You’ve been thinking about it for a long time. Letting go of your job security to pursue your dreams of becoming an entrepreneur. So how can you know for sure if you’re really ready? You want to be sure that your decision to quit your job has been carefully thought out. These questions will help you figure out if now is the time.
Do I Have a Plan?
To feel truly confident about your decision to leave the security of your job, it’s essential to have a business plan. This helps you with confidence to move forward and assurance that you will be making the amount of money you need. Goals are more easily attainable when you have a step-by-step plan. This should include;
• A timeline
• What you need to do specifically to be successful from the start
• The description of your company
• Market analysis
• Organization and Management
• Marketing and Sales
• Financial Projections
Am I Financially Ready?
Launching any kind of business takes more than a great idea. You will need money at hand. The rule of thumb is to have six months of financial reserves to live on before your business starts bringing in money. This may mean that you have to live with less than you have. If your business means a lot, this won’t be an issue as your happiness will come from doing work you’re passionate about. Consider upfront costs of running your business such as;
- Office space
- Website and hosting
Am I Mentally Ready?
Starting your own business can feel daunting. Although you believe in your product or service, you may be questioning if you can handle the stress of standing behind it. Having a business plan should help alleviate the anxiety and doubt that may come up. Here are some other considerations that will help you become more mentally ready to handle the pressure of having your own business.
Being able to adapt to changes in technology and your industry is essential. If your product isn’t selling, you need to adapt of modify your sales or product itself. This may involve changing the price of your product or service or perhaps you may need to change who you’re selling it to. Keep changing the product or service around until you start to see the gains.
The art of focus is what allowed Bill Gates to propel to great success. Two resources put into building your business is time and money. These resources are limited as you’re busy and don’t have millions to back your business. Your business needs you to use your resources effectively. With this in mind, don’t spread yourself thin with small things. Focus on the big picture and the essential things needed to succeed.
Be prepared to sit with finding out who you are. Being an entrepreneur will push your limits and show you what your strengths and witnesses are. You will learn things about yourself you didn’t know like what you’re capable of when your limits are tested. Having your own business is an intimate process that will test all your limitations. While this is rewarding, it can also be highly challenging. Expect to shake your inner core and grow.
Am I Willing to Give Up My Current Lifestyle?
Ask yourself if you’re willing to give up the cushy lifestyle you’re living now for awhile. Starting your own business and leaving your job means a loss of a guaranteed paycheck you’re used to. You will also have less time to spend with family and friends. You may have to sacrifice your vacations for a few years as you focus on your business. If you put in the time now and focus on making your business a success, you’ll get your time back later. Consider the time and money you put in now as an investment for your future.
There are many people before you that have braved the storm of entrepreneurship and there are some that have sunk. One of the defining factors to the success of any business is the support that you have. Starting your own business take a lot of hard work and there are challenges.
To ensure you’re mentally prepared to deal with issues, you should have support in place. This can be anyone from advisors to assistants. Having an accountant, legal assistant and administrator can go a long way to ease the pressure. The good news is you can find freelancers in all these categories that are paid only when you need them. This has allowed entrepreneurs to get the help they need for much less than if they had to go to a large agency.
If you try to wear all the hats and deal with things you know nothing about, you’re more likely to burn out and give up. Let the experts in any given field support you while you focus on the aspects of your business you’re an expert at.
Where Will I Live?
Businesses vary a lot so there isn’t one easy answer for this. You will likely know if your company would do better by staying local. If your business is based online, you may find it more advantageous to be an expat in a cheaper country. Countries like Thailand offer great support with tech companies, offering internet hubs that stay open 24 hours. There are also meet up groups that allow you to meet like-minded people.
In Panama, you don’t have to pay income tax and costs much less than living in the United States or Canada. If your business doesn’t tie you down to one specific area, you have the luxury of living anywhere in the world. Why not live somewhere that costs less so you can keep expenses down?
By taking some time to answer these questions before you give your 2-weeks notice, you will feel more at peace about your choice. Maybe you’re not quite ready. If that’s the case, figure out what is missing and fill the gaps. You’ll then be ready to leave your job and begin the fulfilling journey of owning your own business.