It has never been this easy to start a business. This is one of the reasons the rate of resignation is increasing geometrically.
That you had a successful career does not guarantee that you will build a successful business.
Dropping a stable income to launch your own business is a risky move. This is why you have to look very well before you leap. You have to be brutally honest with yourself.
Nine out of every ten businesses fail. In other words, there is a 90 percent probability that you will fail in business. This is why leaving a steady income to start a journey of uncertainty is not a hurried or careless decision.
Before you resign from your job to start a business;
- Count the cost of resignation
Just like entrepreneurship, a 9 – 5 job has its own advantages and disadvantages. Interestingly, the grass looks greener on the other side. What do you stand to lose if you resign from your current job?
2. Clarify your reasons for starting a business
From frying pan to fire is when you resign from your 9 – 5 job to start a business because you want freedom and leisure. Are you resigning from your job to start a business because your salary is small or because you hate your toxic boss?
Entrepreneurship is not a get-rich-quick scheme. If your plan is to start your business today so as to buy a G-Wagon tomorrow, you are already defeated. Are you resigning to start a business because other people are doing the same?
3. Read your employment contract again
If your business is going to compete directly with the company you work for, then common sense demands that you keep mute until you tender your resignation letter.
You need also need to check your employment contract carefully for competition clauses that could lead to legal problems if you choose to launch your own business.
If you are going to work in a similar industry or niche like your present employment, make as many connections as possible.
4. Save enough money to operate your business for at least two years
Make sure you estimate how much startup capital you need bearing in mind that every project takes twice as long and costs twice as much as you expected. From the first day, you will start spending money, whether or not your business becomes profitable.
Oftentimes, bootstrapping takes the lead before angel investment, or venture capitalist shows up.
5. Save enough money to maintain your standard of living
Before you resign to become a full-time entrepreneur, save enough money (at least two years of your salary) to maintain your standard of living, especially if you have people depending on your monthly income.
6. Start a service-based business before selling a product
Try to offer services before selling a product. It is easier and less capital-intensive to start a service business than a product business.
7. Start your business as a side hustle
Resigning before starting your business may seem like a good plan, but it is not. Don’t wait to leave your current job before starting your own business; start it while you still have it. If your side hustle is not profitable, there is no probability that a full-time business will succeed.
I know it is not often easy combining a side hustle with a 9 – 5 job. Besides, your steady income will help you foot the bills and startup costs.
Please, don’t allow your side hustle to affect your productivity at work. Don’t do your business during work hours. Don’t use your company’s resources, data and contacts for your side hustle even if your employment agreement is silent about it.
8. Test your business idea
Start working on your business idea while you still have a job so as to know if it is a problem-solving idea or a shining stone that solves no real problem. Great ideas fail too.
9. Have some paying customers first
Before you resign, make sure that you have some paying customers already. This is because getting new customers for your new business may not come faster than you think.
10. Plan your time well
Manage your time well, especially if you have other important obligations and responsibilities or operate a time-sensitive business. It is foolish to sacrifice family time with the excuse of building a business.
11. Leave your job a good note
Exit with honour and dignity. Don’t burn bridges. Don’t slam the door on your past employers and colleagues. Don’t conspire with others to leave the company.
Don’t become enemies with your employees or employer because you want to start your own business. Oftentimes, they are your first set of loyal customers and unpaid marketers.
Besides, if, for whatever reason, you want to exit your business and go back to a 9 – 5 job, you have already built connections that can make that happen faster. Having a fallback plan is a wise decision. Tí iwájú ó bá sè lọ, ẹ̀yìn á sé padà sí.
12. Come up with a simple business plan
There are competitors who have gone ahead of you. They have loyal customers already. You have to devise a strategic means to ‘snatch’ some of these loyal customers, get new customers and have your own share of the market.
Your business plan will help you to predict how long it will take you to break even and start making a profit. Your business plan should be as simple as possible. There is no rule that says that your business plan must be written in English language.
13. Have a mentor
Look for a mentor who is doing what you want to do or who has gone farther than you. Follow who sabi road, not necessarily your Pastor or Imam.
Experience is not bought in a bookstore. You may even have to serve first as an apprentice to gather real-life experience before you jump into the risk.
You either serve your way to mentorship or you pay your way. If you can’t find a mentor, pay a business consultant. By all means, run away from motivational speakers and family and friends who give free business advice.
14. Do your own analysis
If you are waiting for people to tell you which business is right for you or choose the right business for you, you will most likely make a wrong choice of business and a regretful mistake.
Entrepreneurs don’t wait for direction; we figure it out ourselves. Before you choose a business or niche, assess the market need. Assess your own strength and weaknesses. Pick a profitable niche with less competition. Assess your skills and resource.
Assess your personality. If you are shy to market your business shamelessly, a 9 -5 job is not for you. Ẹnu kìnìún lowó wà. Shey you get mind? How well can you multi-task? Are you a people’s person or a one-man mopol? Are you a thinking person or a workaholic?
Are you a reckless spender or very prudent with money? Do you have the right skills and resources to get your business running? Can you leverage tech tools and social media for your business?
Do you have a financial backbone to bankroll you or a safety net to support you financially? Entrepreneurship is harder for the poor.
Are you self-motivated and emotionally strong? You must know how to draw inner strength in this lonely journey. Because starting a business is like living like an orphan. You will cry hot tears, pat yourself on the back and move on.
15. Read, study and learn
Know the latest trend in your industry. If you cannot mention at least 5 top businesses in your field, you are not ready yet. Sit your ass and learn.
The business world is no respecter of anybody. Do your homework. Ask questions. Study your industry and competitors. Study your market and potential customers.
Learn about branding, pricing and customer relationship. Learn how to shoot strategic shots. Learn how to hire rightly. Learn how to manage crisis in your business. Learn how to determine the appropriate salary for your employees.
I wish you all the best in your decision.
In my book, SATURN (A Business Book for African Entrepreneurs), you will learn the A – Z of doing business in Africa.
© Kingsley Ndimele
Your Reliable Consultant