So, you want to quit your job to start a business? Excellent, most people only dream of launching out on their own to pursue their dreams of entrepreneurship; but, somehow couldn’t muster enough courage to do so.
By making this decision – start your own business, that is – you’ve won already.
However, before you go flying off to send in your resignation, there’s a truckload of decisions and planning you need to cross off your list first.
You see, building a sustainable, successful business involves lots of moving parts that include; having the right people onboard; adequate funding or you’re capable of raising capital, availability of other crucial resources such as office space, suppliers. And of course, you must be willing to work your butt off – at least in the beginning.
That said here are questions you must answer to ensure a smooth transition from a paid job to running your business fulltime.
How do you intend to fund your business?
Whether you want to accept it or not; the success of your business lies hugely in the availability of adequate funds.
Remember, owning or starting a venture comes with its financial obligations – you need to think about how you’re going to fund your operations.
Are you going to dip your hands into your savings? Are you going to take on partners who would contribute specific amount or are you planning to pitch investors?
And while at it, you will have to make financial projections of how much you’d need in, say, the first six months of going fully operational and make provisions for it.
How do you intend to meet your financial obligations?
Life goes on regardless of whether you’re working 9-5 or running your show. And with it, comes bills.
You can’t hide from the responsibility of your living expense; it gets even more complicated if you have people who depend on you bringing back paychecks.
So, quitting your day job means cutting off that stream of income. Are you well prepared to handle the shortfall in disposable cash without hurting your standard of living?
Are your partners’ paychecks able to support your family while you work to get things off the ground?
Answering this question honestly, helps you avoid the headaches that come with pilling unpaid bills.
Is it possible to get clients before resigning?
Before you finally jump into entrepreneurship, ask yourself, who are your best customers you can get a firm commitment from?
Now, this is useful, because it ensures you’re right from the word go creating cash flow for your new business.
And it’s a solid step to start building your reputation – do an excellent job for your clients and then ask them for testimonials and or referral.
Are you going to hire in-house staff or work with freelancers?
Most entrepreneurs often start off doing all the work themselves or with their partner to keep cost down. However, as the business grows, they were able to afford fulltime staff or freelance workers.
There are others, on the other hand, who built out an entire in-house team right off the bat.
The thing is there are no fast rules here. Think through what is best for your new business and implement it.
So, there you have it. Hopefully, these questions would help you develop a solid roadmap as you embark on this exciting journey of starting your business. I have bitten by my own mistakes, and I hope you’d avoid them by reading my articles.
Feb 21st, 2019