Launching a Business: How do you know you're ready?


Insuring a Small BusinessIt seems like a lot of people have a side hustle these days, a way to make some extra money or pursue the things that really strike their interests. And plenty of people have turned even their most unusual hobbies, dreams and ideas into full-time careers. So how do you know if you'll be able to successfully make the leap from employee to entrepreneur? Here are a few things you might want to check off the list before giving your two weeks' notice.

You're ready to be your own boss:

Transitioning from having an employer to being your own boss means losing structure and expectations that help you to be productive and stay accountable. Be honest about your own work ethic, organizational skills, and discipline level. How self-motivated are you? Will you be able to get up and work, even when you don't feel like it?

You have a savings:

Make sure you have at least six months' savings (the more, the better) before you say goodbye to a consistent income. Give some serious thought to how you will pay the bills if your new venture isn't successful right away or at all.

You can go back:

Depending on the type of work you do, it may or may not be easy for you to find employment or pick up a job on short notice. But if getting back into your previous job or line of work would be relatively simple, it may not be that risky to pursue your great idea for a while, just to see what happens.

You're ready to sacrifice:

In the beginning, starting your own business might mean adjusting your lifestyle, working more than full time, or doing tasks you really don't enjoy until you're able to hire an employee. If all of that still sounds better than your day job, then you might be ready to pull the plug.

You can't keep up with demand:

A high demand for your service or product may be a strong indicator of your potential success. If your "side" project is slowly taking over your life, that's a good sign.

You have support:

If your spouse, friends and family are saying "go for it," take note. It doesn't necessarily mean that you're bound for success, but, at the very least, it means there's potential. Plus, having a support system means there will be somebody to pick you up and help get you back on your feet if things don't go as planned.

You're not the only breadwinner:

Having a spouse or family member who can help support you while you're pursuing your new venture might minimize the financial risk and make your decision a little easier. But don't take this kind of generosity for granted: have an honest conversation about what's reasonable, and stick to your end of the bargain.

You can't take it any longer:

This is one indicator that could at least partially trump all the rest. If you don't have absolutely everything in place to make quitting your day job a sure bet, but your intuition is telling you "it's time," you might want to pay attention. We're not suggesting that you make a careless decision, but if you're completely miserable at your "real" job, maybe it's time to really find out whether you can make your dream a reality.

For any business insurance questions, call or contact Executive Insurance & Financial Services today.

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