Pitching an idea for a startup and seeing it evolve to the magnitude of an enterprise are two different processes altogether. While the idea of having your own startup seems amazing on the charts, there are several other concerns that you – a budding entrepreneur – need to tackle first. Establishing and running a startup is not field hockey. Sure, you’re out on the field, but today’s competitive world is way more than passing the puck around.
Is Entrepreneurship the Key to Success
Entrepreneurship not only requires creativity and the core strength to handle market manageability, but it requires financial stability as well. As an entrepreneur, you’re expected to hold your forte down amidst potential risks in the field. You have to make room for struggle as the climb to the top is not always guaranteed.
There’s definitely utter joy in being your own boss and working on something you have the passion for. Approximately 5.6% of finance graduates preferred entrepreneurship and freelance work, while 0.6% preferred to launch their startups instead of joining a banking or auditing firm, according to a survey conducted in 2016.
While there are endless possibilities, one cannot ignore the fact that the road to a successful startup often involves a bumpy ride. Majoring in a finance degree might help to verse you well in the methods required for your startup’s optimum financial management and stability.
A finance degree might help you overcome these risks by preparing you for them with far more potency and efficiency. Mentioned below are four reasons why having a finance degree can help run a startup properly.
Identification of Target Industry and Business Planning
Every finance program comprises courses that help you identify your potentials in the field. Most undergraduate finance programs are equipped with courses that teach strategies meant to aid in progressive business planning. The development of a business strategy helps you evolve from finance major to a budding businessman – by simply allowing you to analyze the market industry.
After analyzing your industry in the market, it is necessary to identify the preferences of your target customer before developing and implementing a thorough business plan.
Developing a business strategy will also help you to run through thorough financial analyses, which will help support your startup amidst an already attractive industry. Business planning helps you decide whether you should engage as a low-cost manufacturer in the target industry, or come up with resources that justify your claim as a high-cost leader in the market.
Exhaustive Financial Planning
Graduating with a finance degree can help you complete an exhaustive financial plan for your startup before it is implemented. Finance majors can gauge the amount of investment they’d require to fund and establish a startup. Having a finance degree will also prevent you from pooling your resources in hiring a professional auditor to cover retirement and tax obligations of employees.
In addition, financial planning of your startup might also help you to gauge potential financial risks with the subsequent need for the reallocation of prospective funds. Financial planning will also help you to highlight the peak of your business with relevance to the lowest days, and whether or not you require additional resources to function and prosper during the latter.
Assessment of Qualitative Business Projects
Corporate finance is a vital aspect in contemporary business. Having a finance degree can help you identify promising startups for possible mergers or hostile takeovers. It allows you to analyze the existing market, and make a decision based on your academic knowledge instead of mere intuition.
A finance degree will also help finance majors to withstand the pressure of capital budgeting, especially where revenue from a possible investment is expected. Corporate finance majors brainstorm strategies that are aimed toward the survival of their startup.
Most undergraduate business programs are affluent in course studies that deal with the core understanding of data analyses i.e. statistics. Statistics and logistics constitute a part of core data developmental strategies that help to elaborate and put amends to an exhaustive business plan.
Statistical analyses are also quite necessary for the establishment and concurrent check and balance between customer relationships. Making decisions based on statistical data will also help a startup to evolve according to the demands of the broader industrial market.
Universities that offer finance programs also help students with their business plans by allowing them to hold meetings with already established giants of the industry. Meeting your inspiration acts as a driving force for budding entrepreneurs. Failing in finance might be demotivating at some state, but that’s not the reason to stay back and fret over your choices, especially when a bright future is at stake.
You can always enroll yourself for tutorials and take CMFAS Mock Exam Papers to get a good crack at claiming your finance degree.