quitting your job is definitely one of the steps along the way, but it’s most assuredly not the first step. It’s been said 80% of new businesses fail within the first 18 months of operation. I'm sure you’re not interested in becoming a static, right?
So here are 3 reasons why you should not quit your job FIRST to start your business:
1. CYA – Cover Your Assets $$ - One of the leading mistakes new business owners make is attempting to start a business with absolutely no money. Maintaining your job along with a fresh perspective will give you time to downsize financial responsibilities, the opportunity to fund your business start up expenses and the benefit of building your business income to replace your salary. When you launch out, not only will you have to meet business obligations but personal household expenses as well (if you still want food, water and shelter, just saying). As well, you will need time to test your product or service in the market. When it comes to starting a business, just because you build it does not mean they will come.
2. Learn How to Play Team – The second biggest mistake new business owners make is going it alone. Sorry (really not sorry), but just because you have a talent or passion does not mean you are equipped to run a business. You will need time to build your team. Two of your most important team members are your accountant and attorney. A very successful business colleague of mine shared the story of losing a multi-million dollar business. The business went under due to a partner’s unethical business expenditures and not being aware of the proper insurance to cover legal cost in a law suit.
3. Pop! Goes the Weasel – Surprise, surprise, surprise it’s what you don’t know that will kill you in business. We all remember the “Jack in the Box” as children. No matter how prepared you were the Jack was going to pop out; we still jumped out of our skin with surprise. This is a great time to find a business mentor and gain insight on your industry or volunteer to work for free (yes, free) and learn how the behind scene operations are run. You may surprise yourself and totally change your business model; because what you thought you wanted to do looks very different outside of your brain.
Was this news to you? How could you make these steps work for you?
See you soon!