43% percent of Americans say they would like to start a small business and be self-employed. The statistics also say that only 6% of Americans are self-employed, that is a big gap. Take a moment to ask yourself these 10 questions before you quit your job to make sure you are ready to start your own business.
Is Your Job Making You Miserable
Most people that want to become business entrepreneurs have the reason, I am just tired of working for someone else or I dislike my job. The truth is that most people can't just quit their jobs because they don't have the adequate funds in place to allow them to pay their bills while they build their dream. Even though most people dislike their job, stay employed as long as you can before quitting to pursue your dream full time.
Are You Ready To Make The Daily Adjustment
Just because you don't have a boss to tell you what to do and when you have to work doesn't mean you can only work noon to 3 PM and survive. Even though most of us would love those hours the truth is self-employed business entrepreneurs usually end up working even more hours then typical employees. Hours such as 7 AM - 8 PM will become regular business owners when you first start your business and you must have the ability to connect with potential clients on their time whenever that may be in order to build your reputation and credibility.
How Are You Going To Grow Your Cash Flow
The number one reason why small businesses fail is because they run out of money. You need to consider the idea that most small businesses don't see profits till 3-5 years out and that it's important to project your cash flow and sales projections before you start your business in order to make sure you don't spend more money than you have coming in.
Have You Taken Into Consideration Hidden Costs
You can develop the best business plan but there are always those things and items that aren't considered and thought of till they come around. The worst thing you can do is make a budget that undercuts your profits because something unseen presents itself that you have to purchase in order to make your business successful but at the same time killing your budget. Be sure as you start your business to have a large enough emergency fund setup and take into consideration all the what if scenarios that could cause you to stumble financially.
Can You Multitask Multiple Roles
As business owners you need to be willing and able to be a person of many hats. As a startup or small business with a minimum budget you need to be able to take on the tasks of accountant, sales consultant, technical support and often office cleaner in order to make your business successful. Before you quit your job make sure your ready to take on all these items yourself and will have efficient task management skills or your business will most likely fail.
Have You Done A Personal SWOT Analysis
When considering the idea of managing multiple roles within your business, have you taken the time to do a personal SWOT analysis to see where your strengths, weaknesses, opportunities and threats are? Be sure to take the time to make sure you have all the adequate skills needed to run your company successfully and if you have a weakness that is necessary to know before you start your business, to learn that skill before you quit your job.
Have You Established Your Support Board
Everyone that starts a business will at some time or another hit a wall where they feel as though they are doing the wrong thing and want to quit. This is the time where you support board will come in and be your personal cheerleaders to re-motivating you and get you back on track. You also need to take into consideration those who can be affected by your business choices; family members, spouse, children etc and that they are all on board with your decision so that you don't have someone negatively effecting your decisions.
Do You Have A Plan B
If you have some unseen things happen do you have a Plan B setup that can help you scrap together some funds to keep you a float. I am not saying have an option for if your business idea fails, but an temporary fix while you continue to pursue your goals to get you buy. Contract and temporary employment can often help you get through a bind and provide a quick fix.
Have You Thought About How You Are Going To Quit
Do you have a plan on how you are going to quit. I want to emphasis this because the last thing you want to do is burn a bridge right off the back and have a negative right off the start haunting your business plans. Be sure to tell your current employer that you are quitting and give them adequate time to adjust and sometimes you get lucky and your old job becomes your first client. Employers can assist by giving you flexible time off or retaining your services as a consultant.