7 Strategic Steps to Being Your Own Boss
Want to get out of the rat race? Need to be more with your kids? Like the flexibility and freedom of being your own boss?
Love these thoughts?
I do. It’s been five years since I become my own boss (full-time). But I started plodding the path 10 years ago. It took me a while as I had challenges along the way. I created this blog to help moms and women like you to take the entrepreneurial journey and be your own boss at a much shorter pace.
Here’s a few tips to get yourself ready before you dive in and make that amazing shift.
1. Know your Financial Status. This is your passport to your entrepreneurial journey. It is crucial that you figure out how you’re going to write your own paycheck and sustain both your business and personal needs. Remember, you will be paying yourself soon. You need to know how much your business have to make to keep it operating and still provide you with a livable wage.
Before you go to the glamorous side of starting a business, cover your bases. How much do you need to get started? How much do you need to operate week after week or month after month? How much do you need to survive daily, weekly or monthly? Your startup fund is just to put your business in place. Your operating fund will make it run. And your living fund, well for you to live to get your business going.
We all know that starting a business takes a while to build your customer base and make a profitable sale. I suggest that you make sure to have at least 12 months operating and living fund on top of your startup fund. This will give you ample time to build and grow your business to a profitable state.
I understand that limited resources, among others, can be a massive barrier. I have an epic post to help you get the superior startup that you need.
2. Get Yourself Ready. You are the foundation of your business. Its optimum health depends on you. With the different aspects of the business that you have to attend to as a budding entrepreneur, you must be physically, emotionally and mentally fit.
Don’t be overwhelmed. You may have already acquired certain skills from your work experience like resiliency under pressure, organizational skills and the likes. You just continue to hone it and find ways on how you can better cope with the change you are about to embark on. Try facing these 3 tough questions now to get yourself ready.
3. Determine Your Work. Most startup business owners are solopreneurs. Being your own boss may also entail being the employee especially on your startup years. If you can find a way to make money from what you love to do and able to do it well, then you just found your pot of gold. It’s best to work not only with your professional skills but also with your personal passion. Together, they will be your self-motivation which you will be needing in your journey.
Know exactly what your business will be. Get to the details. Take time to really plot down what your business is all about, for who, where, how and the most important why.
4. Start Part-Time. The first 3 steps may take a while for some, if not most, to complete. By starting to being your own boss on a part-time basis will give you the initial drive.
For practical reasons, it is best not to jump right into it. It takes a while to build a client base enough to keep your business running and provide you with the income you need to live on. Yes, it means extra work on your spare time and weekends. That’s the trade-off if you want to shorten the pace to that dream “shift”.
What good will you get? For one, you’re able to test the viability of your business without compromising your living finances by still having a stable income. Second, you’re able to develop your business skills in the process. And thirdly, you’re able to start building your business while setting up enough business and personal funds to make the shift.
5. Plan Your Transition. Once your business starts to take off and your customer base increases, the demands of it will increase as well. As you start to feel the stronger demands of your business, it’s time to plan your transition.
Is your current shift workable for you to handle both your business and your job? Is there a part-time option on your current work? Save up whatever extra you have and keep a financial plan as you will be going through a financial switch as well. Figure out a time frame for quitting your job like where you should be in terms of number of customers, monthly business income, or financial state. You might also want to include some back-up plans in your transition strategy like perhaps getting freelance work to support your income should challenges come.
6. Set up Your Business. When you’re ready to make that shift, it’s time to set up your business as a legal entity — prepping up your business space, getting the necessary permits and licenses, and putting some structure into your business.
If it’s applicable to your business, I suggest that you set up a space at home for your business to minimize costs and just move later on should your business needs to. For your business structure, consider the taxes you have to pay and how your business can better cope with it.
The usual taxes you pay are income, business and withholding taxes. For income tax, normally paid annually, business income are subject to graduated income tax from 5% to 32% for sole proprietors, while a fixed 30% is charged for corporate income tax. You might also want to consider the accountants fee for your financial statements as lesser fees are charged to sole proprietors compared to corporate businesses.
For business tax, paid monthly or quarterly depending on the entity, your gross sales or revenues is usually charged 3% percentage tax while 12% value-added tax (VAT) is charged if your annual gross sales or revenues exceed Php1,919,500.
For withholding tax, you will encounter this if you have third-party contractors or leasing a space for rent. Best to check with Bureau of Internal Revenue for accuracy and details or consult a professional.
And one more thing, if you plan to have a home-based business, make sure that you have already planned out how this will work out for you as there could be a lot of distractions as well when working at home. *wink
7. Keep and Expand Your Network. Before you make the transition, it might be a good idea to keep expanding your network in the office or any organizations you can connect with.
Keeping a good relationship with colleagues and expanding your network may just pay off when you become your own boss. You’ll never know how your business, colleagues and network might just intertwine. *smile
It took me awhile to take that big step out of my corporate life to being my own boss. I was in the rat race for 16 long years until I took it seriously to make that shift. I wanted to settle down, be with my kids and still pursue my passion for business. These strategic steps helped me get through and be my own boss. Being my own boss gives me the freedom to take my business/es in the direction I find most rewarding. Hope it will help you too.
Are you still planning to make that shift or already in the transition? How are you planning to go about it? If you already did, how did you make it work seamlessly? Share your thoughts, your story… Love to hear about it!