Walk don’t run.
First learn to walk. Soon enough you will start to run.
A young baby will typically take their first steps nearby a low table or around a chair that they can hold onto. It happens one day… they take a few steps out away from the table or the chair and they fall down.
Now they realize wow that was pretty awesome! I need to try that again.
Not long after these first attempts they learn to trust their balance and they gain the confidence to take more steps until they begin learning to walk on their own without holding on to anything.
What the young baby is not doing is running a 5K or even a quarter mile.
They are first learning what it means to walk.
Every couple of months a new client seeks me out because they left their day job to start a new business a few months ago and now they are realizing they are having some serious cash flow problems.
Sometimes we are able to work together to salvage their new business and get things on track toward profitability. There are other times when they need to get back into a day job to regain solid footing again.
The reality is – Walk don’t run. First walk and you will run later.
The vast majority of new business start ups are by someone who has a day job. That is where their main income, health care coverage and more is coming from. They must prove out the new business on the side. This means evenings, nights and weekends.
Except – many companies do not permit an employee to run another company while being employed by them. Think about it. Do they want their employee to be distracted from their day job?
So what do you do with this type of situation?
Who else may be involved with your new business to where another person or two may be able to get things started?
A rule of thumb financially is for there to be even a thought of leaving a secure day job there should be at least six months in a row of profitability that would meet or exceed 30% to 40% of your current take home pay. Now understand this is a rule of thumb, every person and their situation is unique which is why anyone considering taking these actions must consult a CFP, certified financial planner, and their own accountant before making any decisions.
It’s very similar to wanting to run a marathon before ever running a lap at the track.
Are there instances where people have made the leap to create enormous wealth? Yes, rare and the exceptions we all hear about. Unfortunately the vast majority of new startup businesses are of the crash and burn category.
If you have the urge to start a new business you should go for it.
Be smart and walk first before you run.
Wenkroy International LLC is a Professional Advisory company with a main purpose of helping entrepreneurs and business people create the strategy, the plan and the steps necessary to achieve that person’s vision for their business and often their life, while navigating the obstacles which may be blocking them from reaching their goals. The process may involve one on one coaching, advising, laser focus days, personal growth workshops and more. The methods utilized are determined together. The results and value positively impact individuals, teams, divisions and across entire companies. People are now able to focus on what matters most to them, because, they have clarity on where they are heading.
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