EMPLOYEE TO ENTREPRENEUR: 10 ESSENTIAL STEPS TO ADHERE TO BEFORE TRANSITIONING
Being an entrepreneur doesn’t only mean to be your own boss. Being an entrepreneur also means being a manager, a visionary and a technician at the same time. There are necessary steps that you can follow if you want to leave employment and be an entrepreneur. Adhere to these steps, and you will see great results in no time.
1) Establish a solid business plan
A business plan is an important piece for the success of your business, and it’s either to give direction or to attract investors.
2) Figure out the startup cost
After building a business plan, the question of how much money is needed to venture will come next. According to experts, the key to this step is to look at your business expenses as individual components, and from there you can already calculate your starting cost.
3) Create realistic spending plans
Creating your business’ spending plan for the first time could be so intimidating, enough to scare some people away from being an entrepreneur. It isn’t that difficult, if you really want to be a successful business owner, you have to create and maintain a proper business budget.
4) Pay business debts
Having debts to scale up your business is pretty standard for every entrepreneur; however, having looming debt can take away the joy of being an entrepreneur. The best way to deal with it is to pick the best debt reduction plan and commit to it.
5) Establish an emergency fund
An emergency fund is the cash that you put aside for a rainy day. Many businesses that lack emergency funds often find themselves in a whole host of trouble especially when it comes to unexpected expenses.
6) Assess your retirement accounts as an entrepreneur
If you’re a young entrepreneur, you may not envision yourself retiring. After all, you were just starting your venture. However, planning your retirement ahead of time is very critical unless if you want to strike it rich and then got nothing to show off when you reach 65.
7) Care for what you are building
You need to protect your business from copycats and of course your competitors. Remember that your business is your castle; therefore you have to create a moat around it. Market your product well because a well-known brand is incredibly powerful.
8) Open separate business accounts
According to tax and business attorney Barbara Weltman, opening a business bank account for your new enterprise doesn’t only serve to legitimize your business idea and make your real business. She said that having separate business accounts is a vital consideration for your taxes.
9) Build a team of professionals
Hiring not just the best but also the right employees is important to the success of your endeavor. As a manager. You have to understand that your employees come from different backgrounds; therefore they have different ideas and personalities. If you can make your employees channel their individual strengths in a way that can benefit your business, then you’re on the right track.
10) Seek a tax professional
As a new entrepreneur, you may have a lot of questions about your business’ taxes. With regards to this, you need to seek the help of a tax professional and financial planner that can go through some tax implications on your behalf. Your financial planner can offer you a lot of tax planning tips for new entrepreneurs.