Nobody who owns a business will tell you it’s simple. However, one of the things that many business owners love is the triumph of overcoming the hurdles of starting or expanding a successful business.
The challenges of starting a business are ever-changing, ranging from making difficult decisions to raising finance. But, though difficult and frustrating, entrepreneurship may be one of the most rewarding challenges you’ll ever face if you have that blazing fire inside to pursue your passion and become your boss.
As a business enthusiast and an entrepreneur at heart, I have learned many lessons that I’d like to share with you.
- Use technology to your advantage.
- Focus on business creativity
- Research can help you learn new skills.
- Invest in your business.
- Build a network from scratch.
If reading this post is your first step toward becoming a business owner, you may have many questions. Your research interest is a good indicator because it shows that you’re thinking forward and attempting to find out how to prepare. Here’s a high-level outline of the stages you might expect to face as a business owner.
1. Find out and do what you want to do.
So you want to be your boss.
But what exactly do you want to do? What kind of business do you wish to build, or what kind of service do you want to provide?
If you already have an idea—perhaps you’ve wanted to start a business for many years, or you could have a skill set that lends itself well to a new career path. If this is the case, go to the next step. If not, continue reading.
If you want to be your boss but aren’t sure what you want to accomplish, don’t worry—we have plenty of tools to help you. Have fun with the brainstorming process; don’t rule anything out altogether at this stage.
2. Assess Your Idea and Study the Market
So, you have a business idea, that’s excellent—this is often the difficult part of coming up with.
But, how do you think if your idea is a good and applicable one and will make you enough money, reach out to your target audience, and make your journey successful?
These questions might seem impossible (how can you predict if your business idea will be successful or not?!), but the reality is, you can answer them to an extent.
Validation Of Your Business Concept
Validating your company idea is the process of determining whether or not you will be successful. It entails analysing whether or not your idea is viable and researching the market you wish to penetrate.
Doing Market Research
Following the validation of your business idea, the following step is to perform market research. You’ve already begun this process by confirming your concept, but this is where you’ll receive a more in-depth look into your market as a whole.
3. Make the Right Move
Do you wish to quit your current job and go full-time self-employed from this very moment, or do you think you’d be better off at starting part-time and slowly moving to full-time self-employment?
Make A Move Gradually.
If you’re worried about not having enough safety net, working on the early phases of becoming your boss while still employed at your “day job” can be a good idea.
This will let you keep some money flowing in while you work on the fundamentals of your business, such as establishing your business, getting your finances in order, setting up your website, and so on.
A gradual switch is recommended for those who know they need the stability of their day job and prefer to ease into the transfer. However, you may feel overworked (imagine long days and weekend labour to get everything up), and there will be less incentive to go “all in” if you still have the stability of your day job to fall back on.
Quitting Your Day Job To Become Your Boss
On the other hand, you can decide that it’s time to quit your day job, never look back, and devote your entire life to becoming your boss.
There are advantages and disadvantages to this as well. You’ll have enough time to focus on your new business, and you’ll have a smouldering desire to work even harder. The obvious disadvantage is that you may be without revenue for a short (or maybe long) period.
There’s good news is that there is no one-size-fits-all approach to transitioning from employee to boss. Instead, your choice will be influenced by your existing financial situation, the type of business you intend to start, and your self-awareness regarding your work habits.
4. Reserve Required Resources & Money
Before you take the plunge and establish a plan to become your boss, check sure this is a financially viable option for you.
This doesn’t even include securing finance for your new firm; I’m talking much sooner than that. Do you have enough money in your bank account to keep you afloat while your business takes off?
Putting Aside Sufficient Funds For Personal Expenses
Before establishing a business, general wisdom (including Intuit’s QuickBooks blog) suggests that would-be entrepreneurs have six months’ worth of personal living expenses in savings; some more cautious persons prefer to have enough money saved for an entire year’s worth of expenses.
Spend some time examining your spending before you commit to the process of becoming your boss. For example, what portion of your monthly income do you spend on rent or mortgage, groceries, transportation and car payments, and so on? Do you have any significant forthcoming expenses (for example, new technology or house improvements)? What about regular annual expenses like going home to see your family, buying holiday gifts, and so on? Do you have enough money set up in case of an emergency?
Before you leap into being your boss, familiarise yourself with your monthly budget. A personal money tracker might be useful in this situation.
Verifying That You Do Have Enough Resources To Launch Your Firm
In addition to establishing how much money you need to save to pay your own needs, the amount of money you need to start your business will be determined by the type of business you are starting. Following that, we’ll look at a few distinct instances.
Selling Or Providing A Service.
If you intend to become your boss by selling or creating intangibles (such as consulting services, freelancing, and so on), your initial costs will be rather low.
You may require launch funds to hire someone to design a website, a logo, and other branding materials, but your first costs are minimal because you do not have a tangible product.
If this describes your case, you’re in luck: you may skip the next part entirely. Instead, focus on saving enough money to cover your expenditures for six months to a year, and perhaps anticipate what business expenses you’ll incur (such as website design, business cards, hiring an accountant, and so on—we’ll go over these subjects in more detail later).
Selling Or Producing A Physical Product.
If you want to produce or sell a physical “thing” (making widgets, opening your storefront, and so on), your expenditures will skyrocket.
Also, ensure you have enough savings to cover your expenses until your business becomes profitable. Finally, take care that you have enough starting capital to buy inventory, rent/buy office space, and potentially hire for any key job positions you may need to fill.
No single amount that I can state is “enough” to start your business; it depends on your sector.
Consider Your Strengths And Weaknesses
Everyone needs to support themselves—but what do you have riding on your ability to succeed as your boss?
5. Assessing Your Mental, Emotional, Mental And Relational State
Do you have a family to provide for? Are you in a desperate situation, or do you have some wiggle room? Is there a system to support in place? Do you have many distractions in your life (new baby, children who require a lot of attention and personal time, family members that require a lot of attention)?
Taking A Look At Your Skillset And Abilities
How would you characterise your level of self-control? How about your time management abilities? Are you easily distracted? Are you willing to work long hours, late nights, and as hard as it takes to get things done?
Consider your responses carefully. Distractions or challenging circumstances in your life should not deter you from becoming your boss; they only indicate that you must be realistic.
Before taking the first large moves toward being your boss, it can be beneficial to undertake a SWOT analysis of yourself. Where do you feel strong, and where do you need to work on refining your habits or balancing the influences in your life that pull you in different directions?
6. Make a Business Plan.
You’ve got your idea, you’ve validated it, you’ve done your market research, and you’ve proven that you’re capable of becoming your boss.
You are now set to start planning your business.
However, keep in mind that I stated “plan your business,” not “create a lengthy, formal business plan.” Depending on your new professional path, you might not even need a formal business plan—a Lean Plan may suffice. Nevertheless, the planning procedure is crucial in this case.
Determining The Type Of Business Plan, You Need
Determine why you need a business strategy before you start writing one.
7. Choose A Name For Your Company.
If you haven’t already decided, now is the time to start thinking about your company’s name.
The prime goal is to ensure your business name is one you can live within in the long run. Once you begin registering your company and building a brand, changing it will be quite troublesome (and potentially expensive). Don’t forget to check that your company name is visible on social media sites as well.
8. Make it legal.
You may have already begun the process of legalising your new firm now that you have a business name. However, there are other legal issues to consider when becoming your boss, such as establishing your business structure, obtaining any appropriate licences and permits, and obtaining your EIN.
Setting up your business structure
What is the ideal business structure for your new venture? Of course, if you’re the only one working, you’re already a sole proprietor. You may, however, want to form an LLC, a partnership, or even a corporation.
Establish your workspace or choose a company site.
Do you intend to conduct all of your business from your home, or will you need to acquire a space to set up shop?
9. Creating A Workspace In Your Home
If you’re starting a freelance business or another form of service business, you could be better off working from home.
There are a few factors to examine in this scenario. First and foremost, you’ll want to make sure that your home office is set up in a way that maximises productivity while also serving as a useful workspace.
Second, if you intend to deduct specific expenses, you’ll want to ensure that your home office fulfils the standards. For example, did you know that your home office cannot double as a guest bedroom if you want to deduct it?
10. Create a website, a social media presence, and a brand.
You now have all of the physical components in place. However, it would help if you were well on your way to being your boss and launching your new business and career.
So, now is the moment to ensure that you have a strong internet presence and a recognised brand.
Creating A Website
One of the most common mistakes people always make when starting their businesses is failing to set up a website.
Having a website may be considered standard in your sector. If you start your own business, such as a restaurant or a clothes store, you probably already have plans to create a website.
However, if you aren’t in an area where having a website is a given (i.e., you’re starting your own business by supplying a service like graphic design or writing), you might not think you need one.
Setting up a website from the start, on the other hand, can help legitimise your firm, and you can drive new clients to it to view your rates, previous work, and contact information.
Creating A Social Media Presence
Depending on your field, some social media channels will be more valuable to you than others.
Pinterest, for example, is fantastic for visual vocations like wedding planning, but it may not be appropriate for someone establishing a new construction firm. Take the time to research where your target audience spends their online time.
That being stated, you should have at least a few social media accounts with a unique handle associated with your organisation (rather your full name/name of your business/ as close to it as you can get).
Building Your Brand
You may be inclined to ignore the idea of building a brand image, depending on your sector.
After all, huge firms like Nike have brands, don’t they? But, on the other hand, isn’t it true that you don’t need a brand if you’re a freelance writer?
The truth is that if you don’t brand your business, you’ll be placing yourself at a disadvantage, even if your “business” is simply you providing a service.
A brand can be as simple as the colours, typefaces, and artwork you use on your website and business cards, the types of projects you take on or niches you fill, and how your tone of voice fits into that specific niche.
11. Marketing Your Business Wisely
When marketing your business, your options are, if not infinite, certainly near.
Your imagination only limits marketing strategies; nonetheless, a successful marketing plan normally consists of both online and offline marketing combinations, and online marketing is further subdivided into paid advertising and social media, low-cost, or “guerrilla” marketing initiatives.
Networking Online And In Your Local Community
As you move forward further on the path to becoming your boss, you must create a network for yourself in addition to selling your firm.
This will most likely be a combination of in-person networking efforts (such as joining local meetup groups or industry associations and gatherings in your locality) and online contributions to your profession and developing contacts (such as regular participation in industry-related forums and establishing yourself in your sphere on Twitter).
Although networking can be intimidating, avoiding it can be detrimental to your success. If you avoid networking, you will not only be less likely to position yourself as a thought leader in your industry, but you may also miss out on potential clients or customers.
Reach Out And Open Your Doors Of Success
Business ownership is a journey with extreme highs and extreme lows. But there’s a reason why business owners are Business ownership is definitely a journey, with extreme highs and extreme lows. But there’s a reason why business owners are among the happiest employees in the country, and most would agree it’s worth the journey.
Use this small guide to determine if you’re a good fit for business ownership and what steps you should take to make your aspirations of being your own boss a reality!