Quit Your Job and Start a Business – 3 Rules for Startup Success
It is almost everyone’s dream – to have your own business, be your own boss, make your own decisions and control your time. We hear or read about success stories of people who leave the corporate world, work on their dreams and rake in cash. Is it that simple?
First of all, you must have a plan. Get a grip of your skills – what you do best. Decide which industry you will get into by knowing your passion, strengths and interests. Will you be offering a product or a service? Will this address a need? Is there a demand for it? Will you create a unique product or put a new spin to an existing one? Or, will you provide a special service? Will your business invite repeat customers?
Study the competition. Do not get into a business already saturated with competitors. How much will it cost you to start the business? Where will you get your business financing? How big do you want your business to be? How many employees do you need at the start? Are you willing to take risks?
Approach your plans methodically. Ask around. Seek advice and suggestions. Do your research and write down important details. Without the right preparation and mind set, you might end up broke and disappointed.
The following is a how-to article at AllBusiness.com about brothers Ian and Shep Murray. Ian and Shep built Vineyard Vines clothing company, and they are sharing their start-up lessons with David Worrell.
Before resigning from their respective jobs, the brothers planned details of what will become their company. It took them months conceptualizing their products and finding out where to source their raw materials. They also planned how to promote and market their products and projected their costs and financial needs. They took advantage of the resources available to them through their work places and only when they think they were ready did they quit their jobs.
It’s a common daydream – leaving your corporate job and striking out on your own. But before you jump out, let me tell you about two young kids who ditched their jobs to live the dream … and went on to create a wonderful, fun, highly profitable company.
Brothers Ian and Shep Murray, who built Vineyard Vines clothing company, gave me three lessons you need to know now – before you pull the exit handle and go into a new venture.
Lesson 1: Take Time to Plan
The most important thing the Murray brothers did was to take several months to understand and plan all the details of what would become Vineyard Vines.
Ian and Shep mapped out products, promotions, and profits. They took at least a stab at planning for the concepts and cash needs that lay ahead of them.
Lesson 2: Leverage Your Day Job
Ian told me, “While we were still working, we took advantage of the studio at the agency where I was working for design resources. And Shep’s employer had a fashion division that put us onto the suppliers.”
There’s no smarter entrepreneur than the one who uses the day job as a springboard into entrepreneurship.
By the time Ian and Shep told their bosses buh-bye, they had both the designs and supplier relationships they needed.
Lesson 3: Balance Risk and Discipline
During the early days of Vineyard Vines, the Murray brothers ran up more than $40,000 in credit card debt. That seems like a big mistake to me. The interest on credit cards can be expensive.
With true discipline, however, the brothers Murray juggled multiple cards, moving balances around and making minimum payments for long enough to start also making significant sales.
You gotta be ready for the risk. There was no salary for the Murrays during those early months. Sales had to cover credit card payments.
Your dream of entrepreneurship can come true. But without a plan to handle both sales and expenses, the daydream will quickly become a nightmare. …
Photo by getfrank.