From Employee to Entrepreneur: Things to Do Before You Leave Your Job

August 28, 2012 | By | 1 Reply More

A growing number of people nowadays find it increasingly difficult to make ends meet with just one source of income. There are others, on the other hand, who are getting tired of the daily commute and the pressures of the nine-to-five work routine.

employee to entrepreneur

In a quest to improve the quality of their life, more and more people are investigating the possibilities of starting their own business, preferably at home. A home business is seen as their path towards achieving their dreams of economic security, more free time, a healthier or more productive lifestyle, and a chance to be closer to family and friends. It is for people who want to take charge of their day-to-day lives and their futures.

Most of the home-based entrepreneurs are making the extra money they need. Some have wisely and carefully built these extra income efforts into full-time, very profitable businesses. Others are just keeping busy, having fun, and enjoying life as never before. The important thing is that they are doing something other than waiting for the government to give them a handout; they are improving their lot in life.

Some of these home-based entrepreneurs start on a part-time basis, while others dive straight to their own businesses on a full-time basis. Whichever you start your own home business will depend on your own circumstances: your level of preparedness, your capital and resources, and a host of other factors.

If you are presently working as a full-time employee but wants to start your very own small business, here are several ways to ease yourself from employee to entrepreneur:




Build your own business while remaining as someone else’s employee.

If you choose this approach, you will still have the security of your regular paycheck while trying to get your foot in the entrepreneurial door. However, you will need to be discreet; maintain the level of quality and productivity your employer has come to expect; and conduct yourself with integrity, especially if you’re planning to go solo in the same business or industry. You wouldn’t want to be pushed out of the door for your unprofessional conduct – using office resources like computer, printer and spending time doing work for your personal business instead of working for your employer. The drawback is that you will have little time to develop your business and see its potentials.

Work at a part-time job to provide income and benefits while building your own business the rest of the time.

You can work half a day for your employers, and the rest of the day to jump-starting your business. In some instances, you may be able to turn your existing full-time job into a part-time one. This will allow you to test your market and its receptiveness to your products or services. Also, consider a job that will provide you with health insurance coverage, although the chance of an employer providing insurance benefits to a part-time employee is slim at best.

Transform your employer into your first client.

Many entrepreneurs start out after seeing potential business opportunities from working with their employers. Some employers are even willing to support their employees who want to strike it out on their own – by providing equipment and logistical support, and by serving as the first customers of the would-be entrepreneurs. Show your soon-to-be ex-employers that there’s money to be saved by making you a contract consultant rather than a payroll employee.

Request your spouse or significant other to be the sole income provider until your business shows some financial stability.

With only one stable source of income for the family, you may need to simplify your current lifestyle to reduce financial burdens. The best course of action, however, would be to save enough money to support your family and your business for at least six months to two years before starting your business. Your savings will serve as the financial reservoir you need to give your business a chance to grow and prosper.

Get everything ready.

Before you quit your job, it is imperative that you take time to learn and understand the new business that you are planning to start. Now is the time to make a list of what you need to do before you make the jump from employee to entrepreneur. Read the article How to Make the Jump from Employee to Entrepreneur.

Research about the business. Crunch the numbers — the amount that you need to get the business up and running, and the money you need every month to ensure that the business is operational. Get all the licenses and permits that you need. Decide on the legal structure of your business and get your paperwork ready. You can also start working on your website, whether you outsource it or create the site yourself. Work on the content of your website, especially if this is an advertising-supported information website.

There are many things need to be done when starting a business, and you can start working on some (if not all) of these things even while you are still employed.

 
Recommended Books on Transitioning from Employee to Entrepreneur:

 

Lyve Alexis Pleshette

Lyve Alexis Pleshette is a writer for PowerHomebiz.com. She writes on various topics pertaining home businesses, from startup to managing a home-based business. For a step-by-step guide to starting a business, order the downloadable ebook “Checklist for Starting a Small Business” from PowerHomebiz.com

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Category: Entrepreneurship

Comments (1)

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  1. vamert says:

    i HAVE been reading your article and it is quite interesting. I enjoying reading these helpful tips..

    Thanks Lyve

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