Quitting your day job and following your dreams of becoming your own boss can be a scary business endeavour. For many people, working a flexible schedule and creating work they love is plenty of motivation for starting their own businesses. Although many of the perks are inspiring, there are several factors that can make the transition from employee to boss a bit smoother. If you’re considering starting and growing your own business, follow these tips to get started.
Understand Your Financial Situation
Before you write your own paycheque, you need to identify how much money your business needs to generate to operate properly and supply you with a livable income. You should keep track of your personal finances your business must meet or exceed your current income level so you can maintain your current lifestyle. Use up-to-date financial records and a calculator to answer basic questions, such as:
- How much money do you need to get started?
- How much money does the business need to bring in each week to stay profitable?
- How much money will you need to spend each month on business expenses?
An honest understanding of your current and future financial situation helps establish a clear plan of action.
Figure Out Your Business
Deciding what business you want to start should be based on both professional skill and personal passion. Whether you’re solving a common problem or doing something you know, your business choice should center around your professional skill set and your personal passion.
Create a employment sweet spot by finding something you love to do, then become your own boss to pay yourself to do it. Be as specific as possible in your selection. For example, instead of simply going into consulting, choose a specific type of consulting and understand what type of clients are ideal for your business.
Take Your Time
Before you take the plunge and quit your day job, try to start operating your business on weekends and your days off. This provides an escape plan in case your business takes longer than expected to get off the ground. Taking your time to commit to your new business endeavour also lets you use your current resources and assets, which can be beneficial to growing your business. While trying to secure clients or gain legroom in your preferred market, you can continue to earn a stable income and keep busy if your growing business experiences downtime or slow days.
When you’re your own boss, you’ll find that the more you put into the venture, the more you’re likely to get out of it. Taking your time, planning properly, and growing your business slowly improve your chances of success and profit. When you’re starting a business, organization and time management are just as important as having a great idea or creating an innovative product. Quitting your day job and becoming your own boss can cost time and money, but the perks and sense of pride in starting your own business are priceless.