Making the transition from being an employee to becoming a business owner can be difficult. It can also be rewarding and eye-opening. Many business owners report enjoying greater work satisfaction after they become independent owners. Before taking the plunge into the world of business ownership, there are several things that you will have to do to prepare yourself for the change.
Understanding the Employee Mindset
As an employee, most major decisions are made on your behalf, often without your consent. Your employer tells you when to work, when to take breaks and when to go on holiday. Your employer decides when and how much you are paid for your work. As an employee, your employer chooses how the work is carried out. Your job is simply to follow orders without question. Employees can leave at the end of their shift without worrying about the health of the company. While this may be an easy system for some, these policies make it harder for you to transition to becoming a business owner.
As an employee, you are not responsible for growing your employer’s business. Your focus is on completing your task to the best of your abilities while earning a living. Your boss, on the other hand, has to worry about generating more business, satisfying clients and avoiding legal and financial trouble.
Becoming a Business Owner
Launching into your own business is an entirely different world than the one you left as an employee. One of the major mistakes people making when starting a business is operating the same way they did when they were employees. When you own the business, there is no time clock to tell you when the workday is done. As the business owner, your workday doesn’t end until the work is done. You will be responsible for all aspects of running your business and there are many legal considerations to take into account. These responsibilities include paying taxes, hiring staff and obtaining licenses. Getting the advice of a commercial lawyer can help you with this transition and make your business run more smoothly.
As a business owner, you will be required to take on a number of different tasks. You will not only work at your craft, you will be responsible for the marketing, accounting and personnel functions. If something goes wrong, it is your job to fix it. Unlike the employee who has no stake in the company, the burden is on you to keep the organization operating at its peak.
Transitioning from employee to business owner takes planning. The central part of this planning which will guide you in the right direction is a comprehensive business plan. Not only will it outline your responsibilities and those of your staff, it will also provide you with benchmarks along the way to make sure you are improving your business.
Peter Sarc is a freelance blogger who writes about Business related issues. If you are in Brisbane, feel free to visit the Carne Reidy Herd Lawyers website if you need help or legal advice.