If you’ve been an employee for a few years, then perhaps the decision to go out on your own into the self-employed world is an easier decision. However, for anyone who’s been working for a decade or longer for different companies, giving up the comfort of a job and a regular salary is worrisome in the extreme.
In this article, we look at when it makes sense to stay an employee and the times when branching out is the right next move.
Do You Have a Solid Plan?
It may sound obvious, but most people’s plans for their business are still in their heads. They may have talked to friends about it or sent a few emails here and there, but that’s about it. Bear in mind that talking is easy, free and risk-free. It feels safe and that’s often where it stays – talk.
What you need to go into business for yourself is a solid plan. This is a huge distance away from vague plans talked through briefly in a dream-like fashion with a best friend. Think about the level of detail and information necessary to convince someone to come on-board as an equal partner, and you’ll have an idea of the level of detail we’re talking about.
Are You Comfortable Being a Business Owner?
You may want to strike out alone because you’re fed up of your current job. Sadly, that doesn’t automatically mean that you have the right qualities to be a founder of a business and your own boss. One thing doesn’t necessarily equate to the other.
There’s a requirement to be passionate about your business, driven to work hard and willing to learn what you don’t yet know. The list of recommended traits is long, and it’s tough to be all of these things as one person. Nevertheless, the more of these traits that you can match up to or become, the more successful you’re likely to be with the business.
Are You Good with Finances?
Businesses cost money. Once you start budgeting to figure out exactly how much business costs, you may realise that what you have amassed in your career so far probably only just about covers it. Or, maybe it doesn’t reach that far.
If you’re frugal by habit, then you can no doubt save on business expenses to get costs down to something more reasonable. But this still leaves the little matter of how you will afford to live while starting the business. You can certainly drop down to part-time in your job or find another one.
Another option is short term loans if you’re expecting promised financial help from a friend or relative but won’t receive it for a few months. Instead of waiting to get started, you could take a loan out for a limited period and then repay it when their funds arrive.
If you feel that you have the plans right, the money is in place and that you’ve got the best personality to be a business owner, then we’d say that you’re ready. Don’t let the momentum die down on the idea, otherwise it may never happen. You could easily stay an employee forever if inertia sets in, so don’t let it!