It seems as if nowadays everyone wants to become an entrepreneur. There is this lavish idea behind being a business owner. You get to be your own boss, set your own schedule, go on vacations whenever you please, and just cut away from the pressure that employers put onto their employees. There is also this idea of ‘why should I make your company richer when I’m not paid my worth’, and this is a very fair and valid argument as well. However, here are 4 helpful lessons to note before breaking away from your full-time job and starting your own business.
By Team Savant
Image: Jenny Ueberberg
Many want to break away from relying on employers because you could get fired or laid off at any notice. The same can be said for a demotion or a pay cut. If you’re already not paid a sustainable wage (since the cost of living is only increasing) then how can you rely on your employer for that?
But it’s also very important to understand that you can’t just immediately think of a business, quit your job, and expect money to come pouring in. It isn’t that simple. There are plenty of lessons that need to be learned before taking the plunge of becoming a full-time business owner. There are factors that need to be taken into consideration as well. While there is a lot of glory to being a business owner, it’s mostly just important that all aspiring business owners understand that it’s not as simple as some make it out to be.
Don’t Quit Your Job To Start a Business
One mistake that many aspiring business owners will make is to immediately quit their job with little to no cushion for them to fall back on. It takes a lot of time to establish a business, it takes a lot of time to just get a business up and running. No matter what your business model is, whether you’re selling physical products, digital products, or providing a service, it’s going to take time to get this going. For a physical product, there needs to be a lot taken into consideration such as suppliers, the right tools or platform for digital goods, and the same can be said for services as well.
Some of the things that need to be taken into account can include branding such as a logo, figuring out your target audience, creating a website, marketing, market research, and getting enough sales in. All of these things must be taken into account when building a business, and this is only the tip of the iceberg as well. It takes a while to get a small business established, and it can take a while to get sales. Even when your business gets sales, when can you determine the time you’ll get a sustainable monthly wage from your business.
So bottom line, don’t quit your job to start a business, start a business and get it established before you quit your full-time job.
Know Exactly What You Need To Do
You also need to understand what exactly it is you’re going to be doing. While business owners do have a routine, it takes time to get into that routine. Not just that, but the beginning stages of becoming a business owner means that you’re constantly learning. Keep in mind that business owners are wearing multiple hats and are running multiple departments in their business. Of course, there are plenty of tutorials, podcasts, blog posts, videos, and so much more with helping business owners out. But regardless, all of this is going to take time. Before you go filing of your first confirmation statement, you need to understand everything that you’re doing and what you’re going to be doing.
Understand That Freelance Income Is Different From Full-Time Income
When it comes to freelancers and business owners, the income is usually inconsistent. While you’re trying to figure out what it takes to beat your business’s competition, you’re also having to deal with spending a lot and hoping to break even with a profit. This is pretty stressful, right? One of the things that freelancers and business owners miss from working under an employer would be consistent income.
Every month you knew exactly the amount you were going to be getting and there was a very small chance of that amount changing. The same can’t be said when you’re running a business. There may be months where you’re flooding in orders or clients, and there will be other months where you’ll be getting next to nothing.
One of the key reasons why businesses fail is mostly due to them getting into debt. They would fall into debt such as using loans or credit cards to keep their business constant and to remain alive. Starting up a business can be one of the most expensive things to do as you need to purchase supplies, tools, buy a website, hire services to help, and so much more.
It’s important to grasp how expensive a business is and how expensive it is to keep it alive. If there are some months where you’re making very little and you’re going into debt, then it’s just bad news here on out for you.So before quitting your job and before you begin starting a business, are you willing to go some months without an income? Are you willing to face getting into debt for your business?
Are You Willing To Work Extra Hours?
While there is the beauty of owning your own business since hours will be very flexible, are you willing to work more than 40 hours a week on your business? Many business owners are working well over full-time for their business in order to keep it and their dream alive. While most employers will have their employees working an average of 40 hours a week, many business owners are working 60 to 80 hours.
Some won’t even give themselves the weekends or holidays for a break either. If there is just work that needs to be done, then it just needs to be done. The work-life balance for business owners is very skewed. The lines are quite blurry, to say the least. But sometimes this is needed in order to keep the business alive. Are you willing to do this for your business? Are you willing to work longer, harder, and have a few days off in the name of your business?