Daymond John has repeatedly emphasized in speeches, public appearances, and at Next Level Success that there is no way to make it big without taking some amount of risk. As an entrepreneur, one of the riskiest moments is when you decide to finally give up your day job to work full time on starting a business.
There are some things you should do before giving up your job to make sure you are fully prepared. While it is impossible to fully decrease the risk of such an action, there are steps you can take to maximize your chances of success.
Start With the Right Idea
Some people become enamored with the idea of entrepreneurship and quit their job before they even know what kind of business they are going to start. Getting ahead of yourself is a surefire way to set yourself up for failure. Before you give up your job, you should make sure you have a great idea that you are passionate about and has a viable path to success.
You should privately share this business idea with trusted friends, advisors, and potential customers to make sure there is demand for what you are attempting to sell. You should also develop a business plan and share that business plan with someone you trust, preferably someone with entrepreneurial experience.
Give Yourself a Reality Check
Even companies with great business plans can fail. Before you give up on your job, make sure you give yourself a reality check. Your business might fail. Even if you succeed, it is likely going to be a matter of months or years before you are profitable, let alone a huge success.
People who are unprepared for these harsh realities often give up on their business at the first sign of difficulty. Those who give themselves a reality check first are more likely to persevere in the face of adversity. Even the most successful entrepreneurs face setbacks that can seem catastrophic in the moment, so make sure you set yourself up to succeed in the long run.
Create a Financial Runway
Entrepreneurial success doesn’t happen overnight; it is essential to give yourself the time it will take to be profitable. Not everyone has a huge trust fund or savings account they can draw from; you need to create a financial runway for yourself.
Create a budget, so you know what your living expenses are. Try to minimize those costs as much as possible to make your money last longer. Make sure you have at least some emergency funds you can draw on. If at all possible, try to set up streams of secondary income to support you when you give up your day job.
Surround Yourself with a Great Network
For even the hardest working and smartest entrepreneurs, success is dependent on more than their own efforts. Every successful entrepreneur has a great network behind them that they can draw on for advice, partnerships, connections, and business. You cannot wait until you have given up your job to start building your network. Having a support network in place before quitting your job is essential. Developing a network takes time, so start now.
If you follow these tips, you will have a great chance of starting a successful business and achieving your goals.
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