Q: What are some considerations when starting a business as a younger person?
A: Young people need to pick up the bat and get in the game. The cost of failure when you're young and when you're in college can be quite a bit lower than at other points in your life.
There is a belief in our society that you have to work and need to have experience first to then tackle the career of entrepreneurship. That's just not true. There are a lot of advantages to starting young.
Anecdotally, we see that students who end up starting businesses are quite frequently shaped by their parents' careers. Likewise, if parents go and work for a Fortune 500 firm, students are more apt to follow the corporate path.
I grew up in a household of entrepreneurs, learning it is important to be attached to a "why" when it comes to pursuing a particular business endeavor.
We talk about passion so much in the entrepreneurship field — a concept that does not necessarily mean large, lofty societal goals. It can be something smaller like improving the lives of parent-coaching roles that people take on.
The biggest problem I've seen with our St. Thomas alumni is knowing the right time to let go of a business venture. It looks different to every business.
It involves knowing what your competitors are doing — and their acquisition process. It involves knowing that the best product might not be the one to win the market.
That is why it's key to surround yourself with people who can help recognize that moment. Whether it is co-founders or advisers, nobody accomplishes anything worth doing alone. There is always a great team behind them.
So put yourself in a position to have a low-cost failure. This is important for anyone planning their entrepreneurial journey.
Know your purpose. When my tech start-up failed, we did not have the quality or strength of purpose necessary. This was one of the major factors that led to our failure.
Alec Johnson is an associate professor in the Schulze School of Entrepreneurship at the University of St. Thomas Opus College of Business.