We often hear different stories like KFC, Mc Donald’s, Reliance, Adani, MBA Chai wala, Chai Suita and bar, MAMAS earth, and Tesla where they have failed many times and founded multi-million-dollar companies from hard work and made it there life inspirational and after hearing these stories most of us tend to leave our job and start our own idea in hope that we will also make a new Amazon or tesla the way they did it and keep dreaming of becoming the next rich man in the country. But 90.00 % of the time ideas even doesn’t get even implemented and in the rest of the 9.99% idea gets implemented but it doesn’t even survive 1000 days and gets shut down only 0.01% make it to the league. Now the question remains the same is the idea that you think is really that 0.01% or is it just your dream with less reality?
Now how to evaluate your idea, before this we need to understand. How traditional business uses to survive. Though their growth was not phenomenal, however, their survival and profit were sure, now even VCs nowadays ( due to start-up failure ) are tending to turn their valuation models from revenue to profit and this start-up bubble from funding may come down due to retail investor loss in the recent loss to listed companies in India and abroad.
Coming back to the Major question – Should continue with your job or start your own venture?
Your current job and background – What currently your profile is if you know how to do sales, you are the best fit for starting a business, this is the reason why maximum CEOs are coming from a sales background. The exception is always there but you will find less difficulty in cracking the initial deals.
Your growth potential and your business growth chance – Comparison should always be on how much you can grow in your Job and how much you expect your business to grow. Suppose if you are an Assistant manager in your respective department, you should check your past records. How much you have grown in your past and can you achieve the highest position in your department? And the salary and responsibilities of HOD satisfy your long-term professional goal. If your answer is yes then you should continue in Job or else, you must give it a try for your start-up.
Your experience in the business – In the early Indian saying it is said whatever business you do, you must learn it first. Suppose you want to start up a Restaurant then you must work in a restaurant first to understand the challenges one faces in the real world.
Capital requirement for the business – How much savings do you have to invest in the business, and up to what moment your business will come up at the breakeven point and your expenses meet your collection, needs to understand. In most cases, business doesn’t survive past one year of start due to a working capital crunch. In such cases, you need to prepare yourself for the worst case. Further, try to keep your business asset-light, maximum things should be on OPEX rather than CAPEX, once you start churning profit then a wise call can be taken on the conversion of OPEX into CAPEX.
Tech-based – Is your business a tech-based business? What is the cost of Application development and how you are going to survive on your revenue model as APP development cost mostly goes in crores?
Revenue model – What is your revenue model, is it regular B2B sales, where normal sales are through the traditional sales model, or is it a subscription model, or is it under the rental model? Your model tells a lot of chances of success of your business because, in the end, you need to run your business through your collection not from capital employed.
Back up and Return to Job – In most cases, it is taught that you should have a strong belief in your business, which is true, but it is always good to have a backup. So, in the worst case if your business doesn’t survive you can survive by again joining the job. It doesn’t only give confidence but also keeps the hopes alive.
Family Responsibilities – What is your family status, how many dependents are there, and how much your family can support you in your bad times if you have fewer dependents and a strong family backup? You must give it a try. It is an established fact the risk should be as early as possible coupled with the required experience.
So there is no perfect matrix of Answer this, but research on the above points may give you an idea of your future outcome, Best of luck.
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