Some people say that home ownership is the ultimate American Dream. Others might say that it is business ownership. If your dream is to start your own business, do you need to keep your day job at the same time?
There is always risk involved with any new venture. Starting a business, even one from home, is no exception. The fear of failure shouldn’t stop you from pursuing your dream but do so with caution and sober reason. The last thing you want to do is to create a big financial problem for your family.
What to Consider Before Quitting Your Day Job
It’s good to evaluate the risk and potential gain involved in working for yourself from home. This is where a business plan comes in. Every company, small or large, needs one. It is necessary to ask yourself a few questions before you quit to forge ahead with a business.
Here are some questions to ask:
Can you fund your business? – What will it cost to run? Home-based businesses have an advantage of low overhead in most cases, but that doesn’t always mean free. Using your savings is not a good idea, you more than likely built those for a reason other than business and that money should stay as is to support your family during an emergency. Using your business plan, seek capital from a financial institution first before dipping into your hard-earned piggy bank.
Can you support yourself? – When you are talking about pursuing a new business full time, the income that sustains your household needs to come from somewhere else. If you are a two-income household, can you comfortably live and survive on just one income in the early stages of business ownership? Can your work your budget so that all needs are met and the bills are paid without any issues?
Are there unforeseen costs involved? – You’d be surprised how many people get into business and are shocked by the amount of money they had to spend that they didn’t account for. Unforeseen costs can be a nightmare. Obviously, you can’t predict every scenario that might happen but you’ll want to add in extra capital for upgrading equipment, contracting services and such.
Can you handle several roles at once? – In the beginning, you will be wearing many hats. If you are a mom, you are going to be running a business while maintaining your household and raising children. It will be your responsibility to take in orders, advertise, network, answer customer service calls, fill orders and whatever else needs to be done. There is no modesty when you are the boss.
Is your knowledge up to the task? – We all have strengths and weaknesses. In business, it is the weaknesses that determine how strong your company will be. If you are starting an internet business, but don’t know much about online marketing strategies or SEO, the choice will be to hire someone who does or take the time to learn all about the techniques yourself. If you aren’t knowledgeable in something you need to know, can you afford to outsource it or take the time and energy to learn it yourself?
There is nothing wrong with working a business part time in the beginning. You have to understand that growth may be slower since you aren’t able to dedicate everything to your new business. But if you are willing to start up a business and put in a part time effort for a period of time, it can be well worth it!