The Balance - Shifting from employee to business owner - CorePro8

The Balance – Shifting from employee to business owner

Shifting from employee to business owner

You probably have sleepless nights thinking of nothing but this new venture you are about to take on.  The one thing that will most likely deter 80% of  new business owners is managing the transition from a steady income from a secure job, to a position where they will only get paid based on what they bring in on their own hard work.

So what advice can be given to help move from one level of income to another?

This depends on a couple of factors:  how fast you can shift, and the level of growth you can bring to the business.

3 Strategies to Shift from Employee to Business Owner

#1 – If your business is starting up from a list of no clients for a service within the first year best to stay working as an employee and then slowly withdraw working as an employee as you build the business.

#2 – If you are considering to purchase a business or client list, focus solely as a business owner. The business you will purchase or the client list will always lose about 20% of clients in the first year of business.

#3- If you are starting a business that is not spending a lot of time working on its growth, stay as an employee until you have enough revenue flowing to leave your job.

Now, these are not hard facts, just advice based on my own experience and what I have seen in the small business I have managed.  Ultimately it will be up to you to find your comfort level while switching hats and the balance of income from one position to the other.

Keep checking back here for more advice and tips on starting your own business.

Thanks for reading!

 

About Coreina Hubert

Coreina Hubert is the founder and CEO of CorePro8, a program that guides business owners step-by-step through the process of registering or incorporating their business. Previously, Coreina worked as an accountant at her company, Book-it Bookkeeping Inc.

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  1. […] When you transition from being a full time employee to becoming your own boss, you will need to consider the amount of money you need to live. You may have to decrease your spending for a short period of time until your business becomes profitable. You must also consider how will you finance your new business. Does it require you to purchase materials? Develop a product? Maybe there are additional costs for learning. […]

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