Entrepreneurs on Campus
Students ask what it costs to start and half expect an answer that rules them out
The honest answer has money in it, but money is often not the biggest cost. There is also the income a founder stops earning, the time that does not fit around anything, and the uncertainty. In this session a visiting founder describes what starting cost them in each of these, and students work out their own monthly numbers.
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A student who thinks it needs a lot of capital rules it out. A student who thinks it needs none starts badly.
Some businesses need real capital: stock, a place, machines, people before sales. Others begin with a skill, a phone and a first customer. Students seldom hear the difference, so they treat all starting costs as one figure, and either give up or spend on things they did not need.
The less visible costs are often the larger ones. A founder who leaves a job has stopped receiving a salary. A founder who works every evening has given something up at home. A founder who does not know whether next month will be fine carries that.
The visiting founder is not asked to give figures, and the session does not state what any business costs. It explains the shape of the costs, from one person's experience, and helps students think about their own.
What the speaker is briefed to cover
28 topics across 7 areas. Seven kinds of cost, and how the speaker dealt with each.
Money Before the First SaleWhat was spent, in general terms.4
- What they had to spend before earning anything
- What they spent on that they now think was unnecessary
- Where the money came from: savings, family, earnings, a loan
- What they did to keep spending low
The speaker is not asked for amounts and does not quote costs for any kind of business.
Spending to Start and Spending to Look the PartThe difference.4
- Things that made the business possible
- Things that made it feel like a business without making it one
- What can wait until there is a customer
- How they decided what to buy and what to borrow
Income Given UpOften the largest cost.4
- What they were earning, or could have earned, instead, described in general terms
- How long they lived on savings or another income
- How they decided how long they could last
- What a runway means, in plain words
Time and RelationshipsPaid by the people around you as well.4
- Hours that did not fit around anything else
- What family and friends noticed
- How they talked about it at home
- What they would plan differently
UncertaintyA cost that is easy to leave out.4
- Not knowing whether it is working
- Who they talked to when it was going badly
- What they did in a month with no income
- How they decided to continue or stop
Registrations, Fees and TaxGeneral only; check current rules.4
Registration requirements, thresholds and fees depend on the type of business and change. The speaker does not give legal or tax advice. Students should check the official sites or speak to a professional.
- Which registrations the speaker had, and when they chose to get them
- What they delayed because there was no need yet
- Who they asked: an accountant, an official site, a fellow business owner
- Why students should check current thresholds and fees before spending
Working Out Your Own NumbersA short exercise in the room.4
- Monthly living costs, listed line by line
- How many months those costs could be covered by savings or other income
- What a student would not be willing to give up
- What a smaller, cheaper first version of their idea might look like
What the founder prepares
- A general account of what starting cost them in money, income, time and peace of mind
- One thing they spent on that they would skip
- One cost that surprised them
- A readiness to decline questions about exact figures
What students do
- List their own monthly costs for a typical month
- Work out how long they could manage with no income from the business
- Name one cost they would avoid in a first version
- Ask the founder how they handled a specific kind of cost
How the session runs
The founder speaks for about twenty minutes, then students spend ten minutes on their own list of monthly costs. The sheet is private and nobody is asked to share a number. The rest of the time goes to questions. The speaker is briefed on what to cover and on the no-pitch rule (they may describe their work, but may not sell, recruit or ask students to sign up for anything), and on not giving financial, legal or tax advice. A member of the college's staff stays in the room. The college agrees the length and group beforehand.
What your students leave with
- A fuller picture of what starting costs than the amount of money alone
- An understanding of the difference between spending to start and spending to look like a business
- A way to work out personal monthly costs and the money needed to cover them
- Awareness that registrations and tax rules need checking against current official information
- Knowing which costs can be kept low and which cannot
- Questions to ask a founder about money, without needing figures
Scheduled sessions
Nothing scheduled yet
Sessions are arranged with a college once a date is agreed. Ask us and we will find the right person for it.
A student rather than a college? See what is coming up, or ask your placement team to host this.
Give students an honest account of what it costs, and a way to count their own.
Tell us who your students are and what stage they are at. Sessions are free for participants.