When can you jump in with both feet? Many people who start a small business outside of their regular source of income ask this same question. You have an idea for a business, but you can’t just quit your day job immediately because who knows if it will pan out.
Excitement builds. Progress is made, perhaps even your first sale.
So you start to get that itch and wonder,
“When is it real enough to take the ultimate risk and hand in my resignation to my current employer?”
Everyone is different and has unique situations. You have to do what’s best for you. Some can’t leave a full-time employment that provides much-needed health benefits until the risk is mitigated to almost zero. Others, however, have more flexibility.
Starting a business is like raising a child: it requires full-time effort. You have to create a situation without a safety net since this new endeavor has to be a top priority in your life.
This will heighten your motivation. And even though it might take a little while before revenue flows, success will soon start to trickle in.
Put forth the effort using tried and true ways.
There are plenty of things you can do before you jump in with both feet.
Here are some things to keep in mind before you hand in your two-weeks notice.
There are many costs involved in owning a company. There are the standard overhead expenditures, such as office space rental, utilities, office supplies or even association memberships.
What many people don’t think about are the hidden costs. These are where new business owners get tripped up.
Hopefully, you have not only written and laid out an operating budget for your new business, but have also put some time into developing a business plan.
Make sure to include some leeway when creating these documents to account for any unforeseen costs.
Though it can be hard to anticipate abnormal expenses, and therefore account for them,
it’s not impossible.
Besides giving yourself some extra padding in your budget, add a category that adds in undetermined charges. How much should you set aside? Do some industry research and learn from other business owners’ struggles.
If all goes well, you will never have to use these funds. You can then just count them towards savings or investments at the end of your fiscal year.
Starting a business is a huge life changer. You can’t just do it on a whim. Besides all the normal preparations, having support from those who are closest to you is vital.
Should you need help easing into the transition, family members, friends or partners can share duties or even provide financial assistance.
Beginning a new chapter in your life will bring happiness and, most certainly, stress. You may encounter mental and physical difficulties, which you should be prepared for as your body will not yet be used to it.
Your personal well-being is important as you undertake this new journey. Therefore, you have to make sure you’re as healthy as possible. While you’re devising a new work schedule when dealing with business affairs, make room for a regular exercise and healthy eating.
Also, take advantage of any medical appointments under your previous employment insurance before it ends. Get a physical examination, and be cleared from any health bills. This will increase your confidence in knowing that you’re physically ready to assume new challenges.
Numbers Don’t Lie
Once your business launches, it’s important to retain a certain level of optimism while still being realistic. One fact that’s inescapable, no matter the amount of confidence, is the figure in your savings account.
You might be mentally and physically ready to pull out of your current job and start your business…
…but your bank records could state something different.
Make certain you have enough money to keep your venture afloat and be able to pay for personal expenses for a projected amount of time. Consult with a finance professional if you need assistance in assessing your situation.
Before deciding to be a full-time entrepreneur, you must feel comfortable running a business, and have some confidence in doing it for a long time. If you’re only putting in a bare minimum amount of time and effort, that’s not enough of a commitment to make the switch.
Get organized, automate as many tasks as possible, and utilize your time to get high-level work done. See where this progress takes you. Remember, tasks that will directly result in sales take utmost priority. Organizing office supplies or adjusting where your logo goes on your website would not bring in revenue.
Do your best to close a deal or two and have a written plan on how you can continue this progress. Pretty soon you will be able to jump in with both feet.
Article curated by kind permission of MOBE