As an adult, growing one’s wealth is among the top priorities. Most start with being an employee to gain a decent amount of income. But many want to leap from being an employee to an entrepreneur. The latter holds more appeal because of the advantage of being your own boss. Also, it seems to be the faster way to climb the financial ladder.
Making this significant shift may not be as straightforward and easy. There are many things to consider before success comes knocking. For some, success as an entrepreneur may not even become a reality. So while many desire to take this momentous move, fear might hold them back. Knowing the fundamentals can help you muster the courage to enter the business world. Here are some ideas.
Start with a Side Gig
Some people want to be an entrepreneur, but they do not know what product or service they would offer. The sensible approach is not to be quick in quitting your day job. Instead, you could find a side gig that interests you.
For example, you may have some fascination with auto shop equipment. You can try to have a side hustle at an automotive specialty equipment shop. Then, you could have a first-hand experience interacting with the products. You would also see what items clients demand most. From this experience, you could see a slice of the industry you wish to take part in. The extra income is also an added benefit.
Talk to Some Experts
It is either a proud or a naïve thing to jump into the business world without taking some expert advice. Chances of success may be lower if you take the plunge without hearing from people who had been there. Do not treat other entrepreneurs as your competition. Even if you do, make it a healthy one.
Look for someone that you could consider as a mentor in your chosen industry. Also, you could talk to some key players in running a business like an accountant or a marketing coach. These people would all help you to form a concrete foundation of your business idea.
Ask the Opinions of Family and Friends
The best group that you can have as your initial clients are your family and friends. Before targeting a larger market, you can test your ideas with your core group. Discuss with them your concepts. Ask for their unbiased opinion if they would avail of such a product or service as a consumer.
If what you have in mind is something that you could prepare in small quantities, you can even test it with them. For example, you are looking to market a homemade facial cream. You could make a small batch and give it as gifts to family and friends. Then, you may gather some feedback and suggestions. Your family and friends are your very first network. They can offer your products and services to people they know.
Weigh the Effort and Risks
A business is not something that you use as an escape because you are not happy with your corporate life. You may have some conflicts, either internal or external, going in your workplace. But, you do not pack everything and transform yourself into an entrepreneur overnight.
Remember that all paths have their risks and difficulties. One of the things you have to be open about is the hard things you may encounter with your startup. You have to be willing to push through even in the face of adversities. Any business undertaking is not a golden ticket. Behind every successful business are hard work and inevitable small failures.
Prepare a Financial Safety Net
Financial readiness is essential when making the shift from employee to entrepreneur. A startup needs capital. Also, expect for it not to generate some profit for the first few months or even a year. This is a far cry from having a monthly wage as an employee.
If you wish to pursue a business, have a strong emergency fund. Make sure that you could sustain both your needs and the operating costs of your business. You would not want to abandon your business because you run out of funds.
The only person who can tell if you are ready to make the leap from employee to entrepreneur is yourself. It is a nice thing to have passion. But, take prudence and logic along with you. Decide and act based on practical strategies, and not on emotions alone. In the end, you may or may not succeed. Learn to pivot and make another plan. It could be returning to the workforce or trying another business idea.