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How to build your business before quitting your day job

How to build your business before quitting your day job
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Like diving from a cliff the first time, leaving your job to dedicate yourself to your own business can be quite daunting prospect. There should be much more consideration to making a decision to quit your job than simply “look before you leap.” There are ways to approach this without burning bridges, while building wealth and increasing the likelihood of success in the new venture.

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Determine a good crossover point, so that you can enjoy the best of both worlds. Why not maintain those relationships developed during your career while gaining some early traction? Much of what works and doesn’t work in a venture can be figured out before making a full commitment to it. You can work toward a bottom line measurement, where profit trajectory from the business crosses your income needs, before you make the leap. This is not always easy to do but will be worth the effort.

If done well, quitting your job to dedicate yourself to your business will be a natural transition, even if this is your first time. Here is a list of ten things to work on to determine a good crossover point. In other words, don’t quit until:

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  1. There is a good product or service offering in place. An idea, set of samples, prototype and the like do not count. There needs to be a real business opportunity in here. Wherever possible, it should be proven, backed by a good plan and operating on a sound business model. It takes solid front-end marketing to determine that. There is rarely any value in quitting a well paying job on just a hunch there is a good business opportunity. Whatever it is, it needs to be priced for sale and priced for profit with all the costs of overhead, production, sales and distribution factored in.
  2. There are real customers. Unless you are selling quilts, family and friends are not considered customers. Whether your customers are end users, distributors, retailers, businesses or the general public doesn’t matter as much as whether or not they are real and sustainable.
  3. There is enough money in the bank to sustain a prolonged dry spell. It can take three years to develop a business to the point there is enough profit above and beyond the needs of the business to generate a healthy income for the owner.
  4. The business becomes more enjoyable and satisfying then the job. This is easier for people who hate their job than it is for those who are very passionate about their work. There needs to be passion and enthusiasm for the new venture, otherwise it is bound to fail. This is always true if you are the one leading it and doing the sales. With few exceptions, this also holds true if you are simply taking over an existing business with a track record and organization in place. The attitude of the owner affects the whole enterprise.
  5. The product or service offering is not being trampled by a major competitor. If a big competitor can afford to and does make a big effort to undercut your offering and has the ability to out-market, out-produce and out-sell you, the business could quickly become a race for the bottom.
  6. The business will not likely go broke within three to five years. The sad reality is that about half of all companies are simply not around five years after they are started. About a third of the ones that close do so because they lose money, another third break even and the remainder are profitable. There are many reasons for a company to close its doors, but not making a profit is obviously the main one.
  7. You develop the self discipline it takes to tough it out in your own business. Not having a boss or system in place to keep you working makes it easier to become distracted and lose focus on the needs of the business. Putting off necessary sales calls to head off to the beach on a nice summer day is a surefire way to undermine the chances of success.
  8. You have become an expert in your chosen area. Leaving a 20 year career in the insurance industry to start a venture manufacturing a new health food snack bar is likely going to become problematic. People in both the insurance and food industries will be skeptical unless clear expertise has been developed in the relevant areas. This is why it is often easier to transition from a job to a business in a similar area or expertise. An insurance veteran offering a new product or service in the insurance field will have less trouble establishing credibility as an expert.
  9. You have enough of the right “friends” in the area. A productive network is a great asset in building a business. If you have the right people in the right places available at the right time, your business is much more likely to succeed than if you don’t. Use tools like LinkedIn, Facebook and industry networking events to enhance your network.
  10. You have key mentors and advisors in place. These people can help you develop the business long before full deployment. Call on more of your growing network of “friends” as things develop. These advisors can also help with determining when to quit your job (or the business).

It boils down to really knowing yourself and knowing your stuff before going into your new venture with a full commitment. You should know the area well enough to be able to write a book about it. This helps eliminate the tendency to respond to the frequent “once in a lifetime” opportunities that come along.

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Develop the business under trial conditions as much as possible while you are still maintaining your job or career. You won’t likely be able to generate much volume or profit during this phase. It is often hard to go out and make sales calls during the day while you are working 9 to 5 job. However, it is quite possible to do substantial test marketing and research without having to quit your job. There can usually be enough product or service development work done where needed to get it into a saleable enough form to get orders from real customers – enough to prove out the business and maybe make a small profit. Plus build your network, expertise and credibility in the area.

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Develop your business to the point that you simply are forced to choose between your job and the business. Do that, and you’ll be much less likely to hit rock bottom when you make the leap!

If you have any additional suggestions, please post a comment.

Peter Paul Roosen and Tatsuya Nakagawa are co-founders of Atomica Creative Group , a specialized strategic product marketing firm. Through leading edge insight and research, sound strategic planning and effective project management, Atomica helps companies achieve greater success in bringing new products to market and in improving their existing businesses. They have co-authored Overcoming Inventoritis now available.

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Last Updated on July 9, 2019

How to Stay Motivated and Reach Your Big Goals in Life

How to Stay Motivated and Reach Your Big Goals in Life

It is hardly a secret that the key to successfully accomplishing one goal after another is staying motivated. There are, of course, tasks which successful people may not like at all, yet they find motivation to complete them because they recognize how each particular task serves a greater goal.

So how to stay motivated most of the time? Here are 5 simple yet effective ways on how to stay motivated and get what you want:

1. Find the Good Reasons

Anything you do, no matter how simple, has a number of good reasons behind it.

You may not be able to find good reasons to do some tasks at first but, if you take just a few moments to analyze them, you will easily spot something good. We also have many tasks which don’t need any reasoning at all – we’ve been doing them for so long that they feel natural.

If you’re ever stuck with some tasks you hate and there seems to be no motivation to complete it whatsoever, here’s what you need to do: find your good reasons.

Even when you set goals, there needs to be reasons behind these goals. They may not be obvious, but stay at it until you see some, as this will bring your motivation back and will help you finish the task.

Some ideas for what a good reason can be:

  • A material reward – quite often, you will get paid for doing something you normally don’t like doing at all.
  • Personal gain – you will learn something new or will perhaps improve yourself in a certain way.
  • A feeling of accomplishment – at least you’ll be able to walk away feeling great about finding the motivation and courage to complete such a tedious task.
  • A step closer to your bigger goal – even the biggest accomplishments in history have started small and relied on simple and far less pleasant tasks than you might be working on. Every task you complete brings you closer to the ultimate goal, and acknowledging this always feels good.

2. Make It Fun

When it comes to motivation, attitude is everything. Different people may have completely opposite feelings towards the same task: some will hate it, others will love it.

Why do you think this happens? It’s simple: some of us find ways to make any task interesting and fun to do!

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Take sports for example. Visiting your local gym daily for a half-an-hour workout session sounds rather boring to some. Yet many others love the idea!

They like exercising not only because they recognize the good reasons behind it, but simply because it’s fun! At certain time of their daily schedule, they find going to gym to be the best thing to do, simply because nothing else will fit their time and lifestyle so perfectly.

Depending on how you look at it, you can have fun doing just about anything! Just look for ways of having fun, and you’ll find them!

A simple approach is to start working on any task by asking yourself a few questions:

  • How can I enjoy this task?
  • What can I do to make this task fun for myself and possibly for others?
  • How can I make this work the best part of my day?

As long as you learn to have the definite expectation of any task being potentially enjoyable, you will start to feel motivated.

Some of you will probably think of a thing or two which are valid exceptions from this statement, like something you always hate doing no matter how hard you try making it fun. You’re probably right, and that’s why I don’t claim everything to be fun.

However, most tasks have a great potential of being enjoyable, and so looking for ways to have fun while working is definitely a good habit to acquire.

3. Take a Different Approach

When something doesn’t feel right, it’s always a good time to take a moment and look for a different approach for the task.

You may be doing everything correctly and most efficiently, but such approach isn’t necessarily the most motivating one. Quite often, you can find a number of obvious tweaks to your current approach which will both change your experience and open up new possibilities.

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That’s why saying “one way or another” is so common — if you really want to accomplish your goal, there is always a way; and most likely, there’s more than one way.

If a certain approach doesn’t work for you, find another one, and keep trying until you find the one which will both keep you motivated and get you the desired results.

Some people think that trying a different approach means giving up. They take pride in being really stubborn and refusing to try any other options on their way towards the goal.

My opinion on this is that the power of focus is great, but you should be focusing on your goal, and not limiting your options by focusing on just one way to accomplish it it.

4. Recognize Your Progress

Everything you may be working on can be easily split into smaller parts and stages. For most goals, it is quite natural to split the process of accomplishing them into smaller tasks and milestones. There are a few reasons behind doing this, and one of them is tracking your progress.

We track our progress automatically with most activities. But to stay motivated, you need to recognize your progress, not merely track it.

Here’s how tracking and recognizing your progress is different:

Tracking is merely taking a note of having reached a certain stage in your process. Recognizing is taking time to look at a bigger picture and realize where exactly you are, and how much more you have left to do.

For example, if you’re going to read a book, always start by going through the contents table. Getting familiar with chapter titles and memorizing their total number will make it easier for you to recognize your progress as you read. Confirming how many pages your book has before starting it is also a good idea.

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You see, reading any book you will be automatically looking at page numbers and chapter titles, but without knowing the total number of pages, this information will have little meaning.

Somehow, it is human nature to always want things to happen in short term or even at once. Even though we split complex tasks into simpler actions, we don’t quite feel the satisfaction until all is done and the task is fully complete.

For many scenarios though, the task is so vast that such approach will drain all the motivation out of you long before you have a chance to reach your goal. That’s why it is important to always take small steps and recognize the positive different and progress made. This is how your motivation can sustain in long term.

5. Reward Yourself

This is a trick everyone likes: rewarding yourself is always pleasant. This is also one of the easiest and at the same time most powerful ways to stay motivated!

Feeling down about doing something? Dread the idea of working on some task? Hate the whole idea of working? You’re not alone.

Right from the beginning, agree on some deliverables which will justify yourself getting rewarded. As soon as you get one of the agreed results, take time to reward yourself in some way.

For some tasks, just taking a break and relaxing for a few minutes will do.

For others, you may want to get a fresh cup of coffee and even treat yourself a dessert.

For even bigger and more demanding tasks, reward yourself by doing something even more enjoyable, like going to a cinema or taking a trip to some place nice, or even buying yourself something.

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Your progress may not seem to others like anything worth celebrating but, take time and do it anyway! It is your task and your reward, so any ways to stay motivated are good.

The more you reward yourself for the honestly made progress, the more motivated you will feel about reaching new milestones, thus finally accomplishing your goal.

Mix and Match

Now that you have these five ways of staying motivated, it is a good moment to give you the key to them all: mix and match!

Pick one of the techniques and apply it to your situation. If it doesn’t work, or if you simply want to get more motivated, try another technique right way. Mix different approaches and match them to your task for the best results.

Just think about it: Finding good reasons to work on your task is bound to helping you feel better; and identifying ways to make it fun will help you enjoy the task even more.

Or, if you plan a few points for easier tracking of your progress and on top of that, agree on rewarding yourself as you go; this will make you feel most motivated about anything you have to work through.

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Featured photo credit: Lucas Lenzi via unsplash.com

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