Should You Leave Your Job To Become An Entrepreneur?
There is a popular conception that entrepreneurship currently stands as the best means of making money. This belief has, in turn, caused a lot of people who are in gainful e, in turn,t to strongly consider switching from their regular jobs to becoming entrepreneurs. Their reason for doing so isn’t far-fetched. Most of them believe becoming entrepreneurs is the fastest, easiest and surest way to increase their earnings.
A cursory look into the statistics of those who have jumped ships reveal that just a handful of them have succeeded in that feat. The reason for the failure is quite obvious. Just like other endeavors, there are quite a number of things anyone looking to make a switch ought to understand to have a successful one.
The Alluring Nature of Entrepreneurship
According to the CEO and founder of Financial Counseling Limited, Manyara Kirago, several people make the decision to become entrepreneurs because of the alluring nature of entrepreneurship. He said that viewing entrepreneurship on a surface level reveals a venture which looks like the best means of becoming wealthy considering the fact that a lot of the renowned wealthy people are businessmen and women.
Kirago, however, added that a lot do not consider the fact that 90% of new businesses end up failing within five years of establishment. Out of the ten percent surviving businesses, only five percent can successfully generate considerable wealth. He concluded by saying that entrepreneurship comes with a higher risk as compared with employment and it is, therefore, necessary to understand the risk before launching in.
Carrying Out Business Research
An author and entrepreneur, Dave Peck, noted that it is hardly possible for a person to survive in business without carrying out adequate business research before launching in. Peck added that it is important to research and subsequently develop a service or product that has solutions, weaknesses, strengths and overall operation that one fully understands.
According to Peck, it is very essential that you understand your target market and the rate at which they will require your service. In addition to that, you need to know the rivals in the business in your particular location, how you intend to market the services or products. You also need to know and understand the kind of employees you have your work with.
Hold On To Your Job
It is generally not a good idea for you to leave your employment because you want to start your own business from the basics. Studies have actually shown that chances of becoming successful are 33% higher if you hold on to the job and start the business as a side venture. According to a business startup study by Academy of Management, there is a positive influence on entrepreneurial entry as well as survival if one starts the business while still keeping a day job in a current business or organization.
Even when you have express and definite plans for your business, it is never a good idea to exit your current employment on a bad note. You should never destroy the relationships you built at work, neither should you leave any of your expected duty undone. Peck said you have no idea what you are going to face in your new business and whether those you currently work for or work with would be beneficial to your new business.
Also, you should not quit your regular job for a business if the idea you have isn’t based on offering solutions and also bringing about a positive change in the lives of others. According to a certified business coach and entrepreneur, Tonnie Mello, you shouldn’t start a business just because it looks like someone else has gotten wealthy through entrepreneurship.
Plan for Getting Capital
You need to know how much that business idea would cost before you begin to make profits on it. With that knowledge, you also have to know how to meet that cost. Mr. Peck advised against quitting your job on the assumption that you’ll be able to get funding from those known as angel investors. He suggested that it is better to ensure that your personal finances are kept in check before you begin to consider pitching for funding. Getting your personal finances in place goes behind the monthly utility budget.
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