Embarking on the journey to becoming an entrepreneur can be a daunting task especially without the proper guidance. I initially created this blog to help attain financial success. This is not a business blog but it has been brought to my attention that many of you are interested in becoming an entrepreneur or are new entrepreneurs.
I regularly work with people on their finances and that includes individuals transitioning to entrepreneurship. I have witnessed people make amazing judgment calls but I have also witnessed a few blunders. If you are currently transitioning to entrepreneurship or are interested becoming an entrepreneur here are a few mistakes you want to avoid:
Failing to develop streams of revenue before you launch your business full-time.
As an entrepreneur you are responsible for bringing in your revenue. There will be times when clients fail to pay invoices in a timely manner, disappear altogether, or contracts will end for reasons beyond your control. People become entrepreneurs to gain flexibility and sovereignty over their careers. You want to ensure that you are protecting your power by developing multiple streams of income. If you have a product based business you don’t want to limit it to product sales. If you are a coach you should offer more than coaching services. Find ways to create multiple streams of income.
ByRegina offers fantastic resources on creating multiple streams of income.
Making the Transition without a Plan.
There are some of us that are “take the leap and build your wings on the way down” people. I am. But I measured the fall before I took the leap 🙂 In some cases entrepreneurship suddenly occurs. For example you get laid off from your job or you inherit the family business, which forces you into entrepreneurship quicker than you anticipated. But if you are able to plan for your transition, do it.
During the planning process contract new clients, create revenue streams, research and test the market, and have an understanding of what the next level looks like for you. A 20 page business plan isn’t necessary, but it is important for you to think about all of the aspects of your business. This includes plans to manage your personal affairs such as health care, life insurance and retirement.Resigning to work for yourself isn't like going to another job, it requires additional planning. Click To Tweet
Not asking for help.
As a business owner sometimes we feel like we should know it all especially if your specialty is in information or coaching business. It is not your job to know it ALL. It is your job to know what you do well. There is a difference.
There is a reason why people have areas of specialization. Connect with accountants and attorneys who can help you with your important paperwork. These items are essential when starting a business and you don’t want to make a misstep. If you aren’t strong in marketing or strategy, find an expert to help you grow these components of your business. Allowing pride to prevent you from asking for help could be harmful to your business and stunt your growth.
Thinking that Your 9-5 is What’s Holding You Back.
Don’t get me wrong, a business can grow exponentially when you have the opportunity to focus on it full-time. Most of us don’t have funders and investors, so that means that you will still be tired and you will still be under resourced. The main difference is you’ll be under even more pressure for your business to succeed. Just because you have more time to work on your business doesn’t mean you will work on your business more. If you have issues with time management, entrepreneurship might be a challenge for you. It requires more than focusing on your business full-time to make it successful. You have to understand the difference between busywork and work that is productive.
If you are ready to become your own boss but you’d like assistance organizing the financial aspect of your quit, I encourage you to register for our first e-course Financially Preparing to Be Your Own Boss.
You shouldn’t have to make this transition alone. We are here to help you plan your quit the responsible way.