Anyone who is employed has dwelled over this at some point or the other, some far more than others. That's the kind of allure 'being your own boss' holds for most people.
The sense of achievement in owning a set-up, and being chiefly responsible for it's future is the kind of kick one can never derive from a job. But, greater returns always involve greater risks.
One needs to plan and execute with a high degree of detail to counter the many challenges a business throws at the entrepreneur.
Keep a lookout for these pointers if you finally get down to executing your dream of self-employment:
Being fed up with your current job isn't a good enough reason to start-up
It is more than a full time responsibility. Work does not end with office hours, and chances are that initially you will see more hardships than success. It takes intense commitment to stick it out through these tough times, especially when you know that your past job pegged you at a certain market value, which you are not matching with this new business.
More importantly, a half-baked decision to start a business not only leave you with little chance of doing well, it also jeopardises your options of getting back to as good a job as the one you left.
Understanding the nature of a business
The first step is to understand that businesses don't start with a great idea, or a breakthrough innovation, every business starts with the customer. If you are looking to get into a business as an inventor, try finding a client who'll pay you to develop something they need. Most of these clients will let you keep the rights over the invention, so that you can sell it to other clients later.
This might be easier than it seems, and in business, success has got to do more with creating such opportunities and making the most of them.
Check for these skills:
- Engineering -- the skill to invent and develop new products (or services)
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Manufacturing -- the skill to deliver products, consistently and reliably, with quality, service, and price
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Selling -- the skill to sell the products
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Business -- the act of making a profit by doing the first three
While starting a business, the skills you will surely need are engineering and selling.
The longevity and profitability of the business are usually determined by the manufacturing and business skills. The level of competency you choose for the business decide how refined these individual skills need to get.
In case you choose the competition space as a local market or a niche industry, then the focus goes up drastically on one skill, while going down to a basic hygiene on the rest.
Breaking the 'notion' barrier
All your education and work-experience must have given you a perspective on how businesses work. These experiences, and the notions that they bring along with it have their own limitations. They don't quite give you the complete picture.
Also, most of this 'experience and knowledge' constitutes the answers to yesterday's problems. It might not necessarily apply to what goes on today. And there is an even stronger possibility of this know-how getting obscure in the future.
Finding the funding
In the ideal case scenario, find someone who will be willing to pay you for what you are currently doing. This is a critical stage for most businesses. Do not let go until you are convinced that you have exhausted all opportunities.
The next best option is to find someone who has a similar business need. Then go about designing a solution for him. Try brainstorming further to keep customisation to a minimum so that the solution can be taken to other potential clients with minimum modification.
The benefit of having partners
There is only that much one person can do.
Like most businesses have separate business units or heads such as manufacturing, marketing etc., the skills needed to run most businesses too are quite varied.
What are the odds that you will be adept at the technical, marketing, selling, business and political aspects of the business? Besides, having partners makes sense on many other levels. Firstly, as the number or people owning the business goes up, the risk and intensity of a loss goes down. You can stay on in the market for longer in case of a lean period.
Also, since the business heads will most likely be split among the partners, one can focus on a couple of areas while doing complete justice to them and focusing on nothing else. This makes the entire business a lot more competent.
Don't quit your day job, just yet
You don't need to take the big jump straight away. Building a business takes a lot of time and groundwork. Spending up to an hour a day after work is a feasible option initially. It also helps you get a feel of what a business must be like.
Moreover, getting in a pay cheque every month is always the smarter option, especially when you might not have a steady income for some time to come. A few things you can do alongside work might be:
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Examine the feasibility of the business model
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Buy market research target market
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Understand the selling patterns of related products
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Get options on funding
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Develop a marketing plan for various budget constraints
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Talk to other entrepreneurs and get some tips off them
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Try getting inputs from a venture incubation centre
Get a transition plan ready
Consider the worst-case scenario, and work on a feasible exit clause even for that. Chart out the future, the incoming revenue streams, how long do you plan to be in the business, exit options etc. Also, have a financial cushion in the form of some investments that you leave untouched while at the business.
Try roping in venture capitalists at the earliest stage in the business to enable you to work under lesser financial pressure.
Tomorrow is just a second away from today
There is only that much preparation that one can put in. Stop finding excuses to delay getting into the business. You cannot learn swimming from a textbook. Take the plunge. Learn what works for YOU and what doesn't. There is no right or prescribed way to run a business. In fact, there are as many ways as there are people running successful businesses.
Also, this is as good a time as any to be an entrepreneur. The economy is growing; the government is supporting new ventures through various measures in the recent budget. And most importantly, the number of avenues for growth and the kind of opportunities available are unparalleled today.
So go on, what's stopping you from being your own boss?
