For many, starting your own business means leaving your full-time job. Prior to leaving, you want to make sure you are financially stable and able to succeed as a business owner. Leave your job to start your own business by first dipping your toes in the water, consider sources of funding, and forecast your future.
Dip Your Toes in the Water First
Quitting your current job before getting your company off the ground can be risky. You have a lot of unknown questions that could come back with bad answers. You want to make sure that your idea works, you are passionate about your product, and you can be successful. Prior to leaving your job, do your research and dip your toes in the water first. Start a side business that helps you develop securely. Find out how your management and production processes will operate. Determine procedures and iron out unanswered questions before taking your business venture full time.
Consider Sources of Funding
Every business needs assets to function. A major source of a business’s assets is funding. Prior to quitting your day job, you need to make sure you have sources of funding that you can tap into. Can you remain financially stable without your current income? Can you obtain loans or investors to help fund the cost of your business? Some individuals take a loan against themselves and their savings. According to Franchise Gator, you can even roll over 401(k) money to fund a new business. If you have funding to operate at least 2 years before seeing a profit, your business should be financially stable to operate full time.
Forecast Your Future
As a self-employed individual you want to make sure your business has a future. Take your data to forecast your future. As Fast Plans points out, you must answer a variety of questions: Are you equipped to handle anticipated growth? Will your product be desired in 5-10 years? How easily can you adapt to economic changes? Creating a revenue forecast with several options will help you predict pricing and possible outcomes. Forecasting your future will help you determine if your business venture is in a healthy position to support you individually.
There are basic challenges every entrepreneur must overcome. Many of these challenges are easier when you have a steady income to supplement your idea. The data will tell you when you are ready to leave and pursue your business venture full time.
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