Ask EDN Question
Dear EDN,
I have a good paying job with great perks and promising growth potential; however, I have no passion for the work that I do, and have been finding it difficult to stay motivated. I have realized that Corporate America is not for me and that I am better suited for the entrepreneurial path. The problem is I have no idea how to make the transition. What steps do I take to A. make sure I pick the right business venture and B. make sure I don’t go broke in the process?
Ask EDN Answer
Dear Aspiring Entrepreneur,
Firstly, congratulations are in order. Giving up the 9-to-5 and becoming your own boss is no small feat. It takes intelligence, heart, intuitiveness, tenacity, foresight, and a heck of a lot of courage. Most people who pursue entrepreneurship say it’s the hardest thing they have ever done. However, most also say that it was the best decision they ever made.
One mistake that would-be entrepreneurs often make is that they look at someone successful and say, “I don’t have the skills, the network, the finances, the abilities, the time, the resources, etc. to do what that person is doing.” This is called the scarcity mindset, and it works hard to keep you right smack-dab where you are.
Entrepreneurship is a mindset, an attitude, and a lifestyle adopted by people who aren’t satisfied with the status quo.
It’s an approach to life that favors creativity over conformity and action over inaction. Bestselling author, investor, and entrepreneur James Altucher says that for him, “Being an ‘entrepreneur’ doesn’t mean starting the next Facebook. Or even starting any business at all. It means finding the challenges you have in your life, and determining creative ways to overcome those challenges.”
This question was shared across our social media platforms and we received some great feedback from individuals. Below are the three steps that may help you get a grasp on your future endeavors as a business owner.
Identify your passion or the thing you want to build
Whatever it is you want to build or create you have to believe in the idea and have that passion for it. You have to want it to succeed. Passion is the quality that drives people to do something “crazy” by others’ standards. Passion is the driving force that allows you to jump out of bed and be inspired to work without an immediate reward tied to it. Without passion, you simply won’t persist in business long enough to reap the fruits of success.
Like leaving a six-figure job to start a new company and take $0 in salary for months to get things up and running, or like flying halfway around the world and setting up shop in a new city at the drop of a hat, because you feel like “I need to be here. For this. Right now.”
As you can see passion drives action, and nobody takes action for something they don’t really believe in. There can be little argument that passion is an important business asset. We see successful, passionate people in the media every day and there is no shortage of successful entrepreneurs that are described as passionate.
Passion and a love for the craft are what keeps entrepreneurs going all day every day! It’s an energy that works with all feelings and emotions; it will get you up in the morning and help you stay up late at night. That is why you need to be aware of it, use it consciously, and use it to your advantage. Passion is one of the most effective motivators when it comes to launching a business – and often one of the strongest predictors of whether an idea will lead to success.
Network with other entrepreneurs, especially in your areas of interest. Read books and learn from the experiences of others that came before you. A great podcast is NPR’s “How I Built This.” The podcast speaks with successful entrepreneurs about what they were doing leading up to their business success, creation of their business, the ups and downs, and what the entrepreneur is currently doing. Links to especially interesting episodes will be included below. Their stories may inspire you and also keep your expectations realistic, as there may be small failures before you reach ultimate success.
Develop a Business Plan
The harsh reality of entrepreneurship is that the majority of new businesses fail within the first two years, and lack of planning tops the list of reasons why. New business owners make the mistake of thinking that their passion for their product or service is the most important element. While believing in what you are selling is certainly important, it can’t take the place of writing and following a business plan.
The Small Business Association (SBA) recommends writing a detailed business plan to cover the first three to five years of operation. This document not only lists important projections; it forces you to consider the exact steps you need to take to grow your revenue.
Since it can take some time to earn a profit from your new business, it’s important to have at least six months of reserves before you give up your regular job. The Service Corps of Retired Executives (SCORE) suggests the following tips to build the reserve you need:
- Start saving as soon as you decide to go into business for yourself, even if it’s just a few dollars a week. The important thing is to get into the habit of savings. You can always increase the contribution later as you earn more money.
- Take a realistic look at your current and projected monthly expenses, so you know how much cash you need to meet them.
- If you’re still working for an employer, see if you have the option to automatically put some of each paycheck into savings with direct deposit.
We’ve included some helpful links below to assist you with things you will need to consider when creating your business plan. Business plans will attract potential partners or investors when you are looking for some support on the front-end and possibly throughout the life of your business. Determine the core of what you want your business to accomplish, the current status of the business, the markets you’re in or want to target, who the founders are, and what you’ve already achieved.
Shark Tank is a great show that gives the viewer a snapshot of what it looks like to pitch your business to potential investors. Many of the businesses featured on the show have already begun working, but in order to continue or expand, they need an investor. Marketing yourself and your business is vital. If you believe in your brand, other people will as well.
Side hustle versus full-time effort
In the beginning of your entrepreneurial journey, it is best to keep the security of your full-time job. Unfortunately, our bills and other responsibilities don’t stop as we pursue our dreams. The hope is that someday, your side hustle (your business) will be your main source of joy and income. This will mean that there will be many long nights and sleep will not be on the forefront, but you will soon see the fruits of your labor. Remaining at your full-time job will give you that cushion, so you are able to pay your bills and finance your business ventures. When you get to the point where your business is flourishing and it feels safe to walk away from your job, you have reached your goal of becoming an entrepreneur, and hopefully doing what you love.
Until then, schedule your “hustle hours” outside of regular work hours and stick to them. Whether it’s carving out some time on weekends, or late nights, stick to a consistent and realistic schedule. Being all over the place at all times will only get you drained, frustrated, and more prone to giving up sooner than later.
You do have a network. From your years working in the corporate world to your circle of friends and family, your network is larger than you think. Unless your side hustle conflicts with your day job (in which case you may want to double-check with your manager), it’s ok to inform your contacts of your new ventures.
Countless entrepreneurs were able to use their network to create more business opportunities for themselves. Your contacts may even become your first clients!
Lastly, collaborate, collaborate, collaborate!
Take every opportunity to collaborate with other side hustlers and entrepreneurs like you. Especially when starting, collaboration is important and can help you establish yourself. It’s also comforting to know you’re not alone in this, and that others just like you have done this before you.
You can even ask for the guidance and mentorship of fellow “corporatepreneurs.” Send one of the influencers you follow an email or message through social media to pick their brain. If they’re local, invite them for a cup of coffee.
You can also join local associations of entrepreneurs around you or start organizing meet-ups where you are. Anything that can help you collaborate more and be less isolated as you start your side hustle can go a long way.
We believe in you and wish you the best of luck in all of your future entrepreneurial ventures!
Best,
EDN