Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
The opinions expressed by Entrepreneur contributors are their own.
If you clicked on this article, you're probably at least interested in the possibility of becoming an entrepreneur. However, if you're like most of us, it's also likely that as soon as the dream of entrepreneurship crosses your mind, you also see red flags, obstacles, depressing statistics, and maybe a horror story or two from someone you know who took a step that didn't work out. You're not alone. And yet… it's a tantalizing thought.
As a long-time employee in a large corporation, I know the motivations for self-employment only too well:
- The autonomy to decide one’s own fate after years of bureaucratic hurdles
- The flexibility to create your own schedule after a traditional 9-to-5 job
- The financial security of knowing that your hard work will directly impact your bottom line rather than accepting a predetermined salary
- The pure excitement of finding meaning in daily work
Trust me, I understand.
However, as we know, entrepreneurship isn't for everyone, so how do you decide whether to consider it for yourself, let alone take the necessary step? In my current role as a franchise consultant and small business owner, I'm constantly working with people who are on the verge of making that very decision, so how can you prepare for entrepreneurship before you jump in with both feet?
Related: How to Know If You're Ready to Quit Your 9-5 Job and Fully Embrace Your Side Hustle
1. Reflection and self-assessment
As mentioned above, not everyone can become an entrepreneur, so you have to honestly ask yourself: What am I good at? What do I enjoy doing? Am I a creator/visionary or am I a person who drives operations/implementation?
Make a list (yes, put it on paper or consult a document) and take inventory.
2. Start networking with business owners in your community
Ultimately, being an entrepreneur requires a certain level of people skills. I don't mean that you have to be the life of every party or the most extroverted person in the room – in fact, there are many successful entrepreneurs who are predominantly introverted. However, there is no quicker way to become aware of the ups and downs of entrepreneurship than by meeting with entrepreneurs.
Meet them at chamber of commerce events, meetups, professional development service meetings, industry networking events, and educational groups. There are even leadership transition groups designed specifically for this jump.
Don't set any limits. If you're not completely sure what type of business you want to own, cast a wide net. Network with franchisees, online start-up owners, etc. If you put in the effort to get to know these people and make those connections, you'll find them.
3. Get informed
Unless you've just come into a large inheritance, there's no one-size-fits-all solution to accelerate your success. It's important that you take the time to learn about different opportunities. Hit the books and read, read, read about business management, leadership and management skills. You might want to consider getting something like Kindle Unlimited, which lets you read through thousands of books and borrow up to 20 at a time for a monthly subscription.
I like to say that as a business owner, you are the OEO (Only Executive Officer), so make sure you also learn about some of the less glamorous aspects like human resources, training and technology tools.
In addition to reading, watch YouTube videos, follow influencers on social media, and listen to podcasts. Whatever you think you're lacking or what skill you need to hone before starting a business, make a list and deepen your knowledge in those areas.
Related: Most people have no idea what they need to do to start a business. Here's what to consider before becoming an entrepreneur
4. Start a small side job
When you start a business, you ultimately have to juggle things and make sacrifices. For example, there may be times when you can't go on vacation or take time off. You know what they say: “It's hard work.”
As an entrepreneur, your professional and personal life become intertwined, especially in the beginning. A successful business will provide you with all four of the motivators mentioned above (autonomy, flexibility, financial security and purpose), but not right out of the gate – it takes time to get there.
If, like many others, you are thinking about becoming self-employed but still have a job, you have to ask yourself: Do I have the mental flexibility to separate the two and switch back and forth between them?
Starting a small side job is a testing ground for you. Start with small stakes and a smaller investment. This can help you prepare for self-employment.
5. Talk to the decision makers in your life
Last but not least, it is important to talk to the people in your life who may be affected by your decision to become an entrepreneur, most likely your spouse.
Dive deep and have a serious conversation that you schedule separately from another evening conversation after a busy day. Have a future planning conversation. Develop a vision of what you want your life to look like in the next 5, 10, or 15 years. Will you stay in your corporate role? Do you have plans for retirement? What is your risk tolerance? Rate it on a scale of 1 to 10. Now, what is your spouse's risk tolerance? Is there agreement?
I really can't stress this enough: creating a plan/vision for the future is key. Because if you don't have a goal to work toward, you won't achieve it.
Ultimately, entrepreneurship can be a fantastic path to a fulfilling and exciting life – it's the best career decision I've ever made. Still, it's important that you take the time to understand yourself and the opportunities available. Consider taking the steps above to prepare yourself for entrepreneurship so you're ready to take the plunge when the time comes.
Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
