CHAPTER 3
Industry and Other Options
When we think of tech employers, we almost immediately think of what's referred to as the FAANG companies (Facebook, Amazon, Apple, Netflix, and Google). But opportunities exist in many different industries and fields. For example, did you know that at the 2019 Grace Hopper Conference, Bank of America and the New York Times were recognized as top companies for women technologists? Bank of America alone employs more than 10,000 technical employees, while the New York Times employs close to 1,000 tech employees.
There's almost no industry or domain that hasn't been impacted and revolutionized by tech, and all of them need tech professionals, like, yesterday. In this chapter, we'll discuss tech opportunities within the US government, education, healthcare, and more. We'll also talk about going the entrepreneurial route and starting your own business.
These are by no means the only career fields with tech careers—opportunities across several industries will continue to grow. But the next few sections will give you an example of areas where tech jobs are expected to grow significantly.
Advertising and Marketing
Advertising is a form of marketing communication where a person or company pays money to promote a product or service. Prior to the adoption of the Internet and social media, advertising was mostly done through print, such as magazines and newspapers, or through broadcast media, such as television and radio. These forms of advertising can be incredibly expensive—airing a 30-second commercial during the Super Bowl (historically the most widely watched live sporting event in the United States) cost $5.25 million! There's also no guarantee that commercials will translate into people buying your product or service, or to put it simply, there's no guarantee that you'll receive a return on your investment.
While closely related, marketing differs from advertising in that it consists of the behind-the-scenes work to help bring a product or service to the marketplace. This includes conducting market research to better understand who your target audiences are (as well as your competition's) and developing an overall marketing strategy. Advertising can be an activity that is part of an overall marketing plan or campaign.
Technology has greatly influenced and helped both fields. With the Internet and social media becoming more dominant mediums in our lives, companies realize that they need to devote advertising efforts digitally as well. The challenge for companies then becomes effectively leveraging these different, complex platforms to target the right audience, while not going completely broke.
Although advertising is more art than science—capturing the attention of people who are pressed for time and sometimes have short attention spans has always been a difficult task—technology has enabled advertisers to find and target the right audiences and accurately measure whether an ad campaign has been effective. Rather than making guesses, advertisers now have firm data to make at least educated ones.
Major companies that focus on advertising technology, or AdTech, include traditional advertising agencies such as Omnicom, Publicis, and Interpublic. Digital-native companies, such as Amazon, Google, and Facebook, are also in this space, making it incredibly competitive. Non-ad companies may also have their own dedicated AdTech departments.
For marketing tech, or MarTech, technology has enabled marketers to measure the overall effectiveness of their marketing campaigns and adjust as necessary. Search engine marketing allows businesses to leverage paid advertisements to appear and rank high in search engine results. MarTech has enabled companies to monitor an advertisement's effectiveness and adjust keywords to elevate their search position.
As companies want data to help inform their advertising and marketing campaign decisions, companies are always on the lookout for candidates with strong data analysis skills. There's also high demand for software engineers who can create full-stack applications that deliver great user experiences and for product managers who can create AdTech and MarTech platforms from start to finish.
Here is some additional information:
- The Trading Desk: For those looking for training in the AdTech space, the Trading Desk offers an online course, as well as tips and tricks on how to break into your first AdTech job.
- MarTech Today: MarTech Today gives insightful news and research on the MarTech industry and hosts an annual MarTech conference—an event filled with educational workshops, keynotes, and networking events.
- American Marketing Association (AMA): The AMA is a professional organization dedicated to the advancement of marketing professionals. It hosts a two-day digital marketing bootcamp and administers the certification exam for the Professional Certified Marketer Digital Marketing designation.
- Together Digital: Together Digital leverages its online community, local, and national events, and virtual peer circles to promote the advancement of women in digital advertising and marketing.
Civics and Public Interest
Civics deals with the rights and responsibilities a citizen has with respect to the place where they live (e.g., a town or city). As a citizen of your area, you are afforded certain rights, such as access to public resources, free speech, and due process (i.e. fair treatment in a court of law). With that comes certain responsibilities, such as paying taxes, sitting on a jury if needed, and obeying the laws put in place.
Although we will discuss opportunities in the US government later in this chapter, the roles of tech in government and civics are different. Tech jobs within the government are primarily focused on increasing the efficiency of internal operations and on protecting the data that is contained within. In contrast, civic tech seeks to increase engagement and deepen the relationships citizens have with one another and their respective government.
While civic tech firms serve the public, they are often for-profit or nonprofit companies; they don't have the same restraints and bureaucracy that governments and governmental agencies do. This means civic tech firms can develop and implement solutions quicker than those of their government counterparts. The flipside is that it can be difficult for civic tech firms to keep their offerings free or low cost, as they are receiving funding through a hodge-podge of places—through their business operations, loans, grants, etc. Because of this, salaries and perks of tech jobs in this area may not be as plentiful and may feel the effects of an economic downturn more acutely.
An example of civic tech would be the Code for America program. Started in 2009, the nonprofit seeks tech professionals to design applications for local governments, in the hopes of improving how information and government services are delivered to citizens and, in turn, of increasing citizen engagement. Another example includes Civic Hall, a coworking space in New York City, where tech professionals can contribute to projects that serve the public good.
A role in civic tech can be ideal if you have a love of technology and want a job that is mission driven or where the primary driver of your work is meant to help people versus seeking profit. The job opportunities in civic tech are plentiful and diverse, as organizations need tech professionals of all types. There are no strict requirements in terms of education or experience—just a genuine desire to get involved and help others.
Here is some additional information:
- Civic Tech Guide: A community-maintained online resource and a Civic Hall project, this site offers information on civic tech projects all over the United States.
- Coding It Forward: This nonprofit seeks to inform and get students excited about civic tech, through industry information and a number of internship/fellowship programs that it hosts.
- Code for America: As mentioned, this nonprofit seeks tech professionals to design applications for local governments.
- Civic Hall: As mentioned, this nonprofit seeks tech professionals who can contribute to projects that serve the public good.
Construction and Manufacturing
Construction is the process in which a physical building or structure is created. Construction can range from building homes and apartment complexes to building office buildings to building industrial manufacturing plants and factories. This can also include the construction of roads and highways, utility infrastructures such as pipelines, and telecommunications transmission towers.
When thinking about construction, people may conjure up images of a traditional construction site—hard hats, forklifts, and outdoor work—as well as a lot of low-paying, manual labor. Because of this, people may think it's an industry where technology and well-paying tech jobs are largely absent.
But Micheal Lane, a retired construction professional and president of SheGetItDone, an organization dedicated to helping the disadvantaged explore nontraditional, in-demand jobs in the construction trades, says that modern construction jobs have far more tech than you know. “You can work on a construction site, and you feel like you're in a video game, because we have so many different technologies, like augmented reality, wearable devices, 3D printing, and all sorts of portable technology that we have to deal with.”
There is more technology now being used on modern construction sites than there ever has been. Technology has helped to make sites safer for workers; helped reduce the need to perform repetitive, low-value tasks; and helped to speed up the entire construction process. Additionally, construction jobs are expected to grow 11 percent between 2016 and 2026, with 758,000 new jobs added by 2026, according to the Bureau of Labor Statistics.
Manufacturing involves the creation of a product from raw materials, which then can be used or sold. There are many industries within manufacturing, including creating clothes, automobiles, aircrafts, chemicals, electronics, and even food.
The total number of manufacturing jobs has declined steadily over time. From 2000 and 2017, the Bureau of Labor Statistics reports that 5.5 million manufacturing jobs were lost. Many of these jobs were lost to offshoring—the act of moving a company's operations outside the country—or through automation and robotics, effectively getting rid of repetitive, low-value tasks. While it is unlikely that the number of manufacturing jobs will ever go back to previous levels (the highest was 19.4 million in 1979), there are signs of jobs gradually being brought back to the United States. The reasons include the need for higher product quality standards, access to more technological innovations, and incentives being offered to companies to keep producing in the United States. Companies like Apple, Intel, and General Electric have all engaged in initiatives to bring their manufacturing jobs back into the United States.
Many jobs within the construction and manufacturing fields fall under what are referred to as the skilled trades. These jobs require specialized skill sets or abilities, which are gained through a combination of attending trade schools and apprenticeships. Trade schools will be discussed in more detail in Chapter 6, “Building Your Skills,” but trade school may offer a quicker, cheaper pathway to a successful, well-paying career. “You don't have to go to college and go into major debt,” Lane says. “College isn't for everybody.”
Many skilled trades are in demand—in fact, for some there are severe shortages—and those who have strong skills in computer-aided design, 3D printing, automation, software development, and IoT, among others, will be highly sought after.
Both construction and manufacturing are heavily male dominated, perhaps more than many other industries. In 2019, the Bureau of Labor Statistics reported that 10.3 percent of construction roles and 29.4 percent of manufacturing roles, respectively, were filled by women. These are the lowest representation numbers for women of the industries and domains discussed. What has contributed to these low numbers are persistent claims by women in the field of harassment, lack of female role models, and inflexible family leave policies.
Lane was candid about the hardships she experienced during her career, including experiencing harassment and microaggressions from her white, male counterparts. Adding insult to injury, there were not many people she could turn to for help or identify with: “There were no advocates. I was alone on a boat, by myself. And now that I'm gone, there is no one of [my gender and color] in that organization.”
That said, many organizations exist, like SheGetItDone and Women in Manufacturing, to help support women in these fields and to, in time, increase the presence of women in these fields.
Here is some additional information:
- Associated General Contractors of America (AGC): AGC is a professional organization aimed at advancing the commercial construction industry within the United States. AGC provides news, research, and information on training resources for those interested a variety of construction fields, including building, utility, and civil construction.
- National Association of Women in Construction (NAWIC): NAWIC seeks to provide a support network for its members through networking and training opportunities, as well as professional and leadership development programs.
- SheGetItDone: SheGetItDone seeks to promote construction trades as a gainful employment pathway for women, people of color, youth, and veterans. The nonprofit's site boasts information on construction technology and how to navigate working in a male-dominated industry.
- Manufacturing USA: Made up of 14 national manufacturing institutes, this government and industry-funded partnership is focused on manufacturing innovation and providing advanced skills training for the current and incoming manufacturing workforce.
- Nuts, Bolts & Thingamajigs: This is a charitable foundation by the Fabricators & Manufacturers Association, whose mission is to help people discover career opportunities within the manufacturing sector. The foundation also offers scholarships and immersive, hands-on summer camps for high school and college students.
- Women in Manufacturing (WIM): WIM is a national trade organization to support women currently in or interested in pursuing a career in manufacturing. WIM provides a job board and networking and professional development opportunities to its members.
Education
With employers and educators alike stressing the need for continuous, lifelong learning, people who want to stay competitive in the jobs marketplace need to seek out resources to keep their skills relevant and sharp.
Before the Internet and other technologies, this was a difficult task, for both students and educational institutions. For students, in addition to costs, they needed to devote time to physically attend class. For commuter students, they needed to factor in the time it would take to get to and from class. Missing a class could become problematic, as you'd miss out on the material covered and, in turn, negatively affect your grades.
Educational institutions faced challenges too—how could they make classes and learning resources more accessible to different populations of students, not just those who make up their traditional populations? Students with learning disabilities? Students who are juggling multiple priorities like work and home life? Also, how could they make learning interactions more engaging and effective for students? Studies conducted over the last few years have shown that the standard, teacher-led lecture techniques of teaching were largely ineffective. In one study, it was discovered that undergraduate students were 1.5 times more likely to fail a class with the traditional lecturing method versus methods where there was more student engagement. Many employers have criticized educational institutions for not adequately preparing their students for even entry-level jobs.
Educational technology, or EdTech, has removed some of these difficulties. Online learning platforms allow teachers and professors to not only share course information, readings, and additional course resources 24/7, they help to facilitate more engaging student experiences. Many of these platforms integrate chat features, allowing students to interact with fellow students and allowing teachers to ask questions and share ideas. Having this capability is crucial to facilitate group assignments and to help audiences that may not be able to physically attend class.
Designing online educational courses, apps, and platforms takes more than just technical or subject knowledge. We've all probably encountered a person in our lives who had solid subject-matter knowledge but did not have the skill to transfer that knowledge to others. I can't tell you how many lectures and presentations I've sat through, given by incredibly smart people who I've respected immensely, that left me no closer to understanding what the heck they were talking about.
Designing online courses and learning platforms goes beyond being able to effectively communicate. EdTech jobs require an understanding of how someone creates an effective and engaging learning experience for the needs of the intended audience. They must apply different learning strategies, develop meaningful learning activities that measure how well students are grasping the material, and design opportunities for feedback. They also understand that technology is a tool to enhance the efforts of teaching professionals, not a replacement for teaching professionals. Meaning, it's not a matter of just posting videos and articles.
There are many pathways into EdTech. Many EdTech jobs can be found in traditional educational institutions (schools, colleges, and universities), as well as at nonprofits, corporations, and government agencies. They need the assistance of instructional designers and implementation experts in creating online curriculums for learners or in offering advice on how to improve existing curriculums. Having familiarity with popular learning platforms on the market, hardware, and software is important, and most employers would prefer that candidates have had some experience in instructional design or teaching. For some, an advanced degree may be required.
There are also opportunities with EdTech start-ups—companies that offer their proprietary software and platforms to educational institutions. In those companies, there are needs for product managers, data scientists, and UI/UX professionals, among others, to create products from start to finish.
Here are some additional resources:
- EdSurge: Owned by the International Society for Technology in Education, EdSurge contains the latest news, research, and trends in the EdTech space. In addition to its job board, it hosts several live and virtual networking events and educational workshops.
- EDUCAUSE: Nonprofit EDUCAUSE's mission is to increase the adoption and use of information technology in colleges and universities. Through its EDUCASUSE Learning Initiative, it hosts several online courses webinars on instructional design and holds conferences and networking events for educators and tech professionals.
- EdTechWomxn: Through its local chapters, conferences, networking events, and social media groups on Facebook and LinkedIn, EdTechWomxn seeks to increase and provide advancement and leadership opportunities for women in the EdTech space.
Finance
Finance studies how money is both used and managed by people (personal finance) and businesses (corporate finance). The activities that fall under finance can be very broad and can include everyday banking, teaching people how to make the most money out of their investments in stocks and bonds, protecting people from accidents and unforeseen events with insurance, or finding (legal) strategies to lessen a person's tax liability.
FinTech, or the intersection of technology and finance, has transformed how finance activities take place. Fintech has allowed people to deposit checks, send money, apply for a loan or credit, purchase/sell stocks and bonds, and more, using only their smartphones and without ever physically stepping into a bank. For businesses, it has helped to considerably reduce the time it takes to open accounts or decide whether to extend credit to an applicant. These processes would've normally taken hours or days to do. Now they're done in a matter minutes, leading to happier customers.
There are many successful FinTech companies. Credit Karma has allowed consumers to take charge of their credit and improve it by allowing them to access their credit reports for free. Betterment investors can get personalized investment advice from a robo-advisor, at a fraction of what an actual advisor would charge. Services like Venmo and Google Wallet have made it much easier to send money to friends and family.
As you can imagine, traditional financial institutions like banks and lenders are feeling the pressure from these companies and are seeking ways to even out the playing field. While some financial institutions play up the “human factor” and some people's preference of working with a human being on financial matters, they recognize that they need digital offerings for those whose preferences are low cost and convenience. Many need help in modernizing their existing technology systems and in being able to offer the same services and experiences that FinTech does.
Hiring cybersecurity experts is a key focus area for many financial institutions. In a 2017 study, a leading Fortune 100 security software company estimated that financial services firms face 65 percent more cyberattacks than a normal business. As the threat for cyberattacks will continue to rise, the need for cybersecurity specialists has never been higher. Within financial institutions, cybersecurity professionals work with senior compliance officers to develop cybersecurity programs, conduct tests to determine the effectiveness of a company's cybersecurity plan, and help investigate and respond to security breaches.
Application developers are also in very high demand. As banks know that their customers want instant access to account information and the ability to quickly carry out transactions, they realize that having an easy-to-use, accessible-anywhere application is vital. App developers are needed to make sure that these applications are safe, are compliant, and do not require an instruction manual to be used. Additionally, application developers who have experience with integrating artificial intelligence into applications or creating blockchain networks will have a considerable advantage.
Data and quantitative analysts are always in need at investment banks and trading firms. However, those analysts who know how to effectively mine and analyze data, using machine learning tools or statistical programming languages like R, may have a distinct advantage over those who don't.
Although financial firms want to leverage the latest and greatest in technology, they must do so with the thorough understanding of the legal and financial risks of doing so. Businesses need compliance experts to make sure they are following all the necessary rules and regulations, while minimizing their (and their customers') exposure to financial crimes like fraud and identity theft.
Having a background in or exposure to business, accounting, finance, and economics can helpful for FinTech careers, including having an understanding of the industry and its mechanics. This is not a strict requirement, though, as FinTech firms are eager to hire those with computer science, software engineering, information security, and product management education experience (the requirements will vary by role).
Here is some additional information:
- EFinancialCareers: This niche job website features finance-centric jobs but offers advice to those looking to build careers in FinTech.
- Black Women Blockchain Council: The council seeks to inspire and train Black women who are interested in blockchain and the FinTech space. The council provides mentoring opportunities, networking events, and training programs.
Healthcare
The healthcare industry includes several businesses and organizations that provide medical services to the public. This includes hospitals and medical facilities, health insurance companies, and medical equipment companies.
Jobs in the healthcare industry will be growing fast over the next few years. The Bureau of Labor Statistics estimates that jobs will grow 14 percent between now and 2028. Doctors, nurses, medical assistants, occupational therapists, and similar roles are expected to continue to be in high demand.
However, there is a growing demand for nonphysician tech professionals in this space as well. The Health Information Technology for Economic and Clinical Health Act (HITECH Act) was created in 2009, and it has incentivized healthcare organizations to adopt and meaningfully use healthcare information technology and protect patient data. Specifically, the act sought to build ways to capture health information electronically, allowing patients to electronically access their patient information and giving patients the means to manage their care—all of this with the hopes that patient care improves, there are fewer misdiagnoses, and communication improves between patients and their healthcare providers.
A result of the act and the US Department of Health and Human Services spending nearly $25.9 billion toward healthcare technology adoption is that it has helped spur the growth of healthcare-focused tech jobs. The Bureau of Labor Statistics estimates that more than 50,000 healthcare tech jobs were added since the act's inception and that the projected job growth between now and 2028 is 20 percent. Critical jobs include business analysts (to design information systems that provide meaningful use to healthcare providers), software developers, and cybersecurity specialists.
There are also emerging fields in healthcare tech, like Biomedical informatics. Biomedical informatics is an approach where data is used to advance medical research. Dr. Tiffani Bright, a biomedical informatician at a leading technology company, explains, “It's a field that focuses on how you use data, information to improve health. The essence is to improve health, improve healthcare. It's a field that truly is an intersection of people, technology, and healthcare.” Dr. Bright notes that there are different flavors of bioinformatics, like clinical and public health informatics. Because of the multifaceted nature of the field, understanding data analysis, information systems, human-computer interaction, and healthcare is crucial.
Mentioned by Dr. Bright, AMIA is the professional home for 5,000+ informatics professionals across academia, government, industry and public health. As an interdisciplinary organization, members are students, clinicians, social scientists, engineers, researchers, healthcare executives and many others. AMIA helps members connect, learn, grow and lead through education, networking, professional development and leadership opportunities.
Here is some additional information:
- Healthcare Information and Management Systems Society (HIMSS): HIMSS works to transform the health and medical industries using information technology. It is involved in several initiatives, like the Alliance for Nursing Informatics and the Health Technology Alliance, a learning center where members and nonmembers can access free webinars. It also hosts the annual HIMSS Global Health Conference and Exhibition.
- American Health Informatics Management Association: Built for healthcare information management professionals, this association helps to improve the quality of health records. It offers its members several certifications, continuing education, and events.
- International Association of Healthcare Security and Safety (IAHSS): IAHSS offers introductory courses and webinars on healthcare security and has a job board for open opportunities.
The US Government
The federal government is the largest employer in the United States. It should come as no surprise then that it is desperately seeking technical professionals. As of December 2019, there were more than 600 open full-time federal tech jobs available across the United States.
Tech jobs in the federal government can include those within the executive, legislative, and judicial branches. Rather than being funded by business revenue, federal government salaries are funded primarily by taxpayers.
The tech jobs that the federal government recruits for are diverse—there are many entry-level, general IT support jobs, all the way to chief technology officer positions. The requirements will vary—some require only a high school diploma, while others may require an advanced degree and several years of work experience.
Among the positions in demand, cybersecurity is perhaps the highest, so much so that there is a website dedicated solely to cybersecurity opportunities. The CIA, FBI, and National Security Agency have their own initiatives to bring more cybersecurity professionals into their fold. To help aid in these recruiting and training efforts, CyberCorps offers scholarships of up to $34,000 toward studying cybersecurity in school in exchange for working for the federal government for a set period after you graduate:
There are plenty of attractive reasons to consider a job in the federal government:
- Job stability: Most jobs in the private sector are at-will, meaning that an employer can terminate your employment with little to no advance notice. This doesn't mean you can't be terminated from a government job or placed on a furlough (a mandated leave of absence that is often unpaid) due to government shutdowns. But these happen much less often in comparison to private-sector terminations.
- Benefits: Federal workers are provided with comprehensive medical, dental, and vision insurance; life insurance; and long-term care insurance (a policy that helps pay for your day-to-day needs, in case you are unable to work for an extended period).
Other benefits include retirement plans (specifically defined benefit pensions, where you are guaranteed a certain amount of money once you retire), first-time home buying programs, and student loan debt forgiveness.
- Pay: There's a misconception that jobs in the private sector pay more than government jobs. While the salary in private-sector jobs has often been higher, overall compensation for federal government jobs has typically been higher. A 2017 study by the Congressional Budget Office that compared private-sector jobs to their counterparts in the government noted that government workers made 17 percent more in total compensation.
- Hours and schedule: For most government jobs, there is a fixed schedule worked that rarely changes. In contrast, private-sector jobs, depending on the role and industry, may require you to work well beyond 40 hours (i.e., nights and weekends).
Employees receive federal holidays off, currently 10 days throughout the calendar year and, starting out, get nearly three weeks of paid vacation time. With longer service, they can get up to five weeks of paid vacation. They are also allowed to carry over any unused vacation days—up to 30—into the next year for use.
- Training and development: Many government jobs provide their employees with on-the-job training resources, rotational programs, and individual career development plans.
As with everything in life, there are a few downsides:
- Recruiting process: It can take a long time to go through the federal government hiring process. Depending on the job you're applying to and what agency or office it falls under, it can take anywhere from weeks to months to receive a job offer. Some positions may require you to take a formal examination or go through several background checks. In 2017, it took on average 106 days to recruit and hire a new employee, or roughly 3.5 months. This is a slight improvement from the 122-day average in 2009.
A senior official with the Federal Aviation Administration noted that having contacts in the department you're applying to helps to increase the odds of your application being referred to the hiring manager versus applying solely on your own.
- Bureaucracy: The federal government is huge! Because there are so many federal department agencies (the US government put the figure close to 316), processes take more time than they would in perhaps a private-sector job. Adhering to complex rules and regulations can be frustrating.
- Pay: Although overall compensation may be higher in the federal government, those in the private sector may be able to command more salary, or take-home pay (compensation and salary are discussed in greater detail in chapter 8, “Job Offers and Negotiating Compensation”). Most government workers' pay is governed by the Office of Personnel Management's General Schedule classification and pay system. There are 15 levels, and each level has further sublevels and rules governing when you can advance, likely based on the total length of time you've been in a position already. Exceptions can be made in the case of truly exceptional employees to increase pay earlier and beyond the predetermined amounts, but these are granted very infrequently. In a 2017 Congressional Business Office survey, it was discovered that those with master's or doctorate degrees made more total compensation in the private sector.
- Job advancement: Rapidly advancing in a government career can be challenging. In addition to length-of-time requirements to advance to another salary, many government jobs may require an advanced degree simply for consideration.
Here is some additional information:
- USAJOBS: This is the place to start to research open government tech jobs. Practical advice is also given on how to build a resume geared toward government jobs and more about the government recruiting process.
- Pathways Program: If you are a student or recent college graduate, the US government provides special internship and full-time opportunities.
- Office of Personnel Management: Here you can view the current benefits offered for government workers. The site also hosts FAQs on the federal hiring process.
CyberCareers.gov: Presented by the Office of Personnel Management, this website offers information on the variety of cybersecurity careers within the government.CIO.gov: Made up of chief information officers in federal agencies, the CIO Council aims to set policies and practices on the design and development of federal information technology resources. It hosts the annual (and free) Women in Federal IT and Cyber Conference, celebrating female leaders in the sector.
On Your Own: Entrepreneurism
Perhaps none of the industries or sectors described is quite what you are looking for. Instead of going down a defined career path, maybe you have an idea that you'd like to turn into a viable business. You want to exercise a certain degree of creativity and autonomy. Starting your own business may be an exciting path for you to pursue.
Victoria Scott, founder of WellPower (a start-up organization that she and her classmates at Princeton created to bring clean water to communities that lack it), recalls the difficulty that she and other students had in deciding what to do after graduation, “I was just thinking, ‘I don't want to work at a bank, I don't want to work at a consulting firm … I just don't want to do that stuff. I want to forge my own path.’ But how do I do that? And that's when I found out about entrepreneurship.”
The wonderful thing about being an entrepreneur is that there are no strict requirements to becoming one. A degree is not needed, and you don't need to have an office, or much else. You can start building your business at any time. You can decide the product you want to sell, or the service you want to provide, and not have to answer to (mostly) anyone—you're the boss! As the boss, you reap the most benefit when your company is successful.
Of course, just because there are not many requirements or barriers to becoming an entrepreneur does not mean that being a successful entrepreneur is easy. An entrepreneur takes on many operational and financial responsibilities in running a business (or multiple businesses). Unlike being an employee at a traditional job, there are no “regular” work schedules—entrepreneurs may work late into the evening, on weekends, and on holidays, as needs arise. If you're entering a business endeavor alone or don't have the funds to hire someone to help you, expect that you will be responsible for wearing many different hats, like dealing with any accounting and marketing functions.
Speaking of financing, although there are options available for financing, such as loans or grants, many entrepreneurs must use their own earnings and savings to launch a business. Finally, you will also likely face stiff competition—you'll need to understand how to effectively market and differentiate your business from your competitors.
What It Takes to Be an Entrepreneur
Talking about all the hard work and pitfalls is not meant to deter you from becoming an entrepreneur but to help you approach the situation with a good understanding of the work involved. According to the Small Business Association in 2019, 30 percent of new businesses fail in the first two years, 50 percent fail in the first five years, and 66 percent fail in the first 10. Twenty-five percent are lucky enough to make it to year 15 and beyond. There could be many reasons a business, even ones with great products and services, could fail—not enough funding, ineffective marketing, not having a solid business plan, or just straight-up bad timing. You can consider starting a business being both an art and a science. Above all else, entrepreneurs have the following qualities:
- Passion and resiliency: For Scott, being a successful entrepreneur requires passion for what you're doing and resiliency. “It's so important to be passionate about whatever you are building your company around. If you're not passionate about it, you're not going to work hard for this company. This company might fail. One day, [your] company is going to be doing great, and customers are wanting to buy whatever you're selling, and the investors are really engaged and happy with your progress, and then the next day, you're going to be working 48 hours straight. That's going to be difficult to do for a company you're not interested in.”
Continuing the point on resiliency, you will often be faced with tough, and perhaps fair, criticism from potential investors, partners, and customers alike. Entrepreneurs must be able to parse out the valuable information from negative feedback so that they can improve their business. Listening only to the good feedback is a recipe for disaster.
- A strong tolerance for risk and uncertainty: While taking the time to do proper planning and market research and having a good business plan will minimize this risk, the risk is not completely gone. Your business may not end up being profitable for some time—is this something that you can accept? If you're dealing with a potential investor, they will (rightly) expect that you have invested a significant amount of your personal funds in your business. Are you comfortable doing that? If the business fails, are you not only comfortable with the tangible losses, like of your money and your time, but the intangible ones, like the hit your pride may take?
- A strong work ethic: Exceptional entrepreneurs are willing to put in the time and work needed to be successful. They're out there constantly pitching their company, tweaking and refining their product, and doing so in the face of rejection and certainty. They don't view a “no” as a failure but rather as an opportunity to learn and grow. Simply put, they do not give up.
Getting Started
Before going all in in terms of time and money, there are some key steps you may want to consider taking. Depending on the size and complexity of the company that you are trying to start, additional steps and considerations (e.g., licenses, state, or federal registrations) may be needed.
Research Your Market
You may have a great idea, but is there an audience that will pay money for your idea? Who would your potential market be? Who is already operating in the market, and would they be your competitors? What is your target audience currently paying for the product/service you're planning on offering? Are there any major economic trends that are helping (or hurting) the market you're focusing on? All these questions and more are important to understand before moving forward.
By performing market research, you'll understand if your idea will satisfy a customer need that isn't already being addressed, or perhaps it will help you identify where your idea may need to be tweaked a bit. You can also see where others may have been successful and where they may have weaknesses that you can exploit.
There are plenty of firms where you can purchase market research data, but it is usually very expensive. Luckily, there are several free information resources you can tap into online to discover this information. You could also consider doing small in-person or online interviews with your intended audience to find valuable information.
Write a (Solid) Business Plan
A business plan is a formal document that outlines the mission of your business, the business's short- and long-term goals, and the methods and means in which these goals will be accomplished.
If you envision having others invest in your business or applying for loans and grants, a business plan is a requirement. Very few people or organizations will be willing to give you money without one, as they want some understanding of how you intend to make money and, subsequently, how likely they will be to get their investment back! Yet, even if that won't be the case, it is still good practice to have one, as it will help you start and operate your business more effectively.
Many different business plan templates exist, so take the time to learn which ones would be appropriate in meeting your business needs. Your plan should generally have these sections:
- Executive summary—The key points of the plan.
- Company description—Specific details on your company, like its name, location, size, date of operation (or proposed date), structure, etc.
- Products and/or services offered—A discussion of what the business will be offering, its benefits, and key differentiators from existing products and services on the market.
- Market analysis—Who the businesses target market is, its competitors, and a SWOT analysis (strengths, weaknesses, opportunities, and threats) on the business itself as well as the competition.
- Organization—How the business will be legally structured, as well as the names and short bios of people who will hold leadership positions in the company (including yourself) and any discussion on future hiring plans in any areas of the business.
- Financial plan—Outline what initial expenses are needed to get the business up and running and where initial funding has/will come from. If you envision seeking outside funding in the future, you may need to add key financial statements, like income statements, statements of cash flows, and balance sheets.
A business plan takes a lot of work, but the time and effort spent writing and refining it will reap many benefits in the long run.
Estimate Initial Costs
Take some time to research and think through what expenses you'll have to deal with to get started. Seek advice from fellow entrepreneurs as they'll have firsthand experience. Although some costs may be a little more obvious, like marketing/advertising costs, website costs, supplies, and the like, there may be others that may not be top of mind. For example, should you decide to pick a formal business structure, such as becoming incorporated, there are filing fees by state, and they can be several hundreds of dollars. If you're planning to enter a highly regulated industry, like financial services or insurance, seeking outside legal advice may necessary. If perhaps you have the business idea but don't possess the deep business or technical acumen to make your idea a reality, you may need to hire permanent talent or, at the least, hire talent on a contract or part-time basis.
You may also find that certain costs will have to be postponed until you receive more funding. For example, you may need to run your business out of your home or other no/low-cost space before committing to a formal office lease.
Determine Sources of Initial Funding
As mentioned at the start of the section, you will most likely be providing the majority (if not all) of the funding of your business. These funds can come from your job earnings and savings.
Friends and family can also be a resource for funding; they may offer you financial gifts toward your business, or they may offer more relaxed lending terms than that of a bank. They are also perhaps the fastest source of funding, as the other means mentioned can often take weeks or months to secure. If you do go this route, make sure to discuss and outline the nature of what they're giving you (is this a gift or loan?) and detail the repayment terms if necessary. The very last thing you want is to have a misunderstanding about repayment that puts you at odds with your loved ones.
Pitch competitions can also serve as another great source of funding, as well as media exposure for your business. Pitch competitions allow entrepreneurs to (very quickly) share and convince potential investors and related audiences why your business is worth the investment. Competitions are held at colleges and universities, venture capital firms, startup accelerators and incubators (businesses that provide valuable resources and mentorship to select start-ups), and one-off, start-up-oriented events. Because of the competitive nature and what is at stake—a few hundred dollars to several hundreds of thousands of dollars—the competition is fierce. Well organized and put together business plans are necessary, and you must be able to present an interesting, compelling, but brief oral presentation.
Banks and other lending institutions offer business loans. Some institutions offer loans that are backed by the Small Business Administration (SBA). This means that the SBA will guarantee a portion of the loan for the bank or institution in the event you do not pay back the loan. Having a formal business structure (e.g., being incorporated), a business plan, and financial statements are required; many banks will also want to know about your personal finances, so they may check your credit report and bank statements and want to see evidence of your personal savings.
Venture capital firms will give entrepreneurs money, in exchange for equity, or a portion of ownership in your business. They may ask for up to 50 percent ownership of your company. Getting venture capital funding can be very difficult; candidates will need to present strong business plans and show promise of strong future growth. That said, if you do receive funding, that means you may need to share or give up some authority over your business. Before accepting a funding offer, it's important to understand the venture capital firm's terms and expectations and if you are comfortable with what they are asking.
Crowdfunding sites, like IndieGoGo and Kickstarter, allow you to raise funds from the public. Depending on the platform, you may be able to take contributions outright or offer equity in your business. Also depending on the platform, you may be required to submit a business plan and financial statements.
For more help and tips to get started, you can check out these additional resources:
- Small Business Association (SBA): The SBA is one of the best organizations to seek free to low-cost help in starting and running your business.
- Women's Business Centers: Operated by the SBA's Office of Women's Business Ownership, these learning centers provide training for women on how to start and grow their businesses. There are more than 100 across the United States.
https://www.sba.gov/local-assistance/find/?type=Women's%20Business%20Center&pageNumber=1 - Digital Undivided: Digital Undivided hosts several programs to help Black and Latinx women build successful start-ups. This includes an incubator program and a variety of networking events.
- New Me: A tech start-up accelerator/bootcamp, New Me offers a comprehensive program dedicated to helping businesses that are led by underrepresented groups
Keep Going or Stop?
You're putting in the work to start or continue to operate your business, and for a variety of reasons, things are not progressing as quickly as you'd like. Maybe you have fewer sales than you expected, less customer engagement, or mixed reviews. When faced with these signs or other significant challenges, you might wonder if you should just keep pressing forward or if it may be time to throw in the towel.
First, it's important to remember that it takes a lot of time for a company to start producing results. While there are few businesses that have launched and become overnight successes, there are thousands that take years to achieve success.
Second, it's important to define at the start what you believe success will look like for your company. I don't want to underestimate the importance of keeping the business's overall costs low while bringing in as much sales and revenue as you can. Businesses need revenue—and specifically, profit—to survive and grow. If your company has been losing money for many years, a thorough review of your strategy and operations is in order.
But it is important to identify other relevant metrics that may be promising signs to continue. Scott mentioned that if people are downloading and using your app or engaging with your social media posts, these can be great ways to gauge overall customer interest and engagement. With time, you will hopefully have accumulated enough data and customer feedback to understand where you're excelling and make tweaks where necessary.
Third, it is important to check in with yourself to see whether being an entrepreneur is still what you want. If you find your passion for your business waning or you're just incredibly exhausted, that may be a sign to take a break or wind your business operations down completely. Should you decide to stop, remember that you can always start again, whether in the existing business or in a new venture.
Summary
- Expand your “pie” of opportunities. Tech job opportunities exist in a variety of industries and domains. Explore opportunities that appeal to your interest, not just the “hot” tech companies.
- Although anyone can become an entrepreneur at any time, a lot is involved to potentially be a successful entrepreneur. While running your own business can yield many rewards, there are many risks too. Proceed with a solid plan.