This is a very common question I get from a lot of people. Lot of people have jobs where they have a steady income, now they want to venture into their own businesses.
The questions most people ask are “Should I quit my job and start a business full time or should I start a business part time?” or “Would it be helpful to do a masters of science in management before I start a business?”
There are several factors to consider before you answer this question.
#1 Can you go on for over 2 years without an income?
For several people coming from the employee side of the table, it’s hard for them to imagine that it can take up to 2 years to generate an income from your business. There are instances where your business can become profitable fairly quickly in 6 months or less especially service based businesses. But there are several other businesses that can take up to 2 years to break even. So, make sure you have enough savings to take you through for at least 2 years.
#2 Where are you getting the money to start your business?
Lot of people start a business from savings. The question to ask yourself is “Can you afford to lose the money?” If you cannot afford to lose the money, then you need to look at other options, having your family members or angel investors invest in your business is sometimes the best option.
I personally do not recommend people take a loan to start a business. I think taking a loan to start a business is one of the worst things you can do especially if you are a first time entrepreneur.
First time entrepreneurs sometimes don’t understand that it takes lot more money than they initially predict. So, it’s very important that you have your financial side in order before you quit your job.
#3 Does your job allow you to start a business part time?
When I recommend people to start a business part time, they often tell me that their job is so hectic that it takes up majority of their time. If you are working 8 to 10 hours a day then it can become really difficult to start a business on the side.
I usually recommend people to start a business part time and once they have enough paying customers and are profitable they can then quit their jobs and have their business supplement their lifestyle.
If your job is hectic and you want to start a business, you may want to get another job that is less hectic maybe a part time job or ask your spouse to work overtime with a promise that she could quit her job once the business can stand on its own feet. Or ask your parents to support you till your business begins to support you.
About the author
Vinil Ramdev is an entrepreneur, business coach and author of several ebooks. He is founder of StartUpGrowthExpert.com – An Online Resource For Entrepreneurs who want to start and grow their businesses.
You can schedule a one-on-one telephone consultation with Vinil by clicking here.
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