Making the Leap from Corporate World to Entrepreneurship
Greetings everyone, Phillip Crawford here. As the principal of PAC Consults, a reputable business formation, funding, and credit repair firm, I’ve had the privilege of witnessing several inspiring entrepreneurial journeys. However, transitioning from a secured job to entrepreneurship is a significant undertaking, often lined with challenges.
Understanding the importance of financial security, here’s a checklist for individuals keen on making that definitive leap, while still employed.
Financial Checklist While Employed
- Stabilize Your Current Financial Status: First and foremost, address any outstanding financial issues. Pay off debts, work on fixing your credit and avoid taking on new debt that could hinder your entrepreneurial journey.
- Purchase Life Insurance: This offers a financial safety net for your loved ones during uncertain times.
- Save an Emergency Fund: Aim to stash away at least 12 months' worth of living expenses. This fund creates a financial buffer that can keep you afloat when you encounter unexpected costs or slow business periods.
- Prepare a Backup Career Plan: Having a fallback career plan can be helpful if entrepreneurship doesn’t pan out as expected. It ensures that you stay afloat professionally.
Considerations for Preparatory Steps Towards Entrepreneurship
- Research and Learn: Gain a comprehensive understanding of the industry you aim to enter. Read, study, join relevant forums and networks.
- Build a Business Plan: Shaping a detailed business plan is critical. It helps in defining your business precisely, setting perceivable goals, understanding your target market, and estimating financial forecasts.
- Launch a Side Business: If feasible, start your business as a side hustle. This way, you can gauge its potential before committing fully.
- Assess Your Readiness: Ensure that you're emotionally, mentally, and financially prepared for the uncertainty and complexities that accompany entrepreneurship.
Startup Checklist ranking Easy to Hard
- Idea Verification
- Market Research
- Define Your Business Model
- Establishing an Emergency Fund
- Creating a Business Plan
- Handling Legal Aspects
- Securing Startup Cost
- Building the Product
- Forming a Team
- Marketing and Selling
Reading List for Aspiring Entrepreneurs
- "The Lean Startup" by Eric Ries
- "Think and Grow Rich" by Napoleon Hill
- "The E-Myth Revisited" by Michael E. Gerber
- "Rework" by Jason Fried and David Heinemeier Hansson
- "Crushing It!" by Gary Vaynerchuk
Lastly, pay some thought to your current life circumstances. If you have dependents, your decision to plunge into entrepreneurship can also affect them. Don’t forget to factor in your family, children, taxes, and the level of risk you are willing to take. Spend time assessing your current risk threshold, and how you plan to manage it.
In the end, entrepreneurship is a dance with risk and uncertainty, but with the right preparation, resilience, and an unfaltering will, you will navigate through to make your entrepreneurial vision happen. Embrace failure, not as an ultimate condemnation, but as stepping stones on your path to success. Stay resilient, stay committed.
Phillip Crawford