For a lot of people, running their own business is the American Dream, and before you say that it may sound a little hokey, there are a lot of practical reasons to try and strike out on your own. For one, there’s the opportunity of autonomy, the chance to not only not to have to answer to a boss, but not have to worry about job security if you are in a field. In addition, running their own business gives many entrepreneurs the chance to further their passion in a way you can’t in a lot of conventional jobs. However, where the opportunities are great, so is the potential for things to go south. More businesses fail at the beginning than succeed, and a lot of the reason why is that they don’t plan accordingly.
What Do You Need To Know?
One good place to start when talking about your business is making sure that you have a concrete goal. Concrete here means a little more than just running “the best x company in your region,” for example. What is it that attracts you to business? We mentioned a few potential reasons before, but it’s important to keep in mind that setting out on your own won’t fix all your problems. Saying that you hate your boss or want to work less are flimsy reasons to start out on your own. Not only will running a business of your own not really handle these issues, when things get difficult, it’s easy to get burned out in these cases.
Another thing you want to make sure that you pay proper attention to is what the market is for your business idea in the area you plan on servicing. Let’s face it—there’s not a whole ton of completely original business ideas out there, but many people are able to do well by approaching a classic category in a different way. Make sure that you’re not simply cloning another option out there, have a reason in mind what will make you stand apart.
What Do You Need To Do?
When you’re in the right mindset to start a business, the time has come to start laying the groundwork. First, ideally, you’re currently working a traditional job while you’re thinking about this, so you have some money coming in. Ideally, six months before you leave that job, you’re going to be business-ready. This takes many forms. For one, you’re going to want to make sure that you tighten the belt a bit with regard to spending. The majority of businesses aren’t going to be profitable in the beginning, so you’re going to want to have a safe fun to live off of while you are getting off the ground.
Equally important is making sure that you start preparing your network for being a business owner rather than an employer. Consider taking advantage of that six-month window to start solidifying your references and attending a few networking events in your planned niche to get an idea of what other people are doing and maybe even to make a few useful connections. All of these will come in handy later when you want to start to get to the pitching stage.
At this point, the next thing you want to consider is what your work style is going to be. Chances are that you won’t have a lot of employees yet, so you’re going to be wearing many hats. This isn’t a bad thing, but decide if you’re most effective working at night, during the day, or if you have other commitments like family that will eat into your time. In these early days, any time you spend not working is going to be money you’re potentially costing yourself.
One thing you also want to do is make sure that you are set up properly on a legal platform. When many people are starting out in business, they may have a difficult time understanding how legal responsibilities may differ with a proper business versus a “side hustle” or sole proprietorship. Contact the corporate law planning attorneys of Peck Ritchey LLC if you find that you want some added advice or consultation.
A business is a great opportunity for many people to set out on their own and focus on something that really is important to them. Of course, you don’t want to be one of the people who end up putting everything into a doomed idea. Ideally, even the soundest business plan should have an exit strategy.