Making the Financial Transition
Making the financial transition from paid employment to earning a living on your own is probably the single biggest challenge facing many would be entrepreneurs. For most, the mere thought of financial insecurity holds them back from even trying. But if you have the vision, persistence and the ability to respond to market feedback the financial rewards will soon follow.
Two ways to make the transition.
There are essentially two main ways that you can make the financial transition.
1. Establish a revenue stream before you quit your job.
2. Quit your job and then build a revenue stream before your start-up capital runs out!
Establish a revenue stream before you quit your job.
Establishing a revenue stream whilst you continue to work, for most people is probably the more sensible of the two options.
The advantage of this approach is that it gives you the freedom to try things out at your own pace to see if there is a market for your pro or service before you actually cut off your regular income stream from your job.
A disadvantage of this approach is that it is often hard to devote the time necessary to get your business up and running particularly if you have a demanding full time job. Another slightly less obvious disadvantage is that the comfort of a regular income may make you less prepared to take the risks necessary to make your business succeed.
Quit your job and build a revenue stream before your start-up capital runs out!*
Now this is the riskier of the two strategies and definitely not for the faint hearted!
The advantage of this approach is that you have all your time to dedicate to your new venture. Another bonus is the uncomfortable fact that you don't have a regular income stream yet. It's incredible what you can achieve in life when you place you self in a position where you absolutely must succeed. This fact alone, if channelled effectively can rapidly propel you towards the achievement of your goal!
A disadvantage of taking this approach is the fact that it can put you under extreme financial pressure which can then impact upon the other areas of your life as well as the lives of any of your dependants. It could even mean depleting all you capital creating a need to return to paid employment.
The approach I took to set up my Coaching Business?
In setting up my own coaching business I decided to take the later of the two options. I gave up my ridiculously well paid corporate consulting job so I could dedicate all my energies into establishing a successful coaching business.
What I personally like about this approach is the uncomfortable feeling you get when you start eating into your start-up capital whether it be savings, borrowings or venture capital. This feeling has compelled many an entrepreneur to push forward rapidly and make breakthroughs that they would not have been able to achieve had they kept their job.
So which approach should you take?
This a question that only you can answer. Give deep consideration to how you feel about both approaches and determine which one is more suitable for you given your current circumstances. It is also important to consider the type of business that will satisfy your entrepreneurial needs. This may also impact upon your ultimate decision.
Regardless of your which approach you take, there is one thing that is for certain; if your will is strong enough and your idea compelling enough you will find a way!
* Financial Health Warning: if you do decide to take this approach please consult with your financial adviser first.
Damien Senn is a Life and Business Coach as well as a qualified Chartered Accountant. He helps people create compelling futures.
He is the author of the 'Senn-Sational Success Journal' and has developed his own coaching model called the 'Senn-Sational Success System'.
For your free download '101 things to do before you die' please click the following link: http://www.senn-sational.com/freeresources.htm
Latest News
Bank of America and PRIME–Working Together to Support the Over 50s ... The FINANCIAL, Georgia - It aims to unlock entrepreneurialism in the over 50s in the UK by helping this group get back into employment through setting up their own businesses. ... |
Could auto industry layoffs spur more entrepreneurialism in Mich.? MLive.com, MI - So in the wake of all this economic destruction, will entrepreneurialism and creativity flourish? Some business leaders think so. ... 'There's no such thing as job security' |
Norfolk entrepreneur wins top award Norfolk Eastern Daily Press, UK - ... and at LEAD East - a new initiative which promotes entrepreneurialism in order to help ensure continued growth in the East of England. ... |
Risky Decision-making Essential To Entrepreneurialism Science Daily (press release) - ScienceDaily (Nov. 12, 2008) — Whether someone will become the next Richard Branson, Steve Jobs or Henry Ford may be down to whether they make risky ... |
Two Degrees, LLC Appoints Mike Heffernan as Chief Financial Officer MarketWatch - Now is the time to bring on a financial expert that we know and trust, and who shares our spirit of entrepreneurialism, to ensure our continued success. ... |
Economic downturns can spur mergers, innovation Seattle Post Intelligencer - We've seen consolidation inspire entrepreneurialism most clearly in Washington's banking industry. Every time a bank is bought, that frees up capital and ... |
Max Levchin, Jawed Karim, Tom Siebel, Scott Banister, Reid Hoffman ... SYS-CON Media, NJ - ... co-founder of Zivity, Reid Hoffman , founder, President and Chairman of LinkedIn and others to Discuss Cross-Country Entrepreneurialism in Two Panels. ... |
Chamber joins Go Texan Jack County Herald, TX - Retirees are increasingly drawn to smaller rural communities with access to urban services, and rural entrepreneurialism is a growing trend. ... Chamber provides info on how to donate |
Range of Bay area firms take note of Entrepreneurship Week Bizjournals.com, NC - Entrepreneurialism, invention and innovation are important to advancing living standards, said Ken Evans, regional director for Entrepreneur Week in his ... |
Portland trying new solar-powered public toilet Northwest Cable News, OR - Entrepreneurialism aside, the city says it's recognizing a humanitarian need for public rest rooms. To reduce opportunities for vandalism and crime, ... |
Resources
-
Sorry there are no resources available at this time