You’ve dreamed of owning a business for many years and have worked tirelessly to turn the dream into reality. Now that you’re finally in a position to go from employee to entrepreneur, you’re likely eager to leave your current job as quickly as possible.
While having confidence and making the leap as soon as you’re able is important, you must also consider the many changes that will come with the transition. Here are 5 things consider before telling your employer goodbye.
Consider Insurance Changes
A major perk many employees are given is employer-sponsored insurance. The process of obtaining health insurance and dental insurance can seem like a breeze when starting a new job. Unfortunately, entrepreneurs often face a different reality when leaving their fulltime jobs.
Before making the transition, research the increased insurance costs you’ll be required to pay when registering for individual policies. The costs of these policies must be affordable on your new income before the transition to business-ownership is made.
Like magic, employees are given monthly paychecks with things like social security already deducted. As an entrepreneur, those deductions will be your responsibilities to calculate. Tax complications are some of the largest problems that new entrepreneurs face because they entered business-ownership without first fully understanding their taxing withholding obligations. Meet with your tax professional to learn just how much you should be withholding from your future business’s income.
Becoming the Boss
As a business owner, no one will tell you how to do things or when to do them. While this may, at first, seem like a thrilling prospect, it can also lead to a lack of motivation and an unclear business mission. Before starting a business, ensure you have the dedication to do what must be done, even if it means working late nights and weekends.
Dealing with Downturns
Unlike the steady paychecks of employees, entrepreneurs often live on feast and famine incomes during their business’s first years. To be a successful entrepreneur, you must learn how to properly plan for unexpected downturns and must learn how to keep a level head when clients suddenly stop coming in.
You may think that friends and family will stand firmly behind your decision to start a business, but the opposite sometimes occurs. From jealousy to worry, those closest to you may bring negativity to your business aspirations, urging you to remain with the fulltime employer. While listening to other points of view is important, don’t let naysayers influence your decision of finally following through with your dreams. If the negativity of others is coming from a place of jealousy, ignore the comments and continue pushing forward.
Transitioning from employee to entrepreneur can be exciting and rewarding. It also brings many changes and additional responsibilities. By understanding the increased costs of being an entrepreneur and by also preparing for how others will handle the change, you’ll be more successful in the upcoming venture.