Entrepreneurship is presently hot in the market. In the olden days, it was restricted mostly to old business houses and family-owned companies. There used to be rigorous control of capital lending among banks to entrepreneurs. The experience was preferred over innovation. So, you could find only one or two companies in virtually every field. For example, in the ’70s, there were only three auto brands like Ambassador, Fiat, and Hindustan Motors. Today, there are almost thirty, with practically all renowned international and domestic auto brands like Tata Motors, Maruti, Ford, Volkswagen, Renault, Nissan, etc.
The credit for this goes to the economic liberalization and the spirit of entrepreneurship among the Indian masses. Many people aspire to launch their startups in the youth today after working in a corporate environment. The reasons are many, job dissatisfaction, the trouble working under someone else and often long hours, and redundancy of skills. But, keep in mind that entrepreneurship is not an easy job. It requires painful commitment and is highly uncertain. Besides, as per statistics, in the mecca of startups, Silicon Valley, only ten percent of startups are booming. The rest collapse, and also, the investment is lost.
Despite all the uncertainty, you must realize that the most significant possibilities are also present in the era of delays. If you have the essential capital and the will to fight it out, you can launch your firm right after graduation. If you wish to gain valuable experience, you must work with a startup instead of a big established firm. Startups will give you the ideal opportunity to learn and explore more within a short time and will have more work pressure. So, your learning will be much more. The following questions will help you with a great deal in making the correct decision.
1) What is the need for a startup? Is it the present dissatisfaction with your job, or you want money or solve an urgent issue.
2) Do you have adequate capital? If not, then can you arrange funds from friends and relatives? Or do you have any contacts with banks and other financial companies for organizing the requisite finance?
3) Do you have sufficient capital to arrange as a backup until you arrive at the break-even point? Generally, firms take around three years to reach the break-even point.
4) Do you have any other income source?
5) Any liabilities like mortgage loan, family expenses, education loan, health expenses etc.?
6) Any expected expense approaching like sister’s marriage, education loan, etc.
7) Are you skilled enough to implement the startup idea on your own? In the initial stage, you may face a lot of difficulties in hiring the required people.
8) Can you hire the right kind of people? Since, as a startup, you may not be able to offer a very high remuneration, to attract the best people
Once you have pondered all these points, you must have a ready-made action plan for taking the required steps. Ideally, all successful owners maintain a runaway of around two years on their young firm before quitting their job to do it full time. But check out these tips to create your firm while working full time.
1) Always engage thoroughly on Minimum Viable Product for at least ninety days.
While you are working full time, you must always create a Minimum Viable Product, which will act as a prototype of the final working product with minimum features. The GUI features can be enhanced later.
2) Create a team in which at least one person should be ready to quit their job.
While you are creating your firm, you are generally on your own. You can’t complete everything on your own unless you are into consulting. There should be one more person with you who can help you create and launch your product. Both of you should be willing to quit at the same time.
3) Try to live frugally and keep at least one year of living expenses.
Once you have decided to start your firm, then you must live frugally and save every penny at your expense. This will help you immensely, later on, and when you begin investing your money in your startup. Try to keep living expenses for at least one year.
4) Productivity is greatly increased.
You must go in for higher productivity and reduce your working time. Productivity is enhanced by almost twice. This can be done by imbibing new skills and new techniques to manage your job. One way to do this is to study the business techniques of other successful business people. In the startup’s initial stages, you may have to do the work of at least two people.
5) Take mentorship and guidance.
As a young businessman, you must take adequate mentorship and guidance from others in this field. Try to attend good conferences and interact personally with top business leaders to gain valuable tips regarding succeeding in your startup. Examples include TechEd conferences, useful meetings, and Skype interviews. Never take suggestions from people who haven’t done business themselves. They will be suggesting the wrong tips and giving you unrealistic dreams and targets.
This article is very good for wannabe entrepreneurs and those looking to start their firms after quitting their jobs. They will get a comprehensive overview of all the risks and advantages of making this move.