Starting and running your own business is exciting, but let's face it--it’s also hard work! From my own experience in starting my virtual assistance business Right Hand Concepts back in 2003, here are some tips I've compiled that may help you in a smooth transition to full-time entrepreneur.
Assess your assets
Do you have enough money socked away for your transition? As you work at your full-time job while getting your business up and running, take the opportunity (and that still-steady paycheck) to save as much “rainy-day” funds as possible--six months’ to two years’ worth of living expenses is a good rule of thumb. Insurance plans are another important issue for small business owners--how will you get yours? If you’re married, you can probably join your spouse’s plan. If you’re solo, your local chamber of commerce can be a great resource in finding discounted health insurance rates, as well as other business, industry and networking organizations that you’re a member of. Another option is to continue with your employer’s plan through COBRA.
Test the waters
When it comes to your new business…research, research, research! Surf the Internet for information about the industry you’re entering, and keep an eye open for new trends. Who will your competitors be? What do they have to offer? Most importantly, what don’t they offer that you’ll be able to? If you can fill a particular niche or customer need, you’ll have that much more of an advantage over your competitors. Another savvy strategy is to talk to someone already established in the same business, and pick their brain about the rewards and challenges they regularly experience. And don’t forget to handle your business’s legal requirements, such as registering your business name and applying for a federal employer identification number (EIN), any state/city business licenses, tax certificates and zoning allowances.
Resign professionally
During your corporate ladder climb, you’ve probably been in a similar situation: Your boss has once again given that promotion to a schmoozing, slacker colleague—while passing you over despite your hard work and long hours. Office politics? Perhaps. Although the thought of barging into your manager's office and handing him or her your resignation sounds tempting, slow down and count to ten. We’ve all had bad days, but immediately quitting a job based mainly on emotion could prove detrimental to your transition plan if you leave before you’re ready. Instead, take some time to calm down and clear your head—go out for a walk during lunch, or discuss your feelings with a good friend. Then, concentrate on using your energy as motivation for building your business, so that when you do give your notice, you can approach your manager calmly and professionally—and avoid burning bridges in the process.
From employer to client
If you’ve done the above, then bringing your former employer on as a client is a possibility. If your services are similar to your previous job description, the company may see the financial value in continuing to work with you rather than go through the tedious process of finding and hiring someone new. Before you leave, make an appointment with your manager to discuss your services as an independent contractor—and give them a detailed proposal outlining services, costs and areas they’ll save money in (i.e. no employee benefits, payroll taxes, space or equipment, etc.).
Keep it positive!
Starting your own business is challenging enough, so you’ll want to surround yourself with as many positive people as possible. Not everyone understands the entrepreneurial mindset, so you may have some family and friends thinking you’re a few fries short of a Happy Meal for having the audacity to leave the relative security of a 9-to-5. Expect this attitude occasionally; entrepreneurs are still widely considered “outside the norm.” Surround yourself with supportive, encouraging friends and family who “get it”—and utilize the many online communities structured for support within your industry.
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