Romney a Lock - You Can Put it On the Board YESSSS!!

There's nothing wrong with that. But, it takes longer than ever to save money now, with the high cost of living, combined with high taxes.

A lower tax rate would make it easier to save money, and start a business.

And, a parent investing is a child's business isn't (or shouldn't) be an act of charity. It's an investment. Conceivably, you know your child better than some loan officer at a bank. You have the ability to make an investment a bank can't make.

I agree with the premise of an education paying dividends for life, but there are a number of ways to get an education. Going to school is one way. And if you go to the right school, and get the "right" degree, it may pay off financially.

Starting a business is also an education.

And, a number of very successful entrepreneurs did fail in their first business. But, they learned enough from it to make their second (or third) business successful.

While admitting that Groupon is not a perfect company, and without looking it up, I believe the founders have left a trail of lawsuits in their past.

But, they had a bunch of failed businesses before hitting it big with Groupon.

I wish I had invested $20,000 at the startup.

 

Failure is a great teacher.

But only with other people's money.

Are you telling me that American parents have sufficient resources to back several failed business ventures?

 

But is the premise (rather than the promise) that said dividends will necessarily be financial?

 

Failure can indeed be a great teacher. I like to learn from other people's mistakes. That's why I recommend going to work at a sandwich shop if you think you might like to open one. You can avoid a lot of mistakes.

And, while there is less risk, if you're playing with other people's money, there is also less reward. personally, I've never wanted to give up equity, or have a partner.

And, yes, some parents do have the resources to fund several failed business ventures. But, again, it's not about just the parents. It's about people who know and trust you. It's about proving yourself to people who have the means to invest in you.

There are also plenty of businesses that can be started for less than $20,000. I started mine with considerably less. And, once you have cash flow (and a well managed business), you can invest in or start up another business, maybe one that required more capital, but had more potential.

You can start any number of service businesses with little investment. Even as a kid, you can rake leaves, shovel driveways, or clean pools.

Starting a business to plow driveways in the winter, and maintain lawns the rest of the year requires a plow, and a lawn mower. (Yeah, it requires a pickup truck too, but presumably you have some vehicle, and a used pick-up isn't expensive.)

You can paint houses.

You can start a business paving driveways for almost no money, because you get the sale before you spend any money on materials or labor. And, if you do a god job, you'll get referrals, and can end up paving driveways up and down the block.

 

Not for everyone, or even a majority. Although increased earning power is certainly a primary consideration in Western culture.

Part of the broader adjunct benefit, in theory, is a better, more civil society - whether one puts that English degree to strict use as an earning instrument or not.

 

Here's the quote from Romney:

"We've always encouraged young people: Take a shot, go for it. Take a risk, get the education, borrow money if you have to from your parents, start a business."

Man, I can see how people say he's just so out of touch ...

 

I understand your point.

But, I'd like to think that you and I are both examples of people who have received an education, but didn't get it the traditional way, or spend a lot of money on it.

If you want to be a doctor, lawyer, teacher, engineer, etc., there's no choice but to get your education in the traditional way.

If you want to be an entrepreneur, it's not necessarily the best way to go. You can learn a lot from working, and from working for smart people. And, you're getting paid for it, instead of paying.

And, you can still read all the Plato you want on the side -- though Machiavelli might make more sense.

Edit: And i just realized i was responding to Docquant, and not Azrael.

 

Hey, YF, Herbert Kornfeld learned his accountin' and bizookkeepin' on the streets. It can be done.

 

Mark Zuckerberg started his, for example, with considerably less.

That said, Mr. Romney's idea that one borrow from one's parents has only limited applicability in the real world. And is frankly more a reflection of his own privileged upbringing and the limits of his imagination than anything else.

Whatever happened to bootstraps?

 

Shhhhhh ... don't tell the folks who are marketing our new entrepreneurship MBA that!

 

Yeah, that's terrible, isn't it?

And, really, the best time to start a business is when you're young.

As you get older, and get married, and have kids, it can be very hard to give up the security of a paycheck, to start a business. (To say nothing of health insurance.)

When you're younger, you don't have that much to lose. If it doesn't work out, you just go and get a job.

 

Yeah, well, if your kid has gotten into Harvard, and is a programming wiz, you'd probably really want to invest in him.

And, you're over focusing on "parents".

Sirio Maccioni, the owner of Le Cirque, made his reputation as a maitre d at the Colony. His reputation, and the loyalty of his guests allowed him to get funding to open his own restaurant.

The guy started with nothing.

Starting your own business may not be for everyone, but if you think it's impossible, then it's a self fulfilling prophecy. It will be impossible. Not everyone who started a successful business was born with a silver spoon in their mouth.