Have you ever contemplated leaving your job to start your own business? If so, you aren’t alone as more and more people are considering leaving their job for entrepreneurship. In fact, according to MBO Partners, 31 percent of the U.S workforce is self-employed. In Ventura County alone, there are over 21,000 employer establishments. Freedom and flexibility are a few of the common reasons individuals decide to shift careers towards owning a business. While there are many rewards for entrepreneurs, it’s important to understand the risks before diving into an enterprise investment. Here are key points to remember if you are thinking about quitting your job to start a business.
Ensure Your Idea is Sustainable
With millions of people looking to find success at entrepreneurship, coming up with a viable and competitive idea is key. Not every idea is a good one, and even more so not every idea is sustainable. While your business idea might appear to be brilliant, creating a product or service that meets a specific need can prove difficult. Not only does it have to be innovative, it must be efficiently produced. Before quitting your job, make sure the market research and potential competition demonstrates your product will prosper. For stats on small business analysis in Ventura County, consider contacting local resource providers to ensure your idea can grow and prosper.
Prepare Yourself for Business
There are many different reasons why someone might decide to pursue opening a business. Whether it’s the income potential or being a leader that makes you take that leap, launching a startup is hard work. It involves plenty of planning and requires access to capital to pay for equipment. A typical starting point involves developing a thorough business plan and applying a marketing strategy. You must be able to clearly define the product or service you are offering and what distinguishes it from competitors. Remember that it often requires years of hard-work with little pay-out before a business succeeds. Reading up on the realities of entrepreneurship and seeking start-up assistance in the Ventura County area can help you prepare.
Make a Smooth Transition from Your Day Job
If your entrepreneurship aspirations compel you to take on the challenges of launching a startup, don’t quit your full-time job right away. Many people are tempted to quit the moment they develop a business idea but quitting prematurely can disrupt your financial situation. Make sure your plans are in place and you have a product or service that is fully ready to launch or is already launchedbefore leaving your current place of employment. Even with a viable business idea, it could take months or years before you can take income from the revenue of your company.
Build Six Months’ Worth of Savings
Avoidliving off credit cards so you don’t run up an enormous debt that can be difficult to pay off. To prepare for the loss of your current income, take a look at how much money you will need to continue with your lifestyle andbegin building your savings. Consider devoting your full-time attention to your new business once you have about six months’ worth of living costs in your savings account. This will provide you with some financial security, especially if it takes time to build your new business.
The financial aspect of starting a business is usually the most crucial in terms of business survival. Companies that lack funding will have a difficult time getting off the ground, while those with excess funding can focus on business strategies critical for entrepreneurial success.
It’s adventurous to leave a job for entrepreneurship. It can open pathways to wealth and meaningful business relationships. Looking for assistance in setting up your business? Business Forward Ventura County is a countywide initiative and business resource hub committed to delivering economic development support for businesses. Contact us today for more information on how we can help.