The 1 thing you should do before you quit your job and become a full time entrepreneur
When the bug bites, you want to quit the job and move on and set up your business immediately. Every day counts. The road all set out. The world of fortune beckons.
I know the feeling. Been there, done that.
Before you start, hold on a bit!
Chances are, you have already done a lot of reading, and all those books of how people made their millions is not just making your impatient, but also giving you a sense of urgency of time being wasted doing nothing.
Before you jump in, consider doing this one thing before you jump in.
Invest some money-
– and buy some stakes into one start-ups that is new and struggling for money and guidance. In today’s start-up world, there are a number of companies that need both a little investment and a lot of guidance and advice. Both are difficult to come by unless they are willing to part with some stakes. With a little money, you can get a stake (and I am not talking of 50% kind of stakes- but more like a 10-20% of stakes) in return for guidance/ support.
I say invest money instead of giving time – because by putting your money in, you secure a seat in the table as a stake holder- and enforces your commitment to get a return on your investment (apart from just the learning) while ensuring the company also looks at you as a partner instead of a coach or a guide. Most start-up’s are quite averse to parting with stakes – and it is important they see the value of what you bring so that they are willing to give you some stakes. In return you help them with your skills that will enable them to grow faster (hopefully).
This will help you in many ways.
· Gives you an inside view of how a startup actually works (or tries to work).
· Support the Founders in a number of activities that may be your speciality. You will go beyond the scope of your “job description” and discover new skills (we all did).
· Learn the concepts of cash-flow and how the company works & how they grow.
· Understand the challenges regarding hiring and managing a team.
· Decide on processes you need to put in place to make a company run smoothly.
· Work out various marketing programs that you can design on a bootstrapped model and understand ROI.
· Help the founders in making proposals for investments. This could include making a business plan & a pitch document (significant learnings).
Most importantly, you learn how to manage your money better- and learn while you work.
The list can go on.
You super-charge your learning of how a startup works and after a period of 6 months to a year, you are better positioned to know how to really start and run a company.
Also, as a bonus, your stake in this company could help you as a cushion when you start your own company.
The benefits are numerous. And your learning is significant.
Don’t give up on your dreams of starting off on your own. I am just suggesting you give it a bit of time, and effectively learn what you will anyway have go through when you start a company – while you are still earning a salary.
It could be one of the best decisions you take.
We learnt this after we started 🙂 Sharing this with you so that you could learn from this – and optimize your investments- and maximize your learnings.
Get moving Tiger!