Want to Be Your Own Boss?
Being your own boss — the one who decides when you work, how much you work, and when you stop working — really is a dream come true. However…
There are usually positives and negatives to most life situations, and being a small business owner is not an exception. Becoming aware of some of the pros and cons of going out on your own can help you succeed in a big way.
There may be emotional stress, initially, when you don’t have the security of someone higher up simply handing you a paycheck for hours worked. But there is also the emotional reward of knowing that you are in charge of when and how much you pay yourself.
You may find that working alone feels a little isolated, at first. However, you will probably find, too, that you enjoy being apart from some of your noisier, more problematic former co-workers.
You will find that insurance and taxes will need to be considered, calculated, and paid by you or by someone that you have hired to take care of these jobs. This may seem daunting, but it is a relatively small part of being your own boss and is something that most small businesses can handle.
How to become your own boss
Follow these steps to become your own boss:
1. Choose your Path
There are plenty of ways to help you decide what direction your business should take if you don’t yet know what you want to do. Here are three options:
Fix a problem. It is best to come up with business ideas that solve problems. You can solve problems you or other people have, or you can identify problems that will arise in the future, such as a future shortage of natural resources.
You should do what you know. You can also turn your hobby into a career. If you are currently employed or an expert in a certain field, you can promote your skills as a service.
Taking inspiration from others. If you are interested in certain businesses, find out how they operate and improve them with your own touch; for products, try to find new ways to use old inventions.
2. Discover your Market
As soon as you have an idea, determine if it is viable by looking at the market you want to target. You can start small to test your idea. To find your market, you need to conduct some market research before you launch your business.
3. Strengths and Weaknesses
Ask yourself what can make you successful as your own boss. It might help you to perform a SWOT analysis on yourself at this stage. Knowing your strengths and weaknesses will tell you where to focus your energy and how to plan for the future.
Evaluate your abilities and assess your level of self-discipline and time management skills. When you gather the answers to this self-analysis, remember no circumstances should stop you from becoming your own boss. The objective is to be realistic, and consider all aspects of your current situation so you can start to look for solutions and organize for your new life.
4. Plan the Transition
You may have to consider how you will make the transition if you are currently working for another company. Self-employment can be started part-time and progressed to the role of company owner slowly, or you can quit and start right away.
While you are launching your business, you can earn income from your former job. One disadvantage is that you might not invest fully in your new business if you depend on the security of your day job.
The key is to prepare and position yourself for success before leaving your current position. You should make sure you’re ready for the transition.
5. Financial Needs of Business
A business launch requires a certain amount of money. List the basics, such as renting a shop or warehouse and buying products to sell, in addition to any special technologies needed if your concept calls for them.
The amount of money you need to start your business depends on the kind of business you want to start. To begin a business, you need different amounts of money.
6. Become an entrepreneur
Get advice from professionals and read books on business management to increase your knowledge. As you are in the startup phase of your business, you may wish to consult a certified accountant and an attorney. A small business development center provides training and assistance to people who are interested in starting their own business. These organizations can provide you with information on running a business and financing.
7. Name your business
Find something that will suit your activity on a long-term basis when choosing a name for your business. Check online to make sure it isn’t taken already. Once you pick a name, make sure you purchase a domain name to go with it.
8. Register your business
The IRS can assist you in obtaining a federal tax identification number or EIN for your business. Register your business name and get your EIN. Your business must have a structure as well. If you run the business alone, you’ll be a sole proprietor.
You can run your business from home or set up a location, but a website and business cards will help you promote your new venture.