To quit or not to quit?
It’s a dilemma that most people today face, especially in the climate of the current economy where the cost of living is increasing while employee wages remain stagnant. The idea of starting your own business can be a hugely tempting one, especially when you feel stuck in your current job and see limited prospects for growth or a pay rise.
However, starting a business comes with its own set of challenges and risks. Here are the Top 5 Key Questions to ask before sending in that resignation letter, something to really keep in mind.
1. Aside from financial reasons, what are you passionate about to keep you motivated in running this business?
Personal Interests: What aspects of the business align with your personal passions? Whether it’s a love for a specific industry, the joy of solving customer problems, or the thrill of innovation, identifying these can fuel your motivation.
Purpose and Impact: How does your business idea make a positive impact on others? Understanding the broader purpose and potential societal benefits of your business can provide a deeper sense of fulfillment.
2. What are your strengths and capabilities that will compliment you in this business?
Skill Set: What are your core competencies? Reflect on your strengths in areas such as leadership, communication, technical expertise, or strategic planning.
Experience: How does your previous work experience or personal background equip you for this venture? Consider how your past roles have prepared you for the challenges of entrepreneurship.
Network: Do you have a strong professional network that can provide support, advice, and potential business opportunities? Leveraging connections can be a significant asset.
3. Can you afford to quit your job and how long is your financial runway?
Financial Assessment: Have you thoroughly evaluated your current financial situation? Calculate your monthly living expenses and determine how long you can sustain yourself without a steady income.
Savings and Investments: Do you have enough savings or investments to support yourself and your business during the startup phase? Establish a financial cushion to manage unexpected expenses.
Income Diversification: Are there ways to maintain a part-time job or freelance work to generate income while building your business?
4. Have you done your market research and assessed the viability of this business?
Target Audience: Have you identified your target market and their needs? Understanding your potential customers is crucial for developing products or services that resonate with them.
Competitive Analysis: Who are your competitors, and what are their strengths and weaknesses? Analyze the competitive landscape to identify opportunities and threats.
Market Trends: Are there emerging trends or shifts in the market that could impact your business? Staying informed about industry developments can help you adapt and stay relevant.
Feasibility Study: Have you conducted a feasibility study to evaluate the practicality and potential profitability of your business idea? This includes assessing costs, revenue projections, and potential risks.
5. Entrepreneurship can be a lonely journey. Do you have a business support system to help cheer you on?
- Mentors and Advisors: Do you have mentors or advisors who can offer guidance and insights based on their own experiences? Their wisdom can be invaluable.
- Peer Network: Are you part of any entrepreneur groups or networks where you can share experiences and learn from others? Building relationships with fellow entrepreneurs can provide emotional support and practical advice.
- Family and Friends: Do you have the support of family and friends who believe in your vision and can offer encouragement during tough times? A strong personal support system can boost your morale.
- Professional Services: Are there professional services (e.g., business coaches, consultants) that you can access for specialized support and expertise? Investing in professional help can accelerate your business growth.
Don’t worry, you’re not alone. According to the Department of Statistics Malaysia, the entrepreneurial spirit in Malaysia is thriving.
There were 1.15 million small and medium enterprises (SMEs) in 2020, contributing to nearly 38.9% of the national GDP. Additionally, Malaysia’s Global Entrepreneurship Monitor (GEM) 2020/2021 report indicated a high level of entrepreneurial intention, with 25.4% of Malaysians expressing a desire to start their own business within the next three years.
What You Should Do:
- Evaluate Your Readiness:
- Passion and Purpose: Ensure you have a clear vision and passion for your business idea.
- Skills and Knowledge: Assess whether you have the necessary skills and knowledge or if you need further training or education.
- Financial Planning:
- Savings and Investment: Determine how much capital you need and how you will secure it. Consider personal savings, loans, or investor funding.
- Budgeting: Create a detailed budget covering initial costs, operational expenses, and a buffer for unexpected costs.
- Conduct Market Research:
- Target Audience: Identify who your potential customers are and understand their needs and preferences.
- Competitor Analysis: Study your competitors to learn what works and identify gaps that your business can fill.
- Develop a Business Plan:
- Executive Summary: Outline your business idea, goals, and strategies.
- Marketing and Sales: Plan how you will attract and retain customers.
- Financial Projections: Include revenue forecasts and break-even analysis.
- Understand Legal Requirements:
- Registration and Licensing: Ensure your business is registered with SSM and obtain any necessary licenses.
- Tax Obligations: Familiarize yourself with tax regulations and requirements.
Rewards and Consequences:
- Rewards:
- Financial Independence: The potential for higher earnings and financial freedom.
- Personal Fulfillment: Satisfaction from pursuing your passion and achieving your goals.
- Flexibility: Control over your work schedule and business operations.
- Consequences:
- Financial Risk: The possibility of financial loss if the business does not succeed.
- Stress and Pressure: The demands of running a business can be overwhelming.
- Uncertainty: The entrepreneurial journey is unpredictable, and success is not guaranteed.
How FA Advisory Can Help:
At FA Advisory, we understand the challenges and opportunities that come with starting a business. We offer a range of services to help you navigate your entrepreneurial journey:
- Financial Planning: Our experts can help you create a comprehensive financial plan, including budgeting, funding options, and investment strategies.
- Market Research and Analysis: We provide insights into market trends, target audiences, and competitor analysis to help you make informed decisions.
- Business Plan Development: Our team can assist you in crafting a robust business plan that outlines your vision, strategies, and financial projections.
- Legal and Regulatory Guidance: We ensure that your business complies with all legal requirements, including registration, licensing, and tax obligations.
Starting a business is a significant decision that requires careful consideration and planning. By following the steps outlined above and leveraging the expertise of FA Advisory, you can increase your chances of success and turn your entrepreneurial dream into reality.
Are you ready to take the plunge?
Contact us at FA Advisory to get started on your journey to business success.
