Money Sense

Have you ever thought of being your own boss, quitting your present job and coming out on your own? It does look attractive, doesn't it? Alas, as in most things in life, there's a price for everything. There are 4 things that you need to take into consideration before you hand in your resignation letter.

She has never thought of it before. Changing her job, yes..but not going out on her own. Some of her friends had had thoughts on this issue on more than one occasion. Somehow, the idea was often put aside because of factors like: marriage, commitments, house or car loans to pay. It would seem risky to go on your own.

There's a very good site that give advices on starting on your own, creating your own business by the AKPK (an agency created by Bank Negara Malaysia. This agency provide free services for individuals on financial education and debt management).

She would just like to share these ideas with you. If you are really determine to do it on your own, then you need to think about the 4 P's : Passion, Price, Plan or Principal Sum (Capital).

1) Passion: The journey will be much much easier if you are passionate about what you do. It means simply that you just can't wait to get out of bed in the morning and do what you love to do. Passion gives you that extra boost of energy when things get tough.

2) Price: How willing are you to pay the price? Some people wants to be their own boss but are not willing to put in the hours and sacrifices. When you are o on your own, you would need to work even harder in the early years to establish yourself. You might even have less time for your family than you imagined.

3) Plan: You need to have a good business plan and strategy. You should know for sure how you are going to make money and plan your business expenses clearly. When do you expect to break even and most importantly is to have a back up plan in case things doesn't work out as expected.

4) Principal Sum/Capital: Last but not least , your capital. Most start up businesses require quite a heavy capital, and you must be sure that you have sufficient funds to cover your fixed expenses for between 6-12 months. Then, you need to estimate the initial capital to open and get the business running.
Next, your business cash flow should, at least be able to pay for all the running costs like rental, salaries, utilities and pay the creditors promptly.
There are a few ways that you may be able to obtain funding: beg, borrow or smash your piggy bank. :)

The most important thing is to really do your homework first to see where you may obtain the best financing terms. There are also a number of incentives or soft loans offered by the government for certain types of businesses. Have a look at AKPK on facebook or get their edition of 'Money Sense' in all their offices nationwide.

A serious post from her on this early Tuesday morning. Before breakfast and before bath too. Thinking of something now, cat? Maybe, maybe not. Mid life crisis? (Laughing..hehehe) Maybe, maybe not... Something in the air? Maybe, maybe not..