How to begin a business while still working at your job
It isn't easy to begin a business. There are so many choices to make, and the stakes are high! You don't have to quit your job to start a business. This article will show you how you can launch an effective business without having to quit your job.
1. Decide what type of business venture you'd like to launch
There are two types of business: lifestyle business and one that is scalable. Lifestyle businesses aren't always about growing into a large company or becoming your main source of income. The goal is to create an enterprise that gives you some extra money and lets you be in control of what you do with your time, whether at home or traveling all over the globe!
Scalable businesses aim to generate significant revenue but require constant attention from the owners until they attain market dominance. Scalable businesses are best for those who have the ability to build something massive and take on challenges they may not be able or willing to tackle, for example, finding investors or hiring managers.
Which one is best for you? It's all about your objectives. However, the majority of new entrepreneurs choose lifestyle businesses as their first venture since it's safer and requires less capital than establishing a scalable business. Also, if things go wrong with the latter (and sometimes they will) and they fail, it can be a loss of all of everything -- time, energy, and money- whereas there are more opportunities to course-correct when building a business around an idea, rather than trying to market a product or service out of the gate.
2. Do some research on the amount of money your industry earns.
You should do some research into how much money your industry makes. This data will help you determine whether or not to start your own business. If, for instance, you're thinking of starting an online clothing store specializing in fashions for larger ladies, but you discover there's not enough demand for such merchandise, then you probably shouldn't attempt to start a business because the expenses for overhead will far exceed any revenue generated from sales. In contrast, suppose your goal is to open up a cupcake shop, but after surveying local neighborhood shops, discover that they're not making any money in the month. This could be because of their location or because customers don't have the time to stop by very often. Then you might think about closing up shop or looking at alternatives.
3. Determine the costs of starting your own business.
After you've determined the possibility of your plan and there's a market, then it's time to figure out how much money will be required to turn your idea into a reality. This can vary depending on what type of company you're planning to start but usually fall into two types. Fixed costs are those which don't change regardless of whether or not revenue is coming in (like rent), and variable costs change with the volume of sales (like inventory). This determines the viability of your small-scale company. These are the most common expenses associated with starting up new businesses:
- Equipment/Rental space
- Operating systems like software and computers
- Additional legal costs
- Marketing campaigns and advertising to help spread the word about your business
- Supplies, stock raw materials, other materials needed to create products
- Workspace space is available for employees
- Salaries for employees
4. Find someone who will finance your startup costs.
It's not necessary to have the funds to start your company or do not want to commit to debt. There are other options that can be used to fund the expansion of your company. These include outside investment from relatives and friends. It is also possible to consider getting a loan from a bank, but only if you have excellent credit (which isn't always easy to establish when you're just starting out). Credit cards can be another option. However, they are costly and should only be used for emergencies. You can also think about credit cards. However, they can have high rates of interest and should be used for emergencies only.
5. Create a strategy that outlines what you'll need to generate income.
A business plan is an official document that outlines your objectives as well as the steps you need to take in achieving them and who will gain from your work. There are also sections on the risks that come when you start your own business and strategies to mitigate the risks that could arise. Finally, the projections of future earnings and cash flows are often included to allow investors to decide if this is a lucrative venture before they write any checks.
6. Find ways to earn money.
If you're thinking of starting a new business but are still unsure what type of company to consider, perhaps making a list of possible items or services that can be sold would help. Here are some of the questions to think about while you are contemplating this:
What can I find out about?
Do my friends of mine tell me that they wish certain items were on the market?
Is there demand from consumers for something you don't sell? Are there markets for your product? If yes, how big and how long could it be sustained financially? (The more people who want your product, the better.)
You might also consider checking out some of the most successful companies, such as Pinterest, which began by curating outfits based on various themes and styles. Although it might not seem like the most profitable model of business, Pinterest is valued at $11 million!
The Internet is full of concepts for businesses that are new every day. However, very few get off the ground. It's not easy. There is a myriad of factors that create obstacles. The steps in this article about how to create your own business without leaving a job can help reduce the obstacles. It will give you an opportunity to have an enjoyable career and one which pays enough that you don't have to worry about becoming an additional statistic. Go write something awesome!
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