Money WhizDom: Entrepreneurship as a career choice

Adhvith Dhuddu, CT regular columnist

Monday, February 11; 12:00 AM

Peter Drucker famously said, “Entrepreneurship is neither a science nor an art. It is a practice."

Choosing entrepreneurship as a career choice not only requires courage and vision, but a deep desire to succeed and overcome at all costs. This career path is replete with unique obstacles and challenges that require more than just theoretical and practical knowledge to resolve. The DNA of a successful entrepreneur is coded with traits like effective communication skills, good networking abilities, mental resolve and grit, excellent theoretical and practical knowledge, hard worker, people skills like good listening ability, capability to motivate and drive individuals, respect for others, and above all a self starter who believes in the idea and his or her people.

Deciding to go solo might be an easy decision to make, but sticking to your guns in dire times requires persistence and doggedness. But once you make the initial move, leaving no stone unturned to attain prosperity should be the primary goal.

An ominous misconception is that inexperienced startups can lead to disasters. This is absolutely untrue if the entrepreneur believes in himself/herself and the idea. Experience definitely counts but if Mark Zuckerberg of Facebook, or Michael Dell waited to gain, “experience,” we wouldn’t be bombarding our friend’s walls and wasting two hours a day on Facebook. So never wait for the, “perfect time,” to start an enterprise because it might never come.

More often than not, the simplest ideas receive resounding and overwhelming success. Over analysis and excess scrutiny only lead to inaction and missed opportunities. Following a simple mantra of trying to identify a vacuum in the system and subsequently filling it with an uncomplicated product or service is sure to get credible recognition.

Another pivotal factor in your success as an entrepreneur is where you get your advice from. When you aspire to do something different and unique, the world is against you, the odds are against you and criticisms and denouncements will bestowed upon you with generosity. It’s essential to get your advice and guidance form an individual who is at a social, economic and financial position that you aspire to be in and not your friend or professor (people who have got practical not theoretical experience), because a drowning man is of no help to another drowning man.

The US is a capitalistic economy and the thriving free market system is conducive to entrepreneurs. Every entrepreneur dreams of selling his product or service in the US market. The environment in this country is encouraging to entrepreneurs and one should take help from the different sources. The US Small Business Administration website (www.sba.gov) contains a treasure trove of information on a number of aspect s like writing business plans, finding potential investors, getting tax help, sourcing raw materials for your product, etc.

Another excellent source of help and information is the Virginia Department of Business Assistance (www.dba.state.va.us) where specific information helpful to businesses in Virginia is well laid out. Issues like licensing and permits in the state, taxes and rebates applicable only to Virginia businesses, etc are explored in detail.

In Blacksburg, we have access to the world class Virginia Tech Corporate Research Center which is home to numerous startup companies. They too help in all aspects of business startups like idea incubation and improvement to venture capital funding. Another good source for ideas and networking is the ELITE club at the Pamplin College of Business. ELITE meets regularly with the common theme of entrepreneurship and encourages idea generation amongst students.

Approaching a profession lawyer for incorporation and other legal aspects early on could be a toll on the bank account. A cheap, easy and efficient way is to submit all legal documents for incorporation online at a one stop legal website called Legal Zoom (www.legalzoom.com). At Legal Zoom, you can incorporate as an individual, LLC, partnership and for any state, etc for a competitive price.

In the end, entrepreneurship cannot be mastered by reading books or attending lectures. Like flying a plane, irrespective of how much flight simulator one plays, getting your hands on the controls of a real jet is what matters. Similarly, diving in and putting your plans, ideas and thoughts into action is what counts. This is essentially what Drucker meant, that Entrepreneurship is not a science or an art, it is in fact a practice. So, think big, start small and act now!

Calling all business majors: Chart your financial career

Adhvith Dhuddu, CT regular columnist

Wednesday, February 13; 12:00 AM

An undergraduate degree is only the first step toward a successful career in finance, accounting or business. Investment bankers, stock brokers and accountants who stand out and flourish early in their careers often equip themselves with additional certifications and credentials. They go on to earn specialized qualifications such as CFAs and CPAs to better comprehend their realm. It's important for everyone entering a career in finance to know about these programs and the potential boost they can have on your career.

The Chartered Financial Analyst program is a three-year, graduate level self-study program offered by the CFA institute headquartered in Charlottesville. The program primarily suits students looking at careers in investment banking and financial analysis. The CFA is an extremely rigorous and highly selective program requiring the candidate to pass three exams in a period of three years.

Early last year, the Pamplin College of Business was named a CFA Program Partner of the CFA Institute, giving both the College and students an upper hand for the CFA. This move indicated that the curriculum covers over 70 percent of the CFA syllabus and encourages many students to pursue the CFA. More information on how to register for the exam, eligibility criteria, study methods, etc., are detailed in the CFA's official Web site (www.cfainstitute.org).

Although not very mainstream, the Chartered Alternative Investment Analyst program is gaining credibility amongst private equity, venture capital and alternative investment management firms. Alternative investments cover a broad category of advanced financial instruments such as private equity, real estate, art, hedge funds, commodities and venture capital. This program has attracted many students (in the investment management and personal finance management fields) lately and has gained tremendous reputation for its curriculum and rigor.

The CAIA requires a candidate to clear two extensive exams either within a year or two years. After passing the exams, all qualified candidates earn official CAIA charters and other member benefits, such as eligibility to attend international chapter meetings, CAIA seminars, exclusive high-profile job offers from fellow CAIA associates, and much more. Information about this program can be found on its official Web site (www.caia.org).

An accountant cannot survive merely with an undergraduate degree and has to get certified via the Certified Public Accountant program. This certification is essential for an accountant's success and many times is a basic requirement to garner employment at reputed accounting firms (fresh accounting recruits often go through a program that trains them to take CPA).

Eligibility for the CPA exam varies from state to state, and students from Virginia Tech become qualified to take the Virginia CPA exam by taking a minimum of 150 credit hours, 30 of which must come from accounting classes. The CPA is given by the American Institute of Certified Public Accountants, a world-class institute that helps set many accounting standards here and around the world. Accounting students can also pursue other certifications, such as the Certificate in Management Accounting exam, Certified Internal Auditing exam and Certified Information Systems Auditor exam if they plan to specialize in a certain field. Two informative Web sites for the CPA exam are www.cpa-exam.org and www.aicpa.org.

Almost all financial analysts and stockbrokers have to get the Series 7 General Securities Representative Exam to be able to buy and sell various securities legally on behalf of their clients. The Series 7 is given by the National Association of Securities Dealers, which also conducts other certification exams for compliance, operations and legal representatives in the securities arena.

As the CPA, obtaining the Series 7 license is the first step toward becoming a licensed stockbroker. Many high profile Wall Street firms sometimes require both the Series 7 and Series 63 exam. Unlike other certifications, one has to be sponsored by an NASD member representative just to take the exam. More information about this and other securities-related certifications can be found at www.finra.org.

Online link to this article:

http://www.collegiatetimes.com/stories/2008/02/13/calling_all_business_majors__chart_your_financial_career

Money WhizDom: Start now to taste success early

Adhvith Dhuddu, CT Regular Columnist

Tuesday, October 23; 9:55 PM

Bill Gates, Warren Buffet and Michael Dell have something besides an abundance of wealth in common. They identified and pursued their passion and, most importantly, started early in life. Whether it's investing, entrepreneurship or even a full-time job, excelling early will put you on a path to financial success and early retirement.

A university environment is an ideal place to start. Here you possess something very precious: time and freedom, which will soon become scarce when you enter the real world. In addition, you have access to unlimited resources and knowledge in the form of professors, research centers, a voluminous library, clubs, organizations, etc.

Here at Virginia Tech, there are innumerable opportunities to give your career an early boost. Remember that your undergraduate and graduate colleagues take the same classes, study the same textbooks, hear the same lectures and are exposed to the same knowledge. How you manage your free time in order to add more feathers to your hat is what will make you more marketable and appealing than your classmates.

Bond and Securities Investing by Students (BASIS) and Student-managed Endowment for Educational Development (SEED) are two top-quality organizations that budding investors, money managers and entrepreneurs should consider joining. Here you will meet some intelligent and highly motivated individuals striving to make money yield handsome returns for the university. Although admission to SEED or BASIS is highly competitive, getting a foot in the door is beneficial. SEED invests university funds primarily in securities and BASIS concentrates more on fixed income investments.

"It's a unique experience to manage large funds at such a young age. With students from different majors involved in the decision making process, you learn a lot because you have to incorporate diverse opinions while assessing different positions and trades. Investing as a team is poles apart from investing individually," said BASIS member and junior mechanical engineering major, Nandan Shah.

Shah also expressed how the team feels a sense of accomplishment when a certain investment goes through. It's one of those rare win-win situations where the school makes money and you learn a great deal in the process. SEED and BASIS are two elite groups from which many investment banks and asset management companies are known to hire regularly.

Recently, Tony Yang, a senior undergraduate industrial and systems engineering student, started the Private Entrepreneurs Society, where budding entrepreneurs meet weekly to discuss and evaluate potential business ideas, real estate ideas and investment opportunities.

"It's different here," said co-founder and class of 2007 alum, Josh Prior. "As we are not associated with the university, we can execute potential business ideas with making profits the primary goal."

"Everyone in the society got involved automatically because they know their work will be rewarded via the revenue sharing business model," Prior added. Although admission to this society is by invitation only, Yang expressed a desire to expand the society. He can be contacted at private.entrepreneurs@gmail.com.

Leadership Tech and ELITE are two more associations where you can hone your leadership, communication and people skills and learn how to be a high-performance individual. And you get to work with like-minded people to achieve your passion, which is a great feeling.

It's not vitally important for us to start making millions by the time we graduate, but what is essential is that we have sufficient practical knowledge in addition to the academic knowledge that all of us possess. So, one definite way to get ahead in this rat race is to start right and start early.

Online link to this article:

http://www.collegiatetimes.com/stories/2007/10/23/money_whizdom__start_now_to_taste_success_early

Money WhizDom: From engineer to entrepreneur (CT Column 6)

by Adhvith Dhuddu, Collegiate Times Regular Columnist
Tuesday, October 2nd, 2007

Being your own boss is a great feeling. Entrepreneurs thrive on the freedom, and many times that freedom is the stimulus to go solo.

Although owning your own business and choosing the entrepreneurial path early is a great responsibility, the perks involved are irreplaceable. You not only decide when and how you work but you also get to choose whom you work with and how much you get paid.

Despite being a tech-heavy institute, our reputed business school churns out top-quality financial analysts, accountants and economists. Many students from the Pamplin College of Business, as well as the engineering school, will go on to become entrepreneurs.

Like investing, exploring entrepreneurship early is always advantageous. And for all of us in Blacksburg, the job is made easier by the Virginia Tech Corporate Research Center (VTCRC). This exceptional resource is truly an entrepreneur's dream and a one-stop-shop for all your start-up needs.

The VTCRC helps individuals with technology, service and product ideas to solidify their fragile concepts and calibrate them to suit business needs. Many times ideas look good on paper, but to transform a product or service into a business that is financially sound and organizationally well-structured with good growth creation techniques, an expert's touch is often needed.

The VTCRC also assists in essential aspects like financial planning and helps locate potential venture capitalists who might want to invest in your business. Various legal issues, like favorable ways to incorporate a business for your product or technology, local and international patent issues and partnering with international corporations are also addressed by the VTCRC.

It's widely known that close to 80 percent of all business start-ups fail within the first five years. The primary reason for this is lack of consistent cash flow from revenues. Cash flow, or revenue stream, is the most important aspect of a business (at least in the initial phase) and the number one reason start-ups fail.

A common misconception is that you need to be extremely smart and ambitious to start your own business. It does not require financial or business acumen to become an entrepreneur.

The first and only step is to identify a hole in the system and see how that can be filled. Think of all the successful businesses around you. Those businesses are successful because the founders identified some sort of vacuum and provided a product or service to fill that space. Ordinary people can do extraordinary things just by using common sense.

Once you identify that gap or opportunity, it is of paramount importance to put your ideas on paper. This helps you keep a record and helps you realize that just thinking of an idea does not solve the problem; many intricate issues must be handled. It's a fun process, and you will learn a lot along the way.

Looking to outside sources is also a great way to prepare yourself for the trials and issues of starting your own company. Some great books that every budding entrepreneur should read before starting a business are, "Harvard Business Review on Entrepreneurship," Robert Kiyosaki's series, "The Magic of Thinking Big" and "The High Performance Entrepreneur."

If you think you posses an ingenious idea, don't be afraid to put it into practice! The best ideas can never be stolen, and if you are waiting for the perfect time to start your venture, it might never come. So, think big, start small and act now.

Online link to this article:
http://www.collegiatetimes.com/stories/2007/10/02/money_whizdom__changing_from_engineer_to_entrepreneur