The views expressed by the business participants are their own.
As summer winds down and the school year approaches, college students have many things on their minds. Going back to school, completing class schedules and getting back on track can be difficult, especially as the costs of housing, tuition, food and school supplies put pressure on students to budget properly. We’re seeing more Gen Zers (ages 18-26), including students, managing living expenses on their own by adding a side hustle. In fact, a recent Bankrate survey found that 53% of Gen Z are desperate for more money.
While Gen Z is turning to conflict at a faster pace than other generations, there’s more to risk than spending. According to the latest Bank of America Better Money Habits study, 52% of Gen Z reported that they don’t make enough money to live the lifestyle they want. In the next five years, many Gen Zers hope to improve credit, pay off debt, buy a home and start a family. Unfortunately, most are not on track to meet these goals, and nearly two in five feel they do not have enough money to meet their financial goals.
However, these goals are not achievable. Learning how to earn, budget, manage spending and save money while in college can make this transition easier.
Related: 22 Ways for College Students to Make Money on the Side
Setting yourself up for success with a side hustle
Students can earn extra money in a variety of ways, from traditional gigs like teaching, babysitting or waiting tables to more entrepreneurial jobs like starting a business.
Choosing to start a business while in college is one of the best ways students can invest in themselves, their careers, and their finances. Of the many benefits of starting a business in college, one of the most appealing is financial independence. Having a source of income empowers students to manage their financial obligations and spending/saving choices.
Starting a business or running a business while in college also teaches students real world experience, putting them steps ahead of their classmates. Instead of waiting until after graduation, working students gain real-world experience and develop important skills such as time management, budgeting and communication.
Student entrepreneurs can also take advantage of networking opportunities offered by their university. Attending career fairs and joining clubs based on their interests connects them with colleagues, managers and teachers who can act as mentors.
College towns also cater to a diverse range of consumers. Depending on the target market, students can use the people around them as focus groups to learn more about their needs and determine how their business can provide the best solution.
Related: ‘Easy’ Side Hustle He Started in College Made Over $1 Million – And Taught Him 3 Business Lessons He Still Uses Today
Being a business student
So, for college students who want to bring in extra cash to maintain their lifestyle and save for the future, here are some tips for starting a business:
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Do your research: Before taking any steps to start your business, it is important to do some research. What does the industry look like? Who are your competitors? Is there a market demand? The more information you have at the beginning, the better you will be when making business decisions.
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Be loving but realistic: Before you start your business, make sure your product or service is something you love. The process of starting a business comes with its fair share of ups and downs and is often a labor of love. Your interest is what will give you the power to cut back. In addition to being enthusiastic, be realistic. When choosing a side hustle, think about how you can handle this type of business on a large scale. For example, if you sell a product, will you be able to maintain inventory and have time to keep up with order fulfillment? And be mindful of the time you devote to your business, especially when balancing it with your schoolwork and extracurriculars.
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Create a business plan: Planning is an important step to take before starting your business. Your business plan is a document that details the goals you have for your business and the steps you will take to meet them. You must define what your business will be, how it will operate, its revenue model and growth strategies. There are several free templates available online that you can download and customize, including this one from SCORE.
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Manage your money wisely: Starting a business usually requires you to invest before you can make a profit. First, you have to consider the sources of funds to help make your business work. Do you have friends, parents, teachers or mentors who might be interested in investing? Are there any grants you can apply for as a college student? Does it make sense to borrow money? Once you’ve decided how you’re going to finance your business, make a budget and stick to it. Track your company’s performance, sales, costs and profits, and update the budget regularly as your business changes.
Related: 7 Reasons to Start a Business While in College
While current economic conditions may feel difficult for Gen Zers during their college years, side hustles offer students the opportunity to be creative and build wealth while exercising flexibility that may diminish once they enter the workforce after graduation. Whether they are starting a small business or not, I encourage students to take their financial future into their own hands and never stop looking for opportunities that will help them achieve financial freedom.
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