3 Things to do Before Breaking Out on Your Own
Well, I made it.
It's 2016, my business hasn't fallen apart, and my life didn't somehow implode in on itself. Yay!
Without a doubt, starting my own business and making the transition from being a full-time employee to a full-time business owner was scary as hell. There isn't really a "right" way to make the jump, and there aren't really a specific set of steps that you absolutely 100% must take in order to do it. However, there are a few key things to keep in mind before you break out on your own, which I want to discuss in this post.
Why do I want to talk about this stuff? Because sharing is caring, and because I was lucky enough to have a wonderful and very clever guide (my boyfriend, John) who helped me navigate a lot of hurdles and helped me prepare for this experience.
Not everyone starting their own business is fortunate enough to have a John in their life, so here are a few things he taught me which I think will help you out if you think that running your own business is the path that you want to take:
1. Start Hustling Early
I got my first client a full year before I started working for myself full-time. Honestly, it happened by accident (I met a guy I knew from Twitter at a party who introduced me to his friend who needed a copywriter) and it wasn't for much, just a few copywriting articles each month. It didn't make a lot of money off that first client, but the experience of working with someone for a while helped me start to understand the dynamic of different kinds of working relationships which were different than the boss/employee relationship I was used to.
Also, starting small has allowed me to scale my business in a manageable way. I've acquired a handful of regular clients who I work with on a monthly basis, as well as some copywriting work, and one-off contracts for special events or websites as they come up.
I should also point out that I have been extremely lucky. What happened to me isn't always the case, and it's not realistic to assume that just because you go into business for yourself, that clients will start pouring out of the woodwork right away.
Not just that, but securing an ongoing contract (if that's what you're looking for, some businesses operate on a per-contract basis) often takes time. The process from the initial email or meeting to signing a contract can take months to happen, or never materialize at all.
By starting to build a client base early, you can get a feel for whether or not running your own business is actually what you want to do before you jump feet-first into doing it. Also, leaving your secure 9-5 knowing that you already have a handful of contracts to take care of your living expenses goes a long way in helping make the transition less scary. Trust me on this one.
2. Buckle Down
Assuming that you're working a 9-5 job in addition to building your business, you're going to be insanely busy trying to juggle both before breaking out on your own. Get used to it.
Before I left my office job I was working most weeknight evenings from 6-11 or 12, and spending a lot of time working on the weekends, as well. If you're trying to build up a decent client base to help you make a smooth transition, then obviously any time spent doing that work needs to be done outside of regular office hours (unless your boss is cool with this, which most aren't.)
If you want to work for yourself, you need to get ready for a very imbalanced work/life lifestyle for a while. Not just before you leave your 9-5, but afterward, too. To illustrate: I'm writing this on a Sunday evening, after working all day since I got up. I've also been on "holiday" since Christmas Eve, but have spent at least 5 days of my 10-day 'holiday' working for the majority of the day (who told you that running your own business was glamorous?)
What's crazy is that what I just illustrated isn't that uncommon; lots of people I know work even more than I do! But when you run your own business you're the only person responsible for generating your own income, and the sooner you get used to working aggressive and unusual hours, the better.
3. Save Up
Without a doubt the most terrifying thing about working for yourself is the transition from going to having a regular paycheque which is deposited into your bank account every two weeks, to one where your financial situation is in a state of flux.
I try not to talk too much about my financial situation, but in the interest of learning from my experience, here's how I managed to get myself into a relatively good position:
When I got my first contract (the small copywriting one I mentioned earlier) I used it to start paying down my credit card debt and the student debt that I'd acquired while in university. As I picked up more clients and started to think more seriously about running my own business as an option, I started splitting my additional income (ie: the money I was making above what I was paid at my office job) between paying down my debt and putting it aside in a nest egg.
Having a nest egg allows me to not freak the hell out when a payment is late (which happens) because I still have a float to live on for a while. Honestly, this "float" is the key to running your own business and not being in a constant state of panic. This all changes when you start bringing subcontractors and employees into the mix, of course, because they have to be paid before you do, but that's a whole different kettle of fish (and anxiety) that we won't go into here.
One last thing about money: get your taxes in order. If you live in Canada and you run a business making over $30,000/yr you must register for a General Sales Tax (GST) number. Dealing with the Canada Revenue Agency is a hassle (believe me) but if you aren't filing your taxes correctly you can wind up owing tens of thousands of dollars. Speak to your bank or accountant, if you've got one, and make sure you're covered.
Do you have any tips for people thinking about breaking out on their own? Tell me in the comments!