What is the American Dream?
Some say home ownership. Others might say business ownership.
If it indeed is to own your own business, do you need to keep your day job a the same time?
There is always risk involved when you start a new venture. Starting a business, even one from home is no exception.
The fear of failure shouldn’t stop you from pursuing your dream but do so with caution and sober reason. The last thing you want to do is to create a big financial problem for your family.
What to Consider Before Leaving Your Day Job
It’s good to evaluate the risk and the reward when working for yourself from home. This is where the business plan comes in.
Every company, small or large, needs one. It is necessary to ask your self a few questions before you quit to start a home-based business.
Here are some questions to ask before you quit your day job:
Can You Fund Your Business? – What Will it Cost to Run Your Enterprise?
Home-based businesses have an advantage of low overhead in most cases, but that doesn’t mean free.
Tap into savings, home equity, sell any stuff you don’t need or retirement accounts to raise cash for your home business. It’s little risky, but don’t expect to make any money without any type of investment.
In the beginning, only invest the amount you can afford to lose in case the home business doesn’t work out without accumulating large debt. Start investing more as your home business start to generate income.
Can You Support Yourself?
When you are talking about pursuing a new business full time, the income that sustains your household needs to come from somewhere else. A fledgling business might not provide enough income alone to do the job.
Are There Unforeseen Costs Involved?
You’d be surprised how many people get into business and are shocked by the amount of money they had to spend that they didn’t account for.
Unforeseen costs can be a nightmare. Naturally, you can’t predict every scenario that might happen.
Factor in extra capital for upgrade equipment contracted services and such. don’t let a snafu sink your business ship.
Can You Handle Several Roles at Once?
In the beginning, you will be doing everything yourself.
It will be your responsibility to take orders, advertise, network, answer customer service calls, fill orders and whatever else needs to be done. There is no modesty when you are the boss.
Is Your Knowledge Up to the Task?
We all have our strengths and weaknesses. In business, it is the weakness that determines how strong your company will be.
If you are starting an internet business, but don’t know much about online marketing strategies or SEO, the choice will hire someone who does or take the time to learn all about the techniques yourself.
A weakness in this area might cripple your business promotions. Make sure that you know all aspects of your business and can perform them yourself if needed.
There is nothing wrong with starting a business part-time in the beginning. Once you start to generate a profit, you need to see if the income you generate is enough to replace or pass your day job.
Then consider if the income is enough for you that a day job is not necessary. It’s a realistic way to protect yourself from financial ruin if the home business doesn’t work out.