If you have your entrepreneurial nature nagging you throughout the 9 to 5 schedule each day, then you might covet the title of being your own boss. However, while the era of technology is in full bloom, some experts might advise you to test your options before plunging into your own online business. Today, we’ll discover when is the proper time to quit your job and harness the power of the Internet.
1. First and Foremost, Consider Not Quitting on the Spot
Many startup veterans would advise you to juggle with your job and business during the first year of becoming an entrepreneur. The first year of a company is crucial. If you manage to get past this milestone, it means that you are ready to step into the business world.
Studies show that 8 out of 10 startups fail during the first year. There have also been compiled a set of 20 reasons why this happens. The first three obstacles in the entrepreneurial journey are a lack of market research, lack of supporting capital, and lack of a good team.
This means that you should stick with your job a little longer, no matter how loud the business opportunity calls for you. First of all, you need to research the market and identify the right segment of the target audience for you. Your business can’t exist if there are no clients to find your product or service of use.
Secondly, you need one whole year to test if the recruited employees are a good match for your startup. Maybe the most important measure of all is gathering as many financial resources as you can. The economic projections written on paper will never coincide with the reality. You should make enough room in your budget to cover any possible mistakes that may jeopardize the entire mission.
2. Understand the Tax System
If you hit a big enough success with your online business to score a good income, you shouldn’t celebrate the victory too soon. Every April 15th, your annual income will suffer shrinkage of about 20% because of taxes. To prevent this shock that might set back your business, you should create a payment schedule.
The USA has a lot of severe taxes for business owners that will take most of your earnings away. The Schedule C “SE” is only the beginning. There are also personal income taxes that can narrow down your payments to Government up to 55% of your income.
So, in light of these findings, the issue of money is of concern once more. Even though you have a personal accountant, you still need to understand the tax system so that you know how to estimate the price for your service or product.
3. Set Up a Business Foundation
Before going ahead and start making a profit with your business idea, you should lay down a strong foundation for it. This will help you create a client database, test the market and the impact your product will bring to a certain kind of community.
This first business layer consists of a website, official social media profiles, and a blog. The website will be the online shop that people can access without the need to travel long distances to test and purchase your goods. The website should first and foremost be more about information and less about design. The visuals can influence consumers into buying your product. However, it is best to play it honestly and use the website to tell them why they should invest in them. You can go back anytime you want and change the aspect of the website onceyou have the budget for a web designer or you accumulated knowledge of online customer psychology.
Social media profiles will guarantee you the presence of your business on platforms with millions of users. With so many accounts, there are high chances that your potential clients are surfing all the major websites such as Facebook, Twitter, and LinkedIn. Furthermore, if your business has a brand name, it is important to secure the official title on all main channels. Some other entrepreneurs might think of your business name as well, and once they create social profiles with the same name, there’s nothing you can do to go back to singularity.
You can start writing articles for your blog that your leads might be interested in before buying your product. Think of questions that people might have related to your service, such as “How does it work?” or “In how many ways can I use it?” The consumers will have many questions related to your product. If they can find both answers and quality service through your brand, your digital presence will become a voice of authority. Once you establish a connection based on trust with the consumers, it will be easier to turn them from leads into loyal customers.
So, these are the three main factors to take care of before starting your adventure in the online business medium. It is important to weigh your entrepreneurial opportunity with an objective mind before quitting your unsatisfying job. The moment your online business finds a viable shape, you have the green light to devote your entire time to its success.
The post When to Quit Your Job and Start an Online Business appeared first on Home Business Magazine.