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Ask the Business Coach Going Out on My OwnQuestion: I'm considering leaving a decent-paying job and starting my own business (Commission only). The new job would have support from the parent company to help me get started. Everyone has told me I should keep my job due to the economy and be happy I have one.Kim Answer: This is a common response from those who are not entrepreneurial in nature and would view it as unwise - even frightening - to consider voluntarily quitting a job to start a business. But, that's what true entrepreneurs do. In fact, your first move should be to connect with other successful entrepreneurs who would be willing to talk with you briefly about their experience. You might make these kinds of acquaintances through your Chamber of Commerce, certainly through trade organizations that are akin to your area of interest - e.g. a group devoted to women business owners. Understand that it is unlikely that you will get encouragement from those who do not share a similar drive. Don't ask or expect it of them. If you remain dedicated to the idea of starting your own business, there are still a number of things you'll want to do before making any radical changes. First is to really evaluate your thinking, motives, skills and probabilities. You can begin doing this by taking the 'Test Your Motivation for Staring a Company' quiz at the StartupJournal.com which helps you 'measure your motivational profile.' If you firmly decide you want to take the entrepreneurial plunge, there a number of basics that absolutely must accompany a successful startup: 1. A formal Business Plan It can be brief - but without it - you'll be running your business on instinct which means you're more than likely to be headed for trouble from start. A plan will focus you on what you want your company to accomplish, where you want it to go and how it's going to get there. 2. A separate Sales Plan This is the only way to seriously ensure the financial growth and progress of your business. You need to map out - realistically - where your sales will come from, how they'll come, from whom, even how many contacts you need to make on daily basis to establish a flow of business. The overall plan should cover weekly, monthly, quarterly and annually numbers. 3. A detailed Marketing Plan A marketing plan details objectives, strategies and actions that will attract business to your company. It is essential to understand and put into place every aspect of the invitation to sale. Without a marketing plan, no business will be totally successful. 4. A secure Cash Reserve. Don't make your move until you have adequate cash reserve or real cash flow. Generally speaking as an individual going out on her own, the basic you should have it is investment money that will sustain you for a full year. If you don't have money set aside that will adequately take care of your needs during startup, you will be seriously hampered by stress and fear over just making sure you can pay your bills. Put together an honest financial picture to accomplish this before you give up your secure income. 5. A caring Support System. Clarify exactly what your prospective parent company will do to support your startup but don't rely on them for your motivation or emotional support. Put that in place by joining aligned professional organizations and establishing mentor relationships that will offer a helping hand through startup.
Also see: Disclaimer: The information in this column is intended to provide the reader with general ideas or concepts to be used as part of a broader base of knowledge they collect to determine their own best course of action and solutions most suitable for solving their workplace challenges. The information in this column is not guaranteed to be the appropriate solution for each individual.
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Joyce K. Reynolds is an expert Business Coach who works with CEOs, Sr. Execs, entrepreneurs and countless others providing knowledge, solutions, motivation and support that assist her clientele in successfully meeting workplace challenges.