It would certainly be good feeling, to say the least, to not just be an employee(not that it’s a bad thing) but an employer. What’s even better is that by just doing some planning and having just a bit of money, you can become a boss sans the need to make it difficult on yourself!
Here are some tips on starting a business you can call your own:
Conceptualize – Before your quit your job, you(as the potential entrepreneur need to come up with a concept, service or product that can generate steady income. Conceive of a plan that can put your knowledge as well as your experience to good use, allowing you to profit from them. In thinking of business ideas, begin with the areas where you’ve got a lot of interest, equipment as well as materials for since this is going to help you in cutting down your startup cost.
Moreover, read your local papers, especially the ads, so you could see the other kinds of businesses that are in operation. However, doing something that you like isn’t just the only way to go because you’ll have to get ideas of prospects for your potential business. Ask yourself, does your potential business have a market? Could you make money from it?
Partners and/or employees – While it could be excellent for you to be the sole owner of a business, not to mention having overall control of all aspects of it, there are times when lacking funds or even experience will require that you get yourself a partner. In such a case, have someone who’s smart, is going to represent your business well and is an expert in what you’re developing.
Furthermore, try defining what you as well as your partner are going to be responsible for before becoming open for business, so to speak. In that way, you’ll have fewer disagreements and your business is going to operate in a smoother manner.
Be sure that your partner is legally cared for by your business and that proper forms have been filed with the authorities. Finally, decide if you’ll be needing employees. If so, plan on how you’ll hire them as well as how much you’ll pay them. Think about how you’ll be doing the payroll and/or if you’ll have to locate a facility where they could stay, just in case.
Research – One great move to do is to start asking your family and friends about what they think about starting a business. Ask them something along the lines of, “Would you buy this certain product? Avail of this service?”, “How much do you think this is worth?”, “What do you think is the best way for me to market this idea?”, “Is there something you could come up with to improve this?”, etc. In case you’re married and/or have kids, it’s recommended that you ask them how they’ll feel about you quitting and setting up a business.
After getting all the feedback you need, get back to your planning and check if your ideas could be improved in order for your products or services could stand out.
Funding – Once you’ve gotten an idea as well as your family’s approval, you have to decide on how you’ll be funding your potential business. Hopefully, this investment will help you in breaking even after your first year. However, you should remember that even a successful business could stay in a deficit for its first years. Because of this, you’re going to want to have access to various funding sources, including family and friends(as investors), home equity loans, small business loans and credit cards, just to mention a few.
Finally, one of the very best things you could do before committing to starting up a business is by building up emergency funds for you to fall back on in case your business won’t be able to break even for some months.