Let’s talk about risk. Not the board game. Actual, real life, risk. Starting a business is risky. A high percentage of all new businesses fail within the first year. There is so much that could go wrong, but equally, so much could go right! Every business person or entrepreneur needs a safety net. Let’s discuss five that you can implement in order to sustain your business, grow your business and see said business thrive.
If you are starting a business, consider doing it in your spare time. Having the safety net of employment takes away stress of finance. You could perhaps take on a part time job to ensure bills are being paid and finances are kept on top of. If it’s within the industry you’re branching into and can learn something from, fantastic. Though sometimes, you can get the best ideas whilst stacking shelves.
Freelance work can be a lifesaver when you’re starting a business. Tap into your old contacts or speak to the company you are leaving. They might even consider keeping you on a freelance contract, possibly mentoring and passing on your knowledge gained to other members of the company. If you can find freelance work which will support you financially, working flexibly, allowing you to work on your business idea, that could be ideal.
See if you can gain investment from somewhere. This doesn’t have to be a bank or building society. There are new ways to raise capital, from crowdfunding to angel investor networks. You might even be eligible for some government grants, look into it! You could raise capital through industry friends but always thinking through mixing business with family, it doesn’t always work and can cause immense friction. You might even consider finding a business partner. Sometimes two heads are better than one. Finding funds from elsewhere can help take any money pressure shoulders but be aware you’ll likely have to pay it back at some point. Money doesn’t mean your business will be a success.
Test your idea before going into it with both feet. Depending on your product or business idea you can test the market with a small budget, seeing if there is interest, or maybe attending street markets or Christmas fairs with your niche product. Set yourself an amount of money you are willing to use to get your business off the ground and stick to it. This is extremely low risk and keeps your spending at a minimum.
Have a fall back. Don’t cut ties with your previous job in a negative way. If things don’t work, you might just need to reapply to the company, or at the very least ask for a reference. You never know when they might want to buy your products or you need to call in a favour. Keeping everyone sweet is good business sense. Don’t cut off your nose to spite your face.
If you’re starting a business, find a safety net you can rely on. It will allow you to have a confident and comfortable family life, whilst also working on your dream.