Professional/Industry Experience Necessary To Become A Successful Entrepreneur?

From a glance, there seems to be a sizable portion on this site that eventually wants to start their own companies, or at least go into VC, after a banking/consulting stint. People cite various reasons as to why this path is ideal -- the broad exposure to industry, professional network, or buying time before you figure out what kind of company you want to start. Our very own Chief Monkey Patrick went the exemplary path of IB -> PE -> MBA business schools<br /> ">M7 before starting up WSO which, as we can see, is successful. I ask because as I recently started bouncing off ideas with a friend and partner for a start-up, I became curious if there is a necessity to go through the motion if your ultimate goal is to be your own boss and make real money. Note that I am inquiring out of pure curiosity, not to criticize such a path.

As I see it, the downside of waiting until you have gained work experience:

  • Risk and disincentives : You are older, meaning you have more responsibilities and commitments hence making you more risk-averse. You’re also getting used to a certain level of lifestyle. You are older, and likely have a slim chance of getting back into industry should you fail.
  • Opportunity cost : Unless your idea of entrepreneurship is starting your own consulting shop or a HF, going the whole nine yards with analyst stint -> PE/HF/VC gig is an expensive way to accumulate knowledge in terms of time and effort. You could have been doing something you love and possibly made a lot of money, rather than slaving away 100hr/wk.
  • Irrelevance : People who quit these jobs and set out to do something on their own seem to have done it out of frustration, not out of some sort of enlightenment or eye-opening experience. (Might be completely off-base here)
  • Conformity : If you were successful in getting the most coveted banking job and performed well in it, it’s most likely that you have come to excel at conforming -- even if you weren’t before. You are probably more sensitive to prestige, what other people think of you, and following the rules.

The benefits of starting up during/right after college:

  • Risk tolerance You have nothing to lose, therefore able to take on high risk/high reward scenarios. If you fail, you’re still young and can spring back to recruiting.
  • Ease of Action : You have a more optimistic and enthusiastic view about the world, making it more likely that you will actually execute on ideas.

I understand that the benefits of the traditional route and the downside of starting up straight out of school seem apparent. So I want to see if there are monkeys out there with conviction in starting up on an idea without working experience. After all, the most celebrated entrepreneurs these days -- Zuckerberg, Steve Jobs, Bill Gates -- didn’t wait until they got some sort of industry experience. What do you think? Am I being completely clueless?

 
Best Response

Zuckerberg, Steve Jobs, and Bill Gates all have / had world-class abilities in terms of programming, general computing, and legendary visions and leadership capabilities.

Whether or not you need experience in a field to start a business depends on the field you want to start one in. Some require specialized knowledge and capital, some just specialized knowledge, some just capital. All require you to do your homework, just to varying degrees.

Realistically, your goal shouldn't be to "be your own boss," it should be to work on things that you enjoy doing and can make money doing. This might mean starting a company, it might mean being a trader, it might mean any number of things. It doesn't mean you need to start some wild-west style startup with a fuck-you hoodie on, you could start a web design business and work with small business clients. There are a million ways to make a buck in this world, just do something you enjoy and are good at and you'll be ok.

 

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