Starting Your Own Business?
My good friend Lynnette is incredibly talented. She has the skills and sufficient experience to strike out on her own and start her own business. However, she’s quite hesitant to leave the confines of employment and the relative predictable nature of a monthly paycheck. Interestingly, I’ve talked to an increasing number of people who want to make the shift to working for themselves. I think some should give it a go, and others, probably not. Here are the issues Lynette is weighing:
–Are you really passionate about the new business — in Lynette’s case, she is. A design business would allow her to bring together all of her skills (including artistic) that are just not part of her day-to-day job. In the side projects she’s completed over the years, she practically glows in talking about it. Otherwise, if you’re simply toying with a new idea, I would recommend test driving it a bit and seeing if it’s something you want to spend A LOT more time on.
–Are you expecting to work more hours than ever before — many people want to work for themselves because they want more flexibility in their hours and to be accountable to themselves. Keep in mind, that having your own business also means having to do a lot of things yourself. All of the entrepreneurs I know work many more hours in the first several years of their new business. Just prepare yourself for this.
–Do you have a strong support network — fortunately Lynette has an incredibly supportive network of family and friends. In addition to offering to provide seed capital to getting her started, her uncle has two successful businesses and has given her a lot of great advice.
Interestingly, after contemplating all of the issues, Lynette has decided to work part-time at her office job and to pick up freelance design projects in her friends business, sort of a partial step. She hopes to create her own company within 2 years, but felt that the security of the part-time job was still too difficult to give up.
Do you want to start your own business?
shared at this week’s Carnival of Personal Finance
[...] from Modern Gal presents Starting Your Own Business?, and says, “I’ve talked to an increasing number of people who want to make the shift to [...]
Most of the people I know who have gone out on their own thought about it for a long time or had a side-business going. Then, they got laid off or had a problem in their day job. If they are sucessful at it, they would never go back to regular employment.
I’ve been thinking about starting my own coffee/smoothie shop for a couple years now. I’ve been taking it really slow, thinking through each step, determining if it would be financially feasible. Honestly, I don’t care much about making a profit, I just don’t want to lose money. Extra income would be nice, but we really don’t NEED it. I mostly just think our small town could really use a coffee/smoothie shop! (so, yes, I’m passionate…but I’m not sure about the other 2 pieces of advice)
Bret, most people I know never really got their side-business going. Only a few exceptions. It did however result in many people switching careers or career paths. As a method of self-discovery, trying something different is quite good.
Lynn, great that you have something to be passionate about. Without the other two supportive issues, you might consider a way to try out something, without going whole hog into your own shop– like showcasing a small stall at a Farmer’s Market or street fair. Best of luck.