5 Rules for Making the Leap to Full-Time Entrepreneur
If
you want to launch a startup, you need need to totally commit
yourself financially and time-wise.
Some
people simply can't leave a relationship--no matter how bad it
is--until they're certain they have the next one locked down. This
leads to sometimes months of overlap, "should I or shouldn't I?"
internal debates, and tiptoeing over blurry lines. That's time when
they are not giving 100 percent to anyone (including themselves).
The
same can be true of entrepreneurs. Yes, it's scary to let go of your
other sources of income and dive
headfirst into startup territory.
But
you have to take risks if you want to fly.
There's
a reason the sharks on Shark
Tank often
ask entrepreneurs if they have another job. Some people who appear on
the show respond with a hearty, "Yes!" thinking it shows
dedication and hard work. That's not what investors want to see. They
want you to see you are fully committed to your project--because if
you're not, why should anyone else be?
Here
are a few rules for making the leap to full-time entrepreneur for
good.
1.
Build a Nest Egg
It
shouldn't take the possibility of launching a startup to get you into
emergency fund savings mode. However, as an entrepreneur, those
emergency days are much more likely to happen.Save
up at least six months worth of living costs--and preferably enough
to last more than a year. Not only will this give you a buffer, it'll
teach you how to scrimp, save, and get creative with frugality. All
of these are important
tools
for
an entrepreneur because finances for a startup are often slim. I've
done this over the past year to save up for the free
hosting company
that
I'm starting. This helps my wife to have cash in
the bank to pay the bills until I start making my millions.
2.
Give Yourself an Aggressive Timeline
The
moment you start saving, give yourself an "all in or out"
timeline of no more than 18 months. If you can't save at least six
months' worth of finances in 18 months, you have bigger problems than
drafting a business plan. Either you need to work on your money
management before becoming a full-time entrepreneur, or your heart's
not in it. Either way, it's a red flag.
3.
Cut All Job Ties
Is
your company offering you telecommuting options, flex-time, or a
part-time gig? Maybe you're thinking about picking up a weekend job
in retail and going back to your roots. A part-time job can be just
as demanding and stressful as a full-time job. It's a crutch for an
entrepreneur and will distract you from your endeavors. You don't
need it. You should be devoting every minute of your available
time to your startup
.
4.
Don't Expect Support from Everyone
Even
if they don't blatantly say it, not everyone in your circle will be
supportive. Expect questions like, "Shouldn't you at least be
working part-time?", "What are you going to do if you don't
make money?" or "Are you sure that's a good idea?"
Whether these questions and concerns come from a genuine place or
not, it doesn't matter. Grow a thick skin (a must for entrepreneurs)
and surround yourself with truly supportive people.
5.
Spend those 18 Months Drafting Your Business Plan
The
business plan is the most important pillar for an entrepreneur. It's
where you work out worst-case scenarios, plan for speed bumps before
you meet them, and where you begin researching networking and
investor options. You don't want to turn in your two-week notice
without a solid draft in place.
A
real entrepreneur is at it full-time--and much more than 40 hours per
week. If you're only in it half-time, you'll only produce 50 percent
of the results. Don't shortchange yourself or your business.
BY JOHN
RAMPTON
http://www.inc.com/john-rampton/5-rules-for-making-the-leap-to-full-time-entrepreneur.html?cid=em01016week42b
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