The worst financial business decision I ever made was quitting my full-time steady job in order to pursue my business full-time. I was not prepared for this step in many ways but it was the financial aspect of it that ultimately led to my failure.
Not Enough Money Saved
It often takes several years before a business makes a profit. I only had enough money saved for me and my daughter to live on for a few months. This led to credit card debt just to cover my basic living expenses. I also did not have enough money saved to help me build my business. I did not have enough money to do proper advertising and promotion of my business. Since these are critical to helping you build your business, my lack of money in this area helped to spell disaster for my business right from the start. Even if I had saved 6 months worth of living expenses and an additional few thousand for promotion of my business, I would have given myself a better chance of success.
No Clear Plan
I did not have a clear plan for how to build my business. I went to networking functions and spent money I did not have on lunches and drinks. What I came to realize is that my business was not one that I could build effectively through networking. A better use of my time and money would have been well-placed advertising in appropriate magazines and internet search advertising. Doing networking with other people in my industry who had a successful business would also have been a better use of my time and money. Getting a mentor would also have helped.
No Steady Clients or Income
I did not have any clients or any other form of steady income when I decided to quit my job. This meant that I had zero income coming in which meant that the money I had saved went very quickly. It would have been better to try to go part-time at my job or found a job that I could do part-time while I worked on building up a clientele or at least another source of income. I also could have worked on building my business while I was still working full-time.
All of these mistakes ultimately led to the failure of my business and so just a few months after I quit my job, I had to find a different one.
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