Thanks to the number of people who asked me to blog on this topic. Starting their own business seems to be a dream for many, realised by few and realised successfully by even fewer.
So, if you want to start up your own small business, but you’re afraid to leave your secure employment… I say – that’s okay! In the current economic climate, having a respectful amount fear isn’t the worst thing. Especially if it turns into you doing more research, preparing well and being financially, emotionally and mentally ready to start a business. If it’s just fear for fears sake – and nothing more than a massive cause of paralysis – then I’m not a fan of it.
I’m a big believer in doing things that stretch, but still fit into your comfort zone (bearing in mind that your comfort zone is different to mine, to the person next door to you at work and probably different to your partner, friends and family).
So, before you leave your employment to start your own business please consider:
1. Take five different small business owners (preferably in similar sized businesses to the one you would ideally like to run) out to lunch, coffee or cocktails. Get the low down from them on what it’s REALLY like to be in business (and not just what you think it’s like from reading BRW).
2. Figure out how far your dollar will stretch. How long could you go in this new business of yours without making a single sale. John Ilhan, founder of Crazy John’s waited six months for his first sale! If you’re not well funded, why not consider starting a business on top of what you currently do for work? If you watch two hours of TV a night, simply devoting those two hours gives you 14 hours you could be putting into starting a business that doesn’t require a full-time presence from you.
3. Take a look around your current business, or see a business broker – perhaps there’s an existing business with cashflow that you could buy or buy into that may be a good option.
4. Figure out whether you’re starting a business or starting a job? A business where you’re the only employee, it depends totally on you and pays you the same or less than your current job is a job, not a business.
5. If you started a business and it failed miserably and you lost all the start up capital you put into it and your time and you lost wages for the time you were in it, do you think you’d still be able to look back on it and say “I’m at least glad I tried?”
6. Do you have a passion for the concept behind the business you want to start? As the old saying goes: if you love your work you’ll never work a day in your life.
7. Have you got your business brain on? I’ve seen a truckload of successful sales people start real estate businesses because they were great sales people (it didn’t make them great business people). The same goes for the fabulous hairdresser or mechanic or doctor. Just being awesome at what you do doesn’t mean that you’ll be able to run your own successful business.
8. Have you read The E-Myth by Michael Gerber?
9. What’s your point of difference? Please don’t be another “me too” business doing things exactly the same as all your competitors. Be exciting, be different, give people a reason to want to tell their friends and family that they MUST do business with you!
10. Finally – don’t be discouraged by this blog, by your friends, by your family or by the guy down the road who thinks he knows everything. If you have the passion and desire to start a new business, you know the risks involved, you have a great plan and you know that if you were 99 years old and looking back on your life you’d regret not doing it – have a crack!
Kirsty Dunphey is the youngest ever Australian Telstra Young Business Woman of the Year, author of two books (her latest release is Retired at 27, If I Can do it Anyone Can) and a passionate entrepreneur who started her first business at age 15 and opened her own real estate agency at 21. Now Kirsty does lots of fun things which you can read about here. Her favourite current projects are Elephant Property, a boutique property management agency, Baby Teresa, a baby clothing line that donates an outfit to a baby in need for each one they sell andReallySold, which helps real estate agents stop writing boring, uninteresting ads.
Smart Company is the leading online publication in Australia for free news, information and resources catering to Australia’s entrepreneurs, small and medium business owners and business managers.
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