How To Transition From A Job To Your Own Business Without Running Out Of Money
You are tired of your job and want to find a way out. Maybe the work is boring to you. Or perhaps working for yourself and being independent has always been a strong desire of yours.
In any case, you've been thinking about starting your own business and may even be getting excited about some of the business ideas you've come up with. But the harsh truth is, the odds of success are not in your favor. Decades worth of business data proves this. The fact is, the vast majority of businesses fail.
So, why is this? Well, here's one of the main reasons that you rarely hear about. And it has to do with a major problem that almost all new entrepreneurs face. But by understanding what this problem is and how to deal with it, you will immediately become better at choosing a business that has a much higher chance of succeeding.
Let's begin to address this problem by giving you a scenario in which this problem occurs.
Watch Out For This Big Problem
You've decided you want to start your own business and have been researching and pondering business ideas. But here's an important question you absolutely must find an answer to. How are you going to make the transition from a regular paycheck to earning a living from your business?
The fact is, it's highly risky to quit your job before you jump into a new business, yet many people make this mistake because they are so excited and absolutely sure that their businesses will succeed.
The reality is that many businesses fail. And even if it does end up being successful, reaching that success almost always takes much longer and costs much more than you think.
One solution to this problem is to continue working your full-time job while you start your new business. But this requires a huge mental commitment because it means that you will have to work evenings after your day job as well as on weekends.
This strain will burn you out in short order and put real stress on your relationships. And this stressed mental state makes you less effective at producing results with your new business. Unfortunately, for most people this puts an end to their entrepreneurial dream.
Here's The Answer
So, what is the answer to smoothly making the financial transition from earning a paycheck to creating your own income with your business?
Well, a major factor that is commonly overlooked that will have a huge impact on whether you will be able to succeed at your business is the efficiency of the business you ultimately choose. So, what do I mean by efficiency? Well, let me give you an example.
Let's say you have a person who has a specific body of knowledge and experience that they can turn into a business and develop and income from.
But depending on how they choose to monetize this knowledge and experience, they can end up in either a highly inefficient risky business or one that allows them to start gradually and be able to make that tough transition between their paid job and their entrepreneurial goal.
Example Of How To Choose An Efficient Business
Let's look at two contrasting scenarios. With the first scenario, let's say that you've been a restaurant manager for many years and you know everything from how to reduce your employee turnover rate to the best type of equipment to buy.
But you're frustrated because you see inefficiencies caused by management above you and you're powerless to do anything about it. You're convinced that because of your knowledge, you could open your own restaurant and it would be a success.
You've had your eye on a location that will provide a steady stream of customers, you've crunched some numbers, and you're seriously considering making this huge investment in your future. Now, let's contrast the previous scenario with the following approach.
Instead of buying a restaurant, you create a much more efficient business model. You use your knowledge to create a weekend seminar for restaurant managers on how to be more effective and improve the profitability of their restaurant through your techniques.
A seminar that restaurant owners would definitely be interested in and would want to send their managers to. You start small, test and refine your product by getting feedback.
And at some point in the future you decide to take it even another step forward in efficiency. You actually remove yourself from having to teach people in person by creating an online course that you can sell with no geographical limitations.
Now, notice the huge difference in efficiency between the two scenarios. Can you see how selling your knowledge allows you to make the transition from your paid job to your own business with a minimum of risk and time required?
And how starting your own restaurant requires you to risk everything by quitting your job and putting your life savings into a new venture?
Other Efficient Business Examples
Now that you understand the concept of efficiency, here are a couple more examples of business ideas that allow you to make a smooth transition from your current job. Let's say that you've been a retail sales clerk in a bridal shop. You know all about prices, styles, and fitting.
But instead of opening your own, physical location, brick and mortar store, you decide to start an online business matching up buyers and sellers of used wedding gowns.
Here's another one. You've been the director of the human resources department for a large company. You know all about what qualities to look for when hiring new employees.
You decide to start a online business helping people prepare for job interviews including how to write their resume, their appearance, what questions they should expect to answer, and what to ask their potential employer.
Summary
So, thinking about the efficiency of a business is really important. In other words, how can what the business offers in terms of value be delivered in the most efficient and cost effective way possible?
The point is to choose an application that will allow you to smoothly make the transition from being an employee to owning your own business. By decreasing risk and starting gradually, it's more likely that you will survive over the long-term and make your new business a success.
