Going Solo? Things To Do When Preparing for Self-Employment

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Going Solo? Things To Do When Preparing for Self-Employment

Any significant life changes are bound to come with a level of anxiety.

Leaving the comforts of a job and a regular salary to jump into the uncertain waters of the business world is no different.

However, the things you do prior to making the transition can determine how smooth or rough the process will be for you.

So how do you make this process easier? Here are some tips.

Secure Your Upkeep

Depending on the type of business you are getting into, chances are that you will use a huge chunk of your savings trying to set it up.

Aside from the initial capital, there might be additional unforeseen costs cropping up now and again.

Ensure that you have six to twelve months of your typical living expenses saved up.

Not being able to make rent and other costs while trying to get your business up and running is a stressful situation. Having your expenses covered for this duration allows you to focus entirely on your business until such a time when profits start coming in.

If this is not possible, consider putting your dream off while you work out your finances. If you are employed, consider staying at your job until your business is making a substantial return.

Leave Your Job

A time will come when you will need to fully immerse yourself in the day to day operations of your business.

When this happens, it will most likely be untenable to keep your current full-time job.

This will require you to notify your employer in writing. To help you out, consider using a resignation letter template from a reputable site. These are professional, customisable and offer a range of ‘reasons for leaving’ for you to choose from.

Communicate the same to your colleagues as well and try and leave on a positive note. Remember, in business, everyone is a potential client, and every client is an additional resource for more clients.

Be respectful, courteous and professional to the last day.

Learn From the Failure of Others

It’s human to not want to think that things might go wrong. However, this is a possibility in any business.

Open your mind up to learning about the pitfalls and failures of those before run into. This will help you anticipate and avert them with ease.

One of the major pitfalls is an insufficient market. To get around this, try and set up a substantial client base before you quit your job.

Start by creating a website, marketing yourself on social media and be keen on word of mouth to try and get some traction.

Minimise Spending

If you want to be successful, do not spend a single coin more than they have to.

Look at the resources you have at your disposal and how you can leverage these to cut costs.

For example, if you have a relative doing web design, maybe they can set up a website for you at a friendly rate.

It does not stop there. Ask your networks for referrals to virtual assistants, attorneys and even freelance accountants for services that do not require in-house staff.

Be on the lookout for things that can minimise your expenses. The money you save up can be channelled into bringing more clients on board.

Make Peace with the Sacrifices

While entrepreneurship is rewarding, it does not come without sacrifice.

Prepare yourself mentally for the possibility that things might not go exactly as planned.

You might go over budget, you will lose your best employees from time to time, and you might have to work longer hours than you have ever done.

Keep Your Eye on The Ball

If you are open to a few challenges along the way, you will find that entrepreneurship is an exciting and rewarding journey.

To get there, however, plan well, be organised and keep your eyes solely focused on your goals.

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John is a serial entrepreneur and writer who is passionate about helping small businesses launch and grow. His work has been featured in Huffington Post, Entrepreneur, and Forbes.