CFA and Entrepreneurship? Yay or nay

Hi guys, I’m relatively new to this site/forum so please bear with me. Out of curiousity, would anyone say that they’ve met/have known of any entrepreneurs who have attained designations prior to starting their own business (preferably a CFA). When I coin the term entrepreneurship, I’m not implying starting your own fund/research house, but an actual, tangible business. Size/scale doesn’t matter, but sustainability does. The reason I ask is because I plan on starting my own business in the future. I’m currently entering my 4th year as an undergrad in finance & econ and am planning on pursuing a CFA. I’m currently sitting for level 1 this june but boy did I underestimate it…still a good learning experience though. I’m just really curious as to whether having professional designations would help in pursuit of this goal. In terms of work experience, I’m interning at a FLDP with a F500 and plan on returning for a 2 yr rotation after grad. However, I’d ideally like to have either a CFA (preferably), MBA, or CPA (least favourably) next to my name prior to branching out in the future. Your thoughts would be greatly appreciated!! Cheers.

Nay to CFA for entrepreneurship. You don’t need an education to hustle. If you insist on more education, get a law degree. Or a CPA, then you can do your own taxes. But honestly neither will help much. And nothing I learned in CFA has helped me in my entrepreneur type ventures.

You are either born an entrepreneur or not.

really eh? agreed with respect to the hustle though. And a law degree, in Canada (atleast today), seems pretty brutal in my honest opinion - the market here for that’s crap, schools are overflooded, and the amount of debt’s comparable to highly reputable MBA schools. I was afraid of the CPA response but I see why you tossed it in there. Out of curiousity, can I inquire about what types of ventures you pursued? And have any of your prior work experience(s) helped in that domain?

All canadian thread so far it seems.

I know a few entrepreneurs and the CFA is really not the way you want to go. CA maybe will help give yourself credibility when raising funds. Law… debatable given it’s another 4 years and the market is super saturated right now.

They all did one thing though, got a good job in their field and stuck with it a few years developing their idea and building networks, along with saving money. Once you go full time entrepreneur, everything is up in the air. It’s a hell of a ride but no one knows where it ends.

Who said he’s becoming a lawyer? I thought this dude wants to be a businessman. Knowing the law and how to cover your ass in a deal is key. If you aren’t law educated, find and pay a good lawyer. It is a very weak market for lawyers though. And my ventures? I’ve done some freelance financial journalism, invested in some small time online ventures and I’m currently a partner in a landscaping firm (new venture). All outside my 9-5.

If your plan is to get a CFA to become an entrepenuer I think that’s silly. If you have a CFA and then you feel like you actually want to run a business - why not? It’s a sunk cost. Will knowing how to value a swaption help you start a weed dispensary? No. Would it be helpful if 10 years down the line you own 5 of them? Probably not. Would you be more fulfilled? That’s up to you to decide.

You don’t need any qualifications to become an entreprneur. There is no CV screening process when you purchase/create a company.

Following the general trend of advice in this thread, I believe you should drop out since your college degree is quite irrelevant for your career as an entrepreneur.

^ +1

Pursuit of designations and further eduation is a waste of time if you’re going to be an entrepreneur. Live your business and that is all.

Specifically what kind of business do you envision yourself building? Any clue what type(s) of product(s) or service(s) you would feel passion to create? If you’re still at the tail end of school and don’t actually have any clue what you will produce yet, then I’m not exactly sure what you’ll be “hustling” for at the moment. If you need some time to distill ideas, I don’t see anything wrong with filling up down time with studying. You may actually get inspired during the process.

It’s one thing to talk about pounding the pavement and making moves to appear as cool as a Shark Tank shark dispensing entrepreneurial advice, but if the immediate alternative to studying is actually hanging around coffee houses or playing hours of Call of Duty while you contemplate your “business plan,” then I’d say there’s worse ways of spending your time than doing the CFA exams.

Imagine yourself 10-15 years out and your passion for entrepreneurial activities wanes. I know that you’re all charged up now and ready to conquer the world, but just consider for a second that this is in the range of possibility. Now maybe you have some kids and the financial pressure is on. Your business experience (failed or not) PLUS a CFA, in my mind, is one hell of a combination as you apply for Plan B corporate roles.

Thanks for the comments guys, From the general consensus, I could see and understand why attaining a professional designation may not have any direct value related to entrepreneurship. I definitely respect the need to hustle. But with regards to Destroy of Worlds’ comment, I am eyeballing something related to consumer products/discretionaries, and you’re right with regards of needing time to distill ideas. Here’s the thing, I have a couple of ideas that I want to pursue part-time while I’m in school, but by no means is it something I want to do full-time or branch off into. It’s primarily to gain as much experience as I can before leaving school, building up my resume, and using it as a test to see how I fair. In terms of the type of business I’d want to start while I’m still in school, it would most likely be a partnership for a local clothing brand marketed around the city. It’s something that requires minimal investment and small levels of operating leverage (to almost none lol). If not that, there are quite a few others, but again with respect to minimal amounts of investments (it’s a learning opportunity not a get rich quick scheme). Now that being, said, I clearly don’t have it mapped out in terms of what I want to pursue exactly (full-time), which is why as Destroyer mentioned, pursuing a designation in the meantime might not be the worst idea possible, atleast until the ball starts rolling. And as a precautionary measure for any downside risk. And I’d like to point out, when I coin the term entrepreneurship, it’s by no means wanting to be a multi-millionaire by your mid 20s, nor is it a glamorized tech startup wanting to be acquired by apple or microsoft as an end goal. The way I see it is pursuing something you’re passionate about/capable of producing & managing effectively, that’s also sustainable and makes good business sense (my bad if it sounds a little corny! lol) And a special thanks to geo for sharing his/her experiences! The landscaping venture sounds interesting, hope alls going well with those.

but again, any and more comments are always welcome!

^ Don’t drop out of school like these guys are saying. Having a degree is an important baseline for pretty much everything these days. I just question the value of the CFA charter when it comes to running your own buiness. There are things you could better invest your time in that would have better payoffs for that. An undergrad degree is a good use of your time, especially as you can use this time to generate ideas.

Best of luck. It’s a tough road, but it can be a rewarding road. Don’t let people tell you what is a worthy business or not, let the numbers decide. People here criticize tradesmen as doing work below their level all the time, yet some of the most successful folks I know work with their hands. I’m generating more profit in my landscaping venture in its first month of operation than I make in my 9-5 and I’m a well paid guy. Who figured shoveling shit would pay more then finance? Whatever you end up pursuing, follow the numbers. Is it profitable? Is it scalable? If so, run with it. Don’t let the “dignity” of the profession by some Wall Street guy’s opinion drive what you do. Like in the financial markets, much of the big money is made in the swamp. Be prepared to play there.

Real hard work is rewarded, especially these days with so few willing to do it. That’s all I’ve got on this topic.

Destroyer, that was a great post.

^ Thanks!

Hi guys,

So, I am currently a 2nd year MBA student at a top 10 global business school. I also just received my CFA Charter as of last month. Furthermore, I plan to pursue entrepreneurship after finishing my MBA. I figured I would chime on on this discussion. I agree that the CFA is extremely finance / investment heavy, but here’s the thing, this is also very important knowledge for an entrepreneur. Also, the CFA teaches you more than just finance - I will explain my reasoning…

Regarding the finance/investment heavy material, 9/10 startups fail empirically not because of bad ideas but because of poor execution. Management teams don’t fully understand the concept of cash burn / return on investment and thus waste time/money investing in bad “hypotheses.” At a minimum, the CFA teaches you what risk-adjusted returns are and even better, how to hedge risks. This concept is completely applicable to entrepreneurs. One must decide which investments (ideas, markets, products, people, etc.) to invest in while minimizing the risk of these investments. While one may think this reasoning is a long shot, frankly, it isn’t. This is the heart of the CFA - it gives you the tools to accomplish this - even better stated: it gives one the mindset to think about issues like this. Not to mention, you learn stats, economics, etc. etc. which are all relevant in analyzing company data, pricing, marketing strategy, etc. It really is NOT just about finance / investments (if you really get at the heart of the curriculum).

Furthermore, accomplishing the CFA (especially in first attempts), shows that one can persevere in the face of challenges, set / accomplish challenging goals, be committed, and manage time. Additionally, the obtaining the CFA signals a strong ethical foundation. There are many other signals that the CFA provides investors, but these are some of the most important. Investors definitely value these signals…

Lastly, the network is incredible. You want to raise money? The CFA gives you an “in” with many finance people. While these people may not be angels/VCs (although many are), they will be connected to angels/VCs (especially those who work at pensions, endowments, money management firms, etc.) because these people give money to VCs as part of their overall investment strategy. The network is without a doubt extremely powerful and relevant.

That being said, everyone is entitled to his/her opinion, but this is mine and has been validated by angels/VCs that I have relationships with…

Cheers!

^

gr8 post

Almost irrelevant.

Undergrad where? School name can be a big help.