As a defense mechanism, our minds tend to focus less on the worse case scenarios, and this is a good thing. But as an entrepreneur, especially in the early stage of your business, you need to consider your options should your business be suddenly left with zero money.
It’s a great idea to come up with a plan for when the worst happens. Are you going to get a temporary job or will you have to move in with your parents? These are questions for which your need to have somewhat of a preset answer. Just in case things go south.
Don’t forget that 50% of businesses fail in their first five years. And the ecosystem here in Africa is very tough for entrepreneurs. The more the reason why you need a contingency plan. Here are some plans you can put in place.
Evaluate Your Current Earning
You need to evaluate the overall income you generate. And know if you can put aside enough money should your business wind up with zero money. You might want to expand your source of income just to be able to set some money aside for this rainy day.
Prepare for the Worse
It’s often said that life is what happens when you’re busy making other plans. There are several uncertainties that can affect your business plan and send you off course. It could be a wrecked delivery vehicle, misplaced or stolen valuables.
Earn While You Grow
Don’t quit your day job just yet if you want to establish a small business. It takes time to build a successful startup. Gradually shift from employee to entrepreneur by building your business in phases.
It will take some time for you to achieve consistent revenue as a new business owner. Keep your 9-to-5 job and work on the business in your spare time to make money throughout the early phases. You can take on full-time business ownership when your business has a steady cash flow.
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