Transition from being an employee to becoming an employer isn’t as rosy as it appears. It is true that you become your own boss, but this new role also brings responsibilities that weren’t your concern during your job. You may not have heard about some of those responsibilities before. Funds are another critical consideration for a new business owner. Starting your own venture definitely has its perks yet knowing what lies ahead helps a lot. Understanding every aspect of leaving your job to start a business is necessary for your mental and financial health; the success of your venture depends on it too to a certain extent.
Are you ready to face financial crunches?
The initial months or years are the hardest because you aren’t only new in the market but do not have any customer connect. You have to build everything from a scratch. You have to prove yourself, your business idea and its feasibility while taking care of innumerable other important things such as recruiting the right people, drafting organizational policies, putting various mechanisms in place and building a motivating work environment for your team. Do you know which the common factor among all of these is? Money. Yes, you read it right. It is money which fuels an organization, which provides encouragement to startup employees in form of incentives, and it gives you the leverage to hire experienced talent.
A comprehensive business plan with practical estimates will give you a clear idea on your decision of leaving your job to start your own venture. Insufficient funds is one of the primary hurdles for any first-time entrepreneur. Usually, to solve capital crunch, entrepreneurs spend their maximum productive time on looking out for investors. Instead of figuring out cash inflow, a new businessman needs to control cash outflow by analyzing the impact of every work activity and setting realistic projections for the first year of business. It will take you three to five years to become financially stable and achieve profitability in your business. Are you ready to follow your guts rather than worrying about cash crunch? Be practical about supporting yourself and your family financially and then take a decision to leave your job.
Are you willing enough to wear multiple hats?
The first rule of starting a business is coming out of your comfort zone and be welcoming to all grilling changes in your schedule. Most of the days you are going to end up playing multiple roles and have no alternative person to delegate your duties to. For the first half of the day, you might be the BOSS addressing a job meeting, then you might be a sales person hunting for clients, you might also be a tech person helping employees resolve issues in their work equipment or may turn into an office boy at times ensuring your pantry is adequately stocked. During this phase, you cannot afford to have an ego or consider any task below your stature. So before you put papers down at your office, think how comfortable you will be running from pillar to post to sustain your new venture. And remember, it is going to be grueling and there will be shortcut to achieve success.
Are you actually great at what you do?
Before entering into a business and leaving behind the comfort and stability of your job, make sure you know the industry in and out. You need to be an expert at what you do and still be open to new lessons. Don’t start a business just because startups are a new trend or because your childhood friend has a great business idea. Ask yourself if it is the right thing to do; are you excellent at your current job and ready to make it big on your own. You need to have cent per cent confidence in your abilities before taking such a huge step in your career. Resign from your job only when you have questioned your guts and got a positive reply.
How supportive is your circle?
Share your business idea with your support network to know their opinion. Your family must know the effects this transition would bring. See how willing and supportive are they to provide you backing. All of you need to be on the same page to tackle changes that leaving your job can bring. Does your partner support your decision? Do discuss how your new entrepreneurial will affect your finances.
Before you start to swim in the risky waters of a business, make sure you have thought through your backup plan. Have a strong plan B to tackle unforeseen situations. Also while quitting from your job, ensure you aren’t damaging the bridge between your professional network/ company and yourself. Your network of business associates can prove useful in your venture or may give you an offer to work as a consultant to keep your finances stable. Keep everyone well informed of your new career plan; avoid throwing dirt on anyone’s name.