Is a business owner simply born? No, usually they are ‘made’. Many a business owner started out as an employee and, for whatever reason, decided to become a business owner. Whether you’re 25 or 75, here are some good and practical tips and thoughts on how to move from employee to becoming a small business owner.
Remember too that being a business owner can be quite varied. A consultant or contractor is somewhat of a business owner, although if they have only one or two clients, they may not operate quite the same as a small business servicing hundreds of clients and potentially a dozen or more staff. Being in business can be quite diverse and can look quite different for each business.
Employee to Business Owner
First, Think About What You’re Planning to Do
I don’t mean this in a negative way, but business isn’t always easy. It can definitely be satisfying and once you’ve mastered it, relatively easy, but there will always be challenges. Really consider your personality type. Do you love a very regular paycheque or a day which doesn’t change at all? A business day can quickly change and you cannot bank on a client paying when they should. In business, there is an element of risk. If risk leaves you squeamish – maybe it’s not your cup of tea.
Good planning and doing your due diligence certainly mitigate risk. You should also think about why you want to be in business and what you want to achieve. Often, people look for money and freedom, but be aware that this takes time to achieve.
Naturally, of course, give careful consideration around the business you want to do. Industries are changing so quickly; look at how videos changed to subscription TV as one obvious example. Will what you want to do be around in 5-10 years? Is there a demand for it? Is the industry already saturated? Is it the type of business which will flourish in economic good times and bad?
Know What You’re Great At, and What You are Not
Before you go into business, there are many aspects to consider and action. In the corporate world, or as an employee, you likely had people around you who did the finances, marketing or IT. In a small business, you either do it all yourself (called wearing many hats) or pay others to do certain aspects. Consider your skills and abilities.
If bookkeeping leaves you cold, then you might find a contract bookkeeper who can do a few hours a month. If marketing, blogging, or something else is somewhat new to you, then you might choose to learn about it – at least some aspects, and contract out other aspects. As an experienced business coach, I’m often teaching clients how to read their financial reports, or help them create a strategic marketing plan or write a great LinkedIn profile – even if they get someone to actually do their Meta Ads or set up their IT. Some things you can (and should) learn, other things, it’s better to outsource. Those lists vary according to you and your business; everyone is different and what you do, or don’t do, will be different.
Plan Very Well
Once you know your skills (and of course, know what type of business you want to start), then get planning. Will you ease into the business, starting whilst you’re still in a job, or ‘take the plunge’ and jump right in? Both options have their pros and cons.
You’ll need to sort out a business name, lock in your domain, business name rego and, of course, social media handles. Do this all at once in the beginning so you can get what you want, especially with a domain and business name registration.
Your next step is often your website, as this won’t take a ‘few days’ to get created. Unless you’re a website guru, I highly recommend you get someone to do this for you. You don’t have to spend $10K or more, but do allow about $3K for a typical 5-page website.
There are many other things you’ll need to plan for your business – when I’m coaching a setup, I have about a 9-page checklist of things to tick off and ensure are done. Not every item is needed for every business, but it’s easy to forget something really important purely from oversight, or not knowing what you don’t know. One critical aspect of planning is financial planning; budgets, forecasting and knowing how you’re going to fund this venture.
Now is a great time for goal planning and determining what you want to achieve in 1 year, 5 years, and longer.
Develop Discipline Like A Business Owner
There will be no-one checking in on you likely – to ensure you’re ‘at work’ or to ensure you’ve clocked off and getting a decent break. You need to learn discipline to work the hours you need to work, but also know when to clock off and get a break.
On the flip side, often new business owners get caught up in the flurry of so much to do and do silly long hours. You need to set boundaries, limits and even discipline yourself to not pick up the phone at 10pm at night, simply because an enquiry came in, or a client called. Alternatively, no-one will be checking your progress on a project (bar a client), so if you spend all day playing games or watching TV or having long lunches with friends – well, naturally don’t be disappointed if you don’t achieve your financial goals.
Learn, Learn and Learn More
Another aspect is to be constantly learning, growing and developing your skills. Now I’m not just talking about your technical skills of your particular trade or industry (which you do need to keep current), but general business skills as well. What is happening in the industry and business generally? Remember, there won’t be a corporate update coming out to advise you on what’s happening – you need to be proactive in keeping abreast of technology, industry and your skills.
Getting a business coach or mentor often is very helpful as well. I know myself, I often work with clients where it’s the 30+ years of knowledge and experience I’m sharing, but also other soft skills like motivation, mindset and time management. Accountability is also a big part of what I do, which starts by helping new business owners learn better habits.
Another skill to learn is how to take risk – sensibly. Risk is a common aspect of business, but when you do your due diligence, plan for what can go wrong, have plans in place should that occur, then you’re more likely to be comfortable and secure in your business. A super simple concept is having a savings plan. It’s super simple, but it’s surprising how many new businesses don’t set up to save some money; whether it’s for their BAS, tax or a rainy day.
Develop a Thick Skin – Whilst Improving How You Do Things
You’re in business and sh*t happens. You will get knocked back by a potential client, potentially get a bad review online, ask the bank for a loan and get rejected. All these things can happen and some of them happen frequently. You can’t always manage how others will treat you (you can’t go to HR and make a complaint), but you can learn to become more thick-skinned, be more resilient and definitely know how to respond. One thing I say to clients who are feeling rejected because potential clients say no, is to firstly learn to handle objections and secondly to remember, when they say no, it’s not personal, it’s simply that they are not choosing your business.
More importantly, I work with clients to ensure they put their best foot forward in their sales process as part of the sales training I do with clients. We can’t force every enquiry to convert to becoming a customer, but we sure can take action to increase that conversion rate. I have some really great strategies I share with clients to help get them more business. To me, business (and business coaching) is about improvement, growth and development. Learn from mistakes – and even better – learn from others’ mistakes. If we get better at what we do, we do better in business – so that thick skin will be needed just a little less!
In summary:
Before you start a business, do your due diligence and research. Start saving so you have the finances in place and then get planning. Work on your personal and business skills, and yes, engage a business coach or mentor to better help you succeed. Whilst I have worked with clients pre-setup, the ideal time to start is when you’re ready to start choosing a name, buying the domains etc and starting work on your website. Not only do I have contacts whom I know you can trust, but also I can help guide you in getting the messaging right.
If you’d like to access a free 30-minute sample coaching session, click here. This gives you the opportunity to see if you and I are a good fit and get some really practical advice and tips during the session. It’s a sampler, not 30 minutes of me doing the hard sell. 😊 My passion is your potential!
Read 12 Must Do Action Steps When Your Business Really Grows.
