As the statistics keep telling us, more people are heading off to start their own business.
If you fall into this group, it’s an incredibly exciting time. However, it can also be very daunting, as you’ll probably know. After all, you’re giving up on the guaranteed salary that hits your bank account every month, and instead, you’re taking a gigantic leap into the unknown.
Of course, there are ways to mitigate these risks, which will be the purpose of today’s piece. Let’s now look at four of the best ways to lay the groundwork ahead of your new career.
Have some fallback funds
The first and most important thing you can do is make sure you have some fallback funds. This means saving at least three to six months’ worth of living expenses. This will help you ride out any difficult patches that come your way in the early days of your business.
It’s not only about having that direct safety net, either. This is also about having the right mentality as you head into your new business. After all, if you’ve got one eye on your personal bank accounts, it will affect your decision making. This might be about being too cautious in your decisions, or it might be about taking on too much risk in a bid to make sure you have enough money coming in. Either way, if you have sufficient fallback funds, you can run your business without any of these thoughts swirling around in your head.
Discuss the short-term practicalities with your family
A big part of starting your own business is the psychological toll it can take. This is especially true if you’re the primary breadwinner in your family. One of the best things you can do is discuss the short-term practicalities with your family. This includes things like how you’ll be splitting up the household responsibilities in the early days and who will be taking care of the kids if you need to work late or travel for business.
In short, it’s about ensuring that your family is as prepared as possible for the changes that are about to take place. They’re going to need to be understanding and supportive as you transition into your new career, and it’s best to have these discussions well before you make the jump.
Get the paperwork sorted before you make the full transition
One of the main issues when starting a business is that you’re no longer an employee. In other words, there are no other ‘departments’ that look after different areas.
This means you’ll be responsible for setting up a business bank account, registering for self-employment tax, having the right insurance in place and so on.
Once you’ve finalised the jump, you’ll find that your time is as scarce as it ever has been – and some of these mundane yet crucially important tasks will fall on the back burner, which can be dangerous.
Build a strong network of support
Last but not least, you’ll want to build a strong support network. This means people like fellow entrepreneurs, accountants, and so on. This is because these people can offer you invaluable advice and support as you transition into your new career.
More importantly, a strong support network can help you stay motivated during difficult times. After all, starting a business is not for the faint of heart, and there will be times when you feel like giving up. Having a supportive network will keep you going in the right direction.