Get up and Chase the Dream!

For some, overcoming endless hurdles is a memory they wish to leave behind with school PE lessons. For others the uncertainty, challenge and commitment involved in developing a start-up is what provides the buzz that gets them out of bed each morning.

Motivations:

There are a multitude of reasons why people wish to create a start-up but a few factors often prevail. Firstly, the opportunity to manage your own time – undoubtedly the hours will be long and there will be sleepless nights, but for some this is considered preferable to being accountable and having to turn up to the office at 9am day in day out. Secondly, it is desirable to feel your time and energy is

... three ways to become very rich: Work extremely long hours for someone else (read: investment baking), do something illegal (whilst drug dealing/weapon smuggling may be lucrative it’s probably not the key to a bright future) or finally work for yourself

being invested into controlling your own future and developing your brainchild as opposed to slaving away working for a largecorporation. Finally, whilst there is a risk of loss there is also potential to rake in the cash.

A friend suggested there are three ways to become very rich: Work extremely long hours for someone else (read: investment baking), do something illegal (whilst drug dealing/weapon smuggling may be lucrative it’s probably not the key to a bright future) or finally work for yourself. In this article we’ll explore the latter option.

The Idea

How many times have you found yourself procrastinating work by daydreaming about business ideas? It is a shame to think of all these ideas being mulled over and not executed. One of them could be a gem – the next Facebook perhaps? I met some boys who keep an ‘Idea book’ where they note down ideas – however crazy – and brainstorm each one. Many of the ideas end up being scrapped but by discussing their thoughts and combining ideas they have managed to create feasible business plans.

I read a striking essay written by a successful businessman who proposed that you don’t necessarily need a revolutionary or even new idea – you simply have to do better than the competition. Look at dating websites for example. The market is huge due to a reduction in the stigma attached to meeting your partner online and growing numbers of career driven people who do not have the time to find a companion. Yet, until recently, dating websites did not facilitate the best matchmaking resulting in a low success rate. Over the past few years new models have sprung up targeted at niche sections of the population. These sites strive to make suitable matches and ensure like-minded people are introduced to each other. You only have to glance at the tube adverts to see the selection on offer from professionalsingles to uniformdating.com. Not advertised on the London underground are those such as Geek2geek and farmersonly.com. By building on an existing idea those behind the array of new sites have learnt from the mistakes of original players and earned their share of the $2.1 billion market. So, don’t be deterred by the fact your idea is out there in some form. If you are able to spot fundamental flaws and think up inventive solutions you may be able to secure a fraction of the market.

London is buzzing with networking events and opportunities to meet fellow entrepreneurs

That is not to say you should dismiss innovative ideas. By making the first move you have the advantage of securing the target market before competitors arrive. A daring man who did just that is Jay Nemeth – the man behind the Zero-G cameras that filmed Felix Baumgartner in his recent Red Bull sponsored jump from space. Jay saw an opportunity in the emerging space tourism programmes, pursued his passion and got to work on creating remote controlled cameras that could withstand such conditions as those found in space. Red Bull happened to be looking into how to film the feat when Jay announced that he’d been working on that very thing. It wasn’t only Felix who landed on his feet.

Funding

Starting businesses in sectors such as biotech and oil requires huge initial investments and unless you have seriously rich and generous relatives it may be a difficult sector to break into. However, not all businesses need such serious sums of money invested into them. Many modern day entrepreneurs have mastered ‘Bootstrapping’; the art of creating something from the resources available to you. A common mistake is throwing money away on the likes of renting office space and hiring permanent staff. There is usually no need to fork out for such expenses; there are countless tales of folks starting out with a laptop and their dining room table. Avoiding such costs will prevent you from depleting the money you do have and leave more to invest in the key components required

Many modern day entrepreneurs have mastered ‘Bootstrapping’; the art of creating something from the resources available to you.

for your start-up. A useful piece of advice from the author of ‘Rich Dad, Poor Dad’ is, ‘Don’t buy what you can borrow and don’t borrow what you can get for free’. Participants of the recent Imperial Apprentice Challenge proved just how much value can be created from nothing. Starting with a paperclip they managed to make hundreds of pounds in a few hours by trading the paperclip for items of more value and eventually selling their trades. Rather than getting stuck on the treadmill of full time employment that so often follows graduation, why not put your energy into creating value and capture your share of the money up for grabs?

Realistically you may need investment further down the line and there are plenty of organisations offering this in return for equity. For example, Studentupstarts was founded by an Imperial Student and offers up to £15,000 investment for promising entrepreneurs. However, it is unlikely you’ll receive funding without some proof of concept so get the ball rolling, see how far you can make it and if you envisage the need for funding apply for it. What do you have to lose?

The Team

Having a solid team is vital for success. It is generally advised not to combine friends and finance, however I feel this advice should not be taken as a given. Whilst it may lead to discrepancies, which could affect not only the running of the business but also your personal life, good friends fully understand how each other work, know each other’s skills, experiences and weaknesses and are often a tried and tested team. This could be more valuable than trying to suss out a stranger and risk working alongside someone you know little about.

... good friends fully understand how each other work, know each other’s skills, experiences and weaknesses and are often a tried and tested team.

Unless you are jack of all trades you are likely to need people with complementary skills to yours. In some cases outsourcing work is the answer but do not underestimate the value of having one’s attention fully invested in the start-up. Whilst you may be reluctant to dilute your shares in the business, inviting a new member into the founding team may be the reason your business becomes a success. Imagine you are being paid per hour and your success does not depend on the success of the business – you are likely to do your work as required and get on with your life. Now imagine you have significant equity in the business and its success could make you very rich and happy. Yes, you’ll put in the extra hours, think outside the box and throw your energy into making the project prosper.

Students are in a great position to develop a business; not only do they have more time and less to lose than the typical adult with a steady job, family and mortgage but they are surrounded by thousands of young people in the same position, with bright minds and ready to make their path in life. If you envisage going into the fashion sector perhaps you should scout talent from a more gender balanced University than Imperial but say for example you required a programmer for your website… need I say more?

Seeking Advice

Sites such as inc.com and youngentrepreneur.com provide a daily digest of interesting and eye-opening articles. Reading around may be the starting point you need to give you the confidence and advice you need to pursue your business idea. If you decide to do so it will be invaluable to find a mentor – somebody who has experienced the rocky path that lies ahead of you. Often they have been helped along the journey and will be more than happy to support you with advice on mistakes to avoid and things to consider. Imperial Entrepreneurs hold, ‘Start-Up Mondays’ with regular speakers every two weeks – on Monday this week they had the CEO from TransferWise, an online

Imperial Entrepreneurs hold, ‘Start-Up Mondays’ with regular speakers every two weeks

platform for transferring money abroad without the use of banks as the middle man. Whilst the UK may be in a mess economically/politically/socially and every other ‘ally’ it is a big player in the start-up scene. London is buzzing with networking events and opportunities to meet fellow entrepreneurs. Old Street (Silicon roundabout) has become the ‘Silicon valley’ of London. Look out for conferences, talks and network opportunities. The start-up scene in the UK is growing so make yourself part of it… I hope to follow my own advice and see you there!

Little Steps

The road to entrepreneurial success is obviously easier said than done but who knows whether your idea will hit offif you never try it? Take small steps and get the process moving. Nothing will happen by just ‘thinking’. So, don’t moan about your boss, disliking your job or lack of excitement if you say

Richard Branson, King of entrepreneurism, ‘It’s going to be a tough Journey, you had better enjoy it!'

you never tried. Look out for Imperial Entrepreneurs start-up weekend and Ideas empowered next term. Attending such events can expose you to likeminded people and give you an insight into what the path could entail.

I’ll leave you with words of wisdom from Richard Branson, King of entrepreneurism, ‘It’s going to be a tough Journey, you had better enjoy it!’