If you’re currently employed but ready to start your own business, quitting your job to devote your time exclusively to the business shouldn’t be done in haste. You’re probably thinking that this is intuitively obvious, but the siren’s song of entrepreneurship is seductive.
It’s even more difficult to stay at your current job if you’re unhappy there. You begin to visualize how great it would be to spend all day everyday working at your new business. This is particularly true if you’ve made some sales.
Being financially dependent on your new business right out of the gate often causes business owners to panic, particularly when you’re working at it day after day and the money doesn’t seem to be coming in fast enough. We all have been or know someone who’s been in this situation. Desperation shows and runs off potential customers.
While it’s true you could probably sell more of your product or service if you had more time to devote to it, taking the time to build a solid customer base and a demand for your product/service before you’re counting on those sales is a wise decision.
Take the time to do the math:
- What profit do you make for each item/service that you sell?
- How many are you currently selling a month?
- What are your monthly business expenses?
- How many items/services do you have to sell to pay your monthly business expenses?
- What are your monthly living expenses?
- How many items/services do you need to sell to pay your monthly living expenses?
- Can you produce that much inventory or sell that many services without making additional investment?
Give yourself and your new business the time it needs to grow a solid base.
If the siren’s song already seduced you or you had no choice:
- Find a job to pay your living expenses – part time, if possible.
- Develop a plan to support your current customers in the time you have available and communicate with them.
- Limit your investment in your business to what you earn from the business.
Many business owners get in this situation. Don’t let a temporary set-back cause you to give up your dream. Make a plan and work your way through it.
Find more ideas on how to limit your business investment in $1,000 Start-Ups.