Though transitioning from an employee to an entrepreneur involves taking a big mental leap and readily accepting a massive change in lifestyle, it is definitely possible for many people to make this switchover successfully. Despite there being no fixed set of rules for this kind of transition, the following guidelines can undoubtedly prove useful.
As the life of an entrepreneur is very challenging, the first step is to confirm whether you have the necessary passion, potential, inclination and calibre to switchover from working for someone to owning your own business. You also need to figure out what exactly you want from life and also analyze your skills, strengths, abilities and experience. This exercise will help you determine the kind of business venture that you can launch and manage successfully.
Another critical criterion in the transition would be to start doing everything like an entrepreneur. This would involve making decisions and taking responsibilities for everything rather than blindly following what your superiors require of you. It would also entail planning, strategizing, setting goals and drawing up concrete plans and achieving them.
While you contemplate starting a business, you also need to do market research, identify your target audience, do networking, plan for finances, design a sales strategy and also draw up a detailed business plan. All these will enable you to foresee how long it will take your business venture to get established.
Meanwhile, it would be prudent to have something equivalent to a year’s expenses in savings so that you can comfortably focus on achieving your business goals without any kind of stress or anxiety until your venture starts generating the profits you anticipate.
When you are transitioning from an employee to setting up your own business, it is always advisable to initially launch your proposed project on a small scale as a part-time enterprise, while you are still working in your regular job. It will mitigate the financial risks involved when you are testing your ideas and confirming whether what you are pursuing is indeed a viable business proposition.