Starting your own company – for many people this is the ultimate dream, and the sure-fire way to get rich. Being your own boss conjures ideas of flexible working hours (i.e. sleeping in until late), the possibility to make your own decisions, and the freedom of not having to report to anyone.
Unfortunately, the sad reality is somewhat different. If your idea of flexible working hours is something like 24/7 working hours, if making your own decisions for you means making decision which are guided by your empty wallet, and if freedom of reporting does not include the need to report to your customers, then you may want to contemplate starting your own company.
Before you do however, this are the 5 things that you have to have in place before you hand in that resignation letter to start your own business. This is what we think you need:
- A great product / Service
you need to field test your idea a bit. Do other companies have similar products? Are they successful? If not, why? What will you do different? What will be your unique selling proposition (UPS) that no one else can offer? Why is your UPS so important to potential clients?
- Enough money in the bank to last
You need to be able to last without income for at least 6 – 12 months. If you don’t have enough money put aside to be able to do this, consider to delay your start into entrepreneurship, as you may not have the staying power to see your company through the initial hard times.
- A potential client to start with
It is very helpful if you already have had discussions with a potential client – and we don’t mean stealing a client from your current employer. If you already have someone who will be your first client upon you commencing your business, you’re off to a good start.
- A team to work with
While you can do it alone, it is a lonely path. You should start your business with 1-3 other like-minded people, who ideally have complimentary skill sets. If all of you are technical engineers, this may not work. A great company is like a soccer team. You need strikers, defenders, goal keepers. A soccer team comprised out of 11 best strikers in the world will still loose against an average team with a better balanced composition.
- A proper legal setup
As an entrepreneur you won’t be able to rely on others for the boring legal and accounting work. You need to set up a legal entity, and identify how you will manage accounts before you get into business.
### Special Thanks for Article Contribution by Harald Weinbrecht, Founder of Incube8 ###
Harald Weinbrecht is a serial entrepreneur who made Malaysia his home 15 years ago. His first venture was ISS Consulting, a regional SAP consulting firm he co-founded in 1997 that went public on MESDAQ 10 years later. He currently runs Incube8 (www.incube-8.com), a serviced office center cum incubator with the mission to help growing companies succeed. He is also actively involved in OpenPath (www.openpath.edu.my), and TrickleStar (www.tricklestar.com), and is an advisor / mentor for a number of start-ups in various industries. Harald is a 3-times Ironman finisher and runs a 3:45 marathon, when he’s not busy helping other entrepreneurs. He can be contacted at [email protected].
- Top 5 Skills that You would Need either as an Entrepreneur or an Executive
- Recruiting for Startups: Candidates Use Gen Y to Search for Companies to Work For
- 6 Fundamental Tips of Pitching to Investors: An Entrepreneur’s Guide
- Top Social Media Trends for Entrepreneurs in 2013
- Spotting Brand Advocates for Your Business
- Entrepreneurial Experience or Entrepreneurial Education?