Before you quit your full time job to start a business, it is important that you know exactly what business you want to startup and more importantly have carried out the research necessary to run your new business successfully. Many people tend to jump into a new business venture too soon without knowing fully what they are getting themselves into. Perhaps they do this because starting a business is so very appealing.
So if you are looking to start a business and are planning to quit your current employment to do so, then there are five things you need to consider first, before you take the leap into working for yourself. Take a look at these five points as you start planning your new venture.
1. Your Potential Customers: the most vital part of any business is its customers. They are the very thing that will enable you to make a profit and to be a success with your new venture. Before you start your business you will need to think about how you will attract customers as part of your marketing plan, including promotional activities and advertising methods. Market research is important in helping you to identify your target customer group which in turn will help you develop your marketing specifically towards them.
2. Your Business Name: every business will need to have a name. Not only is it important to give your new business an identity, but also to help you build brand awareness amongst your customers. Choosing a business is not as easy as it may seem as you will need to ensure any name you pick does not violate existing trademarks. You can do this by searching the U.S. Trademark Electronic Search System.
3. Your Business Plan: creating a business plan is essential to determining whether the business you plan to start will be viable or not. This document will cover everything from the outline of your business, how it will be financed and how you will market your new venture. Although this document is vital to securing capital investment, it is something you should refer to on a regular basis after you start a business to see if you are achieving everything you set out to do.
4. Your Finance: aside from the startup costs of your new business, you will need to ensure you have enough money to support the business through the first twelve months at least. Many business will not turn a profit in the first year and it can take time to begin generating enough turnover for the business to breakeven and support itself. Aside from this, if you quit a job to start a business then you need to ensure you have enough money available to cover your everyday living costs until you can draw an income from your new business.
5. Your Back-up Plan: you may have the perfect business planned and ready to start, but in this world there are no guarantees and your new startup could still fail despite all your careful planning. It is a good idea therefore to draw up a back up plan before you quit your current employment and start a business. A sound back up plan will ensure you have something to fall back on should your new venture prove unsuccessful. Ultimately it would make sense to never invest more than you can afford lose and never borrow more than you can afford to repay.