From an Employee to a Self-employed: how to create an exit strategy?

Nowadays, the popularity of business and entrepreneurship is significantly higher than it was ten or twenty years ago. Thousands of people all over the country are willing to switch from working in large corporations to leading their own business. All of them face typical difficulties on their way. To make the transition from an employee to a self-employed as smooth and successful as possible, read the following article.

Evaluate your performance and competence

Founding a business is not only about being an expert in a certain field. Actually, you should be ready for a situation when you will have to deal mostly with financial and administrative issues after becoming a self-employed. Most employees willing to found their own businesses underestimate the significance of this factor. As a result, they understand that they lack administrative and general management experience only after they begin their self-employed activity.

To avoid such problems, we recommend you to estimate your administrative skills before launching your own business. You should remember that budgeting and tax expertise is the most essential competence for each businessperson. A typical self-employed person does not have enough money to hire someone who will perform these duties. Additionally, even if you hire an accountant or a budgeting expert, you still have to control their work. Hence, it is better to get as more relevant knowledge regarding business management as possible before founding your own company.

You can find all the necessary information in books available on the Internet and if you want to know more about the practical experience of other people, you can visit one of the business trainings.

Start with a business plan

It is a good practice to start any action creating a plan. Business foundation is no exception. You have to consider the difficulties that are typical for start-ups while creating it. As already mentioned above, relevant literature on business management practices and successful business projects can help you survive them and make your company profitable. Most start-up founders begin with creating a business plan for one year. This is a very significant term since most newly established companies go bankrupt during the first 12 months of their existence.

Now let’s look at three basic aspects you have to consider when creating a business plan.

  • Evaluate your budget. The amount of money you have when starting a business is essential, since it defines the advertising costs you can afford. Anyone who starts a new business should be ready to the fact that its first leads will be driven through advertising campaigns. In some cases, advertisement may be the only source of leads during a year or even more. Additionally, your start-up will require other costs such as rent, taxes, employee salaries, etc. Hence, the more money you have at the beginning – the faster you will make your company profitable.
  • Evaluate the time required for registration and other administrative procedures. If you think that you can begin your professional activity as a businessperson immediately after you make a decision to leave your job, you are wrong. The procedure of enterprise registration is quite complex and may take from several weeks to several months. You have to make approximate time calculations before you start the registration process to know what to expect. In such case, you will be able to make forecasts regarding the time when you get your first profit.
  • Get ready for changes and unforeseen circumstances. Remember that your business plan is not a constant. You should be ready to change it any moment. Flexibility is the most important feature of each self-employed person. If a certain business strategy fails, don’t hesitate to change it. Be creative, experiment, and find new solutions for complex situations. You will succeed only if you follow this advice.

The last aspect of business plan creation is probably the most important. Some people say that entrepreneurship is a talent. If you are not afraid to risk, go in for it and try to change your life.