Six tips to give you a business head start

I attended a forum for women in business yesterday. Many of the people also in attendance were not necessarily in business.

Many of them were employees who wanted to know how to take the leap and become business owners. A few of us in business had casual conversations with them and these inspired this article.

Maybe you have often wondered what it takes to take the leap. Maybe you do not want to do that now, but are thinking of going into business in the next couple of years.

There is definitely a mindset shift required when deciding to become self-employed and it is only that actual act of taking the leap that will teach you certain fundamental lessons.

Here are some of the points that came across from the conversations.

There is never a right time to leave your job

If you wait for everything to add up properly, it is just never going to happen.

You are never going to have the perfect bank account balance. If you wait for the children to go to school, it is not going to happen.

It is fine and even advisable to plan for it if you can, but you cannot plan forever. For example, if you decide you want to start this business in a year, you can plan to save a certain amount every month to give you a financial foundation.

You can even use this period to brush up on certain skills or networks that may assist you. However, once that period is over, you need to actually start.

You will feel as if you still do not have enough money, skills, or networks, but the greater lessons and resources will only become available to you once you are actually in the game.

Life will not be the same

In all probability you will not earn an amount equivalent to your current salary for a long time to come.

Maybe you want to start a business because you admire people who have been in business for a while and want to have their lifestyles.

What you do not see is the journey that these people have taken to get where they are today. You will not be able to spend money the way you used to.

Going out for lunch or drinks may not come as easily as it once did. Even basic expenses may be a struggle. If you are thinking of going into business because of the perceived financial perks, do not leave your job.

These usually come after a significant struggle. Go into business because you are convicted about a solution you want to provide.

You cannot ride on your employer’s brand

This was a very hard lesson for me. I previously worked for a large financial services organisation.

I had many clients and I assumed they would move with me to my small business. The clients did like me, but they liked the brand of the company that I was working for better.

My work was a reflection of the company that employed me. So, you may have a skill that has been cultivated and nurtured in the organisation you work for.

No one can take that skill away from you, but you will need to build your own profile and brand and that is where the hard work is.

Many people want to leave employment and start a business in that line

For example, an accountant may want to start an accounting firm.

At your job, you were probably only doing accounting, but as the owner of the accounting firm you will have to find clients, deliver documents, collect payments, manage staff, and a lot of other tasks that do not necessarily involve actual accounting. Also, do not limit the business you can start to the qualification you have.

If you were an accountant you can also start a construction company.

The attention to detail you used in accounting will assist you in your construction company. 

Do not be discouraged by statistics

One of the most common statements thrown around is that four out of every five businesses fail. I do not have statistics but from my observation among the business people I know, I strongly disagree with this.

The businesses do not fail but transcend. Many people start one thing, then end up doing something else. In my books that is not failing.

In the process of doing the first business, they learn something or discover a different opportunity. They shut the first business simply to pursue the next one.

This happened to me; I shut my stockbroking agency to pursue financial education.

Lastly, focus your resources on the key requirements of the business

 In the large organisation you worked for, you got used to certain resources.

A receptionist, an office messenger, and assistants for everything. When you start a business spend only on the core things.

There is no point having a receptionist if you do not even have enough client traffic to justify one. Spend first on the things that directly get you clients.

You may not even need an office as yet and if you do, it does not have to be the plushest you can find. Do not try to recreate the environment you had while you were employed.