Steps to making a successful transition from Employee to Entrepreneur

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3 Signs Your Business Idea Has The Potential To Make It Big

Employment is not always a bad idea.  It will offer you job security and regular income. It’s however very normal to still feel unfulfilled even after getting accomplished as an employee.

It’s perfectly normal to wake up one day feeling like you want more from life. Starting your own business may be challenging but extremely fulfilling and satisfying depending on your long term and short term life goals.

The transition from employee to entrepreneur requires ample planning; a clear understanding of your career goals & objectives, and self-confidence to start and run a business.

Here are some tips to assist you ensure you have a smooth transition from employee to entrepreneur, increasing your chances for the success as a new business owner

1. Grow your savings

Starting a new business sounds all fancy and from poverty to riches but the truth is it may take months before your business breaks even. Your business is likely to take some time before it achieves the level of growth of income that you are expecting. It’s in this case that we advise saving up to a minimum of six months’ worth of your monthly expenses. This will ensure that you have given your business ample time to break even while you can still comfortably pay your expenses. It will also ensure you don’t fall into the trap of spending business capital on expenses since you are unable to pull through.

2. Identify what you’d like to do.

3 Signs Your Business Idea Has The Potential To Make It Big

It’s important you identify what exactly you would like to venture into or invest in. Some describe it as the need to find once passion but honestly running a business is going to be more than that. You have to identify your skills, abilities, past experiences and opportunities among other things. What exactly would you be comfortable venturing into and spending long hours on year after year?

3. Lay out a business plan

3 Vital Things to consider before starting any business

Come up with a proper but elaborate business plan on how you intend to run, manage and succeed in your new venture. Your business plan doesn’t necessary need to be formal but it does need to include important details like production, operations, structure, deliveries and any expansion or growth plan.

4. Test market trends

Having a business idea and knowing that it has potential to make it are two different things.

You will need to test it before leaving your job to ensure you do not leave your job for a business idea that doesn’t even stand a chance. Try out your current idea on potential customers. Introduce your business to the market and analyse the response.

If possible also introduce your business to experts as well and listen to their insight. The idea here is to get feedback.  It’s also good to note that not every criticism is good for you or for your business .Conduct interviews, surveys, or even questionnaires about what you are offerings, and see how people react to it.

Be aware not to expect only positive feedback and also not to give up too fast.

5. Start as a side hustle

It’s an absolute wise thing to do to start your business on the side first before leaving your job. This will give you a clear picture of what to expect and not just from predictions but also from experience. It will ensure you are sure of leaving your job to venture into your new business.

6. Set up your business on a small scale.

If you can, test your company idea by launching on small scale, instead of launching on a bigger scale. This will ensure you take calculated risks and avoid massive losses. For a new idea we would advise testing it on a small scale first then expanding in case of a positive outcome.

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