Posted on
February 8, 2012 by Debbie Dragon
There may not
be a more fulfilling journey than that of making the jump from working for
another person to working as your own boss. While the rewards may be numerous,
the jump you have to make is not as smooth as you may hope. There are lots of
considerations to make in order to find success as a self-employed business
owner.
Jump Considerations
Leaping to the
independence of being one’s own boss takes a lot more consideration than just
what kind of work you will be doing. While that is certainly an important
factor, unless you are independently wealthy, there are many other factors to
strategize before committing full time.
Here are some
considerations about self-employment you need to mull over before making the
jump to entrepreneurialism:
Viable Ideas
If you plan to
start out on your own as something like a consultant for a cookware company,
you need to ensure that the market in your area is not already saturated or
that there is a need for such services and products in your vicinity. This is
true for any type of self-employment you are considering.
Having a viable
business idea may take some trial and error, but overall you need to start out
with a workable idea that can be planned out through a business plan. For
potential entrepreneurs, a solid business plan is a necessity and if you feel
the plan’s concept overwhelms you, consider the operation of the actual
business will be far more overwhelming.
Bootstrapping Financials
If you are
planning to go full time right out of the gate, you better be sure your
finances are in order to support your endeavors. You’ll need to have enough
cash in the bank to not only cover necessary business expenses but also to
accommodate living expenses for several months, likely years, until your
business pulls in a profit. Don’t forget as an entrepreneur you’ll be
responsible for paying relevant taxes in addition to other expenses. You need
to pre-plan how much you’ll need to have on hand to survive and grow the
business until it becomes profitable. Then you’ll need a back up plan in case
success does not come in a timely manner. Many business models do not generate
actual profits for the first few years of business, and is exactly why many
people start a business while working part time to keep a steady income coming
in.
Planning for the Future
Ideally, you’ll
want to create a business plan that somewhat determines where the business
should be headed and how money factors into that plan. Even if you are young
when you start out on your own, you’ll need to consider how you’ll save for the
immediate future’s needs, like health insurance, and for long-term needs, like
retirement. Married couples may be able to organize a plan using the employment
benefits of those still in a 9-5 job, but it is essential to see the big
picture when planning to start your journey of self-employment.
Coordinate a Starting Point
Because the
financial ramifications of a failure can be too costly to consider, you may
want to consider attempting a solo venture on a part-time basis. While you
still receive a steady income from your employment, you can experiment with
different business concepts until you feel secure enough to let go of the
reliable job and its income. If part time is your choice, be sure to remain
discreet as some employers may not be appreciative of your perceived
moonlighting and may be apt to terminate your reliable income.
Weigh the Pros/Cons
If you do plan
on going part-time, make sure you consider that investment of time away from
other things in your life (ie: family) as you work to manage two jobs. If you
choose full time over a trial run, you will still be deeply involved in the
start up process which may require significant sacrifices of your ‘normal’
life. Weigh the pros and cons of handling all aspects of the business and the
entrepreneurial life before making the commitment.
Self-employment
takes dedication and effort if you plan for success. There are many more
opportunities today for those who want to work independently and earn a living
doing something they genuinely enjoy. With the right amount of planning and
attention to details, especially the financial ones, you can find a new career
and a new way of life.
No comments:
Post a Comment