Starting out on your own can be a daunting task, but if you prepare well and follow a few basic steps your chances of success are significantly higher. Every business has a slightly different path to the top, but certain elements have proven true across industries and regions around the world.
Don’t quit your day job immediately
Some Silicon Valley billionaires will tell you that the only way to build a business is to go all in from the start, but that is not always good advice – and certainly not for those who don’t have access to large amounts of capital. As Saeed Torbati says, startups regularly do not make any profits for their first year, and so you need to be prepared with enough money in the bank to see you through those tough first months – and that means you should start saving now.
Be sure there’s a market for your product/service
Some businesses create new markets out of nothing (hello iPhone), but these huge leaps are few and far between. In reality, most businesses are iterative and solve real-world problems consumers or others businesses already face. So any entrepreneur should do the research to make sure their is a market for their product/service before they jump in with both feet.
This sort of market research is the sort of task that can be done without quitting your day job, so you can work out whether the business is worth pouring your savings and the next few years of your life into. By reaching out to potential customers and clients directly to see if they would be interested in your product or service early, you will save yourself significant heartache and stress down the line. And if it turns out people aren’t interested? Either pivot the product to something else you think might be a better fit, or go back to the drawing board completely smug with the fact that you still have your day job and nothing has yet really changed.
Write a business plan
It is amazing how many people launch a business without first fleshing out a detailed business plan, and without fail they regret the decision. A good business plan will not only help you organise your thoughts and let you plan for how you foresee the business growing, but it will also help you see some of the potential pitfalls. How much runway do you need? When do you think you will need your first employee? When will you need investment? Who are the critical people in the industry you need to get on-board? All of these questions should be answered in your business plan
Rest and be honest with yourself
Nobody is superhuman, and whilst many business leaders would like you to think they only sleep four hours per night so they can fit in more work – the science is clear that you should be getting more sleep to succeed. A well-rested founder will have a clearer head, which gives them a better chance of spotting and fixing any problems before they snowball, as well as more space to come up with new and inventive ideas.
Some rest will give you perspective and keep you honest with yourself. Are you getting what you want out of running your business? How are you dealing with the constant stress? Are you excited about the future or dreading tomorrow? No-one wants to give up on building their dream company, but not every business idea is workable and businesses fail every day – if you know when to quit you will be ready to fight (and launch your next startup) another day.
Photograph by Lalmch