What is the American Dream? Some say home ownership. Others might say business ownership. If it indeed is to own your own business, do you need to keep your day job at the same time?
There is always risk involved with any new venture. Starting a business, even one from home, is no exception. The fear of failure shouldn’t stop you from pursuing your dream but do so with caution and sober reason. The last thing you want to do is to create a big financial problem for your family.
What to Consider before Leaving Your Day Job
It’s good to evaluate the risk and potential gain involved in working for yourself from home. This is where the business plan comes in. Every company, small or large, needs one. It is necessary to ask yourself a few questions before you quit to forge ahead with a business.
Here are some questions to ask:
Can you fund your business? – What will it cost to run your enterprise? Home-based businesses have an advantage of low overhead in most cases, but that doesn’t mean free. Using your savings is not a good idea. Using your business plan, seek capital from a financial institution first before dipping into your hard-earned piggy bank.
Can you support yourself? – When you are talking about pursuing a new business full time, the income that sustains your household needs to come from somewhere else. A fledgling business might not provide enough income alone to do the job.
Are there unforeseen costs involved? – You’d be surprised how many people get into business and are shocked by the amount of money they had to spend that they didn’t account for. Unforeseen costs can be a nightmare. Naturally you can’t predict every scenario that might happen. Factor in extra capital for upgraded equipment, contracted services and such. Don’t let a snafu sink your business ship.
Can you handle several roles at once? – In the beginning, you will be chief cook and bottle washer. It will be your responsibility to take orders, advertise, network, answer customer service calls, fill orders and whatever else needs to be done. There is no modesty when you are the boss.
Is your knowledge up to the task? – We all have our strengths and weaknesses. In business, it is the weaknesses that determine how strong your company will be. If you are starting an internet business, but don’t know much about online marketing strategies or SEO, the choice will be to hire someone who does or take the time to learn all about the techniques yourself. A weakness in this area might cripple your business promotions. Make sure that you know all aspects of your business and can perform them yourself if need be.
There is nothing wrong with working a business part time in the beginning. Once you gain clients and get a feel for how the operations work, then consider if your success is enough that a day job is not necessary. It’s a realistic way to protect yourself.