I’ve read that more than 70 percent of workers report that they’re
not satisfied with their career choices. That may sound high — but to be
honest, it’s not all that shocking. You put in mad hours, but aren’t any better
financially or career-wise. You don’t have a personal connection with the
company that you’re working for.
Maybe you just aren’t all that excited about the work you’re
doing because it’s unfulfilling, boring, or isn’t putting your talents to good
use.
That’s only scratching the surface. Maybe
the hours you work aren’t conducive to your lifestyle. Perhaps you work in a
toxic environment where micromanagement and bullying rein supreme.
Instead of staying put and dealing this for
the next 20 to 30 years, wouldn’t you rather leave that job you hate and start
your own business where feel fulfilled, set your own schedule, and create your
own culture?
Of course you do!
Before
taking that leap to becoming self-employed,
here’s some tips on how you can successfully transition from being an employee
to owning your boss.
Do You Have That Entrepreneurial Itch?
I don’t want
to sugarcoat this. Not everyone is cut-out to be self-employed. Before you tell
your boss that you’re leaving to start your own business — start paying close
attention to the following signs
that you may be an entrepreneur:
§ You’re always looking at how you can solve
problems. When you find a good one, you then can’t get it out of your head.
§ You feel unfulfilled and can’t stand your
current job.
§ You work harder than your boss.
§ People think you’re crazy.
§ You have a love-hate relationship with
money.
§ You’re known to be persistent, restless,
and a bit of a control freak.
§ You’re a black sheep or college dropout.
§ Your passion is infectious.
§ Even though you’re confident and dream big,
you also know your limits.
§ You’re not afraid to lose, even though you
want to win.
That is in no way an
extensive list — that is totally correct. There can’t be — people are all
different.
But this list above covers some of the most
obvious signs that you were meant to be self-employed. If you notice these
signs, then it’s time to put the wheels in motion.
Are You Making the Right Choice?
You saw the signs. Now what?
If you’re like most of us — you probably
have several business ideas. Hopefully you’ve pinned one or two of the idea
down.
You still want to take a step
back and make sure that you are indeed making the right decision about trying
to be self-employed — by asking the following questions:
§ What are your motivations? In other words,
why do you really want to start your own business? Is it because you hate your
job that much or do you have an awesome idea that can change the world?
§ What skills and passions do you currently
have? Let’s say that you’re passionate about cooking, but it’s always been a
hobby. Maybe you could launch a flood blog or your own food truck. Take stock
of your situation and determine how you can monetize those skills and passion.
§ Will your business actually work? Is there
a market? If so, who are your customers and competitors? How much of the
industry do you really know? Do
your research to make sure your idea is viable.
There are other factors that
must be looked at and considered.
§ Should you quit your job? You can either
leave your job right now or stay there while working on your business on the
side. Until your idea has been tested and you know there’s a market, I would
suggest holding on to your job. It gives you some financial security until your
business gains traction.
§ Will it be easy? There’s a misconception that
when you’re self-employed you have it made. After all, you can work whenever
you like and play by your own rules. The truth is that starting your own
business is not easy. Be prepared for long hours, setbacks, and lots of
sacrifices.
Be Aware of the Financial Challenges
You
believe that you have what it takes to be self-employed and that it’s the right
decision.It may be time to become aware of the financial challenges you’ll
have to overcome.
§ Taxes. Expect to set aside about a third of
your income for federal income taxes, state taxes, and Social Security and
Medicare taxes.
§ Insurance. Before leaving your salaried
position, research how much you’re going to have to pay in health insurance.
The average monthly premium for an individual in 2017 is around $393 — or
higher. For a family usually around $1,021. These are the non-frill plans.
§ Paid vacations. You’ll be paying for your
own vacations from now-on. Also, when you’re away, you may not be making money.
§ Buying a house or car. It can be harder to
get a loan when you’re self-employed. Consider making these purchases while
still employed at your current job.
§ Your retirement. Because of your other
financial personalities, you may not be able to contribute to your retirement.
Unless your business takes-off, this should be a concern.
Make it Legal
There
are several ways that you can form and structure a business:
§ Sole proprietorship
§ Partnership
§ Limited liability company (LLC)
§ Corporation
The latter two options are often suggested
since they limit your personal liability by creating a business that’s separate
from you.
You’ll also need to obtain the proper business
licenses and permits from your city, county, and/or state. That may seem
overwhelming, but start with your city business office and go from there.
To make sure that you don’t
get in trouble with the IRS or legally — find a solid accountant or lawyer to
guide you when setting-up your business.
Most importantly, start separating your
personal and business finances by opening-up a business bank out and lines of
credit at stores and vendors that you’ll be working with.
Set Up Your Business Website and Social Media Accounts
You can generate some buzz about your new
business before quitting your job simply by setting-up a business website and
social media accounts. This allows you to let the world know all about your
product or service. This also gives you a chance to start interacting with your
audience.
When picking a domain name, it should be
your business name. If not available, then pick something similar. Just
remember to keep it short and easy to type.
Once you set-up your website,
make sure that it’s registered and trademarked.
To find out if
a business name is available, you can use a service like LegalZoom for free and then check if the
domain is available on GoDaddy.
Draft a Business Plan
A business
plan, as explained in our guide ‘How to Start a Business,’ “is simply a
blueprint that will guide your business from the start-up phase through
establishment and eventually business growth” by answering the following
questions:
§ What is the purpose of your business?
§ Who are you selling to?
§ What are your end goals?
§ How will you finance your startup costs?
If you’re a solopreneur or
plan on becoming an enterprise level business, you must have business plan. The
good news is that your business plan doesn’t have to be too complex.
As long as it “clarifies what you hope to
achieve and how you plan to do it, you plan could be jotted down onto the back
of a napkin.”
When composing your business
plan, focus on the following areas:
§ Executive Summary. This is a summary up your entire
plan, such as what you want to accomplish and the financing you are looking
for.
§ Business Description. This is where you describe your
business, as well as an overview of the entire industry.
§ Marketing Plan. This discusses how you’ll be
marketing your product or service.
§ Analyze the Competition. This will share the weaknesses and
strengths of your competitors and what makes you different.
§ Product/Service Description. This section contains more detailed
information on what your business will offer.
§ Management and Operations. This describes your management team
and member responsibilities.
§ Finances. This highlights the costs associated
with your business, and how long you expect it will take until you turn a
profit.
“Again, this doesn’t have to be extremely
long or complicated as long as it can assist you in figuring out where your
company is headed. You’ll want to show how your company will overcome potential
difficulties — and the resources you’ll need to sustain it.”
Get Financed
When starting out, it’s not uncommon for
you to found your business through savings. Next comes the credit cards,
personal loans, and financial support from friends and family.
You may also want to look into crowdfunding
or looking into Small Business Administration (SBA) guaranteed loans.
When you have a ballpark idea on how much
it will take you to launch your business, you may want to keep your full-time
job and set aside a portion of your salary. This way you’re not borrowing as
much money from outside sources.
Take advantage of your current relationships.
Take a moment and review your existing
relationships. Are there friends, family, or coworkers that are interested in
the products or services you want to offer?
They can become early brand advocates and
start spreading the word about your business. Even if they aren’t prospective
customers, they may have contacts who would be interested. What’s more, they
may even know people who could assist you, such as an accountant, lawyer, or
investor who is familiar with your industry.
While you’re still gainfully
employed, use every every luncheon, conference, and convention to your
advantage. It’s a great opportunity to start networking and gain some early
feedback.
Don’t Burn Any Bridges
When
the day comes for you to finally quit your job, be a professional about it by following
these tips:
§ Don’t tell your colleagues when you plan to
quit. Your manager should be the first to know.
§ Quit in person and not via email or text.
§ Give at least two weeks notice.
§ Don’t slack off during those final two
weeks. Show-up on time and continue to do your job.
§ Help train your replacement.
§ Write a goodbye letter to your co-workers.
§ Show your mentors some gratitude.
§ Never bad mouth your former company, boss,
or co-workers.
Despite the fact that you can’t stand your
current job, and you’re ready to move-on, if you leave the company on good
terms you may receive referrals from your colleagues or even turn to your boss
for advice.
If you’re former boss started
his or her own business and has managed it for years, your could pick their
brains for management advice or tips on surviving your first years as a
business owner.
Learn From Your Mistakes
Finally, you
will make mistakes along the way. Don’t hard on them too long or get
frustrated. Instead, learn from these mistakes so that you
won’t repeat them again. It will also help you become better at running your
own business.
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