Going full time with your start-up business is both an exciting and scary journey. You may be leaving the security of an established career or job to taking a risk on your small business. Before you jump head first into your new venture, here are a few things you should be considering before you make the leap.
- How is your health insurance coverage going to change? Having a change in employment qualifies you for an open enrollment period to purchase a new insurance policy.
- Does your small business need to invest in a “Key Man” life insurance policy on you? If your business depends upon you for success, you may want to invest in a life insurance policy comparable to the value of your business to cover any losses should something happen to you.
- Have you analyzed a cash flow projection of your business? In other words, what does your bank account look like? What profit projections can you make if you were to work on your business full time? Do you have enough money in the bank to support yourself and grow your business?
- Where are you going to work? Are you going to work from home, rent an office, or open a store?
- Do you have heaps of personal debt that may interfere with the sustainability of running your business? In other words, would you be able to give yourself an adequate pay check to stay on top of any debt you may have? If not, you may want to consider paying down that debt before making the leap.
- Have you thought about what kind of hours you would be working once pursuing your business full time? Many entrepreneurs are familiar with long work weeks, but if you have too much on your plate (or not enough to do to fill your time) you may want to evaluate the sustainability of your business or think about contracting some simple tasks out (book keeping, marketing, website development, etc.).
- Starting your own business is an exciting time… and busy. Starting a business is like having a baby: it requires a lot of care and attention for the first few years of its life. Make sure you can carve out time to take care of yourself! Sleep, exercise, and good nutrition all play a role in your success.
Moving forward in going full time with your business is an exciting decision to make, but should also be a researched one. How can we assist you with your small business journey?