Ready to Take the Plunge into Self-Employment?

Have you ever thought of starting your own business or becoming self-employed? Almost everyone has wanted to be his or her own boss at some point in a career. But what does it actually take to make a success of it? And is it really the route that you should take?

If you’re seriously considering taking the plunge, here are three things to consider before making this very important decision:

1. What’s your motivation? Is it because:

• You’ve had a brainwave about a new product or service idea, and you’re certain it will take the market by storm.
• You’ve acquired certain skills, know-how and contacts in your current area of operation that make for a winning combination if you strike out on your own.
• The industry has some untapped potential you can exploit, given your special talents.
• You’re not satisfied with the way your career has been shaping up so far.

Whatever the reasons, make sure you make the change for positive rather than for negative reasons: The grass is not always greener on the other side, and you need to make sure that this isn’t just a way of “running away” from situations you really should deal with.

2. What assumptions are you making?

When you decide to move from a regular office-going career to full-time self-employment, it’s easy to gloss over the reality of what that entails. Here are a few insights into the world of self-employment that you may have overlooked in your enthusiasm.

• I’m not accountable to anyone but myself. When you run your own business, you still are answerable to a number of people – your customers, suppliers, employees and other stakeholders, like bankers or government authorities. As an owner, you have much greater responsibility thrust on you.
• I’ll have more control over my time. Many people who work from home or have a start-up business find that they work much longer hours than their office-going counterparts. You’ll spend time with both details and major issues that crop up. Be prepared to work very hard!
• It’s easier to run your own business than to work for a company. Working in an organization usually means that you’re responsible for just one of the functions of the business, whether in sales, marketing, accounts or production. But when you’re on your own, you have to manage the whole show down to some of the smallest details (until you can hire others.)

3. Do you have what it takes to succeed?
There are certain key personal qualities for success that you, as the owner of the enterprise, must possess. They are:

• Self-motivation. If you work alone, you can drift aimlessly without a boss or a team motivating you. Therefore you need both drive and discipline to stay on track and not get side-tracked.
• Business acumen. You must understand everything about your business – the products or services their applications, the realities of the market, the finanacials, etc. You need facts and figures plus good instincts to make wise decisions.
• Manage multiple priorities. You’ll be wearing many hats and will need to know how to plan, organize your work, manage your time and deal with the unexpected. You also will need to let go of certain things by delegating or by outsourcing.
• Risk taking. When you give up your existing job, you run the risk of not being able to get it back if you need it later. You also may lose the capital you’ve invested to get your business off the ground. How much of a risk taker are you?

Career Success Tip:

Weigh the pros and cons of your business idea and the realities of self-employment before jumping onto the bandwagon. Make your decisions and preparations wisely, and if self-employment is really for you, work hard and enjoy the success you deserve. Also see Career Change: Don’t Jump From the Frying Pan into the Fire.

Do you want to develop Career Smarts?