Here are a few things to keep in mind.
“I am starting my own business!”. This sentence always sounds exciting and empowering. It makes you want to put together your vision, plan execution and set timelines and targets. It is empowering. But with great power comes great responsibility and even greater risks.
The first step is to validate the driving force behind this decision. Is it because you have an idea that you need to follow and see where it goes, or is it because you are unhappy with your current job and need a change? If it is the latter, then starting a business is not a quick fix to replacing a job you dislike. Self-run enterprises require strong commitment and daily hustles that contribute towards their growth.
Now let’s talk about taking the leap and starting your own business for the right reasons — the super common ground rule of starting a business is that your venture must solve a problem for your consumers. With a significant amount of research done, you must develop your business idea before putting in your papers. Some essential parameters to consider during your research:
Have a comprehensive idea of the cost of your product/service and what resources you would need for its development. Take into consideration the competitive product/service pricing in the market, cost of the staffing you think you require, any assets (like machinery or an office). Ideally, include all the basic expenses you will need to incur.
Are you going to be a sole proprietor, or are you going into business with someone? This categorisation is a crucial consideration for protecting personal assets, filing of tax, issuing equity, etc.
Assess your capital requirement carefully at the beginning and at each stage of the planning process. It goes without saying, do not spend your entire salary on your upcoming idea. Always have a rainy day fund kept tucked away. Budget your working capital requirement and daily expenses to know how much seed funding you require, i.e. how much you need in your savings before you can quit your job to pursue this idea. Once the time is right, put in your papers, serve the notice period and take a leap as a business owner.
During the ideation phase, to assess your financial needs, look at our article — to learn how startup owners must plan their finances. Have a clear path ahead always to be aware of the next move to make and your options. Remember, things may not always go as planned, and your business path may change ever so often, so keep updating and evaluating it.
The transition from a full-time job to owning a business can be risky and challenging. Still, with a plan in hand supported by a tremendous amount of research, budget allocation, and a will to succeed, you may call yourself a business owner!
Concept: Srishti Rishi
Editor: Minakshi Agrawal Todi