Join Rudolph Rosenberg for an in-depth discussion in this video Managing your salary and reducing transition risk, part of Entrepreneurship: Bootstrapping Your Business.
- Have you considered keeping your day job while starting your business? Many entrepreneurs go on the basis that it's one or the other, and that they need to be 100 percent available and dedicated to their business to make it a success. Of course, 100 percent dedicated people have more chances to see their business succeed than people dedicated only 30 percent of their time on their business. But, in some cases, 30 percent of your time on starting your business, is better than postponing it forever because the risk of leaving your day job is just too high.
The personal consequences of such a decision are life-changing, and require careful planning. Many businesses start off slower than expected, and when the first contract is signed, it's not necessarily going to keep you busy enough that it would require that you're 100 percent dedicated to the job. So, before getting into the decision phase on quitting your job, ask yourself the following questions to determine if it's a necessity. Do you need to dedicate 100 percent of your time to the project from day one? What are the concrete things you will be doing on that first day? And if you're not clear, if it's not a lot of work, then think again.
Is there a way for you to organize the first weeks or months of your company so that you can manage it while keeping your day job? Is timing a critical factor, or is it okay to give yourself a few more months in order to do everything you need? For example, take three months to do the work instead of two weeks. If things you plan happen later than expected, would you still be able to wait longer before you start making money with your company? You can ask yourself those questions and many more, but if it's not a 100 percent necessity, and if you do need to make a living, don't take this step lightly.
Think about the consequences of having pressure on the personal side, on top of the million things you'll be doing to get your business started. If you can avoid that pressure, do so. If you have to take a little more time to get started but keep a paying job to not have that personal pressure, do so. Remember that plans rarely happen as planned, so be ready for that as well by not putting all your eggs in the same basket.
He shows why beginning with the end is important: framing the venture by anticipating your exit strategy. He explores key resource-planning factors as well as the competencies and considerations required to fund and grow a bootstrapped business. The course then details how to manage the startup and evaluate it realistically to determine whether to stay the course or pull the plug. Finally, viewers will learn how to validate the business-plan assumptions effectively to determine viability and growth trajectory.
- Summarize the five pillars of bootstrapping.
- Determine which type of office space would be most beneficial for a given business.
- Explain the concept of linearizing expenditures.
- Identify the reason why making sales quickly is important to bootstrapping.
- Recall strategies for attracting new customers.
- Recognize the advantages of working in short cycles.
- Explain the importance of having a work-life balance.