Advertising
Advertising

How to build your business before quitting your day job

How to build your business before quitting your day job
Money

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.

Advertising

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:

Advertising

  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.

Advertising

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.

Advertising

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.

More by this author

The Golden Rule Of Referrals: Learn to Give a Perfect Referral Burn The Business Plan: Write a Book Instead How to Give a Killer Evaluation Increasing your Credibility in 30 days: How to Brag without Bragging How to build your business before quitting your day job

Trending in Featured

1 What to Do in Free Time? 20 Productive Ways to Use the Time 2 20 Time Management Tips to Super Boost Your Productivity 3 How to Take Notes: 3 Effective Note-Taking Techniques 4 How to Stay Motivated and Reach Your Big Goals in Life 5 How to Break Out of Your Comfort Zone

Read Next

Advertising
Advertising
Advertising

Last Updated on March 30, 2020

What to Do in Free Time? 20 Productive Ways to Use the Time

What to Do in Free Time? 20 Productive Ways to Use the Time

If you’ve got a big block of free time, the best way to put that to use is to relax, have fun, decompress from a stressful day, or spend time with a loved one. But if you’ve just got a little chunk — say 5 or 10 minutes — there’s no time to do any of the fun stuff.

So, what to do in free time?

Put those little chunks of time to their most productive use.

Everyone works differently, so the best use of your free time really depends on you, your working style, and what’s on your to-do list. But it’s handy to have a list like this in order to quickly find a way to put that little spare time to work instantly, without any thought. Use the following list as a way to spark ideas for what you can do in a short amount of time.

1. Reading Files

Clip magazine articles or print out good articles or reports for reading later, and keep them in a folder marked “Reading File”. Take this wherever you go, and any time you have a little chunk of time, you can knock off items in your Reading File.

Keep a reading file on your computer (or in your bookmarks), for quick reading while at your desk (or on the road if you’ve got a laptop).

2. Clear out Inbox

Got a meeting in 5 minutes? Use it to get your physical or email inbox to empty.

If you’ve got a lot in your inbox, you’ll have to work quickly, and you may not get everything done; but reducing your pile can be a big help. And having an empty inbox is a wonderful feeling.

Advertising

3. Phone Calls

Keep a list of phone calls you need to make, with phone numbers, and carry it everywhere.

Whether you’re at your desk or on the road, you can knock a few calls off your list in a short amount of time.

4. Make Money

This is my favorite productive use of free time. I have a list of articles I need to write, and when I get some spare minutes, I’ll knock off half an article real quick.

If you get 5 to 10 chunks of free time a day, you can make a decent side income. Figure out how you can freelance your skills, and have work lined up that you can knock out quickly — break it up into little chunks, so those chunks can be done in short bursts.

5. File

No one likes to do this. If you’re on top of your game, you’re filing stuff immediately, so it doesn’t pile up.

But if you’ve just come off a really busy spurt, you may have a bunch of documents or files laying around.

Or maybe you have a big stack of stuff to file. Cut into that stack with every little bit of spare time you get, and soon you’ll be in filing Nirvana.

6. Network

Only have 2 minutes? Shoot off a quick email to a colleague. Even just a “touching bases” or follow-up email can do wonders for your working relationship. Or shoot off a quick question, and put it on your follow-up list for later.

Advertising

7. Clear out Feeds

If my email inbox is empty, and I have some spare time, I like to go to my Google Reader and clear out my feed inbox.

8. Goal Time

Take 10 minutes to think about your goals — personal and professional.

If you don’t have a list of goals, start on one. If you’ve got a list of goals, review them.

Write down a list of action steps you can take over the next couple of weeks to make these goals a reality. What action step can you do today? The more you focus on these goals, and review them, the more likely they will come true.

9. Update Finances

Many people fall behind with their finances, either in paying bills (they don’t have time), or entering transactions in their financial software, or clearing their checkbook, or reviewing their budget.

Take a few minutes to update these things. It just takes 10 to 15 minutes every now and then.

10. Brainstorm Ideas

Another favorite of mine if I just have 5 minutes — I’ll break out my pocket notebook, and start a brainstorming list for a project or article. Whatever you’ve got coming up in your work or personal life, it can benefit from a brainstorm. And that doesn’t take long.

11. Clear off Desk

Similar to the filing tip above, but this applies to whatever junk you’ve got cluttering up your desk. Or on the floor around your desk.

Advertising

Trash stuff, file stuff, put it in its place. A clear desk makes for a more productive you. And it’s oddly satisfying.

12. Exercise

Never have time to exercise? 10 minutes is enough to get off some pushups and crunches. Do that 2 to 3 times a day, and you’ve got a fit new you.

13. Take a Walk

This is another form of exercise that doesn’t take long, and you can do it anywhere. Even more important, it’s a good way to stretch your legs from sitting at your desk too long.

It also gets your creative juices flowing. If you’re ever stuck for ideas, taking a walk is a good way to get unstuck.

14. Follow up

Keep a follow-up list for everything you’re waiting on. Return calls, emails, memos — anything that someone owes you, put on the list.

When you’ve got a spare 10 minutes, do some follow-up calls or emails.

15. Meditate

You don’t need a yoga mat to do this. Just do it at your desk. Focus on your breathing. A quick 5 to 10 minutes of meditation (or even a nap) can be tremendously refreshing.

Take a look at this 5-Minute Guide to Meditation: Anywhere, Anytime

Advertising

16. Research

This is a daunting task for me. So I do it in little spurts.

If I’ve only got a few minutes, I’ll do some quick research and take some notes. Do this a few times, and I’m done!

17. Outline

Similar to brainstorming, but more formal. I like to do an outline of a complicated article, report or project, and it helps speed things along when I get to the actual writing. And it only takes a few minutes.

18. Get Prepped

Outlining is one way to prep for longer work, but there’s a lot of other ways you can prep for the next task on your list.

You may not have time to actually start on the task right now, but when you come back from your meeting or lunch, you’ll be all prepped and ready to go.

19. Be Early

Got some spare time before a meeting? Show up for the meeting early.

Sure, you might feel like a chump sitting there alone, but actually people respect those who show up early. It’s better than being late (unless you’re trying to play a power trip or something, but that’s not appreciated in many circles).

20. Log

If you keep a log of anything, a few spare minutes is the perfect time to update the log.

Actually, the perfect time to update the log is right after you do the activity (exercise, eat, crank a widget), but if you didn’t have time to do it before, your 5-minute break is as good a time as any.

More Inspirations on What To Do During Free Time

Featured photo credit: Lauren Mancke via unsplash.com

Read Next