If you are serious about starting or buying your own business, one of the very first things to do is change your lifestyle. Anytime God calls us to obedience, it is often accompanied by a drastic change in direction. Becoming an entrepreneur is no different. If you have the typical lifestyle of credit card payments, car payments, and a house payment, it will be nearly impossible for you to start/buy a business and get it ramped up to the same level of income you need in short order.
The question we should ask ourselves at this stage is not “how do I replace my current income with my own business?”, but rather, “how do I reduce my expenses (lifestyle) so I can gain the independence to take the enormous risks necessary — and to have the time necessary — to make a go of it with my own business?”.
Ramping up your business to a meaningful level could take years and the landscape is littered with landmines, especially for the uninitiated. Issues of cash flow, working capital, liability, insurance, taxes, accounting, human resources, sales, etc. are indeed daunting for someone who has not been through the process. You will need all the runway you can get. Having that big house payment hanging over your head is like the proverbial sword of Damocles that will continue to snuff out your joy.
As you prayerfully consider stepping out onto this path, be sure to seek God’s blessing and direction as well as your spouse’s commitment to the process. If you both give it a green light, you are ready to take action to reduce expenses, which usually means: cut up those credit cards, pay off those loans, downsize your home, stop eating out and in general, cut your budget to the bone. It’s the austerity plan, but not just for austerity sake. It’s a plan the whole family can get behind, because of the vision you lay out of gaining your independence and getting a business off the ground.
You might think of this as a three step process:
- Go through the Crown’s MoneyLife program to get your personal finances in order
- Go through the Crown Business offerings to get help with your business planning
- Launch your business
- Business Development Documents (includes various document and agreement templates for business planning and growth)
- Startup Financial Model (to help you plan and operate the financial aspect of your business or acquisition)
Ask an Expert:
- Venture Academy (includes nearly 200 videos of entrepreneurship training)