Becoming your own boss is a major shift from the traditional 9-to-5 grind, giving you control over your career and financial future. However, it’s important not to rush into quitting your job without a plan.
In this article, I’ll share 5 valuable tips for becoming your own boss, complete with invaluable resources to guide you along the way.
Tip 1: Start on-the-side
If you spend a lot of time daydreaming about being your own boss or listening to podcasts about starting a business, it can be tempting to quit your job and “make it work.”
But quitting your job may not necessarily be the best option unless you have a huge nest egg to draw on for a few months (or years) while you get your business running smoothly.
Yes, it works for some people to quit and work from home cold turkey. But for many others, they too quickly run out of money, they can’t earn money fast enough, and then they can’t pay rent or put food on the table and go back to their day job.
Reasons to start a side hustle
My business, which I now run full-time from home, started as a side hustle. I worked a few hours a day for over seven years to build it up. When the moment was right, I finally took it full-time to be my own boss. Here are some more reasons to start a side hustle:
- Test your dedication: A side hustle will test your dedication to running a business. If you don’t have the drive or passion to run a side hustle, you won’t have the passion to run a full-time business.
- Build your financial runway: A side hustle will help build up your financial runway. To build a smart business, you’ll need some cushion. Use funds from your full-time job and side hustle to build up some savings before taking the leap.
- Gain traction: A side hustle will help you get traction in your business. Starting a business from scratch can be daunting. It is better to do it while you have the safety net of a job than when literally everything is riding on your success.
- Develop necessary skills: A side hustle will help you develop the skill set you need to run a business. Running a great business is nothing like the work you do daily in your cubicle (unless you’re running a giant department). A side hustle will allow you to build up your entrepreneurial and management skills and see what working from home is like.
Making the transition smoothly
To ensure a smoother transition from your main job to running your business full-time, consider setting milestones for your side hustle, such as achieving a specific revenue target or securing a certain number of clients. This can help you gauge the right time to make the leap.
Regardless of your future direction, starting a side hustle is one of the best ways to increase your income and save an extra $1,000 a month, with the potential for even more growth.
Tip 2: Try to turn your job into a freelance business
To put a business idea into motion, you’ll need to sell a product or service. That’s simple business.
If your goal is to be your own boss quickly, one fast way to get there is by picking a simple, low-cost business model like freelancing, consulting, or selling your services and expertise.
If you’re a designer, writer, developer, artist, or other creative person, you already have the skill set to be your own boss and work from home.
With a laptop, basic supplies, and some hard work, you can begin to find potential clients for your business and become a freelance writer, designer, developer, or hundreds of other options, depending on your skill set.
Advantages of freelancing
By freelancing, you can enjoy the freedom of being your own boss without huge start-up costs.
To be a business owner or your boss, you don’t have to find investors with a lot of money, write up a 100-page business plan, get a degree in management skills, or lease an office.
You don’t even need money to get started for some business ideas, depending on your product or service.
Here are a few key questions to ask yourself to get started:
- Can I start this business idea with equipment and assets I already own?
- Do I have the technology and tools to start this business from home today?
- If not, how much will I have to spend to be up and running?
- Can I begin operating my business today without making a huge financial investment?
- How quickly can this business start generating cash flow?
- How long until I earn money from this business idea? (The quicker, the better.)
One effective strategy is to explore how to turn aspects of your current job into freelance work. For example, if you’re a project manager, consider offering project management consulting services. If you’re a marketer, you might provide marketing strategy or execution on a freelance basis.
You can also provide freelance services to your current employer. Many businesses are open to contracting work to their existing employees, especially if they can see your value. This approach allows you to build your freelance portfolio and gain experience while still enjoying the stability of your current job.
Scaling your small business
As you build your freelance business and see progress, it’s time to consider scaling up. Imagine turning your solo hustle into a thriving enterprise with talented freelancers helping you out.
You can delegate those repetitive tasks, focus on higher-level strategy, and grow your business beyond your initial dreams. Scaling up means more flexibility and opportunities to pursue your goals on a bigger scale.
For example, let’s say you start a freelance marketing business. As you gain clients and build your reputation, you can hire additional marketers to handle various aspects of campaigns, freeing you up to focus on expanding your client base or developing new services.
Or consider another path: after building a solid freelance business, you could create a passive income stream by writing an e-book or developing an online course related to your expertise. This way, you’re scaling up your business and setting up income streams that work for you even when you’re not actively working.
While building your own business won’t make you rich immediately, it’s still beneficial to put extra money in your pocket. Most small business owners who commit to their new business full-time might only take a small salary compared to their day job – you don’t have to do that but it may be a step you’ll need to take as you’re becoming your own boss. Don’t be discouraged by a low salary, however, as you can still build your wealth. Watch the video below where I show you how:
Tip 3: Get started in a new field entirely if that’s what you want
You don’t have to stay locked into the same industry or role if it’s not working for you. The beauty of freelancing and consulting is that you can pivot into different areas with minimal risk.
Start by identifying industries or roles that intrigue and align with your passions. For example, if you’re a project manager in a corporate setting but have a keen interest in tech startups, you might offer freelance project management services to tech companies.
Focus on small, manageable steps to successfully transition into a new field. Begin by taking on freelance or consulting projects in your area of interest. This allows you to gain relevant experience and build a portfolio in the new field without a significant upfront investment.
Tip 4: Quit when the time is right
When I was unexpectedly let go from my day job (along with half the company), I realized it was time: I would finally be my own boss. After a few weeks of working for myself, I started wondering: “Why didn’t I do this a LONG time ago!?” Being my boss has been one of the best things to ever happen to me.
But without the push of getting laid off, I might have worked for someone else… forever. That’s a scary thought. But I’ve also met people who jump too soon — assuming that since they hate their job, they must be cut out for self-employment and ready to work from home even though they have no idea what product or service they could offer. That somehow, they’ll make a lot of money working for themselves.
It rarely works that way. That’s why it’s critical that you quit your full-time job when the timing is just right. Not too soon, but not too late.
How to determine the right timing
To make sure you’re ready to quit your job and dive into full-time self-employment, consider the following:
- Financial runway: Ensure you have a sufficient financial cushion. A common recommendation is having enough savings to cover at least 6 to 12 months of living expenses. This allows you to weather any unexpected challenges and gives you breathing room to establish your business.
- Revenue goals: Evaluate whether your side hustle consistently meets or exceeds your income from your full-time job. If it generates similar or greater revenue with fewer hours, it might be time to make the transition.
- Personal preparation: Assess your readiness to handle the responsibilities of self-employment. Consider whether you have the necessary skills, experience, and mental preparedness to manage your business’s challenges.
DON’T consider quitting when you have a bad day at the office. Bad days are just part of life. Having a bad day at work is not a reason to quit your job and become an entrepreneur (unless everything else is in order).
Tip 5: Start taking action right now
Finally, if you’re tired of working your day job and want to be your own boss, my best advice is to just get started.
Most people in your shoes spend far too much time reading articles, listening to podcasts, watching YouTube videos, developing their skill sets, and daydreaming. You’ll never be your own boss that way.
The only way you’ll ever be your own boss is to take action. Even if it’s something small — like attracting your first potential clients — it can lead to huge gains and put you on the path to a successful business and a Rich Life.
So just start. Before you read, listen, or watch another piece of advice, do something. Action breeds momentum, and momentum breeds success. Once you actually do something, you can have more time to do some more groundwork and even more research.
Quick wins to kickstart your journey
Here are some simple, quick wins you can tackle today if you’re determined enough:
- Create a simple portfolio: Showcase your work and share that you’re “available for hire” on your social platforms. A clean, professional portfolio doesn’t need to be elaborate; it should simply reflect your skills and expertise.
- Draft a one-page business plan: Outline your business goals, target market, and key strategies in a simple one-page document. This plan will serve as a roadmap and keep you focused on your objectives.
- Get your first client: Explore these 6 ways to land your first client by the end of the week. Whether reaching out to your network or leveraging freelance platforms, taking proactive steps will help you gain traction.
- Explore business ideas: Borrow one of these top business ideas that almost anyone can start online. These ideas are designed to be accessible and scalable, giving you a head start without requiring a huge upfront investment.
Remember, every small step you take today brings you closer to your goal of becoming your own boss. You’ve got this.
Before you know it, you’ll be packing up your cubicle, leaving your full-time job behind, and stepping confidently into the role of your own boss!
Once you're your own boss, the sky’s the limit
Becoming your own boss opens up so many doors and opportunities, making embracing the Rich Life more achievable than ever. My books, courses, and YouTube channel are also great tools to help you get started on escaping the 9-to-5 grind and becoming your own boss.
If you’re looking for an easy place to start, check out this summary of my NYT bestselling book.
Or, download the first chapter right to your device:
