by Brian Aagaard, Founder – Cooperhawk Business Brokerage
Those with entrepreneurial aspirations gain a wealth of knowledge and experience by starting their journey as employees rather than founders. Working for someone else’s company gives you an opportunity to learn from those with experience, hone your skills, and build a solid business network.
For those who choose that path, the biggest challenge is often figuring out when you are ready to strike out on your own. Make the switch too early, and you may find you don’t have the capability or confidence you need to overcome the initial challenges you’ll face. But waiting too long can allow developments in the market or your personal life to limit your opportunities and potential.
If you’re starting to think now is the time to leave your current job and open your own business, the following are some things to keep in mind.
Are all of your ducks in a row?
If you wait for the perfect time to start your business, when all of the marketplace planets have aligned, your personal calendar is clear, and a line of investors is waiting outside your door to write you a check, you’ll be waiting forever. But that doesn’t mean there aren’t factors you should ensure are in place before you take the leap.
I recommend you have a firm grasp on four things before you take the risk of opening your own business, starting with your business idea. Don’t make the move just because you are tired of working for someone else and you want to be your own boss. If you don’t have a viable business idea that has been researched and shown to have good potential, all you’re doing by making the switch is giving up your paycheck.
When you identify your business idea, make sure you have the appropriate entity for bringing it to life. There are a variety of options — sole proprietorship, LLC, Partnership – with each having its advantages and disadvantages. Taking the time to identify the right one for you and establish it before you start your operations can provide personal liability protection and other benefits.
Financing is another one of the ducks you should have in a row. Businesses have costs you need to cover if you are going to stay afloat. And even if your vision is for a venture that is asset-light, you’ll still need to make sure you have the finances to cover your personal expenses if you are leaving your job and its paycheck behind.
Finally, you’ll want to have a solid business plan. You won’t be able to anticipate everything it will take to be successful, so you shouldn’t be too rigid as you start to put the plan into effect. But if you don’t start with some clear objectives, things can easily get chaotic, which isn’t good for you, your supporters, or your customers.
Are you expecting the unexpected?
Even if you are a great planner and didn’t skimp on your research, there will still probably be things you weren’t expecting that come up. Here are two I had to contend with.
You’ve probably already budgeted for some tech expenses, but you should expect more to crop up. Website design and CRM subscriptions are just the start. Don’t be surprised if you see bills come in for data egress fees and renewal increases, to name just a few of the commonly unexpected.
Cutting through the noise is more challenging than ever, and your competition has a jump on you. That means you’ll probably need to invest more than you expect in promotion. Be ready for investing in PR, digital marketing, paid ads, a social media manager, and other initiatives that keep you in the public eye.
What does your heart tell you?
Tapping into the wisdom of those who have gone before you can give you clues as to when it’s a good time for you to take the leap. But in the end, the time will be right for you when you feel it. If you make sure your heart is in it, you’ll find the courage and conviction to see things through.
No business decision has been more rewarding for me than launching out on my own. I experienced first-hand that if you do your legwork, make sure you have a solid plan and sufficient funding, and be ready to roll with the punches when unexpected issues arise, you’ll have a great start on achieving your entrepreneurial dreams.
[Profile picture credit: Carlos Chavez Photography]
Brian Aagaard, Founder of Cooperhawk Business Brokerage, is a seasoned professional with decades of experience across both corporate and privately held companies. After a long and successful career in the corporate and private sector world and having spent the last 10 years with one of Minnesota’s leading business brokerages, Brian launched Cooperhawk to bring a personal, relationship-driven approach to business brokerage.
