Timing is Critical in Starting Firm

Q: I have had a very successful run in high-tech, but now I would like start my own firm. What are some tips to think about? L.T., Toronto

A: Timing, timing, timing Those three words are key, just as "Location, location, location," is the adage when buying a house. Timing is critical in at least three ways:

PERSONAL TIMING Are you personally ready to make the leap? Think about personal finances. It will take longer than you think to generate the same level of personal cash flow you enjoy now. Cash flow really starts to hurt when you cannot cover the luxuries of your lifestyle, so remember this will impact your family, too. It will require a lot of emotion, time and energy while you are getting your company going.

PROFESSIONAL TIMING Think about your professional journey and what remains to be developed. Start by reading The E-Myth by Michael Gerber. He talks about the need for a clear understanding of the skills you have as an entrepreneur, and those you don't have.

MARKET TIMING We have all seen ideas that were just a bit too early or too late to market; both have inherent risks. Too early and you need a lot of capital and marketing to push forward your business idea. Too late and you need to have a well-defined niche, offer something truly unique, and the ability to move quickly toward high levels of efficiency.

SLEEP ON IT Assuming all three are green lights, there is one final thing to think about: sleep. Are you at peace with your decision? Are you comfortable with what you are doing? If you so, you will sleep well. I'll tell you now -- there won't be many hours for sleep, so they need to be good ones