Entrepreneurial ambition that sets in at a certain stage of a successful career goes hand in hand with sound business planning. A lot of professionals toy with the idea of starting their own business because they feel it is better to make money running their own business than make money for someone else. Earlier a job was considered stable but in the current economic scenario where there is no job security, this argument no longer holds good. Some people prefer to set up their own business purely for the reason that they don't like working for someone else. However the reason why most people opt for starting their own business is that they are building something for themselves and not for someone else in the long run.
The concentration is on the business idea and the issues involved in running a business. Ideas abound, connections and contacts are strong, extensive brainstorming happens- all to come at a standstill because of the deficiency of funds to see the project through to its logical end, that is, a profit making enterprise. This frustrating situation can be avoided if a little business planning is done taking into account the following:
Is your current financial state suitable for you to start a new business?
How much time do you have at hand, to make this business successful?
How much would you need to run your family for six months without income?
Your personal financial position being good is mandatory as the lack of funds will adversely affect your ability to sustain yourself in business initially and make it successful.
At Logicals, we recommend our customers with entrepreneurial ambitions, to start preparing a fund that would meet family needs, much before they take the plunge. The fund would become a financial pillar for the entrepreneur and allow the individual to concentrate on the business .It is pertinent to note that risk management and mitigation are as important for individuals as they are for companies.