So you have decided to take a leap of faith and finally quit your job so that you can create your dream business. You feel your idea is a billion-dollar, but still nervous to cross the Rubicon. It is totally normal to have a mixed reaction when you are thinking of quitting your job to start a business. But before you walk in with your resignation letter, please read this article first.
Today, we are going to discuss 5 things to consider before quitting your job to start your own company. We understand that starting a new business is always exciting and might make us impulsive, so without any further delay, let’s get started.
1 – Do You Have Enough Saving?
Unless your company is planning to send you off with a nice early retirement package, before quitting your job to pursue your dreams, make sure you have more than sufficient savings. Remember your job is the only primary source of income, and changing it without knowing your short-term solution may be a huge mistake.
Of course, it is not easy to predict exactly how much savings you are going to need, but the amount that can sustain you for three to six months is great.
This way, you will have enough time to taste the waters without feeling immediate financial constraints.
Keeping that in mind, you should think of keeping your job for a while as you work on the initial steps of launching your business.
Start your business while still on your job and do sufficient enough about the market you want to operate in.
2 – Create Your Business Plan
Even if you have a novel idea, it is not going to be easy to turn this abstract idea into a billion-dollar company overnight. It is easy to underestimate the task ahead.
The best way to go about it is to make sure you have more than just the idea before leaving your current job. What does this mean?
Start with talking to people in your in the industry you want to venture in and gather some data.
Have a clear business plan for your company.
Your new business plan should have the following:
- An overview
- Executive summary
- Description of your company
- Objectives, mission, and vision statement
- Short description of the industry and market into which you are operating
- Your team
- Market plan
- Operational plan
- The strategy you will use to enter the market
- Financial plan and
- An appendix
Do some thorough research about your industry, including:
- Research on your competitor, their customers, their most selling products or service, how they market, and so on.
- Learn all you need to know and more about the product or service you want to launch
- Research and find the right team to help you develop and grow your business.
- Establish as early as now the sales and marketing channels you will be using.
3 – Think About Your Capital
This is perhaps the elephant in the room. Every type of business has a capital requirement. If you don’t have enough savings to cover your startup costs, then it may be a bad financial move to quit your job this early.
While you can also find angel investors, nobody so going to give you money if you don’t have anything to show. Besides, finding an investor who is interested in your business idea can be very challenging.
For this reason, you should make you have a strong business plan that will help you convince investors to fund your project.
4 – What is The Structure For Your New Business
Make sure you have a structure for your new startup before thinking of quitting your current job. By business structure, I mean the legal structure of your business.
Typically, a business can be one of the following; a corporation, a limited liability company, a partnership, or a sole proprietorship.
Before choosing your business structure, consider the following:
The operational complexity
- Licenses, regulations, and permits
5 – How to Leverage Your Resources
This will prevent you from spending money on unnecessary. Audit the resources you currently have/ for instance, you may have a friend who can design a logo or your company website, and so instead of hiring a professional developer, you can have them work for you but at low rates.
Check with friends and families who have started their companies before and ask them if they can connect you with a lawyer, a tax consultant, a marketing consultant, and so on.
Reading books on entrepreneurship will go a long way to making some things easier for you.
Contracting professionals at this stage could be more expensive, so consider investing in some online courses for our team that will help you learn the ropes on areas like email marketing, SEO, online marketing, social media, and much more.