If you are starting your own business and planning to quit your job, you are a brave person. Everybody wants freedom. But just like all the other great things in life, it has its own cost. Only a few people can pay for it.
Entrepreneurship involves certain risks. You have to make new plans, new teams, and make decisions at the right time. Therefore, proper planning is necessary. You should be familiar with all the pros and cons of the whole process. Otherwise, the plan might backfire for you. Here are the top 10 things you must do before you quit your job for entrepreneurship to become a successful entrepreneur.
1. Do Your Research
Just like every job position, not every business is perfect for everyone. If your friend is running a restaurant chain, it does not mean your restaurant will be successful just like his. Always do the proper research before deciding on your business niche. If you are passionate about a business idea, you should go for it, but research is mandatory. For example, you might have a passion for making winter gloves and caps.
This business could work perfectly in cold regions, but if you sell your gloves in a city where summer lasts around the year, nobody will buy them. So, market analysis is necessary before executing any ideas. Research the needs of the people and make a product that will fulfill them. If your research is according to the market, almost 50% of the work is completed. Lastly, research your competitors as well. It is better to find out the missing links in their products so that your product is free of any errors when it is launched in the future.
2. Validate Your Idea
Before quitting your job it is important that you have some proof that your business will generate revenue. This step in the process is crucial so that you can know for sure if you will be able to make money. Validating a business can happen in several steps. But the focus should be on getting sales. Sales solve a lot of problems for a new business. If you can prove that your business can make sales then you have accomplished the key first step towards business success.
3. Create a Solid Plan
Entrepreneurship is about making decisions. It is also about executing the plan. You can’t do that unless you have a great plan.
Here are the benefits of having a good plan:
- The business plan will figure out how many team members need to be hired.
- It will devise the strategies you should follow to launch your product.
- It will set the company’s goals and objectives.
- It will provide information about the market you are going to enter to start an entrepreneurship.
4. Make your Business Legitimate
You have to decide early how your business structure will look like in the future. Whether you are going to start entrepreneurship as a sole proprietorship, a company, or a partnership, your business needs to be registered with the government. All the legal necessities have to be fulfilled. You may want to hire a lawyer or tax firm who will look into all these matters. Once your idea is on the ground, your primary focus should be on business growth.
There will be no time for you at that stage to sort out any legal formalities. In addition, your business reputation can be hurt badly if any legal hurdles arise in the future. Therefore, it is better to complete all the legal formalities before starting a business. Here is how you can start a business in all 50 states in America.
5. Set Up Personal and Business Funding
Investment and funding are needed to sustain and provide fuel to it during the initial phase. Therefore, take a look at your savings and figure out if they can support your business for the first few years. If you don’t have enough savings, you can sell your idea to an investor and start a partnership. The best practice for a salaried person to start a business is to do it part-time on a small scale. In this way, only a small investment is required.
The risk of losing money is also low, and if it occurs, you have your job as a backup plan. You can leave your job after some time when your business is making enough profits. It is excellent financial advice everyone should consider before quitting their job and starting entrepreneurship.
6. Learn New Skills
As a business owner, you need to have multiple skills to grow. You will be making big decisions for your company. Therefore, you must be a multitalented person. Invest your time and learn new skills such as communication skills, interpersonal skills, time management skills, etc. These all-new skills will help you in the management of your company. It will also help you to save money during the initial days of your startup, as you can do multiple tasks yourself.
There will be no need for extra people. Besides, a business needs to keep updated and adopt new changes to keep itself in the competition. Learning new skills will keep you updated about the recent trends of the industry, and you can apply these to your business.
7. Talk with your Friends, Family and Mentors
Quitting a job and starting your own business is bold and probably the biggest decision of your life. Your spouse, children, family, and friends will all be affected by this decision. So, you should talk to them and inform them about your plans. The first few months or year of every business is hard. Therefore, you will need the support of your loved ones during this time. The transition from a regular job to entrepreneurship has its challenges.
Some of these challenges might be:
- Your work hours can vary greatly.
- During the initial days, you might have to work holidays.
- Low savings, as all money would be spent on the initial startup cost and operations.
Before quitting your job, you should discuss all these possible outcomes with your family. You should make sure that your family is standing by and support you in all your decisions. Otherwise, you might face difficulties concentrating on your business.
8. Consult with Expert
Having a consultation with an expert is key to starting a new business. An expert could be your friend working in that particular business or any successful entrepreneur. You could learn lessons and tricks from them about starting a new business. It would help you a lot, and you would not commit the same mistakes as every new entrepreneur. A successful business expert will give you insights into a powerful business strategy. You can also hire experts and consultants in different fields.
For example, hiring an accountant for a new business is the best option. An accountant is an expert on numbers. They will help you with the profits and losses of the company and with the taxes also. It would save you a lot of precious time, which you can use to grow your business.
9. Understand the Risk Involved in the Business
Every business involves risks. You should understand them and prepare your business plans according to them. Understanding the risks is the most important step you should take before quitting your job and starting a new business. A proper assessment of the risks will save your investment in the future. Be honest with yourself and your business partners about the risks involved in the venture. All successful businesses indeed have some risks behind them, but proper planning beforehand can protect your business. By calculating the risks involved, you can obtain the best insurance package for your company. The insurance amount will save your company and help it stand on its feet once again.
10.Believe in Yourself
Lastly, review your decision and only make a move when you are fully confident in yourself. Don’t make any decision haphazardly. The decision of quitting a job and starting entrepreneurship is a once-in-a-lifetime choice. It will shape your life for the future. Therefore, research well before starting any business. Know your audience well and find out their pain points. Your product or idea will sell like hotcakes if it is unique and capable of solving people’s problems. A successful entrepreneur always provides value to people and society. If you follow this simple rule, sales will automatically follow your business, and there will be no need for any advertisement or marketing campaigns.