Do you dream of being your own boss? If yes, you are just one of many! Before you jump into the world of self-employment, however, there are a few things you must consider. Taking the leap without the safety nets in place may put you in a dire situation, rather than being able to enjoy the freedom you desire.
Below, we will discuss five steps you need to take to make the smooth transition from employee to entrepreneur!
- Develop your business plan
The most important step in the process of owning your own business is creating a plan. How do you plan to make money as an entrepreneur? Are you following a passion, or have you found a lucrative model that you would enjoy?
The more thorough your plan is before you quit your full-time job, the less risk you will be taking when you make the jump.
- Secure your finances
It is never ideal to quit your job to start your own business without some padding in the bank account. For your personal finances, you need at least six month’s worth of bills and expenses in your savings account before venturing into the world of self-employment.
You will also want a little seed money to invest in your business. The initial investment depends on the business model you plan to pursue. Do your research to ensure you have the money available to start your business once you are ready.
- Make friends
Though your business may be a one-man show, you won’t get very far in your line of work without connections. Networking is one of the best ways to ensure your entrepreneurial journey thrives.
Attend events for the business niche you plan to enter, find online forums for business people in your area or niche, and obtain a mentor if your plans can afford one. Having supportive people in your corner will make the transition from employee to your own boss less stressful.
- Start before you quit.
If at all possible, launch your new business on a small scale before you hand in your resignation. Testing the waters helps you recognize any flaws in your plan. It also assists in deciding whether or not the business will thrive, or if the model you are utilizing is the best one for you and your situation.
- Accept feedback and suggestions
Being open to advice about your business could mean the difference between it thriving – or sinking faster than the Titanic. Always respond to a customer’s complaints or praise, going above and beyond when you can to make any negative situation right.
Seek guidance from those that have been entrepreneurs far longer than you, as they can help you shorten your learning curve to running your own business.
Becoming an entrepreneur is a dream for many, but leaving your cushy 9-to-5 with a steady paycheck can be very scary. Above all, the most essential thing you can have when making the leap from employee to entrepreneur is a solid business plan.
Having that foundation built correctly from the beginning cuts down on the risks you take while growing your own business.