Throughout summer I had the chance to meet other business owners and to talk with data people who are considering starting a (side) business.
One topic we kept coming back to is money and what needs to be in place to make starting a business possible.
Because for most people, living in their parents’ spare room and eating a diet of ramen noodles and peanut butter and jelly sandwiches is not an appealing (or possible) option when they start their business.
Many people I met – and you may well be one of them – are several years into their professional career. Quite a few have a family, which means additional caring and financial commitments that make “just quit and do your own thing” a piece of useless advice.
Building a business on the side was the only option for me. I’m pretty risk-averse and we were just a year past the initial COVID outbreak when I first considered the idea of a business. That, plus the cost of living in London meant I had to be sensible and realistic.
If you’ve been toying with the idea, the starting point I’d recommend to anyone, regardless of what your business might become, is an honest look at your situation right now: Income, expenses, lifestyle, willingness to go without luxury expenses (holidays, fancy restaurants etc), commitments, etc.
Understanding how much revenue your business has to make to be able to pay you the salary you need (and eventually the one you want), plus take care of taxes, fees, etc. is a really good place to start.
That clarity might feel discouraging for a (hopefully brief) moment but at least you know what you’re up against. And when it comes to starting a business that could change the course of your life, clarity right from the start can make a huge difference to actually getting started.