Introducing the Top 5 Business Careers: Work, Compensation, Lifestyle
Struggling to pick the right business career path?
Choosing the right career in the business world is a significant decision that requires lots of deep thought and consideration of all the factors in play.
It’s important to not only understand the responsibilities of each career path open to you, but also the potential pay/compensation, lifestyle, skill and professional development, and entry requirements to break in.
In this quick guide, I’ll help you briefly explore the top 5 business careers:
- Investment Banking
- Management Consulting
- Private Equity
- Sales
- Accounting
Remember, these are all purely my own opinion, and what’s right for me might be completely different to what’s right for you.
Without further ado, let’s get into it!
Investment Banking
Investment bankers are the lead drivers and creators of corporate financial strategies. It’s probably one of the most sought after and coveted career paths in the business world, particularly by high performing students and those who believe they have promising futures ahead of themselves.
What You Do
In addition to advising on capital raising, they navigate complex financial transactions, and provide valuable insight into mergers and acquisitions.
Financial modeling, due diligence, and deal structuring are common tasks.
Compensation
An entry-level analyst typically earns between $100,000 and $200,000 as a base salary.
This is in USD, and in the USA job market.
Yes, you read that right.
Compensation in investment banking is among the most competitive in the business world.
Bonuses often double or triple an investment banker’s base salary, making up a substantial part of their compensation.
Lavish lifestyles, here we come!
In other parts of the world, you can expect a slight pay cut, generally anywhere from 20–40%, in job markets like the Canada or Australia.
Lifestyle
Investment banking is notorious for its long work hours, where junior analysts will typically clock in an average of 70–90 hours a week.
However, it’s not unheard of for some junior analysts to past the 100-hour mark.
Weekend work is generally expected, and late night crams (think 2AM) will become a normal part of your life.
The job can be extremely stressful, but it certainly does offer the chance to work on significant transactions and gain valuable experience.
Skills You’ll Gain
An investment banker develops excellent analytical and financial modeling skills.
They gain a deep understanding of corporate finance, financial markets, and negotiation.
All of which are crucial skills to mastering financial analysis and business of any kind.
Entry Requirements
Most aspiring investment bankers have a bachelor’s degree in finance, economics, or a related field.
An MBA is also common, especially if you want to move up the ranks at your investment banking firm.
Internships and networking are crucial for entry-level jobs.
You’ll see students and aspiring investment bankers beginning to prepare for the recruitment season as early as their first or second year or college/university.
Those who are really ahead of the pack, like the readers of Grad Excel, will likely be thinking about making a start towards the end of high school.
For those who excel in finance, have a strong analytical mindset, and thrive in high-pressure situations, investment banking may be the right career path for you.
Management Consulting
A management consultant is a problem solver in the complex world of business.
What You’ll Do
These people will work with organizations to resolve high-level challenges, enhance business performance, and implement strategic changes to help a client achieve their goals, whatever that may be.
Management consultants will analyze data, conduct market research, and formulate actionable recommendations/advice as part of this process.
Compensation
Alongside investment banking, management consulting is also one of the most highly lucrative career paths you can go down in the corporate world.
Entry-level consultants can expect base salaries ranging from $95,000 to $110,000 USD in the USA market, with bonuses typically adding 10% to 30% to the base salary.
In smaller geographies, again, you can expect something like a 20–30% pay cut.
Lifestyle
Depending on the firm you work at, the consulting lifestyle often requires frequent travel to client offices and long hours, but it also offers diverse experiences and opportunities to work with a wide range of clients from all kinds of different backgrounds.
Read more:
Skill You’ll Gain
A consultant develops strong problem-solving, analytical, and communication/presentation skills, as well as deep industry expertise and client management skills.
This all comes together to build the perfect, well-rounded business professional ready to take on any endeavor after his or her career in consulting.
Entry Requirements
It is common to have a bachelor’s degree in business, economics, or a related field.
Many firms value candidates with prior consulting experience, such as work through internships or case competitions in university.
A career in management consulting is suited for those who enjoy analytical problem-solving, enjoy a more generalized and qualitative approach to business, and have excellent communication skills.
Private Equity
The step up from investment banking?
What You’ll Do
Private equity professionals invest in private companies to optimize their performance and ultimately sell them for a profit.
This involves financial analysis, due diligence, and strategic planning.
Compensation
Much like investment banking and the upper end of consulting, private equity offers eye watering compensation, including a base salary and performance-based bonuses.
Entry-level positions may pay between $90,000 and $120,000 USD in the US market, with bonuses often doubling or tripling the base salary.
Expect that same 20–30% pay cut in other areas of the world.
Lifestyle
Private equity professionals typically work long hours when assessing potential investments.
However, they have more control over their work and may experience a better work-life balance than their investment banking counterparts would.
Expect to work around 60–70 hours a week, on average.
Skills You’ll Gain
In addition to understanding financial analysis, valuation, and deal structuring, private equity professionals gain valuable experience in strategic planning and business management.
Again, this can lead to a plethora of exit opportunities after private equity, where the business world is your oyster.
Entry Requirements
The average entry requirement into private equity is a bachelor’s degree in finance or a related field.
However, many private equity firms prefer candidates with prior experience in investment banking or consulting.
In fact, private equity is one of the most common exit routes that investment bankers take, after dragging themselves through a few years as a junior analyst, or even after the associate level.
If you are patient and have a long-term perspective, private equity could certainly be an amazing career path for you if you have strong financial acumen, strategic thinking, and a desire to work closely with businesses to create value through smart investments.
Sales
If you were to just be able to learn one skill for life in order to make money, it would be sales.
What You’ll Do
Depending on the industry and the nature of the product, sales professionals are responsible for promoting and selling products or services.
For example, you could sell:
- Tech products
- Real estate
- Cars
- Financial products/services
- Pretty much anything else
Compensation
The compensation for sales positions ranges widely depending on where you work, what you sell, and obviously, how good you are at selling.
Base salaries for entry-level positions typically range from $40,000 to $80,000, but you’ll also find that lots of sales jobs don’t come with any sort of base salary whatsoever.
It’s entirely up to you to bring in income both for your firm, as well as for yourself.
In sales, commissions and bonuses can boost total earnings significantly.
That’s the beauty of it.
If you’re in the right job, there’s pretty much no cap on how much money you can make, especially in the more lucrative areas of sales like car sales or real estate.
Some people will make just enough to get by (or less), while others could be making close to a million dollars a year, just a few years into their careers.
Lifestyle
Sales roles can be demanding, requiring a dedicated approach to meeting sales targets every week or month, and maintaining client relationships to ensure you retain your leads you’ve generated.
They often involve large amounts of travel and flexible schedules, which is another primary aspect that attracts a lot of young professionals.
Skills You’ll Gain
A sales professional develops strong interpersonal and soft skills, negotiation abilities, a deep understanding of their industry, as well as the ability to persuade and understand the human psychology in the art of selling.
You’ll become an excellent all-round business professional who has the ability to drive sales and business growth, especially given how similar it can be to running your own business.
Entry Requirements
Sales careers generally do not require specific degrees, if any degree at all.
Having a bachelor’s degree in business or a related field is beneficial as it’ll show your future employers that you’re serious about doing business, but entry-level positions may not require prior experience.
Many times, all you need to be able to do is show your future employer that you genuinely are about this.
However, having a strong track record in sales or internships related to sales can be advantageous when it comes to landing a position or job offer, as the firms you choose to work at may invest more into you if you show promise in your career.
They might send more leads or clients your way, or put more effort into helping you network and expand your client base.
Those with good interpersonal skills, competitive drive, are motivated, and have the ability to maintain relationships with others effectively are well suited for sales careers.
It’s also the closest you’ll get to running your own business without actually be an entrepreneur, and certainly one of the most attractive career paths in business for aspiring professionals who have confidence in themselves.
For individuals who enjoy the dynamic, competitive nature of the field and are self-motivated, it’s an ideal path.
Accounting
Last but not least, the old classic, accounting.
What You’ll Do
In public accounting firms, businesses, or government agencies, accountants will provide financial information to organizations, ensure compliance with tax laws and policies, and manage financial records on behalf of clients.
In essence, it’s looking at a company’s past financial performance to make financial decisions with.
Compensation
A career in accounting can certainly offer competitive compensation, although not quite at the level of investment banking or private equity.
Entry-level accountants at big firms such as PwC or Deloitte usually earn $50,000-$70,000 a year in the USA market.
Certified Public Accountants (CPAs) and those with advanced degrees or qualifications (like CA) may command salaries as high as $90,000 USD.
As with the other career paths on this list, you’ll have to take roughly a 20–30% pay cut in other geographies.
Lifestyle
Tax season can be hectic for accountants (averaging 60–80 hours a week), but they usually have more predictable work hours and enjoy a better work-life balance than other business careers like investment banking and consulting.
In general, when it’s not the busiest time of the year, you can expect to work somewhere around 50–55 hours a week.
Skills You’ll Gain
Accountants gain strong financial and analytical skills, as well as expertise in and deep understanding of tax laws and regulations.
You’ll gain skills that can be transferred pretty well into other careers such as investment banking or private equity.
Entry Requirements
A bachelor’s degree in accounting or a related field is generally required for entry into an accounting career at a reputable firm.
Becoming a CPA requires passing an exam and obtaining experience, so it’s generally a qualification that experienced accountants pursue in order to take their careers to the next level.
Many accountants also pursue master’s degrees for career advancement.
Those who are detail-oriented and have a strong aptitude for numbers are well suited for a career in accounting.
If you enjoy a structured and predictable career path, don’t mind doing repetitive tasks and enjoy a corporate company culture at large firms, accounting might just be the career path for you.
Closing Thoughts
Choosing the right business career involves more than just the idea or goal of chasing a lucrative salary and big end of year bonuses...
It also involves finding a role or position that complements your abilities, character, and ambitions, as well as one that is going to satisfy your needs and ensure your life doesn’t become boring and repetitive too soon.
Options like investment banking, management consulting, private equity, sales, and accounting are all great career paths in business that you can pick, all of which can lead to even more lucrative positions somewhere down the line, and a fulfilling future ahead of you if you put in the effort.
As you plan for the long term, keep in mind that having a strong educational background with good grades at a reputable school, and a dedication to continuous growth and self improvement are vital to doing well and succeeding in the world of corporate business, wherever you choose to go.
If you carefully consider your strengths, passions, personal preferences and goals, and pick the right career path for you, you could be well on your way to a lucrative, successful career that you can be proud of.
I hope you’ve been able to learn something from this post, and have found its insights valuable!
If you’d like to read more about excelling as a student and setting yourself up for a successful career as effectively as possible, check out the rest of our Medium publication, Grad Excel!
All the best for you career endeavors.