Do you feel unfulfilled at your workplace? Do have a desire to run your own business and be self-employed? If so, then you have ever entertained the thought of leaving employment to become self-employed. Many people wonder what it takes to be self-employed.
Well, it can be hard but it can also be easy if you are well prepared for it. There are so many people who have left their day job and successfully started their own business in 2023. Nonetheless this has been after overcoming all the challenges and drawbacks of working as your own boss.
If you intend to start your own business in 2023, are you aware of the financial implications of being your own boss? Does the thought of income fluctuations scare you?
The prospects of starting your own business can be scary but the rewards are comforting. There is no easy easy to do it than just starting. Make the journey of starting your own company easy by following the simple proven steps in this post .
While employment offers you a constant guaranteed monthly income, the same cannot be said of owning a business, at least in the beginning. This is one of the main disadvantage of starting and running your own business. You will probably do with little or no income in your first few months after starting your own business.
While the disadvantages of running your own business are not meant to scare you, you need to be prepared well for self-employment before you quit your job (if possible). There are so many factors you must consider before embarking on self-employment and before handing in your resignition.
This post is a detailed guide with major simple steps and tips on how you can make the journey of becoming self-employed successfully and easy before you quit your job.
In this post…
How to Prepare for Self-Employment & Guaranteed Success at Starting a Business
Step 1. Make Money Adjustments Before Quitting
Once you decide that you want to run your own business; you must start making smart money decisions right from the start. You must start doing smart things in 2023 such as
- Changing the type of investments you are doing, your savings amounts etc.
- Minimize your expenses by cutting down on luxuries and sticking to basics.
- Add more to your savings but make realistic and achievable financial goals.
Having adequate savings before quitting your job and starting your own business will help you stay afloat for a while before your business starts generating adequate revenue. It is a step that is crucial for guaranteed success at your new business.
This move will further teach you to be disciplined expenditure wise; a skill you will need to run your own business successfully after you have quit your employment. Since you will soon leave the comfort of employment to venture into the unknown world of self-employment, you need to start by making crucial financial adjustments which is one of key things of what it takes to be self-employed.
2. Research your Market for Business Prospects
While your financial goals and plans are rolling out, you need to decide on the type of market that your business will compete in and/or your product(s). This decision is important and may determine the success rate of your new business venture. It is also an important step that you must do before quitting employment and starting your own company.
The industry in which you want start your business can be anything depending on your education, experience or passion in a certain field. You can start your business simply in any sector as long as you have the necessary resources. Some people find it easier starting their businesses in the same field they are working under employment while others choose a different field.
If you are choosing something different, start by making a list of potential markets and/or products you might be interested in and are viable in the current circumstances. Thorough research at this point will be very crucial and you need to make the right start for your business. It is one of the main things that you must do before quitting your job to run your own business.
Thoroughly research on the feasibility and profitability of each of these markets and/or products that you want to offer in the market. Research on things such as competition, challenges, limitations, profitability, market availability and resources needed among other factors. All these are factors to consider when starting self-employment before handing in your resignation letter.
Key questions that might be helpful when venturing into self employment include:
- What are the requirements for starting a business in the industry? This is in terms of legal restrictions, capital etc.
- What are the unmet needs of consumers in this industry? How can I meet them or add value to my product?
- Can I make an adequate profit from the business? What is the room for growth in the sector?
You will find so many factors to consider that are necessary for being self-employed. With these findings in mind, eliminate and narrow down your list of crucial factors. You will eventually have the most feasible and viable market to enter for self employment.
From here you will further need to craft the niche market to serve, the products and/or services to offer, pricing, and location among other factors. All these are major things to consider and do when going for self-employment before quitting your job.
3. Develop your Business Plan Draft- A Proven Golden Asset for your new Company
Market research will exhaustively give you adequate information to lay down your business structure and operations. After going through the above step, you will have arrived at the best business to run and the target market to serve. At this time, it is very crucial to have a document containing all these important elements of your business prepared.
Yes, even small business do need a business plan. A business plan is a formal written document where you write your business goals, how to achieve them, and the timeline for achieving them. And yes this is something you must do before quitting your job and starting your own company. The good thing is you can write your business plan while you are still employed.
Include separate sections covering different aspects of your business. Major sections of most business plans include
- Business background & structure
- Operational plan,
- Products and services,
- Market analysis
- Financial plan
Include everything related to your business. You will need to refer to it later into your business when you need inspiration and guidance. It will also come in handy when pitching to potential investors and give you the right prospects.
If your business plan has not quite taken form, don’t quit your job yet before you have a concrete draft.
4. Set up your Business Facilities
Now that you have your business plan ready, it is time to set up other business-related facilities. You can still do this before quitting your job. The elements of this step include;
- Website- chooses a relevant domain and has your website up- Your new business will need one
- Online stores – an early presence will give you a head start- You need this before quitting your job
- Bank accounts – open relevant bank accounts and other payment methods
- Office – choose a strategic location and set up the office and other utilities for your new business
By setting up everything before, you will find that is quite beneficial in that it results in fewer delays in running your business. Doing this before quitting your job also eases out the adjustment process from your job to running your business.
You can still do or arrange for all these things to be done while you are still working as they do not require much of your time.
5. Quit Your Job and Start Running your Business
After completing the above steps, you are now ready to quit your job and start you own business or company. It is important to achieve the above as they they ease and simplify the transition of being employed to being self employed. You are ready to quit employment when you have done the above important things for your new company.
Leaving work to become self-employed may feel like you are leaving a part of your life behind. Working for an employer for the long term may create such an attachment. However, this is a move you have to do, difficult as it may be and eventually start running your business on your own.
There are no simpler way of quitting your job so just hand in your resignation letter when you are ready . However make sure you that give your employer adequate notice as well as follow other guidelines related to your company before leaving work.
Now you have done it. Congratulations! You are ready for work! You are on your way to being your boss! As you leave, be diligent. Do not burn your bridges as you may need this network for your business.
You have done so much. The above preparations for starting your own business are very crucial. You have outdone yourself and quit employment to run your business. Be aware of the financial shock you may experience especially the first few months when your business is still taking form.
This is an important element that you must consider as you venture into self employment. It is hence very important to be resilient and patient by believing in your goals and the vision for your business. Stay true to your goals and stay focused on achieving them.