Despite the spike in entrepreneurial efforts over the years, many people starting their own business still hold on to their “day” job for one reason or another. It is totally understandable for those creating new opportunities to want to hold on to a steady paycheck as the uncertainty of everything a new business brings can be a lot to handle.
Profits are not generally seen by a new business until months or years down the line and the vision (or illusion) of stability can fade away if you put all of your eggs in one basket with no guarantee of success. Although there are many risks associated with transitioning your part time entrepreneurial efforts into a full time endeavor, the rewards may be greater and the time and dedication to assisting the edification of something made from your own hands will definitely give you a great sense of accomplishment. While assessing the pros and cons associated with taking your part time business to a full time venture, here are some issues to consider while making an informed decision.
1) Your Finances
If you have a mortgage to pay, have you saved up enough money to cover it while you wait on your profits to roll in? Do you have plans to down size your lifestyle in an effort to conserve funds and/or invest in your own business? It is important to speak with your financial adviser and/or yourself when determining if you are financially prepared for any hits you may take. It is one thing if you are starting your business from your mother’s garage where you pay little to no rent, but another if you have a family to support. Starting a business already comes with its own pressures and issues, no need to compound them by inadequately preparing financially for the transition.
2) Demand for Your Services or Products
Will the market fully support your full time desire to start a “Rent Em Spoons”? Or is the demand just not there? Before transitioning, make sure there is a true and sustainable demand for what you are offering. This includes extreme research and projections, and also setting goals and objectives for the future based upon the amount of business you are currently bringing in. Do not set yourself up for failure by offering a product or service that is obsolete to today’s desires and needs.
3) Your Needs and Desires