Things to consider before investing in a business

Owned and published by UMHB, The Bells is a biweekly publication. This content was previously published in print on the Opinions page. Opinions expressed in this section do not necessarily reflect the views of the staff or the university.

Students in today’s world are always looking for money. A college education can be costly and finding a job that pays a decent amount is hard to do without a degree. Therefore, many students have turned to becoming distributors for companies that sell products such as cosmetics, jewelry or clothes.
Many times students will invest in these companies because they think it is an easy way to make fast money. However, students tend to not do their research. When that happens, these “fast money” businesses can turn into money traps. This leads us to the question, “should students start a business while in college?”
There is no easy answer to this question due to the incredibly complicated nature of these businesses. So here’s some advice that students should consider before they invest in a business.
Make sure you understand what the business entails. Some of these businesses require a hefty fee to join. Others require you to order and sell a certain amount either monthly or quarterly and if you do not meet that amount you could lose your distributor status.
Make sure you have the available funds it takes to start the business. Many of these companies advertise the best of the best success stories. They show the distributors that made $100,000 or more in their first year. What they don’t show is the amount that these distributors invested initially before they became successful.
Make sure you have time to invest in your business. These businesses rely on a large social media presence. First you have to take the time to set up a social media page that is welcoming and informing. Daily posts, games, and giveaways are what will bring in the buyers. In addition, you will have to take time to host parties and demonstrations online and in person.
Investing your time and money to be a distributor can be a good thing for college students. However, to be successful, one must consider the pros and cons of a business venture. If one of these businesses appeals to you, remember to do your research and talk to other distributors before taking the plunge into the business world.

Author: Katrina Wordell

Share This Post On

Commenting Policy
We welcome your comments on news and opinions articles, provided that they allowed by our Commenting Policy.