When my husband walked away from his family life, I became the sole provider for our two children and our unborn baby, it never entered my mind to become an employee. I grew up with a mom entrepreneur, and I was going to model her lifestyle.
It can be a challenge to transition from being an employee to being a business owner. However, if you have an entrepreneurial spirit, fear will not extinguish your burning desire. It may not be possible to eliminate all the risks of starting a business but what can a budding entrepreneur do, to have confidence and courage, to take this life changing step?
These seven crucial steps to becoming a successful entrepreneur – will boost your confidence to go from being an employee to becoming a successful entrepreneur.
1. Research and choose your business wisely
Before leaving your job – make a decision as to what type of business you are going to have. Many people start a business based on their hobby but not all hobbies make a profitable business. A business that allows you to use your brilliance can be very rewarding. You can master your brilliance and become the go to expert in your chosen field.
2. Internet-based or Brick and Mortar Business
Do you want a traditional brick and mortar business or an internet-based business? If you decide on a Brick and Mortar business, in today’s business world, you will need to create an online presence. The type of Brick and Mortar business will determine how much of an online presence you will need to establish, for a profitable business. Take time to do your research while you are still employed.
3. Business License and Permits
You need to check with your city and state and apply for the permits and licenses you need to do business in your area. This will vary from city and state, and according to the type of business you will be starting.
4. Your Business Structure
What type of business structure are you going to establish. The structure determines which tax form you are going to file. Some common business structures are:
- Sole Proprietorships
- S Corporations
- Limited Liability (LLC)
Choose wisely – you should discuss this with a CPA
5. Hire the Right Certified Public Account (CPA)
Even If you decide to do your own book keeping – you should use the service of a CPA.
A CPA provides a variety of services – including retirement planning, estate and tax planning, and preparation and asset management. Choose wisely – get a referral from a trusted friend or advisor.
There is a big difference between a CPA and an accountant – get more information here.
6. Your Business Plan.
Write a business plan – the business plan tells others that your business is not just a hobby. It’s the blue print for your business. It states the goals you have for your business, the time frame for accomplishing the goals, and the actions steps you are going to take to accomplish the goals. Your business plan can be one page or several pages and may contain background information about you and anyone else who is part of your team.
7. Save a minimum of 3 months living expenses.
The best advice you can follow is to transition slowly into owning your own business while being gainfully employed. However, if you want to take the leap of faith, the wise thing to do, is to have a cushion of at least 3 months living expenses .
There are many more issues to consider as you transition from being an employee to being a full blown entrepreneur. These seven steps can be taken while you are still an employee and they will help you to have the confidence to take the entrepreneurial plunge.
So what are you waiting for? Yes, being an employee has the illusion of being safe and secure and it’s an illusion. When I was a single mom entrepreneur, ( my children are adults) what was important to me was the flexibility. I could attend all those school events, doctors appointments, without asking permission from a “boss” and my income was only limited by my own expectations.
Go on, take the plunge, into the sea of entrepreneurship and endless income opportunities.
Here are some other resources for you.
These two books have lots of valuable information.
The Toilet Paper Entrepreneur ~ Mike Michalowicz
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See you soon – to your magnificence.