Quitting your day job to go into business for yourself is not a decision that anyone makes lightly. It’s often the result of a slow and gradual shift away from the day job and into full-time entrepreneurship. Savvy entrepreneurs develop their business alongside their regular employment. They develop their brand and establish an online presence for themselves. They try their hand at a little content marketing to give their brand a sense of personality, voice and identity. They may even do some limited trading, letting their business grow organically until the time is right to devote themselves to it full time.
Nonetheless, when the transition is made and the day job is quit, it can be a scary time for entrepreneurs, especially when they have spouses and kids to think about. Not only do they have to worry about their business’ finance, agonising over their overheads, cash flow and profit margins… They also have to worry about paying the bills, putting food on the table and ensuring that their kids have everything they need to grow up into happy and healthy adults. There’s no denying that the first year is a steep learning curve for any fledgling business and entrepreneurs often struggle to find the balance between looking after themselves and looking after their business.
1. Live Lean… But Live Well
First year entrepreneurs are rarely seen at the bar in fancy clubs or dining in the finest restaurants. Fledgling entrepreneurs tend to pay themselves the bare minimum they need for their living expenses in order to ensure healthy cash flow for their business. You may well need to do some belt tightening, but this doesn’t mean that you shouldn’t live well. You don’t want to show up for work every day bitter, angry and resentful of your business for ruining your quality of life. You may be cooking more and eating out less but that still doesn’t mean you shouldn’t enjoy your food or treat yourself every now and then.
2. Make Your Money Make Money
It may be possible for you to earn some passive income through a diverse investment portfolio. All you need is some cash to invest and a basic understanding of how trading works. This will not only help you to grow your investment, but you may also receive quarterly dividends that will provide you with some much needed pocket money just when you need it. However you invest, it’s worth seeking the aid of a broker who will help you to form an investment strategy that will complement your business.
3. Take Time Out
Many first year entrepreneurs have a habit of burning themselves out by investing too much of their time and effort in their business. Even entrepreneurs deserve a modicum of work / life balance. Allow yourself at least one day off a week and a holiday once a year. Investing in the right employees will give you the peace of mind you need to entrust your business with them while you take some much needed time to yourself.
4. Invest In Areas That Will Facilitate Growth
Keeping down overheads is important but it’s also important to invest in areas that could enable you to increase your output, turnover or productivity. It’s important to maintain a healthy cash flow so that you can make capital investments in new equipment, technologies or personnel that could help your business go from strength to strength.