Keep Your Day Job and Start A Business When the Entrepreneurial Urge takes you, its easy to get washed away in the waves of optimism and euphoria and quit your job. This could be worst mistake of your business career. A break even analysis of your business will tell you approximately how much time it will take for you to start generating money. You should be prepared to stay in your job while running your business, for at least 3 times this period Why 3 times? Because for start-ups, projections are inevitably wrong. In the early years, your business is almost synonymous with YOU. You will have to carry it on your shoulders, until it becomes mature enough to support itself. Unless you have limitless funding, which includes a salary for you, dont quit your job before your business starts making enough money to support itself and you. IF YOU GO BROKE, YOUR BUSINESS WILL DIE Asymmetric was an advertising consultancy in Bangalore. Its owners, Ryan and Angelo, were perhaps the most talented individuals I have ever met. After some years at other advertising agencies, the two decided to strike out on their own. They quit their jobs and opened Asymmetric The orders came flooding in and two months into the new venture, they had to hire more people. Within a year, the company was closed and Ryan and Angelo had gone back to jobs. What happened? THEY RAN OUT OF MONEY. Heres something that new business owners dont realize about Business: theres a lag between delivering your product or service and getting paid for it. And in that interval, you still have to keep running the company, keep running your life. The money required to keep going until you get paid is called Working Capital. In the early stages of your business, when everything depends on you, your salary will act as your personal working capital. The Buddha once said, that you can not follow Dharma on an empty stomach. Remember, that being a business owner, is a higher calling. A person who is waging a daily struggle for survival, can not be an effective business owner. If you are unable to meet your rent, food and other basic needs, you will not be able to run your business. YES, YOU WILL HAVE TO WORK MORE HOURS In case you were wondering. You will have to work like a demon. Putting in 8 hours at your job and then working at least 8 hours at your business. How do you do this? You just do. theres no simple solution. You just have to harden your heart and soul. Make the new year resolution of the century and just do it. When I started Ushtara, I had to keep my days free for my new business, so I got a night shift job at Mphasis BPO. I worked all night at the call center and all day on my business. I slept 4 hours a day. For 3 years. Thats the price you have to pay. YOU WILL BE MAKING COMPROMISES AT BOTH If you thought you could get the highest grade in your appraisal at your job while trying to run a business during your non-job hours, forget it. If you think your business is going to do really well, with a founder-leader who also works another job, to stay afloat, Not gonna happen. This is is the reality. Face it. You are going to be doing half justice to both aspects of your life. But think about it, isnt running a business with a lot of compromises better than not doing it at all? Isnt it better than running your business for a few months and then shutting it down simply because you werent able to pay your electricity bill and buy food? As you become a business owner, one thing you will realize, is that again and again you will have to make compromises. Get comfortable with that. GET A JOB THAT GIVES YOU FREEDOM TO RUN YOUR BUSINESS Many jobs dont require you to be at a certain place (read office) for a fixed number of hours (9-5). Some examples include sales representative and field technical expert. In such jobs, your boss will not know at any given time, where you are. As long as you meet your assigned targets, he wont even care. Some jobs at companies like IBM, allow you to work from home. There are certain conditions like getting your work done on time and not working for any other company. Since your long term goal is to be a business owner, you need not be overly concerned about these conditions. Think how much of your day in the office is wasted, doing nothing productive between bursts of activity. With a flexible job, you could now divert all of that wasted time toward your new business enterprise. MAKE YOUR EMPLOYER YOUR CUSTOMER Many successful business owners start their business in an industry related to their job. A friend of mine worked in a bank. His role in the bank is to source collection agencies that can collect payments overdue to the bank. He decided to start a collection agency. He knew the opportunities, he knew the ropes. And when he had to outsource the juiciest collection cases, guess which agency he chose? After 3 years being a customer to himself, he quit the bank and is now running the collection agency full time. He supplies collection services to his old employer as well as other banks who need them. There are often legal issues like conflict of interest, when you decide to run a business that caters to your employer. Seek legal counsel and talk to your boss before taking up this strategy. Till Next Time @@@@@@@ I am a Social Media & Mobile App Evangelist. What You Can Learn From Steve Jobs YouTube youtube/watch?v=UA2zzav-nvA&sns=em I am looking for partners & introducers to join me in marketing mobile app and social media solutions to the 150,000 SMEs market! SMS: 9382 0839, David or email: freeagentnetwork@gmail I represent a technology firm in Singapore that specializes in the development of Mobile Apps, Customized Business Solutions (e.g. CRM, ERP, HRM, etc), Facebook Apps and Websites. We provide professional services in the form of IT Security and advising companies on their business processes and available funding for the implementation of technology solutions. Services Provided: 1. Website Development (E-Commerce/CMS) 2. Customized/Modular Mobile App Development 3. Social Media Services (Facebook Marketing) 4. Customized Biz Solutions (CRM / POS) 5. IT Security Services Looking for a 360 degree Social Media Platform Solution? SMS to HP: 9382 0839 (David)
Posted on: Thu, 30 Jan 2014 05:52:14 +0000
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