So you want to quit your job and work for yourself, but you may be afraid to do it. Working in your own company can be a very scary thing. Many people want a secure income every month and with your own business, it can be cyclical.
This means not always having a monthly paycheck. Or the business can do well in the first part of the year and then terrible the next half.
So, you really need to ask yourself the question: can your finances handle this?
Being an entrepreneur is not always for the faint of heart. There are a ton of tasks you have to get done and days can be short. In the beginning, you don’t always have the money to hire people. So, plan on working 16 to 18 hours a day.
But, like anything else, working for yourself can have huge rewards as well. For instance, starting a blogging business can bring financial freedom along with more free time. It’s more of a passive business model than others.
But it’s not all roses every day and you really need to think if it’s for you.
So, with that said, here are some tips to consider before quitting your job and working for yourself.
Be real with yourself first. As I stated before thee a lot to do every day and you don’t always get paid for everything you do.
Take out a sheet of paper and draw a T and write the pros and cons of starting your own business. Be real about your time, finances, yourself, your family and anything else you can think of.
This exercise is crucial because it forces the truth out of you. Understand that most businesses fail within the first 5 years. And what you do not hear is the thousands, sometimes millions, of debt these people rack up. They are out of business and have no way to pay for anything now.
Ask yourself the question, what if I were to fail? And be as real as you can. Do you have a backup plan?
Make A Business Plan
I know from firsthand experience, you will need a business plan. If you don’t do this, you have a huge chance and failure. A business plan is a guide you visit once a month or even more to guide you and see if you are staying on track.
Just search online and you get download free business plan templates to get started.
If you are unsure about a section in a plan template, skip it and revisit later. But it’s best to fill out the plan as much as you can. For the things you don’t know, look them up in Google.
A basic business plan will cover how your marketing to, listing your services or products, strategy, marketing and finances.
You don’t have to be an expert in these areas to succeed. Just make sure you are aware of them all and get help when you can afford it.
Goals are very important to your success in business. Without them, you will not know exactly where you are and where you are going.
There are 3 types of goals you should set: short, mid and long term. For each one, list out your plan and check your progress on a time line.
It is perfectly ok to be ahead or behind in goals. It’s just a roadmap to help you reach your goals.
Having the skills to do what we need in your business is important. If you don’t have all the skills, you need to operate a certain type of business, then you will need to gain them or hire for them.
And, in the start, you will perform much of the work. But once you get going, you can hire someone. It’s best to have the skills so you know what to look for when hiring.
Build A Network Of Others
Building a network of others can be crucial to your online success.You want to sign up for any seminars, networking events, associations and more. This will allow you to be with and find like-minded individuals who can help you with your business. When you join associations, you can also find new customers in need of your products and services.
Building A Marketing Strategy
A marketing strategy is super important for any business. A well-developed strategy can help you implement the tactics that are needed to make your business a success.Besides, a proper business plan marketing is the most important action you can do in your business. Without marketing and getting customers, you do not have a business. Take your time and build out the best marketing strategy that you can. Read books, go on the internet and learn all you can about marketing. It’s just like anything else. The more you practice, the better you will get at it.
Have A Support System In Place
Starting a business is a huge endeavor, and you will probably need help. Finding other like-minded individuals who can support you every step of the way is important. Many people go out and get a business coach who can guide them with finances, marketing, and other aspects of their business. You will also want to make sure your family or friends will be there for you. Plus, if you ever get in a bad situation, you will need a support system to talk about things with.
What Do Your Finances Say?
The most real you can get is truly looking at your finances. Really take a deep hard look at the money you have in the bank and decide how long that money will last while you were starting your business. Most businesses do not make any money for at least 2 years when they get started. So it’s crucial to do this exercise and be as realistic as you can.
What Legal Structure Will Your Business Be
Starting a business is no small task. In the beginning it’s easy to get away with being just a sole proprietor and filling out a simple business tax statement along with your 1040. but if your business does become a success you will want to figure out the best structure for your company. there are the sole proprietor, llc, corporation, and S corporation. each one of these offers a significant advantage over the other depending upon your business situation. it’s best to talk to an accountant or tax attorney to get the proper structure set in place.
Can You Secure Funding
Another area look at for starting your business is loans. Is your credit good enough to secure a bank loan? Or will you have to secure a high interest loan to start your business? Always be careful with loans. You don’t want to owe a ton of money and have your business closed. If you look hard enough, there are other organizations that offer low interest or no pay back loans. Check out the SBA, small business administration or SCORE, the service corps of retired executives.
These are only just some things that you need to consider when starting a business. There are also many others. Always take the time to talk to other business owners if you can find them. And last but not least, do not be afraid to start your business. Just be as smart as you can the best you can. And you two may have a successful company one day.