Give up on IB for starting my own business?

Trying to do some big picture strategising on my applications this cycle. 

In the next 5-10 years I want to start my own business. My plan for a while now, based on where most founders come from and given I don’t go to Harvard/Stanford, has been to do Management/Strategy consulting and go from there.

More recently (last couple of years) I started considering IB, which is of course only more competitive. The hours are more prohibitive, the pay is better, the C-Suite exposure is worse, and I’m less likely to get in. If I end up deciding to gun for VC first it also seems that CO is more conducive (at least certain MBB/T1s), while IB sets you up for HF/PE to a greater extent.

I think I could thrive in either industry, but I’m trying to optimise for entrepreneurial success. 

I’m a graduate with no internship from a non-target. I might be able to pull off IB if I slaved away at it, but the risk is turning a means to an end into the end itself.

So the broad question: How would you / How have you seen others optimise for startup success?

The more focused question: Should I give up on making unlikely applications for IB, and go all in on CO for this cycle?

Any other entrepreneurial advice more than welcome

6 Comments
 

If your ultimate goal is entrepreneurial success, here's what you need to consider based on the most helpful WSO content:

1. Optimizing for Startup Success

  • Consulting vs. IB for Entrepreneurs: Consulting, especially at MBB or T1 firms, tends to provide a broader skill set and exposure to strategic thinking, which can be invaluable for starting your own business. Consulting engagements often involve solving diverse business problems, which can help you develop a "general management" toolkit. This is particularly useful for entrepreneurs who need to wear multiple hats.
  • C-Suite Exposure: Consulting offers more direct interaction with C-Suite executives across various industries, which can help you build a network and understand how businesses operate at the highest level. This exposure is less common in IB, where the focus is more on financial transactions.
  • Work-Life Balance: Consulting generally offers a slightly better work-life balance compared to IB, which could give you more time to explore entrepreneurial ideas on the side.

2. IB vs. Consulting for Your Goals

  • IB Pros: If you’re considering a path through VC or PE before entrepreneurship, IB can be a strong foundation. However, as noted in WSO threads, IB is more competitive, has grueling hours, and is less conducive to entrepreneurial ventures unless you’re targeting finance-heavy startups.
  • Consulting Pros: Consulting is often seen as more conducive to entrepreneurship, especially for non-target graduates. Certain MBB/T1 firms are known to have strong VC pipelines, and the skills you gain in consulting are more transferable to running a business.

3. Your Background and Risk Assessment

  • Non-Target Graduate: Breaking into IB from a non-target school without internships is extremely challenging. While it’s not impossible, it would require an extraordinary amount of effort and networking. Consulting, on the other hand, might be a more realistic and achievable goal given your background.
  • Risk of IB Becoming the End: As you mentioned, there’s a risk that pursuing IB could turn into an end in itself, especially given the demanding nature of the industry. If your heart is set on entrepreneurship, consulting might align better with your long-term goals.

4. Advice for This Cycle

  • Focus on Consulting: Given your entrepreneurial aspirations, consulting seems like the better fit. It offers a more realistic entry point, a broader skill set, and better alignment with your goals.
  • Networking and Applications: Start networking aggressively with alumni and professionals in consulting. Tailor your applications to highlight your entrepreneurial ambitions and how consulting can help you achieve them.

5. General Entrepreneurial Advice

  • Start Small: Consider starting a side hustle or small business while working in consulting. This will give you hands-on experience and help you validate your ideas.
  • Leverage Your Network: Use the connections you build in consulting to find mentors, investors, and potential co-founders.
  • Learn from Others: Study the paths of successful entrepreneurs who came from consulting backgrounds. Many have leveraged their consulting experience to identify market gaps and build successful businesses.

Final Thoughts:

If your goal is to optimize for entrepreneurial success, going all-in on consulting for this cycle seems like the smarter move. It aligns better with your background, offers a more achievable path, and provides the skills and network you’ll need to succeed as a founder.

Sources: https://www.wallstreetoasis.com/forums/qa-consulting-pe-early-stage-startup-b-school?customgpt=1, If You're Stuck Choosing b/w Consulting and Banking, DO BANKING, Start up = Career suicide? Want to get into IBD. Need advice and mentorship., I've had more luck with entrepreneurship than with career: advice desperately needed, https://www.wallstreetoasis.com/forum/investment-banking/not-sure-if-investment-banking-is-for-me-anymore?customgpt=1

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

My experience: I left after my IB Analyst gig to do a start-up and don't regret it one bit. Ultimately it didn't get a successful outcome but the intangibles gained were something I could never get from doing IB. With that said, afterwards I transitioned back to a chiller MM PE role but admittedly I don't think I would have gotten it without my IB background. The start-up was just interview talking points but made for some fun conversations.

I think in 2025 smart and driven people can get roles anywhere regardless of their background (with some exceptions) based on story-telling and preparation for the role. To answer your focused question though: neither IB or CO will truly prepare you for the start-up/sweat equity grind. FWIW the only translatable skills from IB over to the start-up were pure grit and ability to use Microsoft suite well (lol). And people took me more seriously in intro conversations. Otherwise, the start-up life is something you learn on the fly, for better or worse. DM me if you have anything specific

 

 

Extremely helpful advice thank you so much. A few broader questions if you don’t mind, and I might shoot you a PM later:

  1. Did you always know you wanted to be an entrepreneur (or at least give it a shot)?
  2. How did you avoid the IB time pressures and lifestyle crushing your plans? Hopeful founders seem a dime a dozen in IB (see above comment lmao) but stats-wise and anecdotally it seems Consulting and Tech roles pump out far more founders (though of course that does not mean successful founders).
  3. Starting my own company is all I’ve ever really wanted to do since I was in my early teens, I’m only viewing this first stage of employment as a way to build connections, credibility and some capital. I know at some point that starting something is simply an extremely intense trial by fire, but I’m stuck trying to figure out what step 1 is. There’s a bigger question in there somewhere, but for now: how come you went back into PE instead of starting something else after it didn’t work out the first time?
 
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