Many will jump into entrepreneurship in 2025, and if you have that ardent preference to enroll in them but are sure it’s the right resolution for you, you’re in smart company. Moving from solid employment to starting a business is a vital resolution that should not be taken lightly.
When it comes to entrepreneurship, you need to know why you want to start a business. Is it because you have a passion for an idea, or maybe you are dissatisfied with your current job, or have a strong desire for independence. Whatever your “why” is, you need to be aware of it.
It is important to understand your goals before starting a business. Are you seeking monetary freedom, greater work-life balance, or intending to build generational wealth? Your goals play a role in your “why” and you want to focus on your why to stay motivated during difficult times. This deserves to be strong enough that you are willing to give up a stable source of income to continue your business.
Starting a new business can be an expensive endeavor, and you want to be financially prepared while growing your business. Do you have savings that will help you financially while you wait for profits to come to your business?
There are financial risks of entrepreneurship that you must consider. Unlike a steady-income job, starting a business often means navigating a period of uncertainty with no guaranteed income, especially in the early stages. You’ll need to account for startup costs, such as equipment, marketing, and operational expenses, which can quickly add up.
Additionally, money flow can be erratic, requiring a strong monetary cushion to cover periods of slowdowns in personal and business spending. Without sufficient savings or access to financing, you risk jeopardizing your professional and private financial stability. Creating a detailed budget, building an emergency fund, and fully understanding your break-even point is a must to mitigate those threats well.
To compare lifestyle impacts, it is necessary to understand the key differences between the balance of job security and the uncertainty of entrepreneurship. A job with a steady income offers a predictable schedule, regular paychecks, and benefits like physical care and retirement plans, creating a sense of stability and monetary security.
On the other hand, entrepreneurship offers the potential for greater flexibility and independence but comes with irregular income, longer hours, and higher levels of stress, especially in the beginning stages. Entrepreneurs must juggle multiple responsibilities, from managing clients to handling operations, which can disrupt work-life balance.
It’s imperative to carefully weigh those differences to make sure the business lifestyle fits your personal goals, financial situation, and ability to manage risk.
One option to go all out early on is to explore the waters through a secondary effort. This means that you strive to build your business part-time while keeping your job. This gives you time to check the concept of your business and start generating a source of income before committing to the business full-time.
There are strong signs that you’re ready to take the leap and leaving your full-time job. A few of the signs include:
Here are some symptoms that you might want to keep your full-time job:
The bottom line is that deciding whether or not to start a new business requires a fair assessment of your passion, dedication, and readiness for the adventure ahead. Entrepreneurship requires more than a smart idea; It requires a willingness to continually learn, adapt, and triumph over demanding situations. If you’re willing to dedicate yourself to ongoing growth, embrace uncertainty, and strive to build anything from scratch, you may be in a position to take the plunge.
Melissa Houston, CPA is the founder of Fractional CFO Agency, Cash Confident: An Entrepreneur’s Guide to Building a Profitable Business, and the founder of She Means Profit. As a business strategist for small business owners, Melissa helps women in mid-career transition unlock the business of their dreams and also guides established business owners to grow their business more profitably.
The opinions expressed in this article are not intended to replace any professional or expert accounting and/or tax advice whatsoever.
Melissa Houston, CPA covers non-public business and finance that impacts entrepreneurs.
With her CPA degree and over 20 years of professional experience, Houston is widely known for her financial management expertise. Houston has been sharing her wisdom and experience with Forbes. com readers since August 2020.
Houston works with female tech founders like Fractional CFO Fractional CFO Agency, which she founded.
Houston is the foreign sales site for Cash Confident: An Entrepreneur’s Guide to Create a Profitable Business, founder of She Means Profit, foreign speaker, and covers small business finance. Houston has worked with many small business owners to help them increase their profits and make more money in their business.
Follow Houston for all financial matters impacting small business owners today.
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