Everyone who works a corporate job has fanciful thoughts of walking away and starting their own small business. If you look at recent economic trends, many people aren’t choosing to do this, but are forced. Before you make that leap you need to consider a number of factors to determine whether you should do it or not.
Corporate jobs can be stifling, but most times people look towards a small business to increase their incomes. Those who make the leap to full time small businesses don’t consider everything involved.
The following should help you determine whether or not to leap:
Business research: Starting a small business as full time work requires research. Does your prospective business meet a need? Are there customers for your goods or services? What cash flow do you plan? All these questions need to be answered in detail before you plunge forward. Yes, the internet can help you with this, but the best way is to hit the pavement. Go out and look at the other businesses, talk to their owners, watch customers. You need all the information you can get to make this work.
Savings: 99% of small businesses don’t start off with a cash flow equal to what you were making. Before you jump ensure you have enough personal savings to live off of for a period of six months. Six months allows you dedicate your time and effort into growing the business without the immediate threat of losing your personal fortune.
Family support: Never start a full time small business without talking to your better half. Your spouse needs to be consulted and complete buy in needs to happen. This lays the successful groundwork you need when you’re dedicating more and more time to the business. If you skip this step your business will fail or you will end up divorced.
Adding stress: There is no quicker way to opt in to more stress than to start a small business. Even in the best conditions you’re going to experience new stresses from family, workers, customers, vendors and more. Are you a person that can handle stress? Does stress cause physical problems?
Expectations: A quick rule to remember is that your forray into starting a small business will cost you twice as much as expected and take four times as long to become profitable.
Setting yourself up for a good transition is the key to success. Do the work beforehand to remove any barriers to starting a business.
