6 Financial Mistakes to Avoid in a College Business

Today’s college students aren’t waiting for graduation to become entrepreneurs. Time reports 15 percent of young entrepreneurs started their business while in college, while 23 percent started one as a result of being unemployed. These young firms also account for an astonishing two-thirds of job creation, as the Kauffman Foundation learned.

Starting a business before you don your cap and gown can be exhilarating and profitable experience, but it also has plenty of pitfalls that can trip up even the most savvy of individuals. Recognizing and avoiding these six classic mistakes can help keep your business ambitions alive and on the right track.

#1: Not having a cash reserve on hand

Chances are good your business won’t turn a profit right away, so you should have some sort of cash reserve available. Calculate your monthly expenses and set either five percent of your weekly net pay aside, or put away $100 a week as a reserve. Don’t forget to set aside enough cash to cover your tax obligations. If you have a structured settlement or annuity (which you can learn more about at http://www.annuity.org/process/), you can sell it for a lump sum to quickly create a safe reserve.

#2: Ignoring your debt-to-income ratio

Carrying too much debt in relation to your income can make it difficult to get small business loans. Your back-end debt-to-income ratio, which includes your credit card bills, student loans and other monthly debt obligations, should be 36 percent or lower. You can calculate your back-end ratio by adding up your monthly debt obligations with your housing expenses and dividing the end figure by your monthly gross income.

#3: Making over-investments in the business

Making heavy investments into equipment and inventory can leave your operations high and dry. Instead, find smarter ways of outfitting your business at or below cost. Government surplus auctions are just one way of doing just that.

#4: Mixing business with personal finances

Getting the two tangled up can cause financial headaches during tax time. Keeping your business and personal finances separate not only increases your business’ credibility, it also minimizes your personal liability and helps you manage payments, taxes and other bills efficiently.

#5: Not seeking wise counsel

Going at your small business alone without sage advice could prove devastating in the long run. Tax advisers, accountants and other financial experts can help you stay on top of tax regulations and other possible financial pitfalls. If you haven’t already, you should find a business mentor who’s willing to offer helpful pointers and seasoned advice that comes from years of business experience. You can also find some useful networking opportunities this way.

#6: Leaving yourself without a salary

It’s always important to pay yourself, however tempting it may be to funnel everything back into the business (which goes back to mistake number four). The Small Business Administration suggests setting your salary based on a percentage of your business profits. It’s also helpful to know the average salary for your industry or field.

How I'm Using Social Media to Find My Niche

How I'm Using Social Media to Find My Niche 

by Nikki Uy, Spring 2013 Niche Movement Cohort Member 

I had learned about the Niche Movement through the Assistant Director of Student Outreach and Support Wellness and Alcohol and Drug Education at Saint Joseph’s University, Katie Bean. She had invited me to the Mark Conference at Rutgers in February 2013 and since I enjoyed it so much, she directed me to the Niche Movement’s application process for their first online mentorship. At the time, I had my Facebook deactivated as my fasting for 40 days of Lent and I had hated the idea of having a Twitter. One of the reasons why I thought I needed to get away from Facebook was because of an increasing addiction to seeing that little red balloon pop up to fuel my self-esteem. I figured Twitter was not going to be any different.

Once the founder of the Niche Movement, Kevin O’Connell welcomed me into the Spring 2013 Cohort, it’s safe to say that my vice shrunk in swelling. Though I didn’t quite make it the 40 days (5 days early!), the separation helped me balance using Facebook for communication purposes and the occasional ‘facebook stalking’ (Admit it! I’m sure majority of people are guilty of this too!). This worked to my advantage now, seeing that I had to reactivate my Facebook to keep up with the Movement’s postings.

I also created a Twitter account, which honestly, was to my own dismay at first. After Kevin gave us a list of handles to follow, though, I immediately became attracted to the advantages Twitter yields. It’s been two or three months now, and I have already been exposed to how easy it is to communicate with certain associations and people that I’m interested in. Though I owe many laughs to accounts like Ugly People Problems and Funny Pokemon and many nostalgic memories of the past few months to 90s Girl Problems and It’s Boy Meets World, and I must apologize for my endless tweets to the Backstreet Boys in an attempt to win VIP tickets to 20th anniversary tour this summer.

Personally, I’m very interested in the fields of Psychology, Philosophy, and if any of those two relates to the concept of utilizing language, my heart explodes with passion.  An aspiring future Speech Therapist, I’ve connected with grad students divulging both positive and negative experiences in pursuing the same field such as Life as a Speechie. I’ve been able to read up on research on therapeutic speech programs for both children and adults through accounts like Speedy Speech. I was reassured that the job market for Speech Therapy and Pathology is in high demand, thanks to PediaStaff, Inc. These sorts of connections, simply through reading Tweets, have reaffirmed what I want to do with my life.

I even created a page on about.me, which has the option to connect a Wordpress blog to it. To fluff my page even more, I’m actually in the process of creating a blog centralized on documenting my life through pictures and stories (which Twitter has also helped me with by expose me to different artists and writers!). If there’s one that I learned through the Niche Movement, it’s that there are loves and interests of mine that I can develop through the use of social media.

5 Tips on how to be a Connector

Guest post by Jen Bokoff

Last year, I read an article called Forget Networking. How to Be a Connector. Since then, I have developed and offered a class on just that. It’s been a popular class – surprisingly so – and I’ve learned a lot through teaching it. For instance:

• People have a hard time realizing their existing network.

• There’s genuine interest in developing stronger connections with people, but fear of going about it the ‘wrong’ way.

• It’s a tough sell on why you’d want to go out of your way to connect two people with each other, because people want to unveil the hidden agenda.

I’ve also fine-tuned my definition of a Connector. I didn’t previously parse out what exactly makes me a Connector, nor did I think about why it is an asset that I can leverage in my career or otherwise. Here’s how I define it:

A Connector is a person who…

• has lots of great people in their network

• naturally introduces members of their network to one another

• is socially fluent

• is known and respected in their communities

…and who uses that power to bring individuals in their network together constructively and with overall success.

I’m proud to have connected people over ideas, shared interests, collaborative potential, accountability, research, and resources. I enjoy connecting good people, and am fortunate to have (or to create) many opportunities for doing so. It’s a science, an art, and an energizing delight. Most exciting to me is that connecting people unleashes unlimited potential. It’s amazing to see what partnerships, conversation, and social change are sparked through catalytic connection.

I challenge you as students to use the power of connecting to advance your personal career goals. Think of this as a deeper, more sincere form of networking. Here are five active steps you can take NOW:

1.     Figure out who you know. It’s more than you think; your local coffee guy, friends’ parents, panelist from a recently attended event, twitter followers, and sorority sisters are all people in your network. Who else? Figure out who your contacts are, organize them, and make a goal to connect with 10 of them in the next month about anything. Your connection could be in person, online, or over the phone, but find a clear and sincere reason to connect.

2.     Think about what’s needed. Do you, your passion project, or a close contact need something that would benefit from people-power? Cull your network and see who you might be able to introduce (politely! and without commitment!) to one another to get the job done.

3.     Offer something to others. The best way to build strong connections is if you bring something to the table. Volunteer for a friend’s cause; tip the coffee guy; share a classmate's published journal article on your social media networks; provide professional services to a family member who could benefit. Do it sincerely and without expectation of something in return.

4.     Get introduced by introducing yourself. How do you get in the door to a company that's not hiring or stay in the loop with an awesome panelist from an event you recently attended? Get introduced if you have a shared contact or introduce yourself. It's never wrong to make a cold call or email someone you don't know. Just make sure that you keep it short (no attachments or essays!), highlight a clear purpose for wanting to connect (ie career path, interest in what being a Marketer for a Fortune 500 company entails, alumni from Rutgers University in field of interest), and keep the tone warm (use conversational wording). I often ask if we can connect for a quick coffee or phone call so that I can hear more about their career path, because I found x y and z fascinating. Show that you've done your research and want to have a substantive conversation to learn about them or their company.

5.     Learn the art of following up. Write a thank you note to a professor who made a difference to you. Post an article on a high school friend's Facebook timeline that they'll find interesting. Call a vendor you worked with on a student government project to see what other services they offer. In general, try to be that person who remembers other people in one way or another. It will help you in the future, and you'll feel good about it.

Happy Connecting!

This blog post was repurposed from content originally appearing on jenbokoff.com.

Jen Bokoff is the director of GrantCraft, a project of the Foundation Center that harnesses the knowledge and experience of funders to provide quality resources, and teaches professional development classes at the Brooklyn Brainery. She has also worked for a private foundation, the IRS, and LIFT, an anti-poverty nonprofit. In her spare time, Jen is a blogger, storyteller, and clutch hitter on her nonprofit softball team.

Networking: Like a Boss!

Patty Rivas, a health/fitness blogger at Reach Your Peak, Social Media Strategist & Graduate Student at Rutgers University read the Social Media Week "Skip Your Career Fair" post and took the advice seriously. Now she's eager to tell you her experience, advice and how she networked like a boss while in NYC. This voicemail below is also a result of guidance, developing Patty's skills and finding her niche working with me. Enjoy the post! - Kevin O'Connell

Two weeks ago, I rode into New York City to attend some Social Media Week events. I had no idea what to expect, but I was really excited that a bunch of events were free. There are bigger events that do charge, or you need to purchase a pass for, but luckily, the events I attended were free of charge AND awesome!

I started my day at Likeable Media, which was my favorite event of the day. Their event was called “Social Media Strategy in 30 Minutes.” I actually got on the list for this event (it was full) because of one of The Niche Movement’s tips, which was if an event is closed out, simply email the creator of the event. I figured I wouldn’t get a response or if I did they would just say, “It’s full, sorry.” The Marketing Director of Likeable Media emailed me back within minutes saying she had put me on their list!

"I immediately thought of The Niche Movement, and what they preach: Go places other college students aren’t going."

Once I walked into their office, I immediately thought of The Niche Movement, and what they preach: Go places other college students aren’t going. This event was the perfect opportunity to network with Likeable Media employees (if you’re looking to get into marketing and social media marketing). Everyone was very friendly and open to questions. If I were a student looking for a job, I’d network, get some business cards, and follow-up for an informational interview.

The next session was a panel discussion with founders of companies like Tumblr and Buzzfeed. While this would have been a harder event to network at (since there were hundreds of attendees), the founders did stick around after the session to mingle with attendees. Also, think of who is going to these events…other like-minded people like you! Everyone is there to network and meet new people.

The last session was yet another great networking opportunity. While the session was based on building apps, there was great discussion revolving around social media as well. Two start-up founders led the event, which was capped at about 15 people for a smaller feel. This also meant you could mingle with the founders afterwards and ask them questions about apps, business, or how to create your own start-up company. I was able to get contact information for both people and have since followed up with them.

When you think of “job search” you may think of career fairs, or looking through Monster.com. Be creative with it! Find events like Social Media Week which often have free events or student discounts. Browse meetup.com to find business or entrepreneurial related Meetups in your area. People go to those events with the intention to network, so don’t be afraid to go and get your name out there! If you follow the tips The Niche Movement provides, such as ditching career fairs, you will find the job of your dreams…one in which you’re happy and fulfilled.

Patty Rivas, @pattyrivas13 a health/fitness blogger at Reach Your Peak, Social Media Strategist & Graduate Student - Rutgers University

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Bring the Niche Movement to Campus to meet with students, staff or host your next workshop, keynote or training.

Engage with the Niche Movement - Facebook - Twitter

I'm a student leader graduating soon.

If you are reading this and are a college student or a recent graduate within the last two years think about the type of company culture you want to be a part of. Apply to be part of the first Niche Movement Cohort where we will work with your niche and discover employers that have jobs that you want. Applications due March 10th.  

I work with student leaders.

If you are reading this and work with student leaders that you want to help land a job they love then share The Niche Movement with them.

I already found my niche and want to tell my story.

And if you happen to stumble upon The Niche Movement and you already found your niche then share your story. Or we can help you recruit top, talented college who by helping you create appealing job description, screen candidates and host internships or jobs on our website.

"If you live for weekends & vacations, your shit is broken" Interview w. Gary Vaynerchuck

Skip Your Career Fair Blog post 4 or 4

Wow! On Monday night Feb 25th I finally got a chance to do a phone interview with Gary Vaynerchuck for his 1 day interviews he is doing. I only came across him just shy of a year ago but after reading both his books, watching countless keynotes and videos and reading all his posts, he has changed the trajectory of my career, the way I create social media marketing strategies and why I started the Niche Movement.

Now this is my final post in the Skip Your Career Fair series and college students LISTEN UP - this is the core of innovative career exploration and what the Niche Movement is all about. I'm keeping this post short because the 12 minute interview backs up everything 18-25 years olds need to hear and DO! Here are 3 highlights from Gary's interview:

1. “If a place doesn’t make you happy, start looking. They’re going to be working more than anything else in their life, be happy while you’re doing it.” - This is exactly why I started the Niche Movement - the average American is going to work more than 98,000 hours in your lifetime. Find your niche and be happy.

2. “Between the age of 16-22 take 2 summers working for the person they most want to be like and work for free” - This is Gary's response to how college students and recent grads can stand out from their peers and set themselves apart from the pack of applicants.

3. “You don’t have to settle, find the right place for you” -I've said this in 2 other blog posts, but it is 2013 - go out and do what makes you happy. Whether you create your own niche in your current company, pave a way in your internship or follow your own dreams and ideas go do it and don't settle.

Without further adieu, here is my talk with Gary - enjoy!

Kevin O’Connell, Founder – The Niche Movement

Bring the Niche Movement to Campus or to your company to help train your students, interns or new hires and staff. We work with you to host your next workshop, keynote or training.

Engage with the Niche Movement - Facebook - Twitter

I'm a student leader graduating soon.

If you are reading this and are a college student or a recent graduate within the last two years think about the type of company culture you want to be a part of. Apply to be part of the first Niche Movement Cohort where we will work with your niche and discover employers that have jobs that you want. Applications due March 3rd.  

I work with student leaders.

If you are reading this and work with student leaders that you want to help land a job they love then share The Niche Movement with them.

I already found my niche, am part of a great company want to tell my story.

We are in the process of matching up a curated young talent pool with featured curated jobs and internships. If you want to host your job, help us recruit and place new hires, let's talk. And if you happen to stumble upon The Niche Movement and you already found your niche then share your story. Or we can help you recruit top, talented college who by helping you create appealing job description, screen candidates and host internships or jobs on our website.