What does it really take to work for yourself? Going down the path to self-employment is only as impossible as you make it. Learn how you can make the leap to running your own business. Did you know running your own business used to be the norm? The Industrial Revolution of the 19th century ushered in the era of working for companies. Technological changes transformed how people earned a living back then, and the rise of digital technologies and the internet are doing it again today, making it easier than ever to transition to self-employment.
It’s not difficult to imagine the benefits of working for yourself. A number of advantages easily spring to mind, but here are a few of the factors that usually drive people to entrepreneurship.
Choosing to start a business is about seeking freedom. The freedom to pursue your passions while earning a living from them. The freedom to set a schedule that works with your life. Your business is your baby, so pouring time into it pays you dividends directly, unlike a traditional employer relationship. It also provides a flexible schedule -- one of the great allures of working for yourself.
It’s your business. You call the shots. You make the final decisions. No more spending hours making a case for your ideas to the boss. If you want to try a concept, go for it. This is also one of the great allures of being self-employed. You tackle the work in the way you see fit. You evolve the business in the direction you want it to go. You build a company culture that reflects your values.
In the beginning when you’re trying to capture your first clients, it may seem like the income you generate is a downside. In reality, over time, you can exceed the income you made at a traditional job. That’s because there’s no ceiling to what you can make. As long as you keep growing your business, your income potential is unlimited. You’re not at the mercy of an employer deciding how much, or even if, a pay raise is warranted.
When considering how to work for yourself, dwelling only on the benefits of entrepreneurship can paint a picture that's a little too rosy. In reality, there are plenty of downsides in addition to the upsides, and that’s why many choose to work for someone else.
Examine why you want to start a business. Is it because you’re frustrated with your job? Are you looking at self-employment as a means to make lots of money? If negative emotions like anger or greed are your catalyst, then you’re not ready to launch your own business. You should be passionate about the work you’ll do and the business you’ll build. Otherwise, you won’t possess the motivation to deliver a great experience to your customers.
Predictable income comprises one of the key benefits of a job. You know how much to expect with each paycheck. You lose that predictability when working for yourself. The natural ebb and flow of business means income fluctuation becomes the norm, especially in the beginning as you build up clientele. Also, your business is susceptible to macroeconomic factors like a recession. If a predictable income is paramount, avoid starting your own business.
An often underappreciated consideration of working for yourself is that you need to wear many hats. With an employer, you have support in the form of an accounting department, a marketing team, human resources, customer service reps, and so forth. As an entrepreneur, all those roles fall onto you. You'll need to earn enough money to hire a web designer or grit your teeth, grab some CMS software, and do it yourself. The same goes for generating sales.
There's an array of books and articles that explain how to work for yourself and make money. In reality, the ways to work for yourself can’t be summarized in a succinct step-by-step guide. Starting a business is an ongoing process, not a one-time event. Here’s how to tell if you’re ready for that journey.
When considering how to work for yourself, first you must possess the mental focus to establish and grow a business, and with that, have a strong commitment to yourself and your customers. Both must be in place to succeed. This is why many people start with a side hustle while maintaining full-time employment. They prove to themselves that they have the mental dedication required to run their own business and the ability to earn income from it.
Once you’ve launched your business, it takes willpower to stay focused on work tasks. With no one to answer to but yourself, it’s easy to fall behind or bite off more than you can chew. To grow your business past the early stages, focus and commitment again come into play. It’s tempting to grab every income opportunity that comes along even if it’s not related to your business mission or long-term goals.
Having passion for your pursuit is only part of what’s required. You also need to have a product or service that fulfills a market need. Otherwise, you won’t find customers.
Here’s how to determine that fit.
With traditional employment, not only do you gain a predictable income, but part of your earnings are diverted to a 401(k) account or another retirement plan, and health insurance is provided. You work a predetermined schedule. You get vacation time. And a boss tells you what you need to do. If you’re ready to turn off the auto-pilot and begin defining the details of your life, such as what retirement looks like, then starting your own business makes sense. Yes, predictability goes out the window. In exchange, you make the choices for your life that support the goals you want to achieve.
In my career building software products, a familiar refrain was, "Failure is not an option." This doesn’t mean you cannot make mistakes; quite the opposite. It meant launch your offering, collect real-world performance data, evaluate what’s working and what’s failing, then address the failure until it’s resolved. This same mindset applies to launching a business. You may think you have the greatest idea in the world, but when you evaluate the product fit to your identified market, you may discover the idea isn’t ideal. So be prepared to adjust or even pivot to a different business model, if necessary.
If you’re unwilling to adjust a product or service that isn’t working for your customers, you’re probably not ready to work for yourself. Being your own boss doesn’t mean you have no one to answer to; you always have to address customer needs, which change over time.
Speaking of change, the one constant for a business is continuous evolution. Acquiring new skills and knowledge is a big part of that. Perhaps your passion for photography doesn’t translate to the spreadsheets or other record-keeping required to prepare for taxes.
Being proactive and educating yourself is a big part of learning how to work for yourself. Some sources where you can find help include the following.
This learning also extends to your inner workings, such as getting out of your comfort zone. For instance, if you’re not keen on selling yourself or your work, you’ve got to break out of that mindset to capture customers. If you don’t attend networking or industry events, you’ll have to change that behavior, too, so you can gain contacts who can help further your business.
