If you’re pondering quitting your job to work your own business full time, there are a few steps you should take first. At Koelle, we’ve worked with a lot of entrepreneurs and we’ve seen what works and what doesn’t. By following these steps, you will be positioned for real and lasting success in your own business.
1. Have a Financial Cushion
We recommend entrepreneurs know what their monthly living expenses are, including food, housing, insurance, and all other bills, and have enough savings to cover expenses for six months to a year. Having a financial cushion allows you to grow your business without worrying about feeding the family. It also allows you to reinvest, if needed, to build the company in the beginning.
2. Thoroughly Prepare
There are several components to this preparation:
- Research the market, product or service, competition, your target audience, ideal client, the costs of doing business, legalities, etc. Engage the services of a knowledgeable advisor to help you investigate your industry thoroughly.
- Create a business plan. Define your business structure (sole proprietor, partnership, LLC, corporation) and understand the tax implications of each. Create your company description, objectives, vision, and mission statement. Build your marketing and communication strategies. Create your operational and financial plan. Again, an advisor experienced in guiding entrepreneurs through start-up or scale-up is a critical help at this stage. A thorough business plan is necessary, not only for developing a clear plan of action, but also for raising business funding.
- Consider funding options. This could include personal financing, bank loans, venture capital, and even grants and awards. Research each to find out what options would be best for your situation and what you need to do to secure funds.
3. Develop Client Outreach
A website, social media venues, LinkedIn profile and company page, portfolio, and resume are all valuable for reaching your target market. Though you should have multiple methods of communication, be sure to focus your attention and energy on the avenues used by your ideal client.
4. Build Your Business
Before you leave your job, start building your business and providing your product or service to a growing number of clients or customers. As your business grows, you may find that you reach a point at which you could scale up if you had the time, but your job prevents it. When that happens, it’s a good sign you’re ready to quit your day job and throw yourself full time into your own business.
It may never feel like the “best” time to quit a steady job, and it’s always a little scary. But if you take the time to complete these steps, you’re 110% committed to success, and you work with an experienced advisor who has helped others in your industry take the plunge, you have a very good chance of success.
Reach out to us here at Koelle to see how we can help you with your start-up or scale-up. We serve Willow Grove, Abington, Ft. Washington, Huntingdon Valley, Warminster, and surrounding areas.