South Africa has seen a growing trend of people who are leaving their jobs to pursue entrepreneurship. Is this a decision that you should take? Let’s look at some of the things you should consider before quitting your job to start a business.
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It will take 3 years before you become profitable
This is probably the most important thing to consider and will likely determine if you can afford to quit your job to start a business. Businesses take 3 years to be profitable on average and may take 7 years before becoming a true success.
You need money to finance a business
Building a business needs money, being employed puts you in a very good position to finance your business. You can use the money you get after resigning to start your business; this doesn’t change that you will have to wait for 3 years to be profitable.
It puts you at a much greater position to be successful. 80% of businesses fail within the first year in South Africa, most of them site lack of capital as the reason for their failure.
Start the business as a side hustle
I personally would not recommend you to straight up quit your job to pursue your business. There are a lot of people who have succeeded by doing that; knowing what I know that. It’s better to start your business as a side hustle and only quit your job when it makes enough money to sustain you.
The main danger with quitting your job to start a business is that you don’t know when it will succeed or earn you enough money to make a living from. While the main advantage with starting your business as a side hustle is that you can finance it with the income from your job. The main trade-off will be time.
You can always hire someone to manage your business while you are sourcing funds by working. This puts you in a position to act like an investor to your own business; which will save you from the process of trying to raise funds.
Get a partner or an employee
The problem with starting your business as a side hustle is that you won’t dedicate as much time as you need to running it. Which may cause it to fail; to avoid this; it’s best to get a partner or hire someone to manage the business for you.
If you don’t have enough money to hire someone then just pay them in stocks or get a partner. This way you will provide much needed capital and they will do the groundwork; you will also act more like a CEO.
This is based mostly on my views; which makes it highly subjective. You are free to add your own views in the comment section below.