Are you tired of working for someone else? Tired of others reaping the rewards from your hard work?
Do you have the urge for starting your own business but don’t know where to start? Does fear hold you back?
There is nothing to be ashamed of if fear is holding you back. I was there. I wanted so badly to start my own business but my own fear would always creep in. Eventually I overcame my fear and struck out on my own.
Below are 3 tips I used to help you go from employee to employer.
3 Simple Tips For Starting Your Own Business
#1. Research And Test
The worst thing that can happen to you is you fail. While you can’t protect yourself from failure 100% of the time, you can do your due diligence to make failure less likely. In order to do that, you need to research the type of business you want to start and test it out.
You need to ask yourself if there is a demand for the product or service you want to start. Ask others, and not just friends and family members, but strangers as well. You don’t have to go into specifics with them, just give them the basic idea.
The more people you ask, the better idea you will have if your business idea is one that has a chance.
If you are creating a product, test it out as much as possible. When you cannot think of other ways to test it out, give it to close friends and family to try out. They might think of a way to use it that differs from yours.
You might end up learning of a different way to market the item or another use for it than you had originally planned.
For example, let’s say you were planning to start a mail order meal service business. But after giving out samples of your meals to others, everyone raved about the cookie you included.
You might consider switching gears and starting a bakery instead. Now you need to research once again and find a retail location, buy equipment like a commercial ice machine, determine prices and of course a name for the business.
While this might sound frustrating at first to start all over, you actually saved yourself a lot of headaches and pain by figuring out what product of yours has the greatest chance of success.
#2. Start On The Side
If at all possible, start out on the side. This will help make the transition much smoother. If you have crafts to sell, try selling them online or at craft shows on the weekends. If sales are good, then consider expanding to a retail location or starting an online shop.
There are plenty of resources out there to help you along with this process. One resource that many overlook is the power of their email. Having a gmail account at the very beginning is OK, but you should switch to a professional email address as soon as possible. It adds credibility to you and your business.
The key with starting your new business is to make sure you start slowly. The problem with starting out too fast is that you set yourself up for failure. If you quit your job tomorrow and lease a store for a year and then find there is no demand for your product, you are out of a job, an income, and you have expenses for the entire year.
Start off on the side and work your way up to bigger things. Remember, McDonald’s didn’t start out with thousands of locations. They started with just one location and expanded from there.
If you want to be successful when starting your own business, you need to re-invest your profits back into the business. If you take everything out of the business as salary, what happens when you hit a rough patch? You won’t have anything to survive off of. Additionally, having funds on hand allows for easier expansion and product development.
If a hot new trend comes along that requires an investment in equipment, where are you getting the money from to buy it if you take out all of the profits? You are putting yourself behind the 8-ball when you take out your profits.
I know it can be tempting, but you have to resist the urge to do so. The more money you can leave in your business to re-invest, the greater your chances of survival will be.
Starting your own business is risky. But you can take away some of the risk by being smart. Do your research and testing before committing to anything.
Start off slowly on the side before building your empire. And make sure you leave the profits in the business. Bad things happen all of the time. It would be a tragedy if you have to close shop simply because you failed to plan for the future by not keeping money on hand.
While following these tips won’t guarantee you will become the next Amazon or Elon Musk, it will greatly increase your chances of running a successful business for the long term.
Hi, my name is Jon and I run Penny Thots. I blog about many personal finance topics, but my specialties lie in investing, paying off debt, and achieving your financial goals. You can learn more about me on the Author Page.