Have you had it with the daily grind? You may be ready to become your own boss. I remember when I knew my next career would be as a small business owner. I had the job I thought I always wanted, but getting headaches on the way to work in the morning just wasn’t right. I knew I was capable of doing so something more that would allow me to make a difference and where I would also make money. So, I used every spare moment to start planning to become my own boss.
The skills needed to be successful in the midst of the new economy puts tremendous pressure on today’s entrepreneurs. But now is still a great time to start a small business. Your skills, network, discipline, niche focus, optimism and ability to be coachable will determine whether your new business is a success or failure. I developed the Emerson Planning System with 6 things to consider when you think you are ready to become your own boss. This article is divided into two parts: This week’s Part 1 lays out steps 1-3. Next week, we will cover steps 4-6 of the Emerson Planning System.
- Develop a Life Plan Before You Ever Write a Business Plan: Regardless of your business idea, you must first figure out what you want out of life. By developing a life plan, it will enable you to build a business that aligns with your life goals. Too many people start businesses that are not good for them and their families. Your life plan should outline your financial, personal, learning and retirement goals. For example, you need to know up front how much money you need to make in order to be happy. The goals you outline in your life plan will play a role in just about every decision you make as you are starting your business. Decisions relating to how you structure your business must be addressed: Will you try to pursue angel or venture funding? Do you want to have one great boutique or a chain of them? Will you take on a partner? All of these decisions must be measured against your big picture goals for your life.
- Getting Your Finances Ready to Become an Entrepreneur: The money to start your business will come from your right or left pocket. Your ability to save has everything to do with your ability to become your own boss. Before you jump out there and quit your job, I suggest planning at least 12 months in advance. You should try to save 20%-40% of every paycheck. If you don’t already do so, you should start living by a budget. You should have a 750 or higher credit score. You also need to eliminate as much debt as possible. Starting a business while carrying a bunch of credit card debt will put a lot of pressure on you. It’s best to be debt free so you can go without a paycheck for a year or two before you’ll be able to pay yourself.
- Examine the Skills You Need to Run Your Business: You should look at what skills you have and what skills your need to run your business. Be honest when making your list of skills. If you are not sure about them ask three people close you to what they think are your best skills–you might be surprised by their responses. You may need to learn basic computer programs such as Excel, Access or Powerpoint. Or you might also need to learn accounting software or Adobe Photoshop or the latest social networking sites such as Facebook, LinkedIn and Twitter. You might also need to learn Wordpress so that you can set up your website or blog without being held captive by a web developer.
Next week: Parts 4 through 6 of the Emerson Planning System
What steps did you consider when starting your small business?
Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of MFE Consulting LLC, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine recently named her one of the Top 20 women for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog www.succeedasyourownboss.com Melinda is also the author of the national bestseller Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works. (Adams Media 2010)
So glad you point out that it takes money to start and run a business. So many people try to start their business with too little or no money. Doesn’t work. And it especially doesn’t work online. You have to have capital to run your business and too few people understand this.
Martha—
Thank you for your comment. I am often amazed how often I am asked about where people can find grants to start a business, and I must tell them that just like there are no free lunches– they must save the money to launch their business. That’s part of the reason why I wrote Become Your Own Boss in 12 Months, to give people the full understanding of what it’s like to start a business–before they start.
Continued success,
Melinda