How to avoid the financial doghouse when starting your own business

For many, starting a new business is a dream that is waiting to be fulfilled.  But unless they act, it will always just be “Waiting”.  Often, the hurdles are in their heads or are simply things that a good solid plan can fix.  They think that “the time isn’t right” or they simply aren’t prepared now.  For many people looking to take the first steps to entrepreneurship it isn’t as hard to get started as they think.  But that doesn’t mean that it is easy.  The good news is there are ways to make it easier.

A desire for financial freedom is often the primary reason people start their own business.  But money troubles are also the leading reason new businesses don’t last.  Here are a couple of tips for easing the transition into running your own business.

1. Have a plan – Benjamin Franklin is often cited as the source for “If you fail to plan, you plan to fail”.  For budding entrepreneurs this is very true.  Build a realistic plan.  Use real numbers backed up by clear action plans that you can implement.  Consider the amount of time necessary to perform these actions.  Make sure you haven’t overbooked yourself.  If you wear out, something suffers.
2. Don’t quit your day job – jumping in with both feet sounds like a great motivator, and it can be.  But it can be very stressful.  It’s a safety net for you and your family.  Most of the planning and often a lot of the real work for starting many businesses can be done outside of traditional business hours.  So there’s no reason to jump in fully until the business is at the right point for you to do that.
3. Build your support network – while you are building your plan and taking your first steps, take time to identify friends, family, and acquaintances that compliment your skills.  There’s no way that any business owner knows everything there is to know about running a business.  Find people that you can talk to about your accounting questions, your sales techniques, good customer service.  People that have been through what you are going through.  These are the people who will keep you sane when your world is spinning.
4. Do a little scouting – talk with people.  Learn about the demand for your product or service.  Learn the points that really resonate with people.  If you can start lining up your first clients before you really go all out, you are setting yourself up for an easier road to success.
5. Save some money – especially if you are still working outside of your business, building up a little savings is a great way to get to the point where you feel comfortable going “All-in” much faster.
6. Believe – believe in yourself.  Believe in your plan.  Believe in your product or service.  Believe in your business.  Its contagious.  It will help you with your customers and it will help you stay out of the financial doghouse while you are getting going.

If you are interested in learning more about running your own business and how It Works! can help you achieve financial freedom, learn more here and sign up for our newsletter.