What I Wish I Did Before Becoming a Small Business Owner.

As someone who holds an MBA, has over 13 years of experience in corporate, and has also had some part-time businesses while working, as well as almost 4 years of experience as a small business owner, I have some advice to share for those considering starting their own business. In this article, I’ll be sharing the top things I wish I had done before becoming an entrepreneur. By following these tips, you’ll be better equipped to handle the challenges of starting a business and increase your chances of success. So if you’re ready to take the leap, keep reading!

1. Having at least 12 months of savings is a critical factor for any entrepreneur. According to a report by the Small Business Administration, only 50% of small businesses survive beyond five years in the United States. In South Africa, the failure rate is even higher, with up to 70% of small businesses failing within the first five years. Without sufficient savings, entrepreneurs may not be able to sustain their businesses in the long run, which can result in bankruptcy, debt, and financial insecurity. The benefit of having a safety net is peace of mind, which can allow entrepreneurs to make better decisions and be more focused on their business.
2. Setting up as much of the business as possible before quitting a full-time job is crucial. Seeking guidance from experienced business owners and hiring a business coach can help entrepreneurs create realistic business plans and avoid common mistakes. According to a study by the Kauffman Foundation, entrepreneurs who sought guidance from business mentors were five times more likely to start a successful business. Starting to set up a business, such as purchasing necessary equipment, creating a website, and networking, allows entrepreneurs to hit the ground running once they become full-time small business owners. Learning how to market and sell products or services is essential for the success of any business. The benefit of this is that entrepreneurs will have a solid foundation in place, which can help them avoid costly mistakes and increase their chances of success.
3. Starting a business part-time while still working a full-time job allows entrepreneurs to practice important skills such as strategy, time management, people skills, and selling skills. According to a report by Global Entrepreneurship Monitor, 70% of South African entrepreneurs started their businesses while still employed. This allows entrepreneurs to learn and understand the market and demand for their product or service, make changes as necessary, and work out their business processes. The benefit of this is that entrepreneurs can make mistakes and learn from them without putting their financial stability at risk. They can also gain valuable experience and knowledge that can help them when they become a full-time small business owner.
4. Only quitting a full-time job once there are some customers and a clear strategy for expanding a business is crucial for the success of a small business. A report by the National Small Business Association found that 80% of small business owners said their business’ financial situation was better than the previous year. However, starting a business with no customers or a strategy for growth can result in financial strain and can lead to failure. The benefit of this is that entrepreneurs can avoid financial strain and set themselves up for success by having a clear plan in place.
5. Creating a business plan is essential for the success of any small business. A study by Palo Alto Software found that businesses with written business plans were 50% more likely to succeed. A business plan helps entrepreneurs define their business goals, strategies, and tactics. It also helps them identify potential challenges and solutions to those challenges. The benefit of creating a business plan is that it provides a roadmap for a small business and helps entrepreneurs stay focused on their goals.
6. Building a network of supportive individuals can help entrepreneurs grow their small businesses. Joining networking groups and seeking out other small business owners can provide valuable knowledge and insight into an industry. According to a report by Small Business Trends, 85% of small business owners said that referrals were the most important source of new business. The benefit of building a network is that entrepreneurs can gain valuable advice, support, and referrals that can help them succeed as a small business owner. I encourage you to check out your local BNI chapters, or business commerce groups.
7. Consistently tracking and analyzing financials is crucial for the success of any small business. According to a report by the Small Business Administration, the number one reason small businesses fail is due to poor financial management. Entrepreneurs need to know where their money is going

Starting a business is a dream that many people have, If you’re considering taking the leap from full-time employment to small business ownership, it’s important to understand that entrepreneurship requires a lot of hard work, dedication, and planning. By following the tips outlined in this article, you can set yourself up for success and increase your chances of achieving your goals. Now don’t get me wrong, I did a few of these things, and that helped, but I do wish I had had a much more structured approach.

Remember to start by building a strong financial foundation, with at least 12 months of savings to cover your personal bills. This will allow you to focus on growing your business without the added stress of financial insecurity. Additionally, it’s important to set up as much of your business as possible before quitting your job. This means learning from business owners, hiring a business coach to help create a realistic plan, and starting to set up your business, including buying equipment, creating a website, and networking as an entrepreneur.

Another important step is to start your business part-time, practicing strategy, time management, people and selling skills, and learning about your market and demand for your product or service. This will allow you to work out your business processes and gain a safety net before quitting your job. Finally, only quit your job once you have some customers and a clear strategy for how you will expand your business once you are full-time.

Throughout your journey as a small business owner, it’s important to stay flexible and open to change. Your business plan may need to be adjusted as you gain more experience and learn more about your market. Additionally, you will need to continue learning and growing as an entrepreneur. This means staying up to date with industry trends, seeking out mentorship and coaching, and investing in your own personal and professional development.

The road to entrepreneurship is not always easy, but it can be incredibly rewarding. By following these tips and staying committed to your goals, you can build a successful and fulfilling small business. Remember to stay focused on your vision, be willing to take risks, and never stop learning. With dedication and hard work, you can turn your entrepreneurial dreams into a reality.

This article was written by Terrill Christians, Owner of Success By Design