Nowadays , many people started looking for his passion and make it as a promising source of livelihood . Many years of being an employee , what can swerved into an entrepreneur ? It could be ! If this is a life choice that you want to run . Try evaluating how prepared your finances in the transition from employee to entrepreneur .
First , you must create a comprehensive business plan . A business plan should answer important questions , such as : What are you selling ? Who is your market share ? How big is the potential market value today and in the future ? What will be the competitive advantage in your business competition ? How do you make a profit ? How much competition there is in this business category ?
Second , after completing a business plan , then you access the funds as a source of working capital . The business plan gives an overview of how much capital you need , whether the need to borrow from the bank , and how your business can pay the working capital debt .
Third , create a monthly budget of a new household . How do you determine how much income per month ? When you work for this business , then set salary every month you take of business . Enter the amount of salary as part of operating expenses . Well , make sure the household expenditure is less than the basic income of the business . Make sure you set aside a budget to cover the company's losses and operational financial obligations .
Fourth , prepare personal finances . One of the biggest fears an office employee -turned- entrepreneur is the risk of not getting regular income . Do not be discouraged if at the initial stages , you do not get the same amount of income as an employee .
Fifth , have a contingency plan as a backup plan if something happens so it does not run smoothly . Consider the following :
- Do you have the option to go back to work full time at your old company ?
- Do you have the option of returning to full - time employment with the new employer ?
- Do you want to try a new business direction ( ie still being an entrepreneur , but in a different industry categories ) ?
Therefore , before starting a business, you are required to have an adequate emergency fund availability . These funds must be deposited in the form of regular savings or deposit at least 12 times the number of monthly expenditures . This fund is used to meet the needs of your routine when your efforts do not provide income . In addition , it is worth considering your options contingency plan .
Do you already have an adequate emergency fund ? Try checking with the help of this calculator .
I personally have experience building financial consulting business after working in a big multinational company for five and a half years . Six months before deciding to stop working , I collect and use the emergency fund half the salary to meet the needs of each month .
Business Finance and Personal Finance
Finance business is different with your personal finances . When you decide to do business , direct finance to businesses with separate finances for personal . Discipline in the books have done since the beginning .
An initial capital investment of your business . Take note of how much investment you have to spend as venture capital . Every business expenses , shall be paid from the income of the business . The same principle works in reverse . Every business income can not be directly used to finance your household budget . Use cash flow to finance business personal purposes is a big mistake .
Do not be Afraid to Start
In the early stages of starting your own business , results of operations sometimes not in line with expectations . Do not back down just because you are afraid of losing a regular income usually enjoyed as an employee . Ideal business always starts with a great plan and supported . However , keep in mind to strengthen the domestic financial foundation before starting a business .
( greetings success for all )
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