Life School Lessons: Six Reasons Budding Entrepreneurs Benefit from Working for Someone Else First

Recently, Smith College, my alma mater, invited me to speak to a room full of aspiring entrepreneurs. My talk centered on the business owner mindset and critical shifts in thought patterns and self-beliefs I've made in my life that directly correlate to my success.

As I interacted with the bright and impressive attendees, I was asked: "Should I jump right into entrepreneurship, or is it better to take a traditional job after graduation and pursue my idea as a side hustle?"

My answer to this familiar question often surprises the inquirer: work for someone else for a few years. With this advice, I do not mean to tamp out enthusiasm or discourage anyone from building a fempire. My record shows that I have long been an advocate of women pursuing the agency and independence business ownership brings. But entrepreneurship also comes with unique risks; the benefits gained from working for someone else help mitigate them.

1. Learn on someone else's dime

Working for someone else's company can be invaluable to learning the people, practices, and processes it takes to make a business run. And the best way to understand how successful companies operate is by getting up close and personal with them. While working a job, you will develop an understanding of what makes certain companies thrive and how you can use similar strategies for your own business in the future. As an employee, you'll have access to the inner workings of a company that could otherwise take years of expensive research, trial and error, and self-education. Working for someone else provides a sense of security. In addition to the financial protection offered by a regular paycheck, working at an established company allows you to gain skills and experience without worrying about generating a return on capital outlays while you're still learning about the business world.

2. Leadership style shopping

Every great entrepreneur has a unique leadership style, but it helps to observe a variety of approaches to identify one that works best for you. Being in a corporate environment allows you to experience firsthand what makes a good leader and how they interact with their teams. With different examples to choose from, you can practice your brand of leadership and gather feedback from experienced mentors while honing the necessary skills needed to lead and manage under different scenarios (without the additional burden of keeping a business afloat).

3. Build confidence

Working for someone else allows you to practice taking the initiative – presenting ideas for their business, leading and managing someone for the first time, experimenting with technology, or leaning into fear when presented with projects with little to no experience. You will develop the gritty and courageous muscles required of a potential business owner. Stretching into discomfort helps build one's self-reliance, plus you will uncover hidden talents and develop transferable skills when ready to step out on your own.??

4. "Free" training & development

Unlike a cash-strapped start-up entrepreneur, established employers are more likely to invest in training initiatives and resources to help you expand your skill set (which may be invaluable when starting and running a business). This is especially useful to young people who may not have a business background or have earned a liberal arts degree. The extra information gained through these experiences can help inform any decisions you make as an entrepreneur down the line.

Additionally, working for someone diversifies your skillset. You gain the technical knowledge relevant to a particular industry and interpersonal abilities such as leadership, communication, collaboration, problem-solving, and more - all of which are essential for success in business ownership or management. These additional attributes provide greater insight into how to succeed in managing employees and navigating challenges that may arise in entrepreneurship.

5. A crash course in corporations & culture

Being an employee in someone else's company can also give you a chance to learn about different aspects of business operations such as Sales, Marketing, Operations, and more. As a freshly minted Math graduate stepping into a career in Fashion, I had yet to learn the difference between Accounting and Finance and why a company would need both functions. What does Human Resources do again? Learning about corporate structures and functions is Business 101. And experiencing different companies also helps to grasp the importance of culture in a business. Knowing how teams are managed, how individuals interact, what motivates and engages people, and understanding how all of that makes an organization succeed is essential.

6. Become 'investable"

Lastly, by working for another company first, you can build up your resume with evidence of your successes and growing commercial savvy, inspiring confidence in potential investors. Your growing understanding of how companies function, plus demonstrable experience managing teams and other people's money (especially if you have profit and loss responsibility in your corporate roles), will make you a safer bet.

By pursuing a job with someone else, you create a strong foundation of knowledge that will be an advantage when starting and running your own business. Flip the mindset from seeing a "traditional job" as a distraction but rather an essential stepping stone on your entrepreneurial journey. Understanding how successful companies work, gaining different leadership experiences, and developing professionally on someone else's payroll increases your chances for success in future ventures. What an opportunity!