So, you have started this small business, while still working at your paid employment. It isn’t yet Uhuru for you my friend. This is the time to make further sacrifices to make possible in future, a shot at the top of Maslow’s Hierarchy of Needs.
I will quickly recap just a few of the principles in my model of the path towards entrepreneurship, as outlined in earlier presentations.
The model is such that one becomes an entrepreneur without losing his/her job, and following the advice of one of my contributors, to start very small, especially considering that even so called “friendly” microfinance banks, like commercial banks, have become loan sharks, leaving the would-be entrepreneur to advisedly source for the funds for the small business solely from his/her earnings, were possible.
It is assumed that after starting this small business, that one would’ve gotten a hang on the nitty-gritty of the business, enough to decide whether to carry on with the same, or consider it a failed project, count one’s losses and back out. However, if the reverse is the case, and even with the challenges you feel that the small business will be worth your while, then there’s no reason not to expand the scope of involvement.
You don’t necessarily have to wait till the capital, invested in the first engagement is recovered, before embarking on another round of engagement with the same business, especially once you find that the returns are considerably stable over time.
The means by which financing the substantive small business was done, could be employed this time around (or modified, depending on the prevailing financial conditions and circumstances), even if it means wiping out whatever is left of your accounts, supplemented with the incoming salary, while feeding and living on bare necessities on proceeds from the business you already have on ground.
Let me highlight some of the reasons why you should take this step, once again assuming that the current business is not doing so bad,
* a second engagement is usually easier to navigate than the first, since the many hurdles one passed, is envisaged and can be easily surpassed a second time round,
* enlarging one’s coasts in this manner, means that the dependence on ones’ salary to satisfy bare necessities is removed (as that is taken care of by the proceeds from already running businesses),
* while the salary can now be saved for reinvestment in the same small business, another small business (one might become interested in much later), or in something bigger, requiring long term financing and investment – the fruits of which one may not reap for a long time, even months after the business must have taken off.
Remember that in all of these, the emphasis on micro business isn’t because there’s a plan to jettison the bigger business plan, but rather because these usually take longer time to set up, and have more chances of frustrating the entrepreneur especially in the early stages, it is therefore advisable to set up the smaller ones, that will provide the foundation of experiences, and maybe even funding for the bigger one that can be sown “poco a poco” while the smaller ones run pari passu profitably.
For now, the target should be, to be able to live off proceeds from such small businesses, while saving up salaries, wholly for reinvestments, till such a time as the next level is reached, which involves setting up that long term business, of a service you may have become competent at (most likely the job/service you’ve spent many years doing/offering as an employer), for which you may then resign from your present employment to set up, which you will now head in the capacity of the CEO /I can see you smile to that/.
Before that though, the needful needs to be done, and the time for that is now, as we trudge maybe slowly, but steadily to SELF ACTUALIZATION.