Sooner or later just about everyone gets that undeniable urge to just up and quit their typical, boring day job. Just scream, “I quit,” and walk out, telling your boss a few choice words that I’ll leave to the imagination. You think about becoming your own boss and starting a company, but where do you start?
Thousands say goodbye to their day jobs only to dive headfirst into the big, bold world of being an entrepreneur. There are millions of dollars out there to be had, but you just have to figure out how to get a piece of the pie.
Trust me, in the beginning most “new” entrepreneurs feel overwhelmed, almost as if the task at hand is entirely too daunting. Time has always shown us that not everyone is cut out for being their own boss, but you won’t know if you’re one of those people or not until you take the plunge.
Here is a guide to changing careers or quitting your job and becoming self-employed.
Before you even consider quitting your day job, get a feel for yourself and how you will react to being your own boss. Are you meant to be self-employed? In other words, try your hand at freelancing or consulting by taking on a gig or two in your free time. If you feel you’re a fantastic writer, then try doing some freelance content writing (articles, web content, sales copy, etc.). This will help you establish a reputation, as well as build a client base. There is absolutely no reason why you cannot start a side business while working your current job.
You Need Capital and Funding
This should go without saying, but you can’t just quit your job and hope to keep yourself afloat on your newfound ambition! You need to accumulate some sort of savings to fall back on, especially if you have a family and/or lifestyle to support. When you first quit your job, there will need to be some definite financial changes made as you will be living on as little as possible while you build your business.
With that in mind, do some calculating and determine just how much you need to scrape by until you can build a solid income. Figure for about six months or more to give yourself a cushion of financial protection.
The Hard Work Begins
This is the perfect opportunity to go ahead and call it quits, put in your two weeks’ notice and part ways with your day job. However, this is not a time to take it easy. Most new entrepreneurs and freelancers become overwhelmed with all of the newfound free time. But is this time really free? You need to practice some sort of disciplined regimen, telling yourself, “I will work from 7:00 a.m. to 5:00 p.m. preparing my new venture,” or whatever schedule works for you. In the end, this is your future and whether you are successful or not is dependent on how bad you want that success. On the plus side, you can stay in your pajamas.
Starting Your Business
When starting a small business, regardless of whether you are buying a franchise or starting a new venture, it is important to have resources. Let’s say for instance that you want to start a manufacturing company. Aside from just having cash and working capital for the 12 to 24 months, you would need a commercial realtor or leasing agent to help you find the ideal location.
Then you have to design the process and layout of your facility and itemize the capital equipment you need. The next step is buying and installing the equipment. Unfortunately, this is where many entrepreneurs fail to understand the capital and expenses needed to run a business. Maybe you don’t have over a million dollars for the equipment, so instead, you lease it. This is where equipment leasing companies like National Funding come in handy.
Maintaining A Business Budget
At this point you need to monitor your incoming and outgoing cash flow since the survival of your company depends on it. When you were working that 9 to 5 job, you relied on that paycheck you got every week to get you by. Well now you’re in charge of all incoming cash and are responsible employee salaries, direct materials, overhead expenses, payments to sub-contractors, corporate taxes, healthcare costs, etc. Once your expenses are paid, then and only then can you feel good about cutting yourself a check, which might not happen the first year.
Watch Your Health and Lifestyle Habits
When they held their day jobs, most entrepreneurs enjoyed riding on the coattails of their employer’s health insurance plan. Now that you don’t have that anymore, what are you going to do in the event of illness, injury, or emergency? Coasting along with no health insurance could end up costing you more in the long run if you don’t take care of yourself.
A few things you must do to stay healthy and productive include eating healthy, sleeping adequately, exercising regularly, knowing when to stop working and be with your family, and just generally maintaining your mental and physical health.
Balance Is Key
Most newfound entrepreneurs find themselves tethered to the time clock. In other words, they are always working because their home is work and vice versa. You might hear that irrefutable chime of an incoming email, and even though you are off the clock, an overwhelming urge compels you to go check it. You need to resist that urge! If you ever want to succeed at being your own boss, and keep your sanity intact while doing so, then it is important that you find time for work and time for play.