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Moving From Corporate To Owning A Business

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Leaving a secure corporate job might be tempting, especially for those who want to follow their dreams. Even if you work in a positive environment with motivated people, there might be something missing.

However, leaving a well-defined job with lots of awesome benefits can prove risky. There are lots of things you should consider before making the leap into entrepreneurship. Walking away from a regular paycheck can be a daunting experience, but being your own boss, choosing your own hours, and doing something you love to do day in, day out might prove to be the best decision you have ever made in your life.

Unfortunately, it doesn’t work out for everyone, so it’s of vital importance that you ask yourself some very serious questions before making one of the biggest decisions of your life.

Why are you Leaving your Current Job?

Some people hate being told what to do, but just because you are leaving a job where you have to answer to a boss, doesn’t mean you won’t have others demanding things from you.

If you deal with customers regularly in your new business, they might put you under pressure to get things done. Of course, it’s your business, so you don’t have to listen to them, but at the end of the day, if you want the company to succeed, you will want to build a healthy relationship with people who are going to spend their hard-earned money on your services or your products. The customer is vital to your business, and if you want the company to grow, you better be prepared to do whatever it is they you want them to do.

If you are leaving your current position because you have spotted a gap in the market, is it possible to build the company without leaving your job? A lot of folks are able to start a business without handing in their notice to the company they are working for. Try juggling your new business and your corporate job before packing it in. If this is possible, you will get a good idea of whether or not the startup will be a success. If it turns out to be a lucrative business, then you should consider quitting.

Will I Have More Free Time?

If you think starting your own business will help give you more free time, think again. A recent report showed that small business owners work approximately twice as many hours as the average worker. You better be prepared to roll up your sleeves and get to work if you want to establish a lucrative company.

The first year is not going to be easy, and it is important that you understand how to manage your company’s finances. The reason most new businesses fail to succeed in their first year is down to financial issues. Consider taking an accountancy course before you start to develop the new business. Approximately, a third of every company’s income in the United States is used to pay taxes. Find out exactly the amount of tax your new enterprise will have to pay.

Buying an Already Existing Business

While working for a corporate company, you might come across a business that has been put on the market.

Investing in an existing business is a lot less risky than starting a business from scratch, so you are more likely to get a loan from a bank. If the business is involved with an industry that you are already familiar with, it might be a fantastic investment, especially if you have already thought of ways on how you can improve it.

However, purchasing an already established business can be tricky, so it might be a good idea to get a reputable business broker involved to help broker the deal. For more information, check out this affordable brokerage by Marc Phillips.

A broker will be able to help you find out things about the company you might not have spotted. They will help you negotiate the price of the company, and help you through the entire process.

Are Your Family Members on Board?

Leaving a steady job and starting a new company without having your family on board can make things even harder. Having the support of your loved ones will help you through the hard times.

Close friends, spouses, and other family members might rely on you. Without a regular paycheck, you might be jeopardizing your children’s education. Some company’s pay for their employee’s health insurance, so if you leave, you might be forced to fork out a lot of money on medical bills.

Starting a business from scratch without positive people around you is not going to be easy. When the business isn’t where it is supposed to be, the last thing you will want is for your husband or wife to say “I told you so”. However, if everybody is prepared for the roller coaster journey, then the startup has a better chance of succeeding.

Whether your family is committed or not, you might have to organize a meeting with them to discuss cutbacks. The annual holiday family might have to be canceled, and each member of the family might have to keep an eye on what they are spending. Explain that you will have to work long hours, so you might not get to see your loved ones as often as you did in the past.

Avoid Jumping Ship Too Soon

You don’t want to regret your leaving your current position too soon.

Spend a lot of time coming up with a solid business plan. Some people quit their jobs without having researched the new business they want to open. Find out as much as you possibly can about the industry, and what it will take to make the company a success.

Some people start a small company during their free time, and as soon as it starts to generate cash, they pack in their current corporate job. However, they don’t know whether or not the company will still be making money in the long run.

Is Entrepuernship for you?

Some people dream about owning their own company, but that doesn’t mean it’s a good idea to start one. You have to be prepared to handle defeat, to spend a lot of your own cash, borrow money from lenders, and work harder than you have ever done before.

Contact other entrepreneurs for advice. Listen closely to what they say about getting their business off the ground, and the sacrifices they were forced to make to help the company succeed. Unfortunately, a lot of folks fail with running a new business. A failed business will not only cost you a lot of money, but it can damage your overall health too. It can lead to a range of health problems, including stress, and heart conditions. If you are leaving your current job because you suffer from stress, starting a new business might make matters worse.

Conclusion

Since the pandemic began, it seems like more people are leaving their corporate jobs than ever before to set up their own businesses. However, just because so many people are jumping ship, doesn’t mean that you should too. Develop a strong business plan, speak to a reputable accountant and broker for financial advice, and find out as much as you can about the industry before calling it a day with your current position.

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