You have made up your mind to establish your own company, and step down from your responsibilities at work. You must have a remarkable business idea that is making you excited and eager to jump to it.
But wait! You need to pause and understand that you simply can’t walk in to work with a resignation letter in your hand the next day.
Statistics published in Innovationexcellence.com suggests that nearly 50% of new businesses fail within the first five years. Now going by the statistics, it’s best that you think logically without being too impulsive about leaving your job in haste.
To help you in the process of transition, we have provided you with a list of things to consider before you leave a flourishing job and focus on a startup.
Carry out ample research
Quitting your job before setting up your own venture can be tempting. But, you shouldn’t jump the gun just as yet. The ideal way to set the wheel in motion is to develop your business slowly while you are employed.
This will make the subsequent transition from an employee to an entrepreneur a lot smoother. This is exactly why research is important.
You have to be sure that you have a service/product or an idea that is unique, something that will click with the consumers.
The background research you need to do consists of but is not limited to the following aspects.
- Determine your target audience and buyer personas
- Develop a clear idea about the product or service you’ll be offering
- Gather knowledge about your competitors
- Put together great teams
- Know what your most bankable sales and marketing channels are.
Look for validation on your business idea
It’s human nature to assume that we’re right and the ideas we produce are remarkable without seeking the validation from the experts. Sadly, at this nascent stage, your product ideas and business concepts aren’t well thought out, or lack adequate researched.
It’s easy to work with an exciting new project and live in your little bubble without involving anyone else for valuable feedback during the process. But not validating your business idea always backfires. If you seek valuable perspectives from the experts, you would be lucky to have something that is received well in the market.
Develop a detailed business plan
After you develop a concrete product idea run by an expert, you need to write it down. Creating a business plan before diving to establish your business will definitely steer it in the right direction. Your business plan will be the document you will hand over to potential investors, partners, and other stakeholders. The business plan ideally consists of the following.
- An overview
- An executive summary
- Your objectives, vision and mission statement
- A company description
- Adequate information about the industry/market into which you’re entering
- The strategy you’ll be implementing to venture into the market
- The team of professional you’ll employ
- An operational plan
- A marketing plan
- A financial plan
- An appendix with more details
Set realistic and measurable goals
Now that you’re gaining a better understanding of your future business, it’s time to start with the real work.
Without setting realistic goals and deadlines for yourself, you’re going to invest a lot of time in futile attempts. It’s difficult to stay in the right track if you don’t define the path you’re treading.
So, it’s wise to set daily, weekly, and monthly goals for yourself. It’ll assist you to maintain both the short term and long term objectives.
For starters, your daily objectives will most likely be small victories or to-do list type of items. It lets you check things off your list and ensures you stay on track.
Gain sufficient idea about the risk
Of course, there will be risks and consequences involved with a new business venture. Measuring and planning to counter the risks is crucial before you begin working on your business. Evaluate the risks involved in your industry before moving forward with a concrete business plan.
Other than the risks in whichever industry you may venture into, there are great personal risks that are also associated with venturing into a startup. Once you’ve gathered enough understanding of how your business can be affected by risks, think about how the new business will secure funding once you’re up and running in the future.
Chalk out your funding options
Before setting out to look for funding opportunities, you need to keep your personal finances in check. If you give up your job with limited resources in your bank account, you may find it hard to focus your efforts on building your business.
You need to keep in mind that you have to pay bills and rents, aside from running the business. So, managing your personal finances is necessary.
In the case of funds and finance, you’ll ideally have three options-
- Your personal savings
- One or multiple investors
- A grant or award for your project
Either way, you need to develop a plan well in advance while you still have a job. Remind yourself that if you can’t accumulate the capital, your business will stagnate and you will have no option to fall back on.
List out your strengths and interests
Think about the skills required to start your business. It is likely that you possess at least some of the vital skills to develop your own business. Even if you have skills, you might need time to hone them. Or you can invest time learning a new skill that you think will be necessary before your new venture flies off.
You need to be honest with yourself. Ask yourself, “What am I great at? Is there room for improvement?” If you want to attain success in starting your business quickly, you need to increase the time you spend on doing more of what you are efficient at.
Leverage the resources
Pay attention to the resources available. For instance, you may have an acquaintance who is a graphic designer. He/she might help you to gain ideas aligned with the goals of your startup.
You should ask your friends who have ventured into their own business about good marketing expert or sales expert, accountant, and so on.
Consider investing in online education for the team you put together that will teach them skills like SEO, email marketing, etc.
Outsource your shortcomings
This is all about focusing on what you do best. You must look for opportunities to outsource the parts that you think could use some help. You obviously wouldn’t want someone else to plan your roadmap, or tell you what your services should look like.
The point is that you need to give undivided attention to what you do best. It would be amazing if you could code your own website to test out your service idea. However, you can’t do everything alone.
If you don’t command an understanding of coding and developing, you’d have to spend a humongous time acquiring the skill in the first place. Outsourcing is any day a better option.
Don’t work on your own startup during work hours
You might be eager to build a better version of the organization you work at, but you are probably contract-bound that prevents you to do that. Also, it’s a bad practice that can destroy many relationships, which would’ve proven to be extremely helpful one day.
It may sound obvious, but don’t work on your own startup during work hours.
“You must refrain from using company resources to work on your business venture, regardless of how eager you are to work on your startup” suggests Elijah Westwick, a custom writing expert from Myassignmenthelp.com. This includes not utilizing your work computer or any online software, tools, subscriptions, or notebooks, and not seeking the assistance of other employees.
Learn more about the legal aspects
One of the first steps of laying the foundation of your startup is determining its legal structure. This means you have to think about the taxes, paperwork, the liability of the owner(s), and check whether the company can hire employees.
Additionally, you should get valid registration from the government to open your business.
It implies that you need to obtain an employer identification number, create the articles of incorporation, and apply for different licenses. This may differ depending on the location and industry.
Know when to quit
Things may not always work out the way you planned. You must also know when you should call it quits. You may be a long way off to achieve your goals at your workplace. If rectifying your approach to work can’t mend it, then it is a sign that you should walk away.
Reflect upon the shortcomings and what went wrong so that when you venture into your business, you won’t repeat them. A true entrepreneur is the one who doesn’t commit to a fool’s errand just for the sake of ego but prevails over adversity.
Wrapping it up,
Always remember that the beginning of a new business is going to be more grueling than you can imagine. You need to plan well before you consider quitting your full-time job. That said, with the ideas mentioned above, you can ensure a smooth transition between your job and your future startup. This will turn out to be a profitable adventure that you have ever embarked on from both a professional and emotional perspective.
Summary: The post focuses on the factors that you must consider if you want to switch to starting your own business. There are many considerations to ponder over like developing the product ideas, exploring funding options, checking out the legal options and many more. All of these factors will ultimately help you to manage your career and develop your startup at the same time.
Author Bio: Patrick Austin works as an operations manager in a distinguished American firm. He has acquired his MBA degree from a renowned University of America. He had previously worked for a tech startup. He is also a part of MyAssignmenthelp.com, working as an expert on coursework help.