You have a dream but you need a
checklist to achieve it.
So
you've decided you're ready to take the plunge, quit your job, and get your own
company up and running. You have an amazing ">businessidea you are ready
to launch. You're probably excited and nervous at the same time, which is
perfectly understandable. If this is the case, you need to take a step back and
remember that you simply can't walk into work tomorrow with your
resignation letter.
Being impulsive could be
a huge mistake so you need to create a list of the advantages and disadvantages
you will face when quitting your job. If you decide it's still what you want to
do, there are a few things you must put in place before you quit.
To help you get ready
before your big day of freedom, I've highlighted 10 things you should do before
quitting your job and starting your own company.
1. Do research.
Quitting your current
job before getting your company off the ground may seem like the best option,
but trust me, it's not. The best way for you to get the wheels rolling in a
safe and profitable way is to grow your business while you are still employed.
This will make your transition from an employee to an entrepreneur a little
smoother.
You can't jump head
first into building your new office block or warehouse if you haven't done your
research. You need to know that you have a product or service that you know the
ins and outs of, that is unique, and above all, that will sell.
Background research you
need to do includes, but is not limited to:
- Learning everything about your product or service
- Knowing your audience and buyer personas
- Researching your competitors
- Finding the right teams
- Knowing what your most profitable sales and marketing channels will be.
2. Create a business
plan.
Once you've done your
research, you need to put it on paper. Laying out a business plan before taking
the plunge will be a key success driver. Your business plan will be something
you will show to potential investors, partners, and other company stakeholders.
It typically includes:
- An overview
- An executive summary
- A company description
- Your objectives, vision, and mission statement
- Information about the market and industry into which you are entering
- The strategy you are going to follow to enter the market
- The team you will have
- A marketing plan
- An operational plan
- A financial plan
- An appendix with more detailed information
3. Outline Your Funding
Options
Before looking at funding for your
company, you need to have your own personal finances in check. If you quit with
just a couple of hundred dollars in your pocket, with rent, insurance, and your
phone bill to pay, you may find it difficult to focus your efforts on your new
company.
In addition to planning
your personal finances, you will need to have a plan for your startup. You'll
typically have three options:
- One or multiple investors
- Your personal savings
- A grant or award for your project
- Either way, you need to plan in advance because if you can't get the capital to get started, your business will stagnate and you will be faced with very few options.
4. Create the structure
for your business.
You need to have the
structure for your startup in place before you can quit your job, specifically,
your legal structure. There are various types of businesses entities you could
become:
- A corporation
- A limited liability company
- A partnership
- Sole proprietorship
- You need to consider:
- The operational complexity
- Liability
- Taxes
- Control
- Capital
- Licenses, permits and regulations
5. Leverage your
resources.
Of course, you do not
want to spend money if you can avoid it. You need to look at the resources that
are currently available to you. For example, you may have a friend who is a web
developer; they might be able to give you special rates and work for you on a
need-to-know basis.
You should contact
friends who have started their own business and ask them if they know a good
accountant, marketing expert, and so on. Think about joining an online book
club to learn more about entrepreneurship, try Read with Entrepreneurs by Cynthia Johnson.
Lastly,
contracting all your experts could become expensive. Consider investing in
online education for your team that will teach them skills, such as SEO, email
marketing, and much more.
6. Leave on a good note.
Quitting your job
without working your notice period, gossiping across the office, not completing
your final assignments, and not training your replacement could be the worst
decision of your life.
Of course, you are
leaving to start your own venture, but you cannot be sure that tt will be a
success or that your old company won't come in handy one day. Leave without
burning any bridges amd you may be able to cash in a favor one day. Your old
employer may even send clients your way knowing that you are a trustworthy
businessperson.
7. Don't forget the
smaller planning details.
As an entrepreneur, it's
easy to become the type of person that can see the big picture. Unfortunately,
if you don't focus on the small details, you won't be able to mold the perfect
company. Planning is key, and little things such as choosing the right social
media channels, keeping up to date with emails, or even remembering to file
your taxes are vital to your success.
8. Choose your new
office space.
When planning the day
when you quit your job, many assume that they will work from home until their
company is off the ground and they have a team backing them up. Although this
could work in the short term, it's not a feasible option in the long run.
If you
choose to work from home, you need to find a balance between your personal
space and work space. Working in bed, on your computer, all day, every day will
lead you towards an unhealthy lifestyle that could have a domino effect on the
progress your startup makes.
9. Create a portfolio or
resume.
You may think that
owning your own company means you'll never have to create another resume in
your life. Wrong! Bulking up your resume and/or portfolio is a key driver when
building your new business because you will need to prove to your investors,
teams, and even clients that you are worth their money.
10. Finally...
Remember
that starting a new business is going to be more challenging than you imagined.
You're going to have to make the planning process your full-time job before you
even see an income. That said, with the tips outlined above, you could make it
the best, most profitable adventure you've ever embarked on from both a
professional and emotional point of view.
-Dave Peck
-Bheemesh Chowdary Kacharagadla
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