Are you ready to start doing a business?
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| Smile and optimistic to start a new business. Image: wealthysistaspublishing.com |
What is your response on the
attractive offer?
Maybe you to think long before making a decision, a smile, or you reject
for any reason, or reject without reason. Many people are not ready to start a
business on the grounds do not have the talent in the fields of business, or do
not have any capital, do not have the time and a variety of other great
reasons. Maybe you do not dare to accept the challenge, so that you remain as
an employee of the company or in the office where you work at this time.
Let's start a
business now
Nowadays, many people started looking for her passion and make it as a
promising source of livelihood. Many years as an employee, what can swerved
into an entrepreneur? It could be! If this is a life choice that you want to
run. Try evaluating how prepared your finances in the process of transition
from employee to entrepreneur.
Firstly, you must create
a comprehensive business plan. A business plan should answer important
questions such as: What are you selling? Who is your market share? How big is
the potential market value today and in the future? What would be a competitive
advantage in business competition? How do you make a profit? How much of
competition is in the business category?
Secondly, after completing
a business plan, then you access the funds as a source of working capital. The
business plan gives an overview of how much capital you need, whether the need
to borrow from the bank, and how your business can pay the working capital
debt.
The third, create a
monthly budget of a new household. How do you determine how much income per
month? When you work for this business, then specify the monthly salary you
take of business. Enter the amount of salary as part of operating expenses.
Well, make sure the household expenditure is less than the basic income of the
business. Make sure you set aside a budget to cover the company's losses and
operational financial obligations.
Fourthly, prepare a
personal financial. One of the greatest fears an office
employee-turned-entrepreneur is the risk of not getting regular income. Do not
be discouraged if at an early stage, you do not get the same amount of current
income as an employee.
The fifth, have a
contingency plan as a backup plan if something goes wrong so it does not run
smoothly. Consider the following:
- Do you have the option to go back to work full-time at your old company?
- Do you have the option of returning to full-time employment with a new
employer?
- Do you want to try a new business direction (ie still be an entrepreneur,
but in a different industry categories)?
Therefore, before starting a business, you are required to have an adequate
emergency fund availability. These funds must be deposited in the form of
ordinary savings or time deposits with a minimum of 12 times the amount of
regular monthly expenses. This fund is used to meet the needs of your routine
when you have not provided revenue effort. In addition, it is worth considering
your options contingency plan.
Do you already
have an adequate emergency fund?
I personally have experience building financial consulting business after
working in a large multinational company for five and a half years . Six months
before deciding to stop working , I collect and use emergency funds to meet the
needs of half the salary every month .
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| New business woman and business man. Image: aisec.ca |
Business Finance
and Personal Finance
Finance business is a different matter with your personal finances . When
you decide to do business , separate direct finance to businesses with personal
financial . Discipline in bookkeeping should be done from the beginning .
The initial capital investment is your business . Take note of how much
investment you have to spend as venture capital . Any expenses for business ,
the business must be paid from income . The same principle works in reverse .
Every business income can not be directly used to fund your household budget .
Using the cash flow of business for purposes of personal finance is a big
mistake .
Do not be Afraid
to Start
In the early stages of starting your own business, results of operations
sometimes not in line with expectations. Do not back down just because you are
afraid of losing a regular income that is commonly enjoyed as an employee.
Ideal business always starts with the big plans and supported. However, keep in
mind to strengthen the domestic financial foundation before starting a
business.
I also believe, that to start a business also takes strong faith,
unwavering commitment, and is based on a powerful dream, so you have a strong
drive and motivation is purely from within yourself. Do you believe in your
dreams?
Source of article in part inspired from an article written by Pritchard
Ghozie, an Independent Financial Planner of ZAP Finance.
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