Should I Give up my job to run a Business?

Many people like the idea of running their own business. This might be because they think that they will be able to make a lot more money, they like the idea of being their own boss or they have some innovative ideas that they want to try out. Although all of these are good reasons, many small businesses fail quite quickly, they can be a lot of hard work and pay is not always that good. It can be easy to see some entrepreneurs making successful businesses and thinking you can do the same, but the reality is that only a few people manage this. Therefore, you need to consider your own personal situation to decide whether this is the right decision for you. It is worth considering a few things:

– How will I manage financially? – it is so important to start by addressing your finances. Whether you live with parents, own a house, rent one for you and your family or whatever, we all have financial commitments. Some will have much more responsibility than others, depending on whether they have a family to support, loans to repay, rent and utilities to pay or whatever. It is so important to make sure that you are aware of what you need to be able to pay for and whether you will be able to keep up with this if you start a business. A new business will have no guarantee of any income and in fact you may have to pay into it to start with. This means that you will need to think about how you will manage that. If you have savings you can fall back on that could help in the short term. If you have an alternative income from investments or something like that it could help. If other family members are contributing to the household that will help as well. It is worth actually sitting down and looking at the figures so that you can calculate how you would actually manage. It is worth assuming that you will get no income to start with as then you can plan for the worst possible scenario. It isn’t to be negative when starting a business but you also need to be absolutely sure that you can manage financially as you will not be able to top up your income with benefits if your business is not doing well.

– Can I commit the time? – a business takes a lot of time to start up. You will need to commit to working lots of hours and probably not getting paid for it. You will need to do lots of different things and so you will need to be prepared to put in the hours. This could mean working evenings and weekends as well as days. If you are still doing a job to bring in a guaranteed income then you may need to spend all of your other spare time working towards the business. If you have other commitments then these may get in the way.

– Do I have the skills? – It is worth thinking hard about whether you have the right skills to run a business. You need to think about all of the things that you will need to do. Not only will you need to help in the day to day running whether that is producing goods or services, but you will also need to think about marketing, accounts, management, law and all manner of other things that come hand in hand with running a business. There will be a lot to master and a lot to do. It is worth thinking hard about whether you have the skills for this and if you do not then you may want to do a lot of learning before you start the business as this will be better than learning on the job when mistakes you make could be expensive.

– Is it likely to be successful? – it can be easy to convince yourself that your business will be successful and think that you will be able to make lots of money. However, it is worth thinking realistically about it. Consider whether there is any competition for what you are doing and how well they are doing. Think about where your customers will come from and whether they will be willing to pay for what you are providing. You will also need to decide whether your prices will be enough to make you a profit without being too expensive for your potential customers to be able to afford. There is a lot to think about and it is worth discussing with lots of people before making your decision as others may see flaws in your plans and possible problems that you may not notice because of your enthusiasm for your idea. Try to take their points of view on board.

Is Budgeting too Difficult for me?

It can be difficult to budget and many people might feel that they will just not be able to manage and that can make them feel tempted not to try at all. There are things that we can do though to make it easier and it is worth thinking about those so that you can decide whether you feel that they are enough to help you to get into budgeting.

Benefits of budgeting

If you budget it will help you to keep better control of your money. It will mean that you will be able to make sure that you always have enough money to cover your bills and will then perhaps be able to pay off bills, put money in a savings account and always be able to make ends meet. This can be a worry for some people, that they want to do these things but do not seem to be able to and therefore budgeting will help them. However, many people get put off actually budgeting because they think that they will feel deprived or that it will just be too hard to stick to a budget. There are things which can make it easier.

How to motivate yourself to budget

If you are motivated to do anything then it is easier and the same goes for budgeting. The easiest thing to do is to make sure that you keep in mind the reason that you want to budget. Whether you need to make sure that you have enough money to last through the month, you want to repay a loan such as those offered by loans early, want to save more money or whatever, write that goal down. Stick it somewhere prominent and make sure that you look at it regularly. Then you will be able to keep reminding yourself of why it is important to stick to your plan. This is particularly important if you feel like it is getting difficult. It is good to make sure that you keep in mind why it is important to stick to your goal. Do not just note that you want to budget so that you can save more. Put that you want to budget so you can save more to pay for a holiday or whatever the reason. Also try to be specific about how much money you want to save and when by as this will also help you to focus.

How to make it easier

Making sure that the budget you set is realistic is the first step to making it easier. You do not want to make it too generous as it will take a really long time to achieve your goal but if you make life very difficult for yourself by not leaving much leeway for spending on luxuries then that can be tough. When you are setting your budget, make sure that after you have set aside money to cover all of your essentials that you also let yourself have something for luxuries before you allocate the rest.

Try to be flexible as well and do not beat yourself up if you do not meet your goal. You may have a very specific goal but sometimes we have extra expenses and we cannot help but to spend extra money. It could be that you get an unexpected expense, such as if a car or white good that breaks down, a wedding or special birthday to buy things for or something like this. In this situation you will need to spend more and it just cannot be helped.

Rewarding yourself for sticking to your budget can help as well. It can be hard to afford to buy yourself something if you are being really careful, unless you allocate some budget to that, but there are other things you can do to treat yourself. Get some books out of the library and have a soak in the bath, enjoy a local walk somewhere, watch your favourite television program or whatever. Think about what you might like to treat yourself to and then do not do this until you do reach your target. You might want to have a treat weekly, monthly or quarterly, it depends on what you think will work best for you.

You can make it easier too by making sure that you compare prices and do not pay more than you have to for things. This takes very little effort and can be very beneficial. You also could question whether you really need all of the things that you are buying. It is about getting a balance between not feeling guilty about the things that you are buying but making sure that you think that you are getting value for money from them, that you will use or enjoy them and that you wont regret buying them in the future.