How to transition from employee to entrepreneur

If you’ve been thinking about transitioning from employee to entrepreneur, join the party. According to The Bureau of Labor Statistics, April 2021 marked the beginning of a new era: The Great Resignation or The Big Quit. That’s right. Millions of people around the world have made the decision to quit their jobs amid the pandemic. A record number of 4.4 million Americans quit their jobs in September alone.

So, if you are among the millions desiring to leave a job you hate to do something else you’d love more like starting your own business, then here’s exactly what you need to know. Use these steps to learn how to make the transition from employee to entrepreneur possible for you (this year).

How to transition from employee to entrepreneur

You need a business.

As obvious as a step this may seem, have you honestly taken a look at if you have a business? By that I mean, are you in business, or do you really have an expensive hobby? When making the transition from employee to entrepreneur, first make sure you’re investing time into a “profession” that’s set up to pay you for your work.

That means you need to monetize. No more *just* investing in logos, graphics, pictures, and products you enjoy. And a big one: Stop giving away your services for free. If you’re wanting to make the transition into being an entrepreneur, make sure the business side of things is profitable. Decide what you will sell. Determine the price. Start charging what your products or services are truly worth and make sure there is a profit. You should never guess at pricing or charge what you *think* people would be willing to pay.

You need a revenue goal.

A big reason why you may not have quit yet could be due to finances, for instance. Before you can successfully make the switch from employee to entrepreneur, the numbers have to make dollars and make sense. Ask yourself: how much money do you need to make a month? What’s your bottom line and the absolute minimum amount you must bring home? And then finally ask yourself how many sales do you need to make in order to hit your monthly goal?

Having a number goal in mind that you are aiming towards is essential. And here’s why: If you aim at the stars, you’ll land somewhere in the sky.

You need to make it official.

Once you’ve decided on a business venture, you must legitimize it. The easiest way to make sure you’re crossing all of your T’s and dotting your I’s is to visit a small business administration office. Small businesses are the meat and potatoes of the economy. For this reason, there are dedicated organizations in nearly every town offering free support so small businesses can have what they need to thrive.

Sit down with a local representative face to face. Get your questions answered. Learn what permits and licenses you need for your business. You can also get direction on how to write a business plan, funding opportunities, or learn about business tax classes available in your area.

You need to find your market.

After you’ve got a good idea about what you’re selling and you’ve taken steps to get your business legalized, now it’s a good time to find your target market. If you’re planning to make the transition from employee to entrepreneur, you should go into business with the mindset of not relying on your friends and family to support you and your business.

If they do, that’s great. However, you should focus on finding your perfect-match clients – the ones who have a burning desire for what you’re offering. Get to know everything you can about that unique set of people and continue to educate yourself about what you’re offering and the value it’s bringing to those people.

You need to make your first sale.

A lot of people don’t like selling. A lot of people are afraid of it, or they feel funny about it and want to put it off to other people. But the truth is, if you want to be your own boss, you must get over any uncomfortable feeling of asking for money. A key step to transitioning from employee to entrepreneur is mastering the art of selling. Perfecting your sales skills will mostly come from trial and error.

Once you make your first sale, rinse and repeat whatever exact steps brought you that success. You can start by keeping a daily log of what action steps you take as well as a list of what’s working and what hasn’t worked for you yet.

You need support.

Transitioning from employee to entrepreneur is a learning curve. There will be many mental, physical, emotional, spiritual, and financial challenges you will need to overcome. For this reason, it’s so important for you to allow yourself to be supported. This can come in the form of team members, coaches, courses, or people in your community who can help pull you up when you’re down.

Taking your time with getting a good handle on these steps could be the difference between the life or death of your business. The truth is succeeding in entrepreneurship (this year) is possible. The fact that you are putting this much thought into making the decision before transitioning from being an employee to an entrepreneur is commendable. It means you’re doing things the smart way.

Hopefully, you will use what you’ve learned to start getting set up for success. You have exactly what it takes! It’s just up to you to make sure you’re consistently taking action. Good luck!

Ready to go from employee to entrepreneur?

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Jasmine Ball is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.