Lately, I’ve been jotting down the various business ideas running through my mind based on my daily observations of what the Nigerian market place needs. I intend to start off next year by test running this idea with family, friends and colleagues alongside my daytime job. While I realize that the gestation period may be longer for the business to fully take off, I’ve got the whole of 2008 to fine tune and work out the modalities involved for my intended business.
While the transition to successful entrepreneurship may take longer than you expect, without adequate and proper financial planning, you may be left in the lurch especially if you decide to resign from your daytime job prematurely. Here are some tips if you’re considering a side business:
· Get some experience: you may think you know it all to get your business running smoothly but some few years down the line, you may regret your decision to quit your job. This may not be true for everyone. So you need to justify whatever decision you arrive at. While you’re working, conduct an extensive research on your intended business, speak with experts and mentors who will guide and give you all the necessary support and networking opportunities.
· Create a budget: you probably know that securing soft loans for a start-up is easier said than done. So, this is the time to open a separate savings account dedicated towards your intended business idea. Once you have a large sum stashed away, it’s advisable to invest this amount. Remember a portion of this fund will serve as your living and running expenses when you eventually resign. So get your numbers right.
· Cut down on your expenses: you need to be realistic about how much you’d need on a monthly basis to take care of your family without going broke. You also need to know that you’ll be financially responsible for health and other related benefits previously provided for by your employer.
· Run your trial business during the weekend: use your free time such as the weekend and annual vacations to kick start your business idea. Encourage honest feedbacks from your family and friends and also listen to constructive criticisms that may help you define your idea.