The Great Resignation changed the way we think about work. Collectively, we learned that was possible to change careers in times of strife and still come out on top. Even though things have changed for the better, more people are still seeing the benefits of working for themselves. So, if you’ve been bitten by the entrepreneur bug, here’s five tips to get your business off the ground.
Define Your Offering
You may have a million great ideas, and there are a ton of crafts to turn into a side hustle, but if they don’t solve the consumer’s problem they will be fruitless. To be successful, you need to define your offering and make sure it’s what the general public needs. To validate your offering, you can choose a small subsegment of your target audience to test. Ask for honest feedback of hit product and service, and use that as a catalyst to improve or completely start over. That way, you won’t waste any money you’ve set aside to get your business going.
Even if you just toying with a few ideas, you need to map out your finances. Create a budget for the present and future in quarterly and annual increments. If you’re trying to navigate paying for your education while building a business, you might want to look into loan options. You can utilize Earnest student loans that can help cover the cost of your degree without having to pay out of pocket. They offer a variety of loan products including loans for med and law school, parent loans and MBA programs.
Invest in Your Business
As sales start rolling in, you need to reinvest your business profits back in your business. While it may be tempting to celebrate and spend money on yourself, the smartest move you can make is to reinvest it. Look for areas where you can improve and put the money to good use. If money was tight and you couldn’t advertise the way you wanted, use your profits to increase ad spend. You may even want to look into applying for something similar to these philgeps opportunities. Winning a government contract is a surefire way of securing business, and it can even help to get your business noticed. Also, don’t forget to account for how much you’ll have to increase spending in the future. As sales increase, you’ll have to rework your current budget to reflect those figures.
Keep Debt to a Minimum
As a new business owner, it’s easy to overestimate how much profit you’re going to make. In turn, you might take on more debt than you can afford. Ultimately, any profit you earn only goes toward paying off debt, not back in your business. Always try to keep your debt ratio as low as possible. Keep credit card usage to a minimum and pay in cash when possible.
Don’t Quit Your Day Job
Unless you already saved a lot of money, you shouldn’t quit your day job. Even if your business is successful, it takes time before you can start paying yourself. Most, if not all, of the revenue needs to be reinvested into your startup. If you’re determined to quit, make sure you have at least six months to one year of savings before you hand in your resignation. That way, you’ll have enough money to keep yourself afloat.