Do you also possess entrepreneurial aspirations beyond your existing 9 to 5 job? You are not alone. As per a Fortune report of 2019, almost half of Americans below the age of 35 have a side hustle. This can vary from a part-time job driving for Uber or having a small business. Many people remain satisfied with the juggling act of both their side hustle and their full-time responsibilities. This is more so with today’s riskier economic environment. To consider one day leaving the comfort of a steady paycheck can feel too risky. However, others ponder how to begin laying the foundation stone for their eventual departure from their full-time jobs to pursue their business idea.
There’s some good news for you. Laying the groundwork can feel far less daunting than you think. You can plan for details like your finances and how to unveil your new business or transition into it full-time, if you can plan for an assigned date of when to say goodbye to the company you currently work for. To the entrepreneurial life, this can create a more seamless transition. Here’s what needs to be on your mind if you are ready for the gear up.
Demonstrate to yourself that you can depend on your business
Leaping passion is great, but it’s far beyond rational to make sure that your business can really make money — and sufficient money. To just get started as if your livelihood currently depends on it is the best way to prove the economic viability of your business idea. Undoubtedly, market research and competitive analysis can help you understand how your business will do. However, nothing will help you take accurate stock of the economic viability like pretending you already exclusively depend on your business. Having a mental safety net can be hard to fulfil.
Making use of an advisory board to help guide you and to bounce ideas and challenges around is very fruitful so that you aren’t fighting all the battles yourself. You can consider allocating times during the day when you are working on the business, not in the business. For the sustainability of your business success, keeping your mental health in the green is critical.
Take pleasure in the overlap
Make sure that your business’s economic feasibility unavoidably means that there will be an overlap between your full-time job and operating your business full-time. Some optimistic entrepreneurs may feel cautious about being spread too thin between both. However, this overlap can also come with its own opportunities. In an ideal world, you should stick with your day job together with your personal business endeavours for as long as you can. Advantages of this overlap comprise more time to authenticate your entrepreneurial idea and funding opportunities for your own professional development.
Starting to take steps for your business aspirations before you need the money can be quite beneficial. If money isn’t your main object at first, you can be far choosier, over-indexing on unpaid but respected activities (guest lecturing at business schools or giving TEDx talks, for instance) and evading low-margin work or doubtful clients that could blemish your brand later on. Take advantage of the overlap temporary by making strides for your name and your new company’s name, so you have a launchpad when you finally leave.
Plan six months in advance
A six-month plan can help to ease anxieties even if you’re close to verifying your business’ full-time viability. Also, it makes sure that your launchpad has everything you need. The unavoidable ebb and flow of income is one of the major transformations that newly full-time entrepreneurs challenge. Some months may be slower than others. So, making use of at least six months to save a nest egg and plan for these lulls can help the shift feel more unified. Generally, a rule of thumb is to make sure that you have six months of expenses in savings. So, ensure that you have $18,000 tucked away, if your monthly expenses total $3,000.
When you’re just getting started, it’s natural to be optimistic about your business’ potential. However, it’s also important to be smart. You’ll never have a guilt on saving that extra money, even if that means that you have to stay at your full-time job longer than you’d hoped. You may think of saving up to six months worth of current expenses will be tough. However, before quitting your job, it will be easier to already have it socked away. It’s easier to save money when you make money.
When you set your eyes on the final goal of being your own boss, it symbolizes a vital transition that many entrepreneurs unavoidably make. Take it at your own speed and finish the evolution in a way that feels good for you and your business. You’ll know it yourself when it’s time to trust the call.