Graduation Options: College, The Military, A Job, Or Entrepreneurship?

Forbes

12-06-2025

Graduating from high school marks a pivotal moment in a young person's life, presenting a variety of choices that will influence their future. For many, the question of what to do next is both exciting and overwhelming. While many opt to enroll in college, others choose to join the military, enter the workforce directly or pursue entrepreneurship by starting their own businesses.
Each option offers unique opportunities and challenges that require careful consideration. So, which should they choose: going to college, joining the military, entering the workforce, or starting a business? Let's take a look.
Excited graduates look forward to their future.
A common paths chosen by high school graduates is continuing their education, which provides opportunities for intellectual growth, career preparation, and personal development. According to the U.S. Bureau of Labor Statistics, 61.4% of recent high school graduates enrolled in college in 2023. Among college students, 74.6% were enrolled in a four-year college or university, compared with 25.4% who were enrolled in a two-year college.
Earning a bachelor's degree is usually a four-year process. However, 22.3% of student take more than four years to complete their bachelor's degree, according to the Education Data Initiative. As for specific degrees:
Soldier using a laptop and radio during a military operation.
Another path high school graduates might consider is joining the military, which offers structure, career training, and educational benefits in exchange for service.
According to the 2023 Military Teen Experience Survey, enlisting in the military was the second-most common plan after high school, with 10% reporting these plans, while 73% of respondents planned on going to college. Reasons to join the military after graduating high school include earning a living, saving money for future education, gaining experience/work skills, and making 'a positive difference in my community.'
Young barista serving coffee at a cafe.
The labor force participation rate of young people not enrolled in school was 78.5%, according to the Bureau of Labor Statistics. A comparison between the earnings of college grads vs. high school grads showed a larger payoff for those who pursued higher education. The Census Bureau estimated that in 1999, the average lifetime earnings of a bachelor's degree holder was $2.7 million (2009 dollars), 75% more than that earned by high school graduates. Today the gap is even larger; since 1999, the premium on college education has grown to 84%, according to the U.S. Department of Education.
It is also important to compare different occupations. For instance, waiters and waitresses earn a median hourly wage of $16.23, culminating to annualized median earnings of approximately $33,760 (as of May 2024). Retail sales workers earn a median hourly wage of $16.70, culminating to annualized median earnings of approximately $34,730 (as of May 2024). Finally, sales and related occupations overall earn a median annual wage of $37,460 (as of May 2024).
A young entrepreneur.
For entrepreneurial-minded high school grad, starting a business can be an appealing option that offers independence, creativity, and the potential for financial success. Success is not as dependent on a college degree as one might think. In fact, billionaires Bill Gates, Mark Zuckerberg, and Steve Jobs all dropped out of school to start their businesses.
If you have an entrepreneurial spark and believe you have a successful business idea, you still have to do your homework, so to speak, whether you are a high school grad or an MBA.
An important step in launching a business is doing your research and developing a business plan that provides a road map for success. The business plan should defines clear goals, explain how the company plans to overcome competition and other challenges, and convince investors to back the venture.
Young woman writing business plan outline with marker on whiteboard.
Your business plan must outline what the business will be, who will run it, where it will be located, when it will start, and why it will succeed. It should not be a one-year plan, rather the plan should project 3-5 years ahead and outline milestones and revenue growth goals. A business plan should be thought of as an ongoing guide for your company, not a one-time exercise, and it should be referenced frequently and updated. Here are the key elements of a business plan:
1. Executive Summary: A one or two-page concise explanation of the firm, including its business goals, operations, marketing efforts, and revenue model. (This may indeed be the only portion of the business plan that a loan officer will bother to read. Make sure it is succinct and compelling.)
2. Business Description: What does the company do? How will it make a profit?
3. Local Market and Competitive Landscape: An important section of the plan. Assess the competition as objectively as possible and then describe how you plan to differentiate your business.
4. Description of the Product or Service: Explain how your product or service works. Articulate the key differentiator(s).
5. Sales, Marketing and Promotion: Outline how you will educate the marketplace about your business and build brand awareness. Describe the mix of advertising, social media promotion, public relations (traditional), trade show attendance, sampling and sales promotions that you will do. Be sure to invest in a strong website that incorporates Ecommerce, if you are selling products.
6. Management: Explain who will run the business and their areas of relevant experience. This section should include short bios of partners and key team members.
7. Financial Data: Provide a break-even analysis, cash flow projection, and sample balance sheet and profit-and-loss statements.
8. Investment: How much of your own money are you investing? (Tip: If you are unwilling to put your own money into the venture, investors may be wary about sinking theirs into it.) It is important to provide an estimate of sales, revenues growth and what type of return investors can expect.
9. Appendices: Include supporting documents, including research you done, charts and graphs, logos and other images, references, etc.
Obtaining the funding required to get a business off the ground is much different from established companies. A recent high school graduate is unlike to have a strong credit history, which is typically expected from traditional sources of funding, such as bank loans. So how where can a young entrepreneur secure financing?
1. Personal Savings: A recent high school grad might not be in a position to start a business right away. In fact, it may take some time to build up some financial resources. Investing in your own company demonstrates to future funders that you have 'skin in the game.' The downside, of course, is that if the business fails, there can be significant personal financial loss.
2. Family and Friends: Aspiring entrepreneurs will often approach relatives and friends for financial backing. While they may be more likely to invest in you and your idea and likely will have more flexible repayment terms, the downside is that these individuals may become intrusive with their advice or even expect to be involved in decision-making. Failure of the business could result in strained relationships with family members and friends.
3. Crowdfunding: Platforms such Kickstarter and Indiegogo took personal appeals to a wider audience. Investors might not expect to become partners. In fact, they may be satisfied with samples of product or some type of public acknowledgement.
Crowdfunding enables entrepreneurs to raise money without having to apply for bank loans, pitch VCs, or give up equity in the company. It helps prove there is a market for the product and provides marketing and exposure for the company while building brand loyalty and a following. Frequently, crowdfunding backers provide valuable input that can help improve the business and its offerings.
However, crowdfunding does come with risks. If the campaign fails, it can hurt your credibility and the brand's reputation. Also, an inherent risk of sharing information about your venture publicly is that someone could copy your idea, improve it, and bring it more quickly than you can, thereby eliminating first-mover advantage. Lastly, detractors can be vocal and unforgiving online. If you production encounters a scarcity of resources, cost overruns, or a labor shortage that prevents you from fulfilling orders, the damage to you and the company's reputation could substantial and possibly fatal.
4. Micro-loans: SBA microloans can be beneficial for startups and early-stage businesses. By definition, the funding comes in small amounts that are more manageable to repay. They are ideal for companies that need only a modest amount of capital. The loans can be up to $50,000 and more often are in the $10,000-$15,000 range. They typically come at interest rates between 8% and 13%.
5. Credit Cards: We often hear of entrepreneurs who 'max out their credit cards' to get their companies off the ground, such as Vita Coco co-founders Michael Kirban and Ira Liran, who launched the $1 billion coconut water business. They were honored along with me and my brother, Ramit, as Crain's New York Business's Top Entrepreneurs of 2011. However, maxing out your credit cards is not an advisable way of securing startup capital since he typical interest rate on credit cards is generally above 20% and sometimes approaches 30%. This is a very high cost of capital.
Related: 3 Reasons Small Businesses Should Borrow At Today's Interest Rates
Once a business gets up and running and begins to grow, startup founders can begin looking toward a future of growth. Young entrepreneurs should know that in order to qualify for a small business loan for growth traditional banks typically require two years or more in business. SBA loans (government–backed funding by SBA-approved lenders) also look for at least two years of business operations, although some exceptions apply. Bank loans usually have the most attractive interest rates.
Companies with less than two years of operation under their belt, a short history of paying debts, or a less than stellar credit history, may need to look to non-bank lenders that provide funding based on factors such as cash flow and credit card receipts. These funders are able to provide more quickly than bank would, since banks typically require more paperwork, but the cost of capital for non-bank funding is almost always higher.
There are many things to consider when opting to start a business. Recent high school grads should seek information and advice from adults, including their parents, business owners they may know, organizations like SCORE, which provides business mentorship for free, SBA local business offices, and other knowledgeable sources.
Related: What Great Mentorship Really Looks Like (And How To Find It)
Ultimately, young people who pursue entrepreneurship take their future into their own hands. The ones who are most successful are optimistic, innovative, hard-working, knowledgeable, motivated, and resilient. Over the course of time, the ones who succeed are those who learn from their mistakes, understand how to become more efficient, build strong teams, and understand the market for their products and services.