WorldExecutivesDigest.com | Employee to Entrepreneur – How to transition from Employee to Entrepreneur | Almost every employee’s dream is to become the boss of their own company or to manage their own business, but not everyone has the chance to try their luck in putting up their own firm or has the guts to take the risk in putting up one. Each one of us meets their mentors who can greatly influence them on what and where they are now or what they are going to be. It’s for us to decide which path to take.
I can still clearly remember the things I’ve read in Robert Kiyosaki’s book, “Rich Dad, Poor Dad”. He always points out the important things that you can do to accumulate wealth or financial survival is to do the things that successful people do. There are two types of person’s mentality in financial literacy or business intelligence, the first one is to work for money as a single-salaried employee at a stable job while the other one is getting a job and learn the skills required to be an entrepreneur; that wealth comes from experience-based learning and multiple income streams.
The starting phase of a business is always the hardest, you will feel the birth pains of selling and marketing your products or services, managing your operations, knowing your competition and reviewing the laws that every business entity should abide. Marketing and selling is a crucial skill that one should acquire in order for your business to succeed; it is the life of the company. While operations serve as its pillar, it keeps the company going and operating to better serve clients or partners and keep up with the competition. At the end of the day, the departments in your company will not function properly or effectively without a great leader – THE OWNER, founder, the entrepreneur, capitalist, industrialist or employer- they are the brain of the company who needs to make sound decisions and plans for the directions of the company and this could be YOU.
LET’S TALK BUSINESS!
Before putting up a business you may have been juggling a lot of ideas and considerations before making the necessary decisions. But the most common among the early concerns of an entrepreneur is to figure out first how much capital does he have? Or how much is he willing to invest? How much money he is willing to put at risk for his venture? Before anything else, let’s talk about Capital. What is a capital anyway? It is a wealth in the form of money or assets, taken as a sign of the financial strength of an individual or organization and assumed to be available for development or investment. In Accounting Firms or Finance Companies, It is the money invested in a business to generate income. And for Economics sense, it factors of production that is used to create good or services and is not themselves in the process.
There are several ways of raising funds for a startup. You just have to decide which one is the best for you and your type of business that you want to venture in. You have to primarily go through all the possible options that will be beneficial for you and your business and slowly cut down the best options that will help you reach your goals. Keep in mind to evaluate your progress at every level and keep an open mind and heart to make the necessary adjustments in order for your business to grow and prosper.
- Funding your own idea or using your personal savings
It is the most common among the startup’s business stages. It is when founders or the team members put their money together to form a startup. Professional investors in the market prefer this way of raising funds.
You must have some savings or assets that would be used for the startup business. Funding your own startup is one way of telling your potential investors, how serious you are about this venture. Putting your money in the project shows that you are willingly taking the risk of putting money that you have worked hard for at stake, supporting your idea with the faith you have in your company.
There are various types of crowdfunding, you have to select which one is the best for your business such as rewards or equity-based crowdfunding. It is an exceptional way of gathering funds for startups with artistic projects or even to raise capital to finance the manufacturing of new technology at a large scale.
Any option you choose, this option is of low risk as if you want to put the product in the market and also get funds to finance your product and make it the reality. This is also advantageous to get feedback from the early adopters of your prototypes.
Future investors will be able to see marketplace adoption if you go with crowdfunding, this will help you in different ways. As investors notice other people are willingly investing in your idea, this will persuade them to also put money into it.
To uphold control over the business crowdfunding with rewards is another way. Many startup businesses select crowdfunding to maintain freedom and avoid censorship.
- Angel Investors
As the word states, angels are a good point of contact when you need to raise capital for a small business. In a business sense, angels are not the biblical divine beings, they are very rich individuals that enjoy helping entrepreneurs in their business ventures, given that they are good and credible enough to invest in. Angels are professionals that need to see a proper business plan before they decide on investing.
Angel investors stand out from other types of funding options because they are always on the lookout for the next business to invest in. Many of the biggest tech companies today, including Google and Yahoo, were funded by angel investors. At its most basic deal, taking money from an angel almost always requires you to give your investor some share of equity in your company.
Reaching out to investors is as easy as reaching the right people in the right areas, but only if it is done in the correct way. Examples of networking to people are through engaging them on social media, Linkedin groups, and through blog posts on websites.
As you reach out to more people and they listen to your idea, they will give you feedback and more reviews that will help you out with your product. The more people get to know the more they will be interested in investing and it will be an advantage to you.
If you choose to seek angel investors try to look for someone who is in the same line as you are or has had success in that line. Focus on those investors who have the expertise in your target market or a point of view that your crew lacks. Investors want to see you succeed as they have invested their money in you, they are also a valuable source of mentorship and experienced guidelines.
One great way of generating capital for a small business is to contact a bank for a loan. It is one way of keeping the initial control of the business in your own hand. Most banks would be happy to provide a loan to an individual, provided their credit rating and history is good. In addition, banks will also need to see the business plan and all expected expenses and sources of revenue before they provide the loan.
Taking a loan for startups might be healthy but only to those who have full confidence that the business will prosper in the first run without difficulties. Again, it depends on you and the type of business you want to incorporate.
But while considering the loan, check the interest rates and also if you have collateral to give. Crosscheck with all the facts, whether you are able to comply with all the terms of the loan.
- Enter competitions
For gaining publicity, you can enter competitions if you believe that your idea is capable enough. Entering these contests will be very helpful to you as on one hand if you win the competition you will get a source of finance, and on the other hand, you gain publicity for your product and people will be waiting for it to hit the market. This acts as your form of advertisement.
This is a low-risk option as you get your ideas out in front of investors and if it is good, you can win the competition and get money rewards to finance your startup business to succeed. If you are not able to make it and win the cash prize, being on that competition acts as an angel investor may contact you to invest in your idea. It will be a win-win situation for you and your business.
Believe it or not, there are organizations out there that offer monetary rewards- or even financing- for businesses and entrepreneurs who enter their contests. Eligibility requirements, entry fees, and judging criteria vary widely. But if you have confidence in your pitch, this might be the way to get some cash.
An increase in the number of contests has tremendously helped to maximize the opportunities for fundraising. It encourages entrepreneurs with business ideas to set up their own businesses. In such competitions, you either have to build a product or prepare a business plan. You need to make your project stand out in order to improve your success in these contests. It should be comprehensive enough to convince anyone that your idea is worth investing in.
Now that you have a handful of ideas on how to finance your capital or investment, do you have what it takes to be a successful entrepreneur? Did you know that successful entrepreneurs have the same routine or habits that brought them where they are now?
What are the Daily Habits of Successful Entrepreneurs?
Successful entrepreneurs have their own daily checklists of activities and to-do lists. They aim to productively finish them all and if not, the majority of them. Every second count, an idle moment is a waste of time and results in unprofitability. This list will help you start acting, thinking and earning like them.
- Establish a daily routine
An entrepreneur has to stick to their timeline to accomplish everything. From drinking their coffee, running errands up to attending daily meetings. Mall visits or partying are often done every weekend, after office hours or for some after every successful project or accomplishment which serves as a treat or break after their long hours of hard work.
It really is a challenge for everyone, especially for those who are not used to juggling their personal and professional lives. Because without a routine, he cannot complete his tasks. There is no more effective routine to follow, but yours that you personally formulate. You have to set it up based on your work habits or the time that you are most productive and the whereabouts on your personal life. Routine helps you to prioritize your tasks. It helps you focus on one task at a time so there are bigger chances of completion and not wasting valuable time.
- Eat breakfast
To work at your peak performance, one’s body needs to fuel. It can be a cup of coffee on your way to work or a plate full of fruits, vegetables, a protein with some carbs on the side.
- Exercise and meditate
Exercising and meditating keeps our mind and body strong while keeping our minds focused. Meditation balances our body’s needs and maximizes physical stamina. While regular exercise is vital for having good health and well-being. We need to move our body and stretch our muscles to stay healthy,/ and gain enough strength to perform our tasks. Both of them also avoids stress and fatigue.
- Checking progress
It is normal for an entrepreneur to be extremely busy. One may be so focused on his current task that he might have a mind slipped of some other important things. That is why it is important to have a checklist to monitor your progress and evaluate which will help you decide how to further prioritize your time and figure out which ones need more urgent attention.
- Spending quality time with family and friends
Spending time with important people with entrepreneur’s life is essential, it clears our their head from the business-related stress especially for those who are having their startup business. It is the moment where they recharge their batteries, meaning enjoying the spur of the moment doing the things that you enjoy. It also gives you time to reflect and be more inspired in doing plans for your business.
- Plan Ahead
List down your activities at least a day before to figure out how your next day is most likely going to be. When you have your list at hand before going to bed, you already have a project at hand first thing in the morning. It helps you create schedule priorities the next day instead of letting thoughts accumulate of unfinished or forgotten work accumulate.
- Get enough sleep
Set a bedtime sleep routine. One needs enough sleep and rest to feel refresh for much-needed energy for the following day. Every successful entrepreneur goes to bed at the same time every night.
- Expand Connections
Widening your connections helps you create business opportunities. With the help of the internet, networking is now much easier and faster. You may join online communities dedicated to the purpose of helping people connect and network where you may ask or share business news, business articles or business strategy. You may also attend social events with the purpose of not just having a bit fun but also help people network to grow their business.
Don’t also forget to follow-up and engage with your connections to develop good relationships that will last long which will likely be a great benefit for you and your firm in the long run.
- Learn to say no
In the business world, Entrepreneurs feel the pressure to accept every opportunity that comes on their plates. However, not every opportunity shall benefit you or your business, sometimes it will put your business at risk and put your business intelligence to test. You have to be careful and be selective of the opportunities that you will agree or enter into.
Start your day reading newspapers especially business articles or business news. This will further enhance your business strategy as you learn from other entrepreneurs’ successes or mistakes. You may want to read the well-known business newspaper, Business World. It is Southeast Asia’s first daily business newspaper. It represents more than five decades of professional economic journalism. Business World has been a reliable source of information on the country’s business news, business intelligence, business strategy, and business articles which is very helpful and informative especially for a startup business.
Who are the people who can help you with your business?
Seeking advice with these professionals will help you increase efficiency, prosper in your business venture and avoid possible or further drawbacks. Who are they and what they can practically do for you and your business?
- Accountant/Accounting Firms
Accounting Firms will help you save your valuable time by doing bookkeeping, cash flow analysis and paying the right amount of taxes on time. An accountant also helps entrepreneurs manage their financial obligations to their employees with the likes of compensation and benefits.
Getting sued is one of the biggest fears of all business owners. Solicitors are not just there to help when the business has been sued, they also prevent the owners from getting sued. A legal counsel can offer guidance regarding all contracts, licenses, and regulations involving all areas of your business. They also help you understand your rights and the rights of others, all the while helping you to ensure you are fully complying with the law and not at risk of being prosecuted. They also assist you in the drawing up of contracts, like job contracts to ensure there were no loopholes.
- Business Banker
A good banking system is crucial for any business. You want the funds to flow smoothly in and out with all income and payments being processed in a timely manner. A business banker will attend to these specific banking needs for your business, advising you on your borrowing, saving, transacting, financing and cash flow whilst offering suitable banking products to facilitate these practices. They can also offer general advice on how your business can further succeed in its industry.
- Financial Planner/Finance Companies
A financial planner is similar to a business banker,/ but provides more of an outlook on your business’ future. Finance Companies help you develop long-term strategies for your business by analyzing your situation as well as providing advice on investment and risk management. Finance Companies can also assist in putting a plan in place for your retirement and what happens to your business when you retire. Since some of them don’t represent a bank, financial planners can be more personal than business bankers, developing more of a relationship with you and your business.
- Insurance Broker
Things can happen beyond our control than can put your business at risk or worse, to its end. It can be a fire burning down your shop or an injury or illness rendering you unable to work. That is the reason why every business and business owner should have insurance.
An insurance broker helps find the right insurance catered for your business whilst negotiating the price of it on your behalf to ensure you are not paying more than you have to. They are qualified experts in their industry to provide you with the most comprehensive and cost-effective insurance.
Should you decide to hire employees but are having second thoughts where to get the best people, they are the ones who can get the job done.
You might be unsure of the type of employees that you need for your startup, how much education and experience they should have, the necessary skills that they possess for the job, recruiters are the best people to turn into for this area of your concern.
A recruiter can help you put together a detailed job description to attract the right candidates. They can help you throughout the recruitment process, from sourcing up to the screening of applicants.
- Mentor or Business Coach
Business mentors are people with experience to look up and regularly consult on general matters regarding your business strategies and goals. They can help you grow and develop your knowledge and skills in running your business.
Getting a little advice from someone in the business world is also a good idea. Whether you’re opening your first business or your third one, talking with someone who can give you independent business advice will go a long way. This person will be able to give you advice for years to come – not only upon the planning stage of your business but also as your business grows.
If you are tired of waking up early, going to the office and the daily commute, you may want to consider doing your business online.
Here are some businesses that you can start online that might fit your interests:
- Virtual Assistant
Businesses and professionals can often use the help of an assistant to manage tasks like email and social media. And you can offer your services to those clients online.
- Social Media Influencer
You can also focus on growing your own social media accounts. And if you earned enough influence within your network, you can build a business as an influencer that works with brands to promote products and services on your account.
- Social Media Manager
If you are social media savvy, you can offer your services to brands that are looking for help in managing their social media accounts on a daily basis.
- eBook Author
If you have a story or book in mind, you can write your own eBook and get it published on online platforms like Amazon.
- Online Course Creator
You can share your knowledge with people online by creating your own courses and selling them on your website or email list.
- Social Media Consultant
You can offer your social media expertise to clients online instead of actually managing it for them.
- Business Coach
If you have a fair amount of business expertise, you can offer to consult or coaching services to clients and communicate with them via email or video chat apps like Skype.
- SEO Consultant
You can offer your expertise to businesses that want to increase the chances of their websites showing up in the search or organic results.
- Affiliate Marketer
Affiliate programs give you the opportunity to earn money online by posting links to various products and services and then earning a share of each sale that you refer to.
- YouTube Personality
If you are comfortable in front of the camera, you can start your own YouTube channel and earn revenue through ad shares.
You can start your own podcast and sell advertisements or sponsorships to build a business around your content.
- Online Seller
If you want to sell actual products, you can easily set up an online store on e-commerce platforms with the likes of eBay and sell a variety of products.
- App Developer
If you have lots of technical knowledge about mobile apps, you can build a business as an app developer for clients or you can even build your own app to sell.
- Freelance Writer
For those who have a passion for writing and wants to start your writing business without starting your own blog, you can offer your writing services to outside clients as a freelancer.
- Remote Tutor
Online teaching is one of the in-demand jobs today. You don’t have to actually meet with people in person to be an effective tutor. You can set up online meetings with clients to help them with a variety of different subjects.
- Online Advertising Specialist
Knowledge about online advertising options will help you earn and offer your business that wants to use online ads to promote their offerings.
- Website Copywriter
Another potential writing business opportunity, copywriters help businesses create the copy for their websites.
- Online Recruitment
This is to help business clients find, contact and recruit the best team members mainly online.
- Life Coach
This type of business helps clients with a variety of issues and the form of communication with clients is done mainly online.
- Online Newsletter Service
Setting up an online newsletter is fairly straightforward. And if you build up a sizeable network, you can use your list to sell products, services or earn revenue by working with other businesses.
Before making a shift from being an employee to becoming an entrepreneur, here is a shortlist of what to’s:
#1 Think before you quit – Think thoroughly first before quitting your current job. Some entrepreneurs are bold enough to quit their job to manage their startup and has been able to hit big with their own business, but for some, it didn’t work that way. It would take time to get the business to finally take off.
#2 Have a prepared savings account – People need money to survive, and we all have bills to pay coming in every month. These are the considerations you should need to think before you decide to leave your employment status to become your own boss.
#3 Become a jack of all trades – If you want to be an effective and successful entrepreneur, you have to learn all the ins and outs of your business, everything is your job and can be your job. As you become more experienced in different areas of the business, you can get people and train them to take some of the burdens off your shoulders. But when things get wrong and no one knows where to turn, it will be your call to finishing the job.
#4 Set short and long term goals – During your transition to becoming an entrepreneur, you should set your short and long term goals as you get your business up and running. Think carefully about where you want to position your business a month from now, a year from now or even decades after. This will keep you motivated and focused on reaching those goals.
#5 Prepare for Stress – Owning a successful business can be one of the most rewarding feelings imaginable, but you have to be prepared to face different professional and personal trials especially during the stage that your business has not taken off the ground yet.
Starting up a business has a very exciting and rewarding challenge. It is necessary for an entrepreneur to have a good idea, thorough planning and clear understanding of the market and its competitors, financial knowledge, financial capacity, enough skills, and passion to support the business’ development. He should have the drive to excel and reach those business plans and goals, as there are no shortcuts on success and the road will be very bumpy along the way.
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