Employee to Entrepreneur: Making the Switch Successfully

“If you want things to change in your life, then you must change.”

Jim Rohn

You may be tired of the 9 to 5 and think deep down you’d make a really good real estate investor, but your day job pays the bills. How do you make the switch from employee to entrepreneur successfully? There has to be a shift in mindset and by taking hold of a few fundamental truths about entrepreneurship does that.

Truth 1:

Starting your own business is being the CEO of your company. You will be responsible for making all of the managerial decisions, unlike an employee who waits to get told what to do. Jumping in headfirst may be a bit overwhelming for you, so this should be a gradual process. Don’t quit your day job yet until you can manage your time effectively.

Truth 2:

You will have to make concessions during the interim period. Small business startups take time to turn a nice profit. You will have to know in advance how you will support yourself until then. Having enough cash or credit stashed away to support you and the business for at least a year is ideal.

Truth 3:

Having a working knowledge of money management is crucial. Being able to understand financial statements will keep you abreast of how much money is being made, as well as how much money is being spent. Understanding of this will help keep you from being in the red and staying in the black.

Truth 4:

You know the saying, “Jack of all trades, master of none.” Well the opposite is true for the entrepreneur. An entrepreneur in the beginning stages will have multiple roles to fill, at least until staff is hired or tasks are outsourced. You may find yourself being the salesperson one day and customer service the next and the order fulfillment person the day after that. Employees have set job descriptions that they complete day after day, so their day may not be as hectic as the entrepreneur.

Truth 5:

Entrepreneurship requires having the mental energy, focus and tenacity to succeed. Business trends change all the time, and as an entrepreneur you will have to evolve with your industry. This means learning all you can all the time to be on top of your game.

Truth 6:

It can be lonely at the top. Well, maybe at the top of your kitchen table is a better way to put it. This is just because you are no longer going out into the corporate sector. But, the loneliness can be overcome by doing all the cool things entrepreneurs do: lunches, networking events and the like.

Making the switch from employee to entrepreneur can prove successful if you grasp hold of these six basic principles. You will want to plan ahead before quitting your day job by having financing in place, being knowledgeable about financial statements, being a good steward of your time, being decisive since you are now in the driver’s seat, continuously improving upon your skillset for your chosen field, as well as networking with likeminded individuals and groups.