When is the right time to go on your own?
By Admin

September 9, 2010

You have been working for someone, or for a corporation for a while. You know your trade, you know how to price things. You THINK you can make more money by hanging out your own shingle.

When is it right?

Here are the really simple components:

NEVER leave just because you found one or two customers who would pay you directly (less) than they are paying your boss or company. They will be gone quickly. And, you could get sued by your company or boss (that is a separate topic we will discuss at a later date).

NEVER open your own place because you think you can keep 100% of the billing. People in my (recruiting) profession have tried that for a hundred years. Most fail miserably.

The time is right when:

You know your trade very well, but are not THE expert in it. The skills to run a business versus DO the business are not the same.

You have business skills (accounting, marketing, organization of paperwork) or you have a spouse who does, and you are not on the verge of divorce. By “business skills” we mean actually running a business. If you don’t have those skills and the spouse does not, find someone (Mentor) who does. 95% of all businesses fail in the first 5 years.

You have a real plan (“business plan”, so to speak). Look it up on the Internet, go to a local college or find someone to guide you through this. Don’t start a biz unless you have gone through this.

You have 6 months of living expenses in the bank.

You are exceptional at dealing with customers and have stopped using “professional jargon” with them.

There is no other way to make a living.

Don’t quit your job and start your own because you think the boss is a moron. You may be one too. Don’t start it due to having a few customers unless you want to be broke in a short time. You won’t have the time to find new customers when you are doing the work.

Start your business when there is absolutely no reason not to start it, including money, references, a job to come back to and a supporting family.