10 things to consider before ditching your day job

TIME TO BREAK OUT? If in a resolute spirit of change, you strike out and chuck your day job, you will need plenty of confidence.

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Dreaming of running your own show? Make sure you're prepared.

The Chinese star sign for this year, the dragon, symbolises indomitable confidence. So if, in a resolute spirit of change, you strike out and chuck your day job, you may need all the confidence that the mighty sign implies.

After all, as everyone knows, most start-ups fail. And according to research firm Ibisworld, the Australia is faring less well than you might think.

Australia has ''felt the edge of the cold wind crossing the United States and the chillier winds across the European Union as a result of the ongoing Global Financial Crisis (GFC)'', according to Ibisworld's report Prospects for 2012 and Beyond.

Economic growth, the firm notes, has been an “anaemic” 1.9 per cent for the past three years.

Here are some top tips on how to go solo successfully, despite the dim outlook.

1. First, you must know "why" you want to be in business, says business coach Ruth Thirtle. For most entrepreneurs, just making money is not enough. Your deeper motive might be to build a future for your children, contribute to your favourite charity or go on a yearly three-month cruise.

''Whatever it is must be strong enough to keep you doing the things you need to do on the days you want to give up.''

2. Remember that working solo differs dramatically from working in a corporate office, Thirtle adds. Realise that you will experience a few tough times - days when you do not feel like working. That is ''actually okay'', Thirtle says.

''Definitely don't be too hard on yourself.''

3. Prepare for the entrepreneurial ''mindset shift'' by consulting someone who has made the leap, Thirtle says. Pick someone who started off in the same shoes as you - whether you work from home or a serviced office, she adds. ''Just get that advice - find out what to expect.''

4. Build a support network. For example, hire a coach or join a networking group. Try your local chamber of commerce, Women's Network Australia or the breakfast group 4networking, Thirtle suggests.

Also tap the know-how of users, suppliers: anyone who can help you find clients.

5. Remember to check the extent of demand. Assess providers in your ''space'' to see what competition exists, says business coach Kathleen Alexander. Research keywords to see if anyone seeks what you sell.

6. Ensure you have savings you can count on or an income source for the first six to 12 months, says Alexander. You need to cover your living expenses, ''so you're not freaking out if you don't start getting clients immediately''.

7. Starting a business is very different from sustaining it, Alexander says. Instead of taking the casual attitude that if you build it they will come, be tenacious.

''A lot of people give up when they don't get inquiries after launching their website,'' she says. Instead, they could deploy a range of promotional tools, she says, pointing to YouTube and social media.

8. Marketer Leela Cosgrove underlines that promotion is vital. In fact, Cosgrove says, promotion matters even more than your service or product, and distinguishes winners from losers.

So, before leaving your day job, invest in learning how marketing works. Spend six months working in a commission-only sales role.

''If you can't hack commission-only sales, you're going to be stuffed when it comes to running your own business, because that is essentially what a business is - a commission-only sales job,'' Cosgrove says.

9. Cosgrove's other tip is to work with a group of people you are ''passionate'' about.

''As hard as it can be, don't focus on the money,'' she says. Remember that you will be spending a lot of time in your colleagues' heads over the years, and that business is a ''tough gig''.

10. Embrace patience and perseverance, Ruth Thirtle says. Becoming an ''overnight success'' often takes many years.

- © Fairfax NZ News