Many people dream of quitting their regular job and starting a business of their own. The idea of setting your own hours, working in your pyjamas and just being your own boss can be very alluring.
The perks are great. But you will need to work harder, be more determined, and probably lose sleep once in a while. If you no longer find your current job inspiring, and believe you have what it takes to start out into the unknown as a business startup, this article will serve as a short guide to get you started.
Determine your finances
Probably the most important step in becoming your own boss is figuring out how you are going to pay your workers (if you decide to hire immediately), and how you will survive without a regular pay check (if you intend to go it on your own for some time).
Before rent office space or buying tools for your new online business, you need to first sit down with a calculator to figure out your financial standing. You also have to figure out how to get more funding for your new business. Once you have this figured out, you are on the road to self-employment.
Evaluate the market
Before you consider starting your own business, you must have an idea in mind. How do you determine if your idea is good?
In order to succeed as your own boss, you must have a business idea that resonates with your ideal market target, earn you money, and eventually grow. This may seem like impossible questions (predicting the success of a business you have not even started), thankfully, technology has made it easy to carry out market research without spending too much money.
Once you are sure of the potentials of your business idea, you can move forward with your startup plans.
Decide on a legal structure for your new business
Every business has a legal structure that determines how it operates; therefore, regardless of whether you want to run a brick and mortar operation or an online business, you will need to determine the legal structure of your startup.
For most people, this is an easy choice between sole proprietorship and a limited liability. But there are also other options, such as partnership and corporation.
Know your insurance needs
Insurance cover is a vital part of your new business. The right insurance will protect you from unnecessary expenses in the event that something goes wrong.
For starters, as a business with one or more employees, you are required by law to at least have employers’ liability insurance. But you will also need professional indemnity insurance, especially if you are directly connected to the work that is completed for your clients. This type of insurance cover will protect you from the legal expenses that occurs if your business is accused of causing financial loss to a customer.
Don’t burn your bridges
We understand that quitting your job and becoming your own boss can be an exciting prospect, but being careful never hurt anybody. When planning for your new business, don’t make the mistake of burning your bridges by alienating the people you have worked with for years. In fact, it may be a good idea to start your new venture on a part time basis, so as to test the waters.