A good number of us get bitten by the entrepreneurial bug while working as employees in a 9-5 job, and we get that zeal to start a business venture of our own.
The entrepreneurial journey may have its rewards, but it is also a risky venture. Here are a few important steps to consider before taking the plunge.
#1: Prepare for the Realities of Entrepreneurship
While it may be exciting to consider the prospects of becoming an entrepreneur, keep in mind that it may not necessarily be a jolly ride. For one, many more entrepreneurial ventures fail than those that succeed. Even the entrepreneurs that eventually succeed have to go through a lot of challenges to eventually make it in the end. Also, most of the successful entrepreneurs of today have had to deal with a lot of setbacks -sometimes becoming broke in the process, coming to the brink of failure, or even eventually failing and having to pick up the pieces and get back up multiple times. Entrepreneurship is definitely not for the faint-hearted and as rewarding as it can be, it can also be hard and extremely tasking.
#2: Learn everything you can about the line of business or service
Every business has its tricks. Until you actually get in you might not know exactly how certain things really work. That is why it helps to try and find out as much as you can about the line of business, service or product you want to deal in. Ask questions, carry out discrete investigations, read up all you can. You might even want to go as far as serving an internship or apprenticeship, before you finally decide to take the plunge.
#3: Prepare a Business Plan
A business plan is like a road map that guides you along the way, especially during the early stages of the entrepreneurial journey. It shows the viability of the venture, and is therefore very useful if you need to raise capital.
#4: Invest in acquiring some level of financial literacy
You cannot succeed in business if you do not pay close attention to your financials. At the very least, even while on the starting blocks, you should have some elementary knowledge of basic book keeping. As the business grows and you can afford to employ a book keeper or accountant, you will still need to be able to understand and interpret the financial reports that he/she prepares. Such reports will indicate how well the business is doing at all times.
#5: Have a Solid Personal Financial Plan
Quitting your job to start a business means that you have to come to terms with the fact that your line of sustainable income is gone, and you will thus have to prepare for the hit your personal finance is going to take through the period of you trying to build up your business into one that you can draw reasonable revenue or income from. You should first consider how much money you need to continue in your current lifestyle and match it against how much money you actually have (savings included). If what you have can’t sustain your lifestyle, then it’s best you make more prudent adjustments to your current lifestyle. Also, you should have backup options to explore if you do run out of money in the meantime.
#6: Don’t Burn Your Bridges
A good number of people quit their 9-5 jobs to start a business on very bad terms with their employers. They damn their employers and tell them off, exiting the job in an anything but a smooth process. This should not be so. You should never burn your bridges in the professional world, especially with former employers, because you might need them in the future as clients, as partners to your business in a mutually beneficial relationship, or to even come back to work for them if your business idea doesn’t pan out as well as expected. Whatever the reason, you should never end things with your employer on bitter terms, and when you decide to leave, try as much as possible to make your exit from the company as smooth as possible, to preserve important relationships.
#7: Get Good Advice
As viable and brilliant as you think your business idea or business plan is, you should talk to others and get advice before you quit your job to start a business, don’t just rush into it. Talk to trusted friends and mentors about what they think of your business idea and how promising they believe it is. Reach out to people that have experience in building entrepreneurial ventures and those that have quit their jobs for it, ask them for practical advice and guidance on how to go about yours. Most importantly, talk to your spouse, children or close family members (especially those that you are financially responsible for), and explain to them the financial implications of what you are about to do, so they can prepare for it the best way they can.
