Many people are finding their path to financial freedom through entrepreneurship. Not only does starting up your own business free up your time, but it also means that you are only accountable to yourself and no one else.
Instead of doing what your boss tells you to all day, you will have to take the initiative to create your own projects and set deadlines on when you want to get them done. Becoming an entrepreneur can be a rewarding experience but it also is no simple task. Without good work habits and the right discipline, it is easy to get sidetracked by menial things.
Job security vs. freedom
As someone who has started a full time job right after school, I have learned that both job security and freedom are mutually exclusive.
At the present moment, I am working 45+ hours a week in a public sector job where I end up having very little time for myself. Sad to say, I have become a workaholic resulting in the deterioration of my health, nutrition and sleep habits.
Although the compensation and benefits are modest, it still got to a point where I began asking myself whether it was worth it to continue. It wasn’t very long before I decided that life was too short to let my work consume every aspect of my life. It was clear that my freedom was more important than having a stable and secure job.
Since then, I have begun to pursue my quest for financial freedom by attempting to slowly transition out of my job. This is what I have realized to be crucial in my journey as an entrepreneur so far:
Having the right mindset
When first deciding to become an entrepreneur, having the right mindset comes a long way. The decision to start your own business does come with a certain degree of risk that the business might not take off. As a result, this possibility is what may deter a lot of people from even trying to start a business of their own.
Unfortunately, the truth is that not all businesses will succeed. If it was that simple, everyone would quit their job today and start up their own company. More often then not, it will also require a few failed start-up attempts before discovering that one thriving business. When that does happen, it is important to learn from the mistakes and improve on it for next time.
Knowing when to quit your day job
The biggest decision you would have to make as a starting entrepreneur is to choose whether you should quit your job to start a business. In fact, the most common reason why many people are afraid to start up their own business is the potential loss of a stable income and health benefits.
Fortunately, if the thought of quitting terrifies you, be rest assured that resigning from your employment is not a necessary step. There are many successful business owners who started their business on the side while slowly transitioning out of their day job.
Ask for help when needed
Someone who is just learning the ropes of starting a successful business may often find themselves with more questions than answers. If this happens to be the case, it is time to let go of the ego and know when to ask for help. Advice from a professional or someone with more experience can save you lots of time in research and experimentation.
Be willing to make an investment
At the very beginning of starting your business, expect to invest more than the usual amount of money, time and energy. You may also want to train yourself to be non-outcome dependent should your business not gain enough momentum.
Additionally, you may also find yourself with a hefty list of start-up expenses. You may find it useful to document all of these expenses while creating a budget for yourself. Doing so will alert you of when your business has or is projected to break even.
Create a marketable brand
When choosing a niche, there are usually two schools of thought. The first is that you should choose something that you are passionate about. This will give you confidence in your brand or product and help you reach your audience more effectively.
Contrary to that, the second school of thought is that you should find a niche that is in high demand with the least amount of competition. This strategy will give you the edge and the opportunity to be the big fish in a small pond. Both of these theories seem to have validity. It is up to you to choose one and go from there.
Network with other like-minded people
Although many people find networking to be a major hassle, needless to say it could also be the difference between a successful and an unsuccessful business. Connecting with other entrepreneurs may open opportunities in where all participating parties may gain something out of it.
What are some important lessons you have learned as an entrepreneur?
Guest Post Author: This post was written be Jeff W. He writes about his own personal finance journey at MillionEndeavour
All great points! The feeling of being trapped at work for so many hours a week is a huge factor in why my husband and I are pursuing early retirement. I really feel like my time is not my own and I want to change that!
Great points. Being your own boss also potentially provides multiple sources of income too.