I took my first tentative steps into the rather intimidating world of corporate employment, having spent almost 9 years in uniform, with little or no commercial experience and certainly no qualifications.
Lacking commercial experience, I found there was little in the way of options when it came to finding a job and was often forced into taking whatever was on offer. When finally an opportunity did arrive, I was continually playing catch-up with my more experienced colleagues.
After long days and weekends dedicated to expanding my knowledge and understanding of the business environment, in addition to studying part-time, I eventually settled into the corporate lifestyle and did manage to reach the dizzy heights (for me anyway) of middle management.
But to be honest I found the whole corporate world frustrating and to some extent boring.
One upside was that as a consequence of the career path chosen for me by circumstances, I found myself dealing more and more with self-employed entrepreneurs, both young and not so young.
I was fascinated by this apparent lifestyle of “being in control of one’s destiny” and the more I observed, the more convinced I became that this was my path towards self-achievement and enlightenment.
So after almost 16 years in the big company grind I decided it was time I went on my own, based on the logic that if others could do it, so could I, and with my over inflated opinion of my strengths, I didn’t think it would be that difficult.
Boy, was I wrong. And so along with my shattered ego, I landed back in the world of reality with a massive bump.
I not only failed with my first small company experience but had the distinction of repeating the process all over again a second time around.
Related read: What have I really learned from my many years as a small business owner?
After the much-vaunted soul searching and introspection and a whole heap of help from a really smart mentor friend, I managed to get a home based business up and running.
Incidentally, doing something I had no passion for but was reasonably good at.
So what had made the difference? What I had I not done, or perhaps done differently this third time around?
In a nutshell, two facts immediately hit me right between the eyes:
- Passion was not enough to make a business succeed
- Preparing yourself BEFORE you launch is critical.
Of course, there are also all those good tips about having an implementable plan, a product that will sell, a sound marketing plan, etc., which should not be ignored
But there was one element that struck me as so simple to employ but yet had not been obvious to me at the time – prepare yourself to become an entrepreneur.
This preparedness should begin while you are still in full time employment and have the luxury of both time and a regular income. The thought process can begin immediately after your “I can be entrepreneur” bathtub epiphany.
Here are some suggestions as to what you should be considering BEFORE handing in your resignation letter and telling your boss exactly where to stick his or her job:
Understand WHY you want to own your own business
In my early entrepreneurial days I was convinced that being my own boss, making lots of money, deciding my future and becoming a success were the only reasons you needed to start a business.
I soon found out that these were fallacies.
After my succession of failures, it occurred to me that the first thing I had to do was to understand why I really wanted to start my own company. For me it was:
- Having financial stability, note: not being rich or just making lots of money.
- I needed to leave a legacy for my children – something that would enhance their own career paths
- Influencing my own decision-making processes was of great importance to me.
Know why you want to be a business owner.
Get the mind into entrepreneurial mode
Even while employed it is important to begin to think like an entrepreneur.
Evaluate “corporate decision making processes” and ask yourself how would you do it if it was your own company?
Observe how the good managers go about their tasks, how they supervise employees and most importantly how they manage their departmental budgets.
Role-play the “if it was my company…..” scenario as often as you can
Ask lots of questions
It is important to learn from those who have done it before you – but have a plan.
Establish what it is you need information about and draft a list of questions that need answering. Based on the knowledge you seek, look for the most informed sources that can provide the answers.
These could be:
- Colleagues or management
- Friends and family
- Local small business owners in your area
- Books, magazines, the Internet or even your local library (the big building with lots of books in it)
- Contact your local Chamber of Business and set up sessions with coaches, mentors and advisors.
Sift out the bad from the good news
When I first began making the acquaintances of small business owners I was all for hearing what a great life it was with the end result that I failed to take note of what the realities were.
I ignored the advice about being committed, being prepared to put in the long hours and that success needs to be worked for and cannot be assumed.
One of the most important pieces of advice that I chose to gloss over at the time was the impact, both financially and emotionally, that being a business owner would have on my family. Without their support and involvement, the new venture is unlikely to succeed.
Start stuffing the piggy bank
Many small and home businesses have been launched using borrowed money. My personal recommendation is to try and launch by investing your own money even if it means the dream has to be trimmed a bit to start with. There is nothing more stressful than starting a new enterprise that is already in debt from day one.
This means that unless you have a large stash of cash under your mattress you need to start setting money aside to pay for your start-up, and staying employed on a full time basis is one way of averting a financial crises.
Only launch the business when you have sufficient excess cash to fund it thus avoiding placing a strain on the family financial needs.
Start working on your Business Plan
This is a good way to begin documenting what it is you intend to do. It will also clarify in your own mind how the business will operate. It will take your bathtub dream and begin to turn it into a tangible and measurable object.
- What product or service will you offer?
- Is it saleable? In other words, is there already a well-established market?
- Where are the markets – are there barriers to entry?
- What will it cost to make the product or provide the service?
- Do I have the necessary skills and experience with the product or service that will convince people to buy from my business?
- How will I market the business?
The more you PLAN the better the execution.
Think about moonlighting or starting part-time
But before you do check your conditions of employment – moonlighting may be strictly forbidden by your current employer.
If unrestricted this is a good way to get the business off the ground and begin to build up a customer base and a reputation. It is also a good way to get the family involved and will give them, and you, some insight as to what running a home based or small business will entail.
It will also allow you to identify the areas that need a second look or a re-design, ironing out the bumps in a small and part-time operation is a whole lot easier than trying to fix things when the business is steaming ahead after launching.
Some final thoughts
Don’t get swept up in the excitement and hype about how great it is to own your own business.
Be absolutely sure it is what you really want to do and that the family or loved ones are in total agreement with your vision.
Passion alone is not enough to justify leaving full time employment and placing everything you have at risk. Although passion is a substantial contributor, it is your hard work and full time commitment to the endeavour which will make the difference between being a wannabe and a successful entrepreneur.
Use the time while you still have a regular income to PLAN, SAVE, RESEARCH and PLAN some more.
Image and quotation courtesy of Brainy Quote