Safety Nets Everyone Should Have When Starting a Business
By TRISOFT team
When becoming an entrepreneur or starting a business, there are a lot of things that can go right or wrong, successes and failures, unforeseen events or thoroughly planned-out actions that suddenly go awry. Of course, everyone goes into a new venture with big expectations and the desire for everything to come out wonderfully, but people making the decision to create a company should take all consequences into account and prepare for the unpredictable as best they can. Just like in the case of circus artists walking the tightrope 10 meters above ground, their best solution is a safety net.
Every business involves risks, and entrepreneurs need to calculate which ones are worth it and which are not, which can be turned into an asset and which cannot, but under no circumstances should these perils prevent people from pursuing their entrepreneurial aspirations.
The first thing that comes to mind when becoming involved in such an enterprise is finances. What if I quit everything to start a business, invest all my savings into it, and if it doesn’t work out, I’m left jobless, penniless and hopeless?
That’s why the first safety net should be ensuring you have an alternative income option. Whether it’s a part-time job, some freelance work or a “side hustle”, supplementing your resources will grant you a boost in self-confidence and determination. Preferably, it should be a flexible activity, that doesn’t require too much of your time and energy, so that you will have enough left to invest in your own dream. If you can find an endeavor related precisely to the domain you want to pursue in your own start-up, it’s all the better — you are gaining experience for your personal plans while getting paid for it.
The second safety net would be building a network of people to share the responsibility with. Find a reliable and hard-working partner to help you achieve your goals. The best and most obvious choice would be your spouse — you probably already have common objectives, passions, dreams, schedules and ethics (that’s what brought you together in the first place). Or it might be a close relative — a brother, sister, cousin, uncle, someone who has more experience than you in a certain field, someone who can help with the finances that need to be invested in the business at first, or someone who is dedicated to helping you reach your target. Also, their having a secondary source of income wouldn’t hurt either — that way, neither of you will invest their life’s savings into a single project.
A third safety net would be starting slowly and taking things gradually, developing step by step. It would be nice to emerge on the market and take the industry by storm, but the reality is that most successful businesses grow progressively, over time. That way, you can take in what is happening, assess the situation and possibly operate changes if things aren’t headed in the right direction.
A helpful tool in this sense is testing — build a prototype, advertise it wherever you can, see if anyone is interested in it or if it solves a problem that current society has, if it answers a need or would convince people to spend their money on it. Your own investment can be minimum — you can do all this on the Internet, on social media platforms or dedicated websites. Or you can try to convince people face to face — be present at street fairs, festivals, in stores and specialized meetings.
Another measure would be trying to obtain grants or loans from the government. There is no stronger or more reliable partner than the state. If officials decide you are worth the risk and their investments, you are surely heading toward a triumph, with a powerful ally by your side.
If that doesn’t work out, you can always try crowdfunding. This way, you can sell your idea to people who find it interesting and promising, thus raising capital to create your business with. Some crowdsourcing platforms don’t require you to pay back donors once you reach success, but rather provide your product or service to the people who backed you up in your time of need.
The right safety nets
All in all, avoid entering a phase of despair and anguish by creating a safety net behind your business. There will be moments when you will doubt yourself, so it’s a good idea to have people by your side, to encourage and see you through the bad times. It’s also nice to have some finances put aside, so that you won’t risk absolutely everything for a dream that might not pan out. Seek grants, loans and investments and take things slowly, heading purposefully and steadfastly toward your ultimate goals.
At TRISOFT, we believe that with the right safety nets, you can become an entrepreneur without putting at risk the future of your loved ones, your own resources or your life’s savings.