So you’ve decided to start your own business?
Well, good for you. Now you’ve effectively joined the ranks of millions of others around the world with that same drive and goal to be their own boss, escape the shackles of the ‘ordinary 9 to 5,’ and that ultimate goal of financial freedom.
But before you begin, there are some things you need to know.
This isn’t an easy path. It’s not for the faint of heart. Every part of this process is an uphill battle, starting on day one and for many American entrepreneurs, that uphill battle ends before they ever see the top of the hill.
How do you get past that hill? How do you, the budding entrepreneur, set yourself apart from the crowds and work to overcome those hurdles?
The first thing to consider before you make any move toward starting your own business is to take a serious look at yourself. You need to figure out what your life is like right now and where you stand before you make those decisions that lead to entrepreneurship.
1) If you’re fortunate enough to have a steady job that is providing you with a stable income and a reliable means of life; my strong recommendation is to see if it is feasible to start this business while maintaining your job. This provides you with a number of benefits which probably don’t even need to be stated in this article. Steady income, fall-back capital, a way to fund your endeavor, etc.
If you find, however, that being an entrepreneur is the fire that lights your loins, then the best bet is for you to at least save up enough money to live off of for six months to a year. I know that sounds like quite a bit. The reason for this is that obviously you’re going to need something to support yourself with until you get the next Amazon.com or Wal-Mart or whatever off of the ground.
If you read what I just said and say to yourself, “Who the hell is this guy?” then decide to take the leap without saving money anyway, there are still a few options left for you to consider in order to ensure that you have some sort of start-up capital to work with.
The first is selling increments of your own income a la Sarah Hanson, where she sought out help from 32 Auctions in order to find investors for her start-up business and promised potential investors a hefty 10% of all of her income for the next 10 years! This, surprisingly enough, was quite effective and she was afforded a $125,000 start-up allocation to begin her endeavor with. So, that’s one route.
The second is auctioning bits of your belongings away to eBay. Although I’m sure that many of you either a) don’t have that much to begin with or b) like the crap you do have, this is definitely an option to consider to try to bridge that gap between ‘destitution’ and ‘success.’ If you know what I mean.
The third is go live with your parents. Perhaps they can provide you with food and shelter until you get your fledgling business off of the ground. While many of us want nothing more than to be free of the shackles of our childhood homes, that haven can provide a worthwhile base of operations while you focus on the important thing; being an entrepreneur.
Finally, on a serious note. You’ll notice that nowhere have I advocated the use of loans in any form or fashion. Here’s why: The US has propagated the myth that you need debt to be successful. This is a massive load of garbage. Debt is one of the worst things you can do to yourself. Many people, many countless people (myself included) are working to pay off the myriad mistakes we made in our 20s with credit cards and quick and easy loans. If you can avoid it, don’t get any loans at all. Period. I know that some of you, again, are probably shaking your heads at this suggestion, but if you follow this small piece of advice, the dividends you’ll see in the long run will serve to prove my point. Get debt free and stay that way.
Check back with us in the next few days for part two.