A number of years in the past, I stop my job, the place I used to be incomes a six-figure wage to pursue my goals of being a full-time entrepreneur. On this article, I am sharing precisely what steps I took to arrange myself financially to take the leap from being a full-time worker to being a full-time small enterprise proprietor.
There are a lot of other ways to make the transition from worker to small enterprise proprietor. One of the apparent is to stop your job whether or not you may have a plan or not.
However I selected a slower and extra thought-out strategy as a result of I needed to maximise my possibilities of success. Not solely that, I needed to reduce the quantity of stress I might probably face—particularly monetary stress.
If like me, changing into a full-time small enterprise proprietor is one in every of your objectives, then you possibly can positively do it and do it efficiently too. So long as you’re prepared to plan accordingly, put in some effort, and be affected person with your self so you possibly can transition in a approach that makes probably the most sense so that you can succeed.
First up, let’s focus on why I took the leap into entrepreneurship full time.
Why I stop my job to run my enterprise
I’ve all the time dabbled in enterprise in a method or one other. From promoting Avon to my mother’s buddies (approach again within the day) to proudly owning my very own retail enterprise to having a marriage images enterprise, I’ve tried out and been profitable at a lot of aspect hustles. I’ve additionally had a number of failures and discovered loads about what it takes to run a small enterprise.
All of those classes lead me to the purpose the place I felt like I used to be able to pursue my ardour of operating my very own companies as a full-time gig. I stop my job the place I used to be incomes six figures (and had some fairly superior advantages) as a result of I needed to do one thing that actually mattered to me and needed to reside life alone phrases.
I additionally knew that being a small enterprise proprietor would take away the income-earning cap I had as a full-time worker. Meaning there is not any restrict to how a lot I can probably earn as a enterprise proprietor.
Nevertheless, quitting my full-time job required some severe preparation on my finish—each mentally and financially.
7 Issues I did earlier than quitting my job
Beneath are 7 issues I did throughout my evenings and weekends to ensure I ready myself as greatest I might and set a stable basis to succeed as a small enterprise proprietor.
1. I created my marketing strategy
One of many first issues I did after I got here up with the concept for Intelligent Woman Finance was to place all of it down on paper. I laid out all my ideas and concepts for my enterprise. The issues that will be straightforward to perform to the issues that have been out of scope (and finances) that I deliberate on pursuing later have been all included.
I additionally laid out my WHY for beginning my enterprise, who it could be servicing/serving to, how a lot I would want to get it began and maintain it operating. I spelled out my short- and long-term enterprise objectives and a bunch of different vital particulars about my enterprise.
Creating that first go of my marketing strategy helped me suppose by what it was I used to be making an attempt to perform earlier than quitting my job. It is one thing I incessantly revisit and replace.
Marketing strategy suggestions
Earlier than you spend any of your hard-earned cash, you positively wish to structure your concept within the type of a marketing strategy. It would not should be 100 pages lengthy or in a flowery presentation format. However your marketing strategy must reply a couple of primary questions, together with:
- What’s your enterprise about?
- Who’s your goal / demographic, what drawback will it remedy for them and why ought to they purchase from you?
- What services and products will you supply?
- How will you market to them?
- How will you fund your enterprise (start-up prices and steady working prices)?
- The place do you see your enterprise in 12 months, 24 months, 5 years, and so on?
- Who /what do you have to help you (folks, instruments)?
Additionally, needless to say your marketing strategy ought to by no means be static. As you develop as a small enterprise proprietor, your enterprise might evolve or you might change path utterly. So your marketing strategy is one thing that must be revisited usually.
2. I arrange my enterprise entity, trademark, and financial institution accounts
As soon as I had my marketing strategy laid out and was comfy with what I needed to start engaged on over the brief time period (my model, web site, content material creation, social proof, getting suggestions, and so on.).
I arrange my enterprise entity and enterprise financial institution accounts (enterprise checking and financial savings). I additionally started talks with my lawyer about establishing my trademark.
Ideas for establishing your enterprise construction
It is actually vital to separate enterprise finance out of your private finance for a wide range of causes. To begin with, you wish to be sure to are usually not violating any guidelines and rules of proudly owning a small enterprise by making certain your enterprise is about up with the proper authorized entity (e.g. sole proprietorship, LLC, company).
You additionally wish to guarantee which you can precisely observe your enterprise financials (your transactions, profitability or losses, taxes). And most significantly, you wish to keep away from any points with the IRS.
3. I bulked up my emergency fund
Understanding that my intention was to turn into a full-time enterprise proprietor, I made it a objective to bulk my emergency financial savings up to cowl greater than the usual 3 to six months of primary dwelling bills. My objective was 12-18 months, which I figured was a great quantity to maintain me going within the occasion I did not earn sufficient of an earnings as shortly as I hoped.
My partner works, so his earnings could possibly be my fallback within the occasion that issues didn’t go accordingly to plan. Nevertheless, I needed my transition of quitting my job to trigger little or no monetary burden on him. And I needed to proceed to have the ability to contribute towards our family bills seamlessly.
Ideas for constructing your emergency financial savings
Make it a objective to totally fund your emergency account for unplanned bills and your sinking fund if in case you have deliberate bills arising. Calculate what your month-to-month primary dwelling bills are after which plan to place apart at the very least 6 months in financial savings earlier than you stop your job. One 12 months can be even higher!
4. I created my enterprise finances
Making a enterprise finances helped me lay out what my startup prices can be in addition to my estimated month-to-month bills that I might have to pay to maintain my enterprise up and operating.
It additionally helped me decide how a lot, at a minimal, I have to be making every month in earnings to not solely cowl my bills but in addition to interrupt even and begin incomes a revenue so I will pay myself a wage.
Ideas for making a enterprise finances
Making a enterprise finances is essential to the monetary success of your enterprise. It helps you observe your earnings and bills and helps you establish your enterprise income or losses.
Your small business finances can even assist you to achieve precious insights on what’s working greatest or what is not in your enterprise by way of the services and products you supply and the way a lot earnings they’re producing for you.
I take advantage of Quickbooks to trace my day-to-day transactions and to create studies for my accountant. I additionally use a platform known as Guso to run payroll.
5. I waited till I used to be producing some earnings in my enterprise
Earlier than quitting my job, I made positive my enterprise was producing a constant quantity of earnings that I knew I might scale if I went full time.
This meant that earlier than quitting, I spent loads of time testing out enterprise fashions, and completely different services and products to see what labored. I proceed to do as I develop my enterprise.
Ideas for managing your enterprise earnings
Ready till your enterprise begins making some cash shouldn’t be a foul concept. It provides you a chance to “show your idea” and in addition helps you establish what works effectively or not.
The earnings your enterprise generates doesn’t want to switch your work wage totally, however it must be sufficient to cowl your enterprise bills.
6. I began saving cash for my enterprise
As soon as my enterprise began earning money, the subsequent factor on my agenda was to place some cash in my enterprise financial savings account and enterprise emergency account. My objective was to get my enterprise to the purpose the place it was 100% self-sustaining earlier than I stop my job. Meaning the enterprise can fund itself, and I now not fund the enterprise out of my private cash.
The financial savings accounts I arrange are particularly for future initiatives (objective financial savings), to maintain the enterprise operating within the occasion of a gradual season (emergency), and to pay my quarterly taxes.
The objective for my enterprise emergency financial savings was to have 6 months of working bills put apart. This consists of any contractor charges I wanted to pay (i.e. a digital assistant).
Ideas for saving cash for your enterprise
Consider your enterprise financial savings accounts (objective financial savings, emergency, taxes, and so on.) equally to how you’ll take a look at your private financial savings. As a small enterprise proprietor, you in all probability have short- and long-term objectives for your enterprise. You may want cash to help them.
As well as, unplanned circumstances come up in enterprise as effectively the place you will have to cowl the price of one thing you did not plan for. So it is positively good to start out saving for your enterprise as quickly as you’ll be able to.
7. I ready mentally for the approach to life & feelings that include entrepreneurship
This can be a huge one. From being a small enterprise proprietor and full-time worker collectively, I knew that loads of work, time and power was required to make my enterprise profitable.
Whereas working full time, there have been by no means sufficient hours to get issues performed in my enterprise. Earlier than quitting my job, I spent late nights and lengthy weekends engaged on my enterprise.
As such, I needed to resolve that this was one thing I needed to do long-term. From scaling issues down financially to help my transition to being every thing and everybody in enterprise, I spotted that endurance and relaxation (so I do not burn out) can be my biggest allies.
Additionally, a ton of feelings include being a full-time entrepreneur. There might be thrilling highs of being your individual boss. There might be low instances of feeling such as you made a giant mistake or won’t ever succeed.
However it’s vital that you just give you methods to cope with the various feelings you’ll expertise. You additionally wish to maintain making progress towards your enterprise objectives.
Ideas for getting help as you construct your enterprise
Discover folks on the identical journey as you or who’re additional alongside than you’re and keep in contact. Share how you feel, discuss enterprise and get motivated and impressed by one another.
Quitting my job led to success
Was it straightforward quitting my job and constructing a profitable enterprise? No, however taking the important thing steps of making a marketing strategy, finances, and constructing my enterprise earlier than I stop my job is how I’ve turn into a profitable enterprise proprietor. It takes arduous work and tenacity, however you possibly can succeed if you happen to strive.
Additionally, bear in mind, endurance and relaxation are essential in your journey. Want some assist to jumpstart your plans? Try our FREE enterprise programs!
