Quitting Wall Street

[panther2k]

Hi SFers,

I've been working in NY in investment banking since graduating undergrad last May. When buyside recruiting picked up ~ a month ago I realized I'm much more interested in doing my own thing than continuing to work for someone else.

Ideally, I would like to start my own buyout/investment firm although I realize the idea of raising a fund at 22 years old is laughable. That said, my rough plan is to scrounge up a bit of capital however I can (friends, family, credit cards, loans, savings, etc) to buy a small business, establish a reliable cash stream to support myself, and grow from there.

If anyone has had experience buying/running their own business, I would love to hear your thoughts. I'm really in need of guidance as the prospect of giving up a steady paycheck and walking away from a very lucrative career that I busted ****** to break into has been pretty stressful.

Thanks!

 

[imageWIS]

Dude, just be happy you found a job. If you want to start your own company, all I can advise is: due diligence.

 

[panther2k]

I'm very appreciative of the fact that I'm in a fortunate situation in terms of employment/finances. But I feel like striking out on my own will (1) make me a happier person and (2) potentially be more rewarding financially over the long-run, although I'm aware that I'll be taking a significant paycut in the near-term.

Besides, analyst stints are for two years and interviews for associate positions are happening NOW so I need to start planning my next move, regardless of whether I stay "on track" or not.

 

[dragon8]

I think its a good idea to do what you want while you're still young. I wouldn't dismiss the idea now of a fund simply because of age. Ken Griffin was successful trading out of his dorm in college.

What other type of business do you wish to open besides the LBO fund?

 

[CYstyle]

But Ken Griffin went to Harvard, probably with a substantial amount of family money backing him, and then the money of peers. Someone invested like a million dollars when he got out of college.

I would say stick with your current job for another several years, and gain more experience, and capital. But then again I'm only 22, and I'd take your job if you quit

 

[panther2k]

I think an import/export business (starting out in a niche vertical and expanding over time) would be interesting.

Also, I'm in TMT so there could be something for me in that space and I would especially enjoy media and entertainment, although I would need to develop at least some technical/programming proficiency if I were to go the online startup route.

I'm very interested in globalization/emerging markets, tech/social media, and the deal execution aspect of banking. While I'm more than happy to put in the hours, I dislike the "face time" aspect of the corporate environment and want to create something where I have a bit of flexibility in terms of working from my laptop, visiting clients, etc. rather than being tied to a desk making excel jump for 16 hours a day.

 

[JoelF]

Do you have any kind of experience that's relevant to owning and running (or even working for) an actual business?

 

[superego]

Let me get this straight...

You graduated from college last year and have been working in an IB (I'll even assume a reputable one) since and have, with all the insight you've acquired over the last 10 months, decided to strike out on your own and make it big.

I can't even begin to comprehend what makes you think this is feasible at this point and further what a group of fashion-conscious dudes on the internet has to say about making it a reality.

Go back to work.

 

[v.freeman]

Originally Posted by panther2k

I've been working in NY in investment banking since graduating undergrad last May. When buyside recruiting picked up ~ a month ago I realized I'm much more interested in doing my own thing than continuing to work for someone else.

The sudden "realization" of banking analyst herd-mentality?

Make no mistake about it, fund raising is incredibly tough.

 

[Syl]

Fwiw, everyone I know who's done this (myself included) did it in their 30s, i.e. 8-12 yrs of work experience.
For my finance friends, every single one got their MBA before going alone.

In my case, my wife had a very secure government job and I had a couple business partners; so a lot of risk was mitigated. We also owned a house where the mortgage could be handled on 1 salary.

Point is - don't give up the dream but think carefully about the worst-case and try to set your life up as much as possible to minimize the downside. It may seem that "running your own show" is a dream but it's far more work, far more stress and offers zero safety.

People glamorize self-employment but there's a whole lot of happiness to be had when you don't worry much about your next paycheque.

 

[Stewbone]

Dont ruin a bad thing. Work hard for 5 more years, then think about starting a business.

 

[Matt]

I agree with the prevailing sentiment there kiddo. Give it a couple of years, learn as much as you can, then go it alone.

 

[Master-Classter]

maybe switch to PE at a small shop so you get a lot of front line experience without actually having to run the show. Stick with IB for a few more years, try to specialize in a sector, then switch to a boutique PE where you're a "specialist".

 

[regulator1986]

Agreed. Stick to IB for a couple more years if you can and take it from there

 

[unjung]

Originally Posted by Master-Classter

maybe switch to PE at a small shop so you get a lot of front line experience without actually having to run the show. Stick with IB for a few more years, try to specialize in a sector, then switch to a boutique PE where you're a "specialist".

+1