10 Tips on Making the Leap from Employee to Entrepreneur
The decision is made. You are going to make the leap from employee to entrepreneur. You are now going to take charge of your life. However, the leap from employee to entrepreneur cannot be a leap of faith. In this article, we will discuss ten very important mindsets that will make the daunting leap a safe and structured dive into your future success.
Making the switch from employee to entrepreneur can be quite daunting. This is more so if you are forking out a hefty capital, and you have a family to care for. Therefore, even if you are set to take the leap, you need to do have the right mindset to make the mental switch that will take you from employee to entrepreneur.
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10 Tips on the Best Mindset to take you from Employee to Entrepreneur
What would appear to be a simple decision can become a very complex chain of events. So you are fed up with your job. And you would like to become your own boss. You make the decision to quit your job. The next step is to start your own business. It may seem to be an easy decision however the transition requires a great mindset.
Let us say that you already have an idea about what you would like to do as an entrepreneur. You have a passion about your future business plan. You feel that you can do well. However, making the leap from employee to entrepreneur can be a little bit more complex than just having a passion for your business.
Here are ten tips on what you will need to become the boss.
#1 Are your skills up to scratch?
Once you have determined what you would like your new business to be about, you need to make sure that you have the proper skills and abilities to carry it through. For example, if you are looking at opening a “Tapas” restaurant outside of Spain, then you need to be sure that you know everything there is to know about Tapas. You also need to be realistic and consider whether you will easily find the products and raw materials around your area. Will you need to create a special import line in order to have a full and authentic service.
You must also consider that you will be doing this new job for many hours every day. Being your own boss means that you may not even have any more holidays or leave of absence. You may be doing this job for weeks and possibly years. Ask yourself the crucial question – is this the job that I see myself doing for years to come?
#2 Setting a Proper Value Structure
If you are taking the leap from employee to entrepreneur you must value your time and your product realistically.
In order for your business to be viable and give you the financial independence that you are seeking, then your pricing must be correct. Whether you are offering a service or a product, you must set the correct value for what your customers will pay.
You must make sure that your business idea is sustainable and that other people are ready to pay for its value.
#3 You Cannot Argue with Numbers
In the same manner, as giving value to your product, you must give value to your time. The cost of running your business has to be looked at with two eyes.
a. Your opportunity cost – what were you being paidas an employee? This is what you are going to lose by becoming your own boss. If you have used a capital for your startup, you will also be potentially losing interest on this capital. That is your opportunity cost.
b. Your real cost – once you have established your opportunity cost, you need to add this to the real cost. The actual cost of running your business. Bills have a tiresome habit of piling up fast. Have you taken all the cost of running your business into consideration? Have you made allowance for contingencies?
You cannot argue with numbers. Any business, no matter how complex is set on numbers. The income vis-a-vis expenditure plus your effort. You need to create your business plan in order to make sure that bottom line you are going to have a reward that you deserve.
#4 Do You Have a Proper Marketing Plan?
Unless you are planning to stand out on a busy road and scream at the top of your voice – you need to have a good marketing plan to bring your new business to your potential clients.
You cannot underestimate the power of advertising. Other than the classical and regular channels of advertising such as television adverts, magazines etc., today social media has taken over marketing. Marketing plans on how to catch the attention of your potential clients are quintessential.
Marketing is not cheap. Although the best and most effective form of advertising is word of mouth, this may not be fast enough to make your business viable. Consider the best way in which to market your business depending on its nature and budget properly. Include this cost in your business plan.
Look at Facebook Advertising as a great channel to grow your client base.
#5 Be Open Minded to Clients’ Feedback
No matter how much passion and dedication you have put into creating your business, there is never the exact right formula. Creating a new business in your leap from employee to entrepreneur does not come with an instruction book!
However, clients’ feedback is the best instruction book that you can have in reality. Listen hard to what your customers are saying and take their feedback seriously. If anything in the feedback necessitates change or adjustment, do not procrastinate. Just do it. Bottom line the customer is always right!
#6 Grow Your Business Gradually
The world was built in seven days, not in one! Seven is a number that is significant merely because it is symbolic in the perfection of time. Learning how to go fast and slow, and grow your business with the right tempo is very important to the health of your business.
If you are moving from employee to entrepreneur you cannot expect to have a multi-million business growing overnight. You need to grow your business gradually. Your first months and even years are your learning curve. You will adjust to the needs of your business as you go along, one you are comfortable.
#7 You are the Number 1 Decision Maker
For good or for bad once you make the leap from employee to entrepreneur you become the number 1 decision-maker for yourself and for your business. Whilst this is an advantage, on one hand, it can create anxiety on the other hand.
As an entrepreneur, you will need to understand the responsibility of making quick decisions. Great entrepreneurs know that a window of opportunity could be very brief, and adjust and make decisions with a sense of urgency. As a new entrepreneur, there is no one who is going to tell you what to do. This may sound great but it may pose problems if you do not have the
Realistically, as a new entrepreneur, there is no one who is going to tell you what to do. This may sound great but it may pose problems if you do not have the mindset to make decisions that will be the right ones for your business and your future.
Therefore, you as an entrepreneur you will no longer be thinking “inside the box” but you will need to think “outside the box” make decisions that take you outside your comfort zone, and become creative. Are you ready for this challenge?
#8 Do not become an Employee of your own Business!
The reason that you leave your job to become an entrepreneur is probably that you do not like your job and that you are looking for a better financial set-up. You also want the liberty and the perks of being your own boss.
In order to achieve this wish-list, you must stop acting like an employee. You cannot become just a technician in your business. Be impassioned by what you are doing. It is the time to be creative and find a niche that makes you unique.
Do not work “in” your business but work “on” your business.
#9 Do Not Stick to a Time-Table
Although discipline is going to be a very important and key issue in the growth and success of your business, time should be linear.
As an entrepreneur, you may need to work 24/7 on your job. You are no longer going to be chained to a desk, you are going to have the freedom of movement. However, you are going to start breathing, living and dreaming of your business. You will need to make it part of your daily dose of enthusiasm, your life, your future.
You will also need to be in tune with your mental health and make sure that you strike a balance between working and earning.
#10 Employee to Entrepreneur – The Right Time to Make the Switch
Most people underestimate the pressure, fear as well as anticipation of making the leap of faith and shifting from employee to entrepreneur. It takes courage and planning. For most people, working on the mindset on becoming an entrepreneur starts well ahead of making the decision of quitting your job.
In reality, the best-structured businesses start running along your regular job. Successful entrepreneurship does not happen in a day. Good planning starts with gaining experience on your future business whilst still being employed and having the safety net of a regular salary.
At some point, however, if your business is going to grow in a healthy way, you will have to take the leap from employee to entrepreneur. The timing has to be right and when you are comfortable, but it cannot extend into forever.
So what would you like to be an employee or an entrepreneur? Find the right answers for your mindset and take the leap!
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Author: Mariella S.
Mariella is a life-coach for successful entrepreneurship and business and financial blogger.
YouTube Channel: SetMeFree Financially