It's that time of year — when many people start thinking about chucking in their day jobs and pursuing a dream.
But if you're thinking about starting your own business, there are some things you need to think about first.
Do you have a plan? It's great to have an idea and a dream but you'll need to have a clear business plan, too. Who will your customers be? Where will you find them? What will you charge them? What margins can you expect to make? What will your costs be? What growth could you expect?
Why do you want to do it? If it's just because you're unhappy in your current job, you might need to rethink. Starting your own business can be a lot of work, no matter how appealing it seems to get rid of your boss.
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Do you know what you're doing? It's not enough to love something — you need to understand the business of it. If you're thinking about a completely new industry you might want to try a stint in a job in the sector first.
What support do you have? It's really important to have people to turn to as you start up your business. That might be a great accountant or business coach to bounce ideas off, or a mentor. organisations such as your local chamber of commerce may be able to help.
It may sound silly but if you are expecting your family to pitch in and help with your business, have you told them?
Can you afford it? It's likely that you won't be making lots of money from the beginning. If you're giving up your day job completely, how long can you afford to survive before things start getting tight? When money stress creeps in, it's easy to make bad decisions.
Slowly transitioning out of employment may be a better option to keep some money rolling in.
Jeremy Tauri is an associate at Plus Chartered Accountants.