How do you know when it’s time to start your own business? The best answer to this might be while you’re still employed. However, it’s not always possible to start a business while you are working a full-time job, either because something in your employment contract prevents you from doing so or because it is simply not feasible to run the kind of business you want on nights and weekends. Whether you have already been self-employed on the side for a while and are looking to make the leap to full-time entrepreneurship or you are quitting to start your business, there are a few things you should ask yourself first.
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How are Your Finances?
There really are less get-rich-quick schemes that don’t depend on sheer luck, such as winning the lottery, so if your finances are a mess, don’t count on running your own business as being the ticket to solvency. Of course, operating your own company can be very lucrative, but when you first set out to do so, you should have some financial security. You had that if you were running your company while continuing at your day job, but now that you are leaving, you need to be debt-free with the exception of such things as a mortgage and student loans. You also need to have some emergency savings. If you have credit card debt, you are probably paying a great deal of money in interest. You can look into your options for personal loans, which can take fewer than 60 seconds and may leave you paying less in interest before launching your business.
What about a Business Plan?
You need to write a business plan even if your idea is a small, simple one. This plan helps you better define your purpose and helps keep you focused. It does not have to be very long, but it should be concrete. Think about how you will fund your new endeavor and who your customers will be. Consider similar companies and what sets you apart. Why would someone choose you over a similar set of goods or services? Answering these questions ahead of time can better position you for success.
Did You Factor in Marketing?
Marketing should be a part of your business plan, but it also deserves its own separate category. There are a few common marketing-related errors people make when starting your own business. One is assuming that their idea is a good one because their family and friends tell them it is. This doesn’t mean your family and friends are necessarily wrong, but they may not be the most objective judges or knowledgeable enough in your particularly industry. You would do better to spend time researching and talking to others in the field although you probably should not share your idea widely. Another marketing error is not thinking about and understanding the client or customer base, what they are looking for and how to communicate with them. You may want to consider surveys, focus groups and other methods of gathering more information about how to best reach your audience.
