|Smile and optimistic to start a new business. Image: wealthysistaspublishing.com|
What is your response on the attractive offer?
Maybe you to think long before making a decision, a smile, or you reject for any reason, or reject without reason. Many people are not ready to start a business on the grounds do not have the talent in the fields of business, or do not have any capital, do not have the time and a variety of other great reasons. Maybe you do not dare to accept the challenge, so that you remain as an employee of the company or in the office where you work at this time.
Let's start a business now
Nowadays, many people started looking for her passion and make it as a promising source of livelihood. Many years as an employee, what can swerved into an entrepreneur? It could be! If this is a life choice that you want to run. Try evaluating how prepared your finances in the process of transition from employee to entrepreneur.
Firstly, you must create a comprehensive business plan. A business plan should answer important questions such as: What are you selling? Who is your market share? How big is the potential market value today and in the future? What would be a competitive advantage in business competition? How do you make a profit? How much of competition is in the business category?
Secondly, after completing a business plan, then you access the funds as a source of working capital. The business plan gives an overview of how much capital you need, whether the need to borrow from the bank, and how your business can pay the working capital debt.
The third, create a monthly budget of a new household. How do you determine how much income per month? When you work for this business, then specify the monthly salary you take of business. Enter the amount of salary as part of operating expenses. Well, make sure the household expenditure is less than the basic income of the business. Make sure you set aside a budget to cover the company's losses and operational financial obligations.
Fourthly, prepare a personal financial. One of the greatest fears an office employee-turned-entrepreneur is the risk of not getting regular income. Do not be discouraged if at an early stage, you do not get the same amount of current income as an employee.
The fifth, have a contingency plan as a backup plan if something goes wrong so it does not run smoothly. Consider the following:
- Do you have the option to go back to work full-time at your old company?
- Do you have the option of returning to full-time employment with a new employer?
- Do you want to try a new business direction (ie still be an entrepreneur, but in a different industry categories)?
Therefore, before starting a business, you are required to have an adequate emergency fund availability. These funds must be deposited in the form of ordinary savings or time deposits with a minimum of 12 times the amount of regular monthly expenses. This fund is used to meet the needs of your routine when you have not provided revenue effort. In addition, it is worth considering your options contingency plan.
Do you already have an adequate emergency fund?
I personally have experience building financial consulting business after working in a large multinational company for five and a half years . Six months before deciding to stop working , I collect and use emergency funds to meet the needs of half the salary every month .
Business Finance and Personal Finance
Finance business is a different matter with your personal finances . When you decide to do business , separate direct finance to businesses with personal financial . Discipline in bookkeeping should be done from the beginning .
The initial capital investment is your business . Take note of how much investment you have to spend as venture capital . Any expenses for business , the business must be paid from income . The same principle works in reverse . Every business income can not be directly used to fund your household budget . Using the cash flow of business for purposes of personal finance is a big mistake .
Do not be Afraid to Start
In the early stages of starting your own business, results of operations sometimes not in line with expectations. Do not back down just because you are afraid of losing a regular income that is commonly enjoyed as an employee. Ideal business always starts with the big plans and supported. However, keep in mind to strengthen the domestic financial foundation before starting a business.
I also believe, that to start a business also takes strong faith, unwavering commitment, and is based on a powerful dream, so you have a strong drive and motivation is purely from within yourself. Do you believe in your dreams?
Source of article in part inspired from an article written by Pritchard Ghozie, an Independent Financial Planner of ZAP Finance.