Attention all new small business owners: It’s time to rip off the band-aid

Posted by TheLadders Contributor

January 02, 2014 @ 10:00 AM

Five steps to ensure the financial stability you need to start your own business. 

Ripping_Off_BandaidIt’s 6 A.M. Your alarm goes off; you’re about to begin your 9-to-5 day. But, unlike most of your co-workers, you also have a 5-to-9 day on top of that. You are an entrepreneur. You decided to start your own business, but are leery of quitting your day job. You have bills to pay. You’re unsure how successful you will be on your own. Too many worries to take the plunge. But plunge you must in order to give it your all and make a success of your own business.

Have no fear, there are a few precautionary measures you can take to ensure financial stability. This will give you the push you need to just rip off that protective covering and quit your job. If you write out a plan and follow it to the letter, you should be fine.

Here’s what you need to do:

  1. Set up a monthly budget, outlining the bills you MUST pay and setting aside the spending on things you don’t really need.
  2. Make sure you have enough savings in the bank to cover your “must pay” bills for a period of time and give yourself that time to make a go at it.
  3. Limit your discretionary spending, curtailing all spending that is deemed unnecessary until you feel you are taking in a bit more than you are putting out. It may not be fun, but it will be worth it in the long run.
  4. As you take in income from your own business, instead of immediately going out and rewarding yourself, why not extend your time frame for going it alone, without re-entering corporate America just yet.
  5. Be realistic! If you are not making the money you thought you should be making or enough to cover your bills after your window of time expires, reassess. Look for ways to cover those expenses, be it re-entering the workforce with a full-time job if you really must or compensating the loss of money with a part-time job and continue working on your own business.

If you pledge to truly follow the rules you’ve set up for yourself, you should feel a little better about walking into your boss’s office and giving notice. Remember, do it gracefully and make sure to always maintain that relationship as you never know when you may need it, be it as a future client or even a return to the workforce.

Laura_Ruben

Laura Ruben is the Founder and President of Essential Assists LLC, providing customized administrative support to small business and busy professionals. Laura is an accomplished, detail-oriented administrator with excellent analytical, organizational and creative skills with more than 25 years’ experience providing administrative, research and management support within small, medium and large corporations. She has a demonstrated talent for working in a variety of industries and with all levels of management and comprehensive knowledge of office/facilities management, corporate policy and procedures and c-level gate-keeping.

Topics: Professional Development, Entrepreneur