If you are tired of being an employee and want to start your own business, here are some steps to help you transition:
1. Start by thinking and deciding what you really want to do, whether you want the comfort of a regular paycheck or the risk but excitement of entrepreneurship. And then pursue it.
2. Decide what business you want to do. There are different approaches:
- start a business based on what you are doing in your career (if you work as a web designer with a company, you decide to embark on a web design business on your own)
- start a business that highlights your interests such as pursuing hobbies and turning it into a business
- start a business where you see good opportunities, even if totally different from your career or something that you have never pursued before
3. Start researching about the business. Whether you will actually prepare a business plan or not, think of the following
- how does this business actually works
- what is the demand for this business
- who are the customers of this business
- what are needed to start and successfully run this business
- what are the cost elements of this business
- how much do you need to start this business
- what do you need to acquire to start and run this business in terms of skills and knowledge
4. Start looking at the resources needed for your business
- knowing how much this business entails, do you have the funds for this business
- if not, where will you get it
- what are your chances for getting this money (e.g. if you are going to apply for a bank loan, do you have some equity of your own as well as collateral and do you have good credit?)
- do you know any investor to help you fund the business, or even how to look for investors
- if you cannot raise the funds, what are your alternatives and back up plan (e.g. are you going to downscale the business, or will you postpone starting it)
5. Decide on how you want to pursue the business. Will you
- quit your job immediately and start working on the business?
- will you continue your job while starting on the business during weekends and your spare time?
- will you reduce your work hours at your job in order to devote more time to jumpstarting the business?
- will you hire someone to help you do initial legwork for the business?
6. Involve your family in your decision making
- if you quit your job, do you have insurance or are you prepared to buy self employment insurance for yourself and your family
- do you have saved money that can tide yourself and your family for at least 6 months
- 1 year in the event that the business will not yield the income you expected
- if you need additional manpower, can you rely on your family members to help you
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