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Article from The Straits Times, 12th August 2000
Take The Plunge
Want to start out on your own and be your own boss? Consider these points before you go into business.
Making the quantum leap from salaried worker to the world of entrepreneurship isn’t easy. Having said that, nothing good comes easy.
First, you have to contend with not having a regular salary.
This means that you will not have Central Provident Fund (CPF) contributions.
This, again, means that you may face difficulties servicing your mortgage loan.
Together with your many other monthly financial commitments, you will be turned off before you are turned on!
That, though, is true unless you are forced into a situation of parting company with your employer, against your choice.
Although the economy is by and large on its way to recovery, organisational restructuring and re-organisation will still continue for some time.
As a matter of fact, the more robust the economy, the more changes there will be.
When this happens, jobs are sometimes cut.
The business world is continuously evolving and changing.
Increasing customer demand and expectations make it impossible for businesses to remain still.
For the salaried worker, what else can you do apart from doing all you can to remain employable?
Well, going into business can be an option. Out of 10 outplaced managers who have walked through our door, one, at most two, will be game enough to explore this option.
Assuming you are also contemplating this option, here are some questions to consider:
- Are you ready? This is the most fundamental question you need to address.
You will need to consider not just from the point of whether you have the financial means to start your business, but also if you are ready to make personal sacrifices of time and pressure. Emotionally, are you up to it? Do you have an alternative if it does not work out? Family and peer support must also be present.
- What do you do? Sounds simple, doesn’t it> Not really. What you really would like to do may not be commercially viable. And what is potentially profitable may not be what you want to do.
At the end of the day, you have to be passionate about the service or product you are going to be selling.
If you do not believe there is value, what about your potential customers?
- Do you like to sell? This is the key to everything.
If you can’t sell, how can you be in business? Liking the idea is not the same as being able to do the job. You may be a strong sales person, able to close deals with your eyes closed, but will you be happy doing that? It all comes back to the same question: Will you be happy doing it?
- Why do you want to do it? You must feel a strong desire to want to go into self-employment and be your own boss.
The last thing you want to do is to do it to show your ex-boss (who fired you) that you have what it takes to make more money than he can. If for any reason you want to be your own boss, do it for yourself and your loved ones. Never do it to prove a point.
- What are your strengths? Do you have what it takes to be a businessman?
What do you lack? Financial skills, marketing and promotion techniques? How can you supplement these?
Be objective. Use your head, rather than your heart. If in doubt, speak to your friends who will be able to give you their honest and sound opinion, whether it will hurt you or not.
- Do your groundwork. Check out who else is in the business you want to be in. What are the potential competitors doing right?
How can you do it differently? What value can you add to your business? Can you carve a niche for yourself?
- Network. This must always feature in everything you do in life. Learn to network effectively. Those who do have realized its many benefits
- Business Plan. When you are almost at the point of venturing on your own, make sure you have a proper business plan written up. If you can’t do it or haven’t done it before, get some help. Pay if you must. This is essential and the money cannot be saved.
- Know when to cut losses. Know your financial limits. Forget about your fear of losing face. If things do not work out, what is your cutoff point? Like a good general, know when to pull back so you can live to fight another battle.
- Be humble. Being humble in life always pays off.
When I started, I called up my landlord to ask for a reduction on the office rental rate. I got 10 cents off per square foot. It is not a question of affordability. It is being practical. A dollar saved is a dollar earned for other necessary expenses.
Paul Heng
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