The Big Leap: What to Consider Before You Switch to Entrepreneurship
Leaving your job and making the switch to entrepreneurship can be daunting. But if you have the right expertise, take precautions, and work hard, there’s no reason why starting your own business isn’t a risk worth taking. For the first-time entrepreneur, good advice is golden. Maikoa Consulting shares some general tips to help put you on the right track.
Financial Coverage
The first (and arguably most important) measure before transitioning into entrepreneurship relates to your financial security. You have to cover yourself. This means calculating your savings against projected earnings, setting time limits, goals and, if possible, securing funding. Some form of funding is almost always advisable - you can never be too careful about how much of your personal wealth you invest in a new venture. There are plenty of guides and templates available online to help you calculate this, but remember that although third-party advice is often useful, you’ll need to plan in accordance with your individual circumstances.
Beyond just personal financing, it’s crucial that you produce an airtight financial plan for the business itself. This is not just useful to you as a means to set goals, limit risk, and estimate required resources - it’s also an important asset for ensuring investment and winning the confidence of potential partners. With well-researched projections, you’ll be able to calculate whether the venture is feasible before you (and others) throw a lot of money at it.
Business Structure
The structure of your business is of importance as it impacts how much you pay in taxes, the amount of paperwork you have to deal with, and your personal liability. For many in the entrepreneurial position, it makes the most sense to form a Limited Liability Company (LLC), which helps alleviate all of the above. Remember, each state maintains its own regulations - if you’re wondering how to start an LLC in Michigan, for example, it’s worth consulting with an expert and hiring a formation service to help. This can even save you hefty lawyer fees.
Depending on your available funding, you may be looking to hire from the outset. The manner by which you scale your team is instrumental to the success of the business. This is especially true at the early stages when every member of staff is of amplified importance. For this reason, it’s worth enlisting the help of an employment agency to help decide which roles you need and then to identify the right personnel to fill them.
Tech Investments
Maikoa Consulting never underestimates the importance of a digital strategy. There has been no shortage of reporting on the disruptive influence of tech in business. The bottom line is that with faster adaptation and equal access to the most powerful digital tools, small companies are successfully turning the tables on incumbent brands. If you want to succeed in a competitive business climate, you’ll need to show a strong understanding of digital practices and be willing to invest money in tech.
The best way to refine your online strategy is with the help of an expert. Whether you’re targeting consumers or other businesses, this integral part of the process will shape business practices in years to come and help you to research, identify, and capture the attention of your audience. If you have a strong blueprint and a firm grasp of the programs relevant to your industry, there’s no reason you can’t begin to profit right from the outset.
Entrepreneurship is not for the faint-hearted but, if you can pull in the right resources and seek out the best advice, you’re already halfway towards finding success with your new venture. Maikoa Consulting is dedicated to helping streamline your business with the use of data, action plans, and audience growth strategies. Reach out to learn more.
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Contributor: Elijah Dawson created Look For Jobs Here while he was furloughed from his retail management job at the beginning of the pandemic. With many still looking for work, he hopes his site will assist and motivate them as they look for their next big opportunity.