Dreaming of being your own boss, or maybe just having a different one in a different kind of job? Make the leap with confidence knowing that you’ve covered all the bases and won’t come up short on cash, energy, or other resources.
All ten of the following tips won’t apply in every case — starting a business can be quite different from leaving one job for another — but they’ll give you a good overview of how to plan.
1. Make sure you have enough savings to cover three to six months of expenses.
Calculate how much you’ll need to pay for all your living expenses, including insurance, food, rent or mortgage, and transportation. Ideally, you should have six months’ worth of funds saved up, just in case. It’s always better to be safe than sorry!
2. Get a part-time gig.
Find a job (or two!) that will provide a steady, predictable stream of income while you’re getting your business going. You don’t have to work at this job forever, but having income to pay for startup expenses is essential. Once you have a successful business, you can leave that job and focus on your own business with total peace of mind.
3. Figure out your healthcare situation.
Since you’ll no longer have employer-sponsored healthcare if you start your own business, you’ll want to explore all the options to find a healthcare plan that works for your budget and lifestyle. Consider checking out the options offered by Freelancers Union.
4. Complete all urgent medical procedures while you’re on your employer’s healthcare plan.
If you need to have major surgery or get any medical procedure done, even if it’s just a dental cleaning, be sure to get it completed before you make the transition. This will decrease your future expenses significantly and help reduce your stress. You can then use the saved money for your new business or keep it as an emergency stash.
5. Network.
Figure out how you’re going to market yourself, whether that means pinning flyers on bulletin boards around town, talking about your business with your friends and neighbors, or creating your own website. In fact, you’ll probably want to do all three.
Remember: It’s important to think about how the products or services you provide will add value to your future customers, rather than what you’ll receive when you’re networking.
6. Go on vacation.
Changing jobs can be stressful, and leaving a job to start an independent business can be even more so. You deserve to unwind, rejuvenate and recharge before dedicating yourself to a new business endeavor or career.
You’ll need all the energy you can muster as you make this incredibly rewarding – and incredibly challenging – transition, so take this step seriously!
7. Cut unnecessary expenses.
Take a look at your spending and cut any expenses that aren’t absolutely necessary. You might also want to sell items you no longer need, such as clothing and shoes. Apps like Truebill can help you identify recurring subscriptions and costs so you can easily cancel services you no longer need.
8. Take relevant classes.
If you know of any classes that could help you run your own business or succeed in your new career, sign up while you’re still working. And don’t look just at business or finance-related courses.
If you want to run a jewelry business by selling your own handcrafted pieces, for example, you might want to develop your skills in a jewelry-making class.
If you’re a writer and want to get paid for your craft, attend writing courses. CourseHorse is an incredible resource for classes to help you take your career in a new direction. The best part? There are a ton of amazing classes out there that you can take online anytime, which makes them really convenient.
9. Create a budget — and stick to it.
If you’re going to start a business or freelance after you quit your job, know that your income will often be unpredictable – at least in the beginning.
So, you’ll want to put part of each payment you receive into a checking account, a savings account, and a retirement account yourself. It might take some time to adjust to this, but most people will tell you that feeling more in control of your career is well worth it.
10. Open an individual retirement account.
If you’re currently in an employer-sponsored retirement plan, you’ll want to look into other options (like a Roth IRA) to roll your money into. And if you don’t have an employer-sponsored plan, now is a great time to plan for your future by opening an individual retirement account.
Freelancer’s Union has great resources on how to get started. Or, you can contact financial institutions like Fidelity or Vanguard to research retirement plans.
Final thoughts
Making a big career change can be scary, but it doesn’t have to be! With the right preparation, you’ll be way ahead of the game and ready to tackle challenges as they come.
Remember: Plenty of people have been in your shoes, and they’ve made huge strides in their careers because they followed through with their vision and dreams. You can do the same, and we’re here to support you!
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