Timing is everything. Someone has rightly said that! A few decisions must be taken at the right time to reap its benefits for lifetime, especially when it comes to work. So, if you are done with 9-to-5 grinding and you have started finding it overwhelming, it’s time to start making a side plan to initiate your own business, no matter how small would be the starting, but it’s important to listen to your inner calling. However, when you begin, the road is not much smooth as it seems.
You need to put in 100 thoughts and make a thorough research. But then, the point comes that all factors must be ticked before one quits and immerses completely into his/her new venture. In this article, we will help you out with solid points. So, let’s read them one by one:
1. You will be Earning a Decent Income:
Let’s get real, after starting your blossoming venture, it’s obvious that you may not earn the same as your current job is offering you. And that’s okay, it doesn’t have to meet that magic line to be worth pursuing. All you need is to atleast earn half of what you’re earning now to live a balanced life. Plan how much your business can offer you so that you can meet your basic expense, but live the life of your dreams. And when it comes to your decent income, you must consider the expenses of dependents too like – the elderly or children, for example – their school fees, medicines, etc.
For that, you may have to forgo your monthly TV subscriptions, and yes don’t have to fantasise about outside food anymore. Plan and budget wisely to strike a balance between financial stability and entrepreneurial aspirations.
2. You have Built Up a Solid Financial Foundation:
Before quitting your job to start your own business, it is crucial to build up a cash cushion. Without enough funds, your business may struggle to take off. Start by creating an emergency fund using your full-time job income. The more money you save, the longer you’ll have to fully dedicate yourself to your side hustle. While it’s important to save, don’t let the safety net become a trap. Determine the amount you need to cover your expenses for the first six months, alleviating financial pressure and allowing for sound decision-making. Once you reach your savings goal, you can confidently leave your job and focus on your business full-time.
3. You have Tested your Business Model:
Hold off on quitting your day job until you’ve proven your idea. Don’t wait until the end of the month, facing looming bills, to figure out how you’ll make money. It’s crucial to establish a well-thought-out business plan. Before making the leap, it’s essential to find, test and prove a business model that shows potential for growth. For instance: you have showcased your creative skills for brand promotion, and you have received positive responses from high-paying clients. Once they establish a proven business model, they can confidently leave their day job to pursue more clients and increase earnings.
That’s just a simple example – other ideas might take longer to validate. But you must look for answers to the questions like:
1. Do you think that your business can sustain for long?
2. Will you be able to cater to enough markets?
3. Can competitors surpass the quality of your product?
4. Will you be able to raise prices in the long run?
5. Will you be able to hire staff, or can you run things independently?
Answers to these questions can confirm if your business model will be ready to scale.
4. You have Assessed the Market Conditions:
Market conditions play a pivotal role in entrepreneurship. Assessing the current landscape and trends is essential. A booming market presents opportunities but also intensifies competition. In contrast, launching during a downturn offers unique advantages like lower costs and the potential to fill market gaps. Analyse factors such as demand, competition, and economic climate to identify the opportune time to start your business. Understanding market conditions can be a game changer for your entrepreneurial journey.
5. You have enough Awareness about your Risk Tolerance Capacity:
It is important to assess your risk tolerance before quitting your job and diving into entrepreneurship. Understanding your comfort level with risk and uncertainty is crucial as it can help you determine whether you are financially and emotionally prepared to embark on a business venture. Evaluating your risk tolerance prior to quitting your job allows you to make an informed decision, ensuring that you have a realistic understanding of the challenges and potential setbacks that may arise during your entrepreneurial journey. It provides a solid foundation for a smooth transition from employment to entrepreneurship.
6. You’re Ready to Bring Your Side Hustle at a Fore Front:
Sometimes, side hustles serve to generate extra income without becoming a full-time commitment. However, some side hustles refuse to remain on the sidelines-they demand to be at the forefront of your attention.
If your passion for a venture consumes your thoughts and refuses to fade away, it may indicate that there’s something substantial that shouldn’t be confined to a mere side gig. To determine if your side hustle deserves a prime position in your life, honestly assess your enthusiasm. Is it just a passing interest, or can you envision yourself wholeheartedly dedicated to it a year from now? Delve deep into what sets your side hustle apart and answer these essential questions:
Q1. Does it ignite the desire for freedom as your own boss? While this is a compelling reason to start a business, it doesn’t necessarily justify leaving your full-time job (at least not yet).
Q2. Does it excite you about its income potential? Money can’t buy happiness, but it certainly makes the pursuit of it more manageable. However, financial gains alone won’t sustain the passion for your business—there needs to be something more profound driving you.
Q3. Do you find a genuine affinity for this type of work? Your corporate job may not engage you in the same way your side hustle does. Perhaps your startup aligns with your interests, allowing you to do work that not only improves your career but also enhances your overall life satisfaction.
Explore these questions with introspection. They will help you determine if your side hustle is destined to be more than just a side gig and guide you towards making the right choices for your entrepreneurial journey.
7. You’re Fully Prepared Physically, Mentally and Emotionally:
Assessing readiness for full-time entrepreneurship involves more than financial factors. While a solid business model and stable income are crucial, mental, and emotional preparedness is equally important. Timing is key; consider personal circumstances and overall well-being. Breaking free from corporate life may solve some problems but can bring added pressure. Recognise that complete readiness is elusive. Be honest with yourself and evaluate your readiness. Don’t rush; your full-time job allows time for reflection.
Last, but not the least, gaining knowledge and skills through enrolling in relevant courses before quitting your job and starting a new business is essential. For example, when venturing into the stock market, it is crucial to acquire expertise. Consider enrolling in a reputable stock market course to navigate effectively. Furthermore, partnering with a brokerage firm can facilitate starting an online franchise, enabling the opportunity to start an entrepreneurial journey later.
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