January 19, 2010
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Business Forecasting 2012
Our special feature on forecasting sheds light on how to choose the right model, offers advice from Jack Stack and more.
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Brandy Tanner
Most people don’t start off as entrepreneurs and small business owners. A lot have the desire, but first gather experience and connections with a larger company. Others find themselves thrown into the situation after experiencing a layoff or seeing their employer go down the tubes.
Regardless of your situation or why you want to change course, transitioning from the corporate environment to the harsh realities of the startup world isn’t easy, and for many it doesn’t come naturally. You give up a lot in the process and sometimes the gain isn’t immediate.
While there’s no easy way to prepare for the system shock that is the transition from corporate life to small business, there are ways to prepare for the change and make it less difficult. Here are just a few tips to ease your move into the startup world:
1. You don’t have to jump right in: Entering the startup world doesn’t have to be like doing a cannonball into a pool. It’s often a good idea to get your feet wet by working on your project part time or taking time to find the right opportunity.
2. But be prepared for a lower income: Even if you consult, you’re going to almost certainly make less in the beginning.
3. Save, save, save: Always save, even if you don’t foresee yourself leaving your company for months or years. Having a small fund to aid in the transition will help.
4. Plan your finances in advance: On the same note, having a financial plan will help prevent some of the stress of starting your own business. You should figure out your budget and how many months you can last without a new infusion of cash (your burn rate). Don’t forget to take lost benefits into account.
5. Get a good accountant: Starting your own business offers a lot of tax benefits. Talk to a trusted accountant to figure out what exactly you can write off. Don’t forget to keep track of all of your expenses.
6. Have your goals – and your deadlines – outlined: You have to keep yourself accountable. There isn’t a manager to keep you in check anymore. Set specific goals, both short and long-term, and deadlines for reaching them. Keep a fire lit under your butt to get things done, because it’s easy to go astray.
7. Enjoy the benefits of running your own business: While startup life can be tough, especially in comparison to some cushy corporate jobs, don’t lose sight of the benefits. Building your own idea, being your own boss, working on your own schedule, following your passion, potentially making something bigger than you could have imagined – these are the things that define entrepreneurship and why so many people follow the dream.
Image courtesy of iStockphoto, asiseeit
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Brandy Tanner 2 years 0 months and 0 days ago
Great article. I think this is great advice!