Unlike working for “the man,” being your own boss means only having to answer to yourself. And most people would agree that being their own boss sounds pretty spectacular.
Although economists do believe the economy is trending upwards this year, more and more people are looking to start their own businesses. Being an entrepreneur, though generally worthwhile in the end, does require certain sacrifices in the beginning. While you can dictate your own hours, here are four things to consider before quitting your day job in favor of building your very own business.
1. What Are You Going To Do?
Before you start up your own company, you need to be prepared. First of all, what do you want to do? Secondly, can you do it now? Lastly, how profitable will it be?
While most people ordinarily have an idea about what they would like to do when self-employed, in many cases, the buck stops there—literally. Being too hasty and quitting your regular job for an ill-equipped idea will lead to a financial disaster.
Once you have determined what you want to do, research the project and create a business model. Understand the ins and outs of the business, how to market it, and if it is possible for you to venture out on your own or if you need a partner.
2. How Will You Support It?
Even though you believe in your business model, it is vital to determine how you will support it as start-up. Most businesses do not begin making a profit until after the first full year.
Unless you can find financial supporters to fund your business, you might need to consider saving up enough money to get your idea off of the ground.
Most entrepreneurs look into small business loans, or use other forms of loans like title loans from places such as TitleMax.com. Although starting a new business is expensive, loans can make the project more manageable at the start.
Even after you start generating a profit, you will need to either have a stock of savings ready to fund your basic needs, or learn how to live on a tight budget. If you are certain of your business’ long-term success, then the sacrifice will be worth it.
3. Are You Ready?
Being self-employed is a big commitment—not only money wise, but also time wise. Before the business gets off of the ground, you will be putting in long, hard hours. And, if you do not have employees yet, or can not afford employees, everything from accounting to marketing essentially falls on your shoulders.
4. Health Insurance
Most large corporations offer benefits such as health insurance. Although this might not seem like a big deal, starting your own business either leaves you without insurance or adds paying for healthcare onto your pile of bills. While this shouldn’t discourage you from breaking out on your own, it is something to remember before jumping in head first into your business.
Being self-employed is an awesome thing, but in order for things to get up off the ground, you need to be fully prepared before diving in.