Starting a business after spending some time working on a freelance basis is both exciting and rewarding. Having spent some time building up your skills on a freelance contract with various companies, you’ll be confident that you can apply them on your own, with all of the knowledge in hand to make the best of your first few months and years in the industry. This article outlines some of the steps you can take to transition effortlessly from your freelance life to one in which you’re the master of your own destiny – and you’ll be pleased to see that with your skills and dedication, it’s not all that difficult to achieve.
Step #1. Don’t Rush
Preparation is the most important element in regards to starting up your own business. At the outset of transitioning to a business owner, it is recommended you secure work in the pipeline while you finish freelance projects on the side. It’s worth burning the candle at both ends before you take the plunge into starting your own business – not only is it worthwhile having ample money in the bank, but this transitional period will require extra work across your first few weeks.
It goes without saying, but you need to be able to invest in the company in the next few months, and you’ll need reserve cash for that. There will be costs in hiring staff and making a home for yourself in an office, but the costs don’t stop there. Some common business start-up costs include:
- Branding your company – this includes printed materials and digital resources.
- Filing for business permits, trademarks, and incorporation fees.
- Organizing the location of your new business and the legal requirements this involves, for example, implementing general liability insurance to protect your staff in the workplace.
With all these costs covered, you’ll be able to ensure that you’re making the best-possible and least stressful start to your life in the business world.
Step #2. Hire your First Employee
The first employee that you hire is imperative to the success of your business. For some people, this is the easy part because they have a fantastic ex-colleague in mind. But in the case that you haven’t got anyone in mind, consider the skills that you do not possess and what would benefit the company the most. It is also worth calculating which skills would be worth outsourcing and which are best to bring in-house.
Note that it is advisable to avoid hiring a friend or family member unless you are sure that they possess the skills required for the job. This is your livelihood and career, not a hobby, therefore to avoid uncomfortable situations it is worthwhile spending time deciding who to hire and ensuring the result is that your business is supported by a capable workforce.
Step #3. Be Patient
Establishing a business will expectedly be much more complex than you realized at the outset. Although it is impossible to know the average amount of time it will take for your business to turn over a profit, it is recommended when it comes to spending money that you set a maximum amount that you can spend. This is to avoid worrying about cash flow issues that can affect your general wellbeing as well as your business’ chances of success. Be patient, be smart, and be understanding, and your business will grow and succeed at its own rate.
Follow this three-step guide to help you transition from freelancer to business owner successfully.