How To Know If You Are Financially Ready To Start Your Own Business

Salam all…

Interesting view on finance and entrepreneurship albeit very rational and safe. I think maybe a couple of years back my thoughts would have been the same as yours ie you should have a safety net, enough money for back-up, education all the way to university etc…

Now, I agree more with Bro Fadzuli though. It’s about you being mentally prepared for what’s to come. And yes, start reading, mixing with the right people, going for seminars and “brain-washing” yourself to accept the difficulties, failures and even more importantly success.

I think if I had waited to save for one year’s worth of safety net, I wouldn’t even be close to doing my own business. I will forever be saving saving saving until… I don’t know till when. I mean, this is just me because again perhaps the knowledge in money management is still very shallow. When I had my first baby, it became worse because every single dollar we had left went to our kid.

I agree with Puan Suria on burning the bridge. It’s dangerous, sounds sensational and probably brink on being crazy.

I left fire-fighting when I was at the top of my career. I just had a promotion which means a good pay raise, attained very good results in all my proficiency tests, was about to receive my retention bonus worth $10K in Sept and great working relationship with my colleagues and officer. To leave all that, especially my stable monthly income of slightly more than $2.5K was unimaginable.

But I know if I held on to the JOB, the outcome of the business will differ. Because at the back of my mind, I know that if I should ever fail in business, there’s always a JOB I can turn to. Then it becomes a reason, an excuse and something to fall back into. Too safe.

So I quit. No more net, no more bridge and definitely no 12 months of savings. I was armed with just a month’s worth of pay and my credit cards.

So far, I am definitely happier, more time for my family, no more complaints about too much work and doing something I really enjoy! In fact, we’re even having a second child amidst all these!

But I do know my method has a very niche market of fans. It’s not for everyone.

And like Puan Suria mentioned, it would be good to have money management knowledge too. Every effort to pass some wisdom is always good.

Live Life Smartly!
Masrina