Ready to start a business?

I attended a forum for women in business yesterday.  Many of the people who also attended this forum were not necessarily in business.  A lot of them were in the corporate world or in employment and wanted to get some insights onto how to take the leap to becoming business owners. A few of us in business ended up having some very casual conversations with them; conversations that have inspired this article.  You are probably reading this article and have maybe often wondered what it takes to make that jump. It may also not be something you want to do now but may be something you may be thinking about doing in the next couple of years. There is definitely a mindset shift required when deciding to become self-employed.  At the end of the day it is only that actual act of taking the leap that will teach you certain fundamental lessons, but here are some of the points to note that came across from the conversations.

1. It is never going to be the right time to leave your job. If you wait for everything to add up properly it is just never going to happen. You are never going to have the perfect bank account balance.  If you wait for the children to go to school it is not going to happen. It is fine and even advisable to plan for it if you can but note you cannot plan forever. For example if you decide you want to start this business in a year, you can plan to save a certain amount every month to give you a financial foundation. You can even use this period to brush up on certain skills or networks that may assist you. However once that period is over, you need to actually start. You will not feel like you have enough money, skills, or networks. The greater lessons and the resources will only be availed to you once you are actually in the game.
2. On the same note you will need to accept that your life will not be the same. To be financially direct, in all probability you will not earn an amount equivalent to your current salary for a long time to come. You may admire people who have been in business for a while and want to have their lifestyles. You then conclude that starting your own business is the way to go.  What you don’t see is the journey that these people have taken to get where they are today.  You will not be able to spend money the way you were spending money.  Going out for lunch or drinks may not come as easily as it once did. Even basic expenses may be a struggle.  If you are thinking of going into business because of the perceived financial perks, do not leave your job.  These usually come after a significant struggle.  Go into business because you are convicted about a solution you want to provide.
3. The brand of the company you worked for is not your brand.  This was a very hard lesson for me personally.  I previously worked for a large financial services organisation. I had many clients and I assumed they would move with me to my small business. To tell you I was dismayed would be an understatement.  The clients did like me, but they liked the brand of the company that I was working for better. My work was a reflection of the company that employed me.  So you may have a skill that has been cultivated and nurtured in the organisation you work for.  No one can take that skill away from you.  However you will need to build your own profile and brand and that is where the hard work is.
4. Many people want to leave employment and start a business doing the same thing they were doing whilst being employed.  For example you may be an accountant and you want to start an accounting firm.  At your job, you were probably only doing accounting.  As the owner of the accounting firm you will have to find clients, deliver documents, collect payments, manage staff and a lot of other tasks that do not necessarily involve actual accounting. Also do not limit the business you can start to the qualification you have.  If you were an accountant you can also start a construction company. The attention to detail you used to do accounting will assist you in your construction company.
5. Do not be discouraged by so called statistics. One of the common statements thrown around is that 4 out of every 5 businesses fail. I don’t have statistics but from my observation amongst the business people I know I strongly disagree with this.  The businesses do not fail but transcend. Many people start one thing, and then end up doing something else. That’s not failing in my books. In the process of doing the first business they learn something or realise a different opportunity.  They shut the first business simply to pursue the next one.  This happened to me.  I shut my stock broking agency to pursue financial education.

Last but not least, focus your resources on the key requirements of the business.  In the large organisation you worked for, you got used to certain resources.  A receptionist, office, messenger, assistants for everything.  When you start a business spend only on the core things.  There is no point having a receptionist if you do not even have enough client traffic to justify a receptionist. Spend first on the things that directly get you clients.  You may not even need an office just as yet, and if you do it does not have to be the plushest one you can find. Don’t try and recreate the environment you had whilst you were employed.