This article first appeared in the St. Louis Beacon, Feb. 21, 2011 - As a youth, Brian Risinger made money mowing and caring for lawns.
Now 25, Risinger has an undergraduate degree. But unlike many business students who applied for jobs at some of St. Louis's largest corporations, he stuck with the business he knows best: lawn care.
Risinger started his own company, Simply Green Lawn Care, in 2006 during his freshman year at University of Missouri -- St. Louis. Now he's at it full time.
"It started out as a way to make a little extra money," Risinger said. "But it grew into more than I expected to."
Risinger concluded that owning his own business would provide more benefits over the long term than starting with an entry-level position working for someone else.
Given recent employment statistics, it comes as no surprise that some graduates have decided to become their own boss. Last year, the National Association of Colleges and Employers reported that 24 percent of college graduates who applied for a job had one waiting for them. That's actually a bit of improvement over the previous year.
But what kind of job? A study by the Center for Labor Market Studies, Northeastern University, last fall found that from January - August 2010, less than half were working in a job that required a college degree.
Risinger's family owns an insurance business, and he had the opportunity to join that company after graduation. But Risinger wanted to make it on his own, and he saw the potential for success in continuing to grow his lawn-care business.
Cooking Up A Business
Natalie Gamez, a senior at St. Louis University, does not have the opportunity to work for a family-owned business. And she wasn't sure that she would land a job with someone else. So last summer, Gamez, 21, started Red Jett Sweets, a company that makes special-order cupcakes.
The company consists of Gamez, co-owner Christina Jett-Meyer and an employee. Red Jett Sweets has catered numerous birthday parties and recently supplied a large wedding in Oklahoma City.
"At first, it was just kind of an interest. I like to bake and cook," Gamez said. "Now, with the way the economy is going and not having a sure job, maybe it was time to do something on my own."
Those looking to start their own business right out of college usually face a host of challenges. Alan Hauff, director of the Small Business and Technology Center at the University of Missouri-St Louis, said concerns about student loans and transitioning into adult life usually lead recent graduates toward stable, salaried jobs. He said many entrepreneurs start their businesses later in life. Many begin after their employers downsized, or they injure themselves on the job.
Recent college graduates "often lack the technical expertise in the fields that they want to go into," Hauff said. "They do understand things like social media, but they have trouble wrapping a business around some of those concepts."
Recent graduates often have trouble obtaining loans to begin their company because they lack both the necessary collateral and a strong financial track record, said Jerome Katz, professor of entrepreneurship at St. Louis University.
Yet Katz also points out numerous advantages. Since most recent graduates do not have a family, they have more time to build a profitable business. Some investors also appreciate that while young entrepreneurs lack experience, they bring a great deal of passion.
Entrepreneurs -- as Katz said -- are either "pushed in or pulled in" to starting a business. He notes that many individuals who cannot find stable employment start their own businesses out of financial necessity. However, he said other people get pulled into entrepreneurship because of a strong vision for a company. Katz said the "pulled-in" entrepreneurs tend to have a more innovative and passionate view of their company, which can often lead to a more successful business.
Gamez certainly recognizes the risks involved with starting up her own company.
"If something goes wrong, I don't have a guaranteed salary," she said. But if there was ever a time to roll the dice, it's now, she said. She figures she may never have the opportunity to start up her own business again.
A Low-cost Startup
Greg Faletto, a 2009 graduate of Washington University, is another student who continued to build a business he started as an undergraduate. Faletto tutored high school students as an undergraduate and then continued on by hiring a group who could take on even more students. His initial costs were just $200 or so, he estimated.
Faletto says his business, Integral Tutoring, has been successful so far, but by no means is he on easy street. He still drives the 2005 Ford Focus that his parents bought him in high school and he cooks for himself rather than going out to eat most of the time.
"Most of the things people my age do for fun are free or cheap --- hanging out, going to concerts, going on road trips --- so I don't really miss out on anything," Faletto said. "I'm used to living with pretty minimal expenses, so it doesn't really feel like I'm living on a budget."
More Challenging Than It Seems
Trying to get a business to take off can be quite a lengthy process. Gamez has spent a lot of her time recently doing research for her company. She must decide, for example, whether to set up a store front or conduct her business through a mobile truck route. In addition, she is researching other cupcake shops with an eye on putting together a standard menu.
Fortunately, Gamez has a support system. Her parents owned a family restaurant until a few years ago, so her father has been instrumental in helping her lay out a plan for her company. She also has been receiving help from her finance class, where she has created balance sheets for her business.
For Risinger, the toughest part of running his own business has been balancing his professional life with his personal life. While an undergraduate, trying to keep up with school and his business often became a challenge.
"It is not as glamorous as it sounds, but it is rewarding," Risinger said, noting that he has to put a lot of hours into the company, including a lot of unpaid, administrative grunt work.
Risinger's hard work is beginning to pay off. His company's projected revenue is around $100,000 for the year, about $40,000 more than last year. While the company started with just himself, he now has two employees working for him, and with the amount of bids he has received for his work, he plans on hiring at least one new employee.
Being his own boss has become one of the best -- but simultaneously most challenging -- aspects of Faletto's entrepreneurial career.
"If I wanted to wake up at 8 a.m. every day and go to bed at noon, I could do that," Faletto said. "I almost wish there was some external structure to my life, someone telling me what to do for at least part of the day."
Faletto has found that setting realistic goals for himself and his company have made it easier to press ahead with his business. For the summer, he set a goal of obtaining one new student every week.
Words of Advice
Katz said young entrepreneurs need to know two things: know how and know who. While college can teach people about the technical aspects of running a business, the importance of building a network must not be discounted.
"You never know who you need to know, Katz said. "Anybody you meet might be your customers or people who can actively promote your industry."
Risinger wants young entrepreneurs to realize that nothing replaces hard work.
"Be prepared not to have any time off," he said.
Richard H. Weiss and Nate Peterson contributed reporting to this article.
Samuel Weigley, a native St. Louisan, is a senior at DePauw University, Greencastle, Ind., and managing editor of the DePauw.