Starting a new business is not always easy. Going from having a steady income in a normal 9-5 system to fending for yourself can shake your confidence and stability. It is not uncommon to see people jump into entrepreneurship only to scamper out six months later because the reality is harsher than they envisaged.
To help you make the transition into the brave world of entrepreneurship, We share some tips you can deploy to cushion the impact of starting your own business.
Map out your survival scheme
A major challenge of starting a new business is that your personal life might experience cash flow problems. Unlike in the paid employment when you are certain of your pay cheque at a specific time, as a business owner you are not assured of an income. This tends to be in the hardest shock for most new business owners.
To avoid being totally caught unaware, plan ahead. Before you jump into the business world hundred percent, draw out your survival for at least your first year. If you have dependents, involve them in the process. Make your plan realistic. How much money would you need to survive the first year of business? What percentage of that money if any would come from the new business? What are you going to do if things don’t work out exactly as planned? Be aware and be ready.
Due Diligence Is Crucial
One thing many new business owners get wrong is failing to build their business on solid legal ground. Some forget to have proper license and registration for what they do which could hurt them in a bad way when they do not expect.
Another mistake is not having proper insurance for your business, business premises and properties. Do you know you can be sued if someone hurt itself on your premises? If you are not properly covered, this could set you back and make your business experience unsavory. The last thing you want when new in a business is to start shelling out money for unplanned items.
Alternative Income never Hurts
Like earlier said, there are guarantees in business. You may not make a penny in your first few months. This is why alternative income is important. So, don’t invest all your savings in the new business. Retain some percentage and invest this in passive income generating scheme, perhaps in property, or in treasury bill.
If there are money making activities you can indulge in without affecting the running of your business, indulge in them. It could be teaching or writing an eBook, or whatever else you can do. You need to survive to build your business and if these side hustle help you to achieve this then great.
Starting a business is not easy but with the right cushion, you can be able to withstand the lean first year, during which many business owners decide to call it quits.