6 Steps Toward Entrepreneurship
How satisfied are you with the working conditions, hours, pay or other aspects of your job? You may feel a strong temptation to resign and start your own business. However, a hasty transition could lead to financial ruin. It’s wise to plan ahead, adopt the right mindset and take small steps toward your goal. This will minimize the risks while giving you a better chance to succeed as an entrepreneur.
~ The Right Idea
Start a business you feel passionate about; this will greatly increase your motivation. Although you should listen to other’s opinions, don’t rely on your best friend or uncle to decide if you have a viable idea. Mailboxes that glow in the dark or a solar-powered food processor could offer real advantages, but they might not appeal to many customers. Try to align your passions with a concept that meets a genuine need, while benefiting from your skills and interests.
~ Market Research
Spend some time learning about the market for your product or service. Research current prices, sales figures, material costs and labor expenses. Know your potential competition by looking for detailed information on existing competitors. A business idea might not make sense if your rivals include huge corporations that benefit from economies of scale. Nonetheless, you may have the ability to offer greater quality or unique services. So, read reviews on competitors and speak to potential customers about features that could attract them to a different provider.
~ Starting a Business
Before you quit your job, establish the new company and become a part-time entrepreneur. This strategy lets you test your business plan without risking the loss of a reliable paycheck. You’ll have time to experiment and make the adjustments needed to attract more customers. Always listen to clients; they can tell you what you’re doing right or wrong. In other words, start your entrepreneurial endeavor, experience what it is like, and gather some momentum and success for your startup.
~ Financial Planning
Entrepreneurs must think ahead more often than most employees. For example, they can’t rely on payroll deductions to satisfy tax obligations. You’ll need to prepare for upcoming weeks and months as well as the next two or three years. Get ready for the future before leaving your employer. Save enough money to purchase necessary equipment and pay your bills during the startup phase.
~ Building a Team
Think about leadership personnel you might want to hire if your company achieves success. The most desirable type of executive varies according to your skills and expertise. For instance, you might need a chief financial officer if you lack financial and accounting knowledge, business strategy experience or general business management abilities. The same holds true for Operating, Marketing and Technology Offices who can benefit certain kinds of entrepreneurs. If you lack experience on the ends and outs of running a business consider hiring a part-time “virtual” CFO who works remotely. Their expertise could save you from making business ending mistakes.
~ Quitting Your Job
You can call the boss and resign when your startup produces enough revenue to cover your basic living and business expenses. Even better (and most ideal), if your part time startup is paying you close to what your full time job is paying, that’s a great time to transition. Be sure to never burn any bridges, so accommodate your employer how ever you can for a smooth transition. You might need a reference in the future, and your employer could even become a client. Now your enterprise has your full attention, you can move quickly to become an established company.
Help Making the Transition
You may benefit from professional guidance as you complete the transition to entrepreneurship. Intigro’s business-building sessions deliver valuable advice to startups in any stage of development. Experienced CFO George Black schedules 50-minute sessions with individuals who strive to take their businesses to the Next Level. He offers specific recommendations that boost earnings and help companies achieve long-term success. To get started, please fill out our session request form.
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Obviously, there are no guarantees of success; however, if you do the above, your chances for success are improved.
If you are considering launching a business or growing your ongoing company, check out Dear Mr. A for creating strategy around your passions. The Next Level Navigator strategy process is a great crowdfunding tool! Click here to look inside Dear Mr. A.
Why not tell us about your own jump to entrepreneurship and how its affected your businesses? Please do so, either in the comments below, or by submitting a guest post to us. We review these posts carefully, and as long as your contribution adds something to the entrepreneurial community we’d be happy to feature it on our site with a link back to yours!