inspired to do what I love doing. I truly believe that when your young you can fix more mistakes and have your business take off when you least expect it.

       Thank you for the courage and inspiration you have given me and many other people.
Posted by: Cody 8/30/2008 at 12:14 PM



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