Leaving a stable corporate job to pursue entrepreneurship full-time can be a daunting prospect. But it can also be a fulfilling and rewarding experience. To make the transition smoother, there are several things you can do to prepare yourself for the journey ahead.
Have a Suitable Workspace
One of the benefits of a corporate job is having a designated workspace. When we take our side-hustle full-time, having a dedicated space is often overlooked. You may have to create your own workspace. This could be a separate room in your home or a co-working space. Whatever you choose, make sure it is comfortable, conducive to work, and suits your business’s needs.
Enough Financial Support
Before leaving your corporate job, it’s important to have enough financial support to carry you through the initial stages of your business. Whether it’s through savings or another source of income, it’s essential to have a personal safety net to cushion any financial setbacks. Experts advise having three to six months of living expenses saved up before making the leap.
It’s great and it sucks at the same time. You know, it’s great because you have flexability and the ability to walk away from something that is not serving you. But you also have the ability to walk away from something, and they have the ability to walk away from you.Dorothy Kolb. Operations & Financial Executive
Get Clear on Your Expenses
Look at all of your expenses, both business and personal. That becomes the “salary” that you’ll need to maintain in order to go full-time in your business. If you are spending $1,000 every month, then that should be the minimum coming in from your business before you step away from that corporate job security.
Seek Legal Advice
Start off on solid footing by knowing the entity type that best suits your business and seek legal advice when necessary. Choosing the right legal entity is important because it impacts your business’s liability, taxes, and management structure. Seeking legal advice can help you make informed decisions and avoid legal issues down the line.
Starting a business requires knowledge and expertise in various areas such as finance, marketing, and sales. To gain more knowledge and confidence, it’s important to educate yourself. Join communities or take free or paid courses. Networking with other entrepreneurs can also provide valuable insights and advice.
Leaving a corporate job to pursue entrepreneurship full-time can be a challenging but rewarding experience. With the right mindset, financial support, workspace, legal advice, and education, you can set yourself up for success. Remember that the journey of entrepreneurship is a marathon, not a sprint, so be patient, persevere, and keep learning along the way.
Dorothy Kolb, CPA, SHRM-SCP, is an operations and finance executive with over 20 years of experience in the sports, media, and creative agency spaces including production, operations, and finance roles at CBS Sports, FOX Sports, NBC, Scripps Networks and CBS Radio.
Dorothy is a proud member of the National Association of Women Business Owners, The Upside, Dreamers & Doers®, the Society of Human Resource Management, and a Founding Founder of the Female Founder Collective’s 10th House. She is a mentor with the NASDAQ Mentor Makers program offering mentorship to entrepreneurs on the topics of business modeling, M&A, pricing, budgeting, and cash flows.
Learn more about Dorothy at www.dkeast.com