Many of us work our day jobs to earn a living, but in doing so, we fail to truly live. When we take on formal employment, we effectively become a tool to help another person achieve their dream, but what exactly does that do for us aside from providing us a salary to help us get by our day to day? You’ve probably already thought about losing your day job and starting your own business. But the fear of striking out might leave you wondering – should I quit my job? What are tips to start a business?
Running a business is a full-time affair, and because many of us who work day jobs need to dedicate our nine to fives, we might not have the time it takes to see a business become a success. That means if you’re thinking about starting your own business, you should muster the courage to step out of your office for good. But how?
Learn how to start your own business and how to transition the right way from a full-time employee to a dedicated business owner with these 8 simple tips.
Yes, a business can be very lucrative especially when it starts to pick up. But before you start to make sales or profits, you should expect to spend a very pretty penny. Starting your own business means first spending money to stabilize and prepare it for successful and fruitful operations. Unless you’ve got investors backing you up, the majority of this capital will come from your own pocket, so don’t just serve up that resignation without having done a few calculations first. A good business to start is one that won’t take too much time to soar. Determine how much it would cost to bring your start-up business to life and identify your own financial flexibility. How much will you be able to shell out of your own bank account to make a decent start-up but still have the money you need to sustain your living until the first time you make a profit? This is where a financial projection should come into play. In the event that you don’t have the money in your pocket, and don’t expect that you’ll ever have enough in there, it would be wise to find a funder. These days, crowdfunding is becoming a big thing, so make sure you look into that.
2. Take Advantage of Group Insurance
When you resign, expect to leave your insurance at the door. Once you start your own business, you will be responsible for your own insurance and payments for premiums will be made under a completely new policy so make sure you take advantage of employee insurance while you have the chance. If you have dental or optical coverage, go ahead and get a routine check up just to make sure everything’s fine. If you’ve been experiencing a bad back all too often, get that inspected as well. Just make sure you get the most out of your insurance while it’s still being paid for by your employer. This way, you save up on future expenses that could be caused by unchecked issues.
3. Get Rid of Big Bills
Whether it’s your taxes, your monthly payments, or any other debts you might have, it would be wise to pay them all off before you start your business. Why? Well, when you finally get your little venture under way, you will have to constantly spend money to keep it alive until it grows the power to sustain itself with what it earns. If you have to think of business expenses on top of big bills and debts, you might never see a worry-free night ever again. Do yourself a favor and pay off what you can now before that business comes into play.
4. Connect with Key Players
Maybe there are a few people in your work circle that you think could help benefit your business. Or perhaps there are some key individuals from your past that could potentially be interested in your new venture. Whoever they are, it would be ideal to get in touch with them before you quit your job to see what they’re preoccupied with in their lives at the moment and to determine whether they’d be interested in what you’re trying to build. No man is an island after all, and to successfully establish your business, you’ll need all the help you can get. Contact those key individuals as soon as you can and get their go signal before you begin your business.
5. Ask Yourself Why
The best small business to start is one that is fuelled by real purpose. Asking yourself why is an important step of the transitioning phase and should always be taken into account whenever making big life decisions. Why are you starting your own business? What made you take the leap? Are you after a bigger monthly income, or are you looking to fulfill a childhood dream? If you’re thinking bigger bucks, take the time to compare how much you make with your day job and how much you might make with your business. Sometimes, a day job can be more incoming generating than a business, especially when that venture fails to thrive. Always analyze the situation before you take any steps to ensure the best for your future.
6. Mind the Gap
A good business to start is one that aptly resolves a need in the community. What service or product are you planning to sell to your consumers? Do they need it? Are there competitors in the market? If so, how are they failing to satisfy the need? Remember, running a business is a big deal, and your product or service is being provided to fill in a gap in the market. Don’t expect to make soaring sales or gigantic profits with something that consumers don’t need or, at the very least, want.
7. Read Up on Licensing
There’s a whole lot of process involved in establishing a business and a large chunk of that is for business licensing. You can’t legally sell products or services if your business isn’t registered with your local government office. For food establishments, a sanitation and health inspection is also mandated by the law. Understand the process of establishing a business and create a checklist of all the documents and paperwork that you need to have at the ready when the day for registration comes rolling around.
8. Be Sure
Finally, it pays to be sure of your decision. Business ownership is no picnic, so you have to be ready with the will and determination to see it through. If you find yourself in a constant state of worry or apprehension, ask yourself, “is this really what I want?” Go with your gut, trust in your skills. Otherwise, you’d be much better off working at your desk.