Going self employed? Great Idea! I know the concept of being one's own boss sounds extremely good. And having done it, I know it is not overrated. But before you take the final plunge, think through these things:
Can you sell?
Even if you are not in network marketing or retail, you can't hide from selling. Being self employed, entails selling of your ideas, right from getting a loan approved to getting clients, selling your business viability to the investors and the fundamentals of the company to hire talented employees.If you are scared of rejection, may be self employment is not for you.
What can you sell?
Make a list f your core competencies. Use a SWOT analysis or any other tool. Find out what are the strengths which can serve you in your business. Is it experience, competency, knowledge, talent, perseverance, education or anything else. No matter what you eventually decide to sell, these strengths are what will keep you going.
Who can you sell it to?
Survey the demand of your product or service in the market. The most quality product may fail to sell if the market is not ready for it or if it has reached it's saturation point. That also makes the study of competition necessary.
Are you in debt or can you work for free?
Before you start freelancing, evaluate your financials. Very often, the ROI for start ups is negative and it takes a couple of years to reach even a break even. So if you are dreaming of starting a business and buying a new car next year with the revenue, slow down. If you are in debt, first think of paying that off before you quit the job and start your own business. Think about starting the business part time and leave the job after your business has stabilized.
Do you have a business plan for 5 years?
Don't quit and start freelancing just because you got an offer for consultation. Self employment does not guarantee continuous income. Make a systematic plan for 5 years to come if you go self employed. I agree, more often than not things will not pan out as planned, but entering a business without a plan is much worse than having to tweak the plans at a later date.
These questions are not scare you. The failure rate of start-ups is extremely high (around 80%) and very often the culprit is lack of planning. So this is just to prepare you for things to come. Have fun being your own boss!
Can you sell?
Even if you are not in network marketing or retail, you can't hide from selling. Being self employed, entails selling of your ideas, right from getting a loan approved to getting clients, selling your business viability to the investors and the fundamentals of the company to hire talented employees.If you are scared of rejection, may be self employment is not for you.
What can you sell?
Make a list f your core competencies. Use a SWOT analysis or any other tool. Find out what are the strengths which can serve you in your business. Is it experience, competency, knowledge, talent, perseverance, education or anything else. No matter what you eventually decide to sell, these strengths are what will keep you going.
Who can you sell it to?
Survey the demand of your product or service in the market. The most quality product may fail to sell if the market is not ready for it or if it has reached it's saturation point. That also makes the study of competition necessary.
Are you in debt or can you work for free?
Before you start freelancing, evaluate your financials. Very often, the ROI for start ups is negative and it takes a couple of years to reach even a break even. So if you are dreaming of starting a business and buying a new car next year with the revenue, slow down. If you are in debt, first think of paying that off before you quit the job and start your own business. Think about starting the business part time and leave the job after your business has stabilized.
Do you have a business plan for 5 years?
Don't quit and start freelancing just because you got an offer for consultation. Self employment does not guarantee continuous income. Make a systematic plan for 5 years to come if you go self employed. I agree, more often than not things will not pan out as planned, but entering a business without a plan is much worse than having to tweak the plans at a later date.
These questions are not scare you. The failure rate of start-ups is extremely high (around 80%) and very often the culprit is lack of planning. So this is just to prepare you for things to come. Have fun being your own boss!
Neha is a freelance corporate trainer. She also authors articles to help aspiring trainers and non-trainers, who are expected to train in their organizations. You can read more and find training resources on her website http://thesmarttrainer.com/
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