Entrepreneurship takes a lot: it takes courage, passion, vision, and self-confidence. If you dream of starting your own business, you possess all of these traits already! One important trait you need, especially at the very beginning, is discipline. There’s no doubt that taking the leap into entrepreneurship is risky, but we have some tips to give you the confidence you need to go for it.
Important First Steps
The financial plan is only part of starting your new business, and it’s not something that can be generic. Do your research, and draft a financial plan that caters directly to your specific industry or market. Make sure to include common costs in this specific plan, too. For example, if your previous job had an insurance plan, you’ll need to factor in the cost of your insurance into your new business plan.
When you’re preparing to take the leap, you should have two business plans to look at. Most people don’t plunge into entrepreneurship right away—they go part-time, or take the time to save up enough money to take the plunge. So you should have business plan for what your expenses and cash flow look like for your new business today. The other plan should reflect those things, but later with reduced income and savings.
If you have debt, pay off as much as you can before you start your new business. You’ll need at least three to six months of fixed living expenses in place before you transition into a full-time entrepreneur.
There are two people who can make your early days as a new business much, much easier: a certified financial planner and a tax professional. They’ll make sure your business stays on the right financial track, and that you’re doing everything you should.
Extra Entrepreneurship Tips
It’s a good idea to check on your retirement account before you leave your current job. Depending on your seniority at the company, they may be able to match whatever you’ve contributed over the years.
You’ll need good people around you, for both personal and professional support. Close mentors or friends will help you get through the rocky first stages of a new business, and can give you advice or help for free.
Do yourself a favor and set up separate business savings and checking accounts at the very beginning. Keeping your personal finances separate from your business finances will make things far less complicated for you and your financial advisors.
To get connected with other local entrepreneurs and get more helpful tips, contact the Entrepreneurs’ Organization now!