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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 May 14, 2019

8 Replacements for Google Notebook

8 Replacements for Google Notebook

Exploring alternatives to Google Notebook? There are more than a few ‘notebooks’ available online these days, although choosing the right one will likely depend on just what you use Google Notebook for.

  1. Zoho Notebook
    If you want to stick with something as close to Google Notebook as possible, Zoho Notebook may just be your best bet. The user interface has some significant changes, but in general, Zoho Notebook has pretty similar features. There is even a Firefox plugin that allows you to highlight content and drop it into your Notebook. You can go a bit further, though, dropping in any spreadsheets or documents you have in Zoho, as well as some applications and all websites — to the point that you can control a desktop remotely if you pare it with something like Zoho Meeting.
  2. Evernote
    The features that Evernote brings to the table are pretty great. In addition to allowing you to capture parts of a website, Evernote has a desktop search tool mobil versions (iPhone and Windows Mobile). It even has an API, if you’ve got any features in mind not currently available. Evernote offers 40 MB for free accounts — if you’ll need more, the premium version is priced at $5 per month or $45 per year. Encryption, size and whether you’ll see ads seem to be the main differences between the free and premium versions.
  3. Net Notes
    If the major allure for Google Notebooks lays in the Firefox extension, Net Notes might be a good alternative. It’s a Firefox extension that allows you to save notes on websites in your bookmarks. You can toggle the Net Notes sidebar and access your notes as you browse. You can also tag websites. Net Notes works with Mozilla Weave if you need to access your notes from multiple computers.
  4. i-Lighter
    You can highlight and save information from any website while you’re browsing with i-Lighter. You can also add notes to your i-Lighted information, as well as email it or send the information to be posted to your blog or Twitter account. Your notes are saved in a notebook on your computer — but they’re also synchronized to the iLighter website. You can log in to the site from any computer.
  5. Clipmarks
    For those browsers interested in sharing what they find with others, Clipmarks provides a tool to select clips of text, images and video and share them with friends. You can easily syndicate your finds to a whole list of sites such as Facebook, Twitter and Digg. You can also easily review your past clips and use them as references through Clipmarks’ website.
  6. UberNote
    If you can think of a way to send notes to UberNote, it can handle it. You can clip material while browsing, email, IM, text message or even visit the UberNote sites to add notes to the information you have saved. You can organize your notes, tag them and even add checkboxes if you want to turn a note into some sort of task list. You can drag and drop information between notes in order to manage them.
  7. iLeonardo
    iLeonardo treats research as a social concern. You can create a notebook on iLeonardo on a particular topic, collecting information online. You can also access other people’s notebooks. It may not necessarily take the place of Google Notebook — I’m pretty sure my notes on some subjects are cryptic — but it’s a pretty cool tool. You can keep notebooks private if you like the interface but don’t want to share a particular project. iLeonardo does allow you to follow fellow notetakers and receive the information they find on a particular topic.
  8. Zotero
    Another Firefox extension, Zotero started life as a citation management tool targeted towards academic researchers. However, it offers notetaking tools, as well as a way to save files to your notebook. If you do a lot of writing in Microsoft Word or Open Office, Zotero might be the tool for you — it’s integrated with both word processing software to allow you to easily move your notes over, as well as several blogging options. Zotero’s interface is also available in more than 30 languages.

I’ve been relying on Google Notebook as a catch-all for blog post ideas — being able to just highlight information and save it is a great tool for a blogger.

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In replacing it, though, I’m starting to lean towards Evernote. I’ve found it handles pretty much everything I want, especially with the voice recording feature. I’m planning to keep trying things out for a while yet — I’m sticking with Google Notebook until the Firefox extension quits working — and if you have any recommendations that I missed when I put together this list, I’d love to hear them — just leave a comment!

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