When Do You Jump Ship & Go Out on Your Own?
When do you make that leap from working for someone else to working on your own?
In today’s episode: We discuss a question I had from someone that wants to break away from a boss that isn’t giving them the promised leads and makes 3 times as much as he does. Here is what we discussed.
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Episode 73: When Do You Jump Ship & Go Out on Your Own?
Welcome back to the Local Small Business Coach Podcast. I am your coach, Tammy Adams.
Today we are going to take a look at a question on when do you make the jump from working for someone else and starting your own small business.
Q & A When Do You Jump Ship & Go Out on Your Own?
Hey everyone, it is Tammy and I wanted to share with you another great conversation I had with a soon-to-be local small business owner. He was sharing his desire to go out and start his own business which sparked today's question. When Do You Jump Ship & Go Out on Your Own?
You see, this guy has been working for another local small business owner, doing the same job, side by side with the business owner yet only making a third of what he could if he was out on his own. While discussing this frustration, he asked when should he jump ship and start his own business? He was tired of giving away so much of the money to this individual. When he had enough experience now that he could start his own business. He no longer needed his boss as a mentor and he sure wasn’t getting any of the promised leads he thought he would get. I could feel how frustrated he was with is situation.
Some of you might be in a similar situation. Doing a job that you know you could on your own if you just had the means or could make the money you needed. Or maybe you just made the leap. Some of you probably have been there, did that. You also left and started on your own. So at one point you faced the same dilemma as this guy did today.
So, today's question really comes from: When do you make that leap from working for someone else to working on your own?
Well, the reality is, it really depends. I know that sounds like a copout but like most things, big changes depend upon the circumstance surrounding it. For example, if you have a good emergency fund of cash, then you could probably make that leap a lot sooner than somebody that doesn’t have any emergency fund. Let’s face it, this type of move requires the funds to not only start the business, but to survive the ramping up of the business.
By the way, when I say you need to have the funds, you not only have to have the funds for your family to live off of and for you to cover your bills. You also need to have the funds to purchase any equipment and other start-up capital for you to start up your business.
In this guy’s particular case, his business would have a very low overhead. The majority of the business comes from his physically doing it. So, his start up costs are low due to the need of a computer and a few tools, and he will not have ongoing products costs. So, transitioning into his business is much different than say someone with heavy equipment needs.
HOW MUCH MONEY DO YOU NEED TO GO OUT ON YOUR OWN?
The next thing you need to do is figure out how much business do you need to have to hit those monthly bills. For example, does he need to take home after expenses $2,000, $3,000 or more? In his case, with a lower overhead that number is much easier to figure out. However, if half of your income goes to your expenses and product costs that number is going to be very different but you have to be able to calculate that out to know what you can expect and what your needs are. We talk about this a lot more back in episode 3 so I will not bore you again with it. Just know that if you don’t know what you are shooting for, don’t be shocked you never hit it.
Now, since most folks will not have the 6 months in reserves to get going, the second option is the most common way most new local small businesses owner get into business and that is to start it part-time and slowly build the business until you can make the leap.
But this was a problem for this guy. He obviously couldn’t work for his boss and then do the exact same job on his own due to the nature of the business. So, he either had to make a clean break after saving up some money or he would need to find a job he could do while he built the business. I bet several of you worked a job you weren’t a fan of while you built your current business to the point that you could make the official leap.
GETTING THOSE FIRST NEW CLIENTS
The next thing that he and I discussed was how he was going to get those first clients. I asked if he was able to reach out to folks he had helped before or was he bound to not use them. In his case, he had built some relationships so even if you didn’t necessarily try and recruit, he could let them know that he was starting his own gig.
We then brainstormed the various ways he could build his business. We spent a lot of time discussing the power of providing great customer service and why it was important. We talked about creating his best marketing item, which were these highly satisfied customers.
DON’T MAKE THIS MISTAKE
As you can see, we talked about a whole range of stuff during out hour conversation. The soup to nuts if you will of what he can expect during this transition. But I want to take a few minutes to discuss a concern that I picked up on during this chat.
He was all over the map with what he wanted to do. On one hand he wanted this business and yet on the other hand he shared another business that he wanted to do at the same time. Two completely different things with some overlap but they are unable to both be done with the same clients or customers due to rules around one of the career fields.
In the last episode, we discussed why you need to become very good at one thing and build a great business around it. In his case, he was not going to be able to do that trying to split his time between both new businesses. Could he make a decent living doing both, probably, but he was never going to get to the 100k profit we talk about. His time and energy would always be competing with each other.
He would be better served to pick one of the two fields and run with it. Put all his energy behind the one he picked and kick ass with it.
SO, WHEN DO YOU MAKE THAT LEAP?
When I started this episode, I asked: When Do You Jump Ship & Go Out on Your Own? That answer will be different for each person but you must have a plan. You cannot do it out of frustration with your boss or company. If you do, your odds go up dramatically that you will be one of those failed businesses. We don’t want this. We want you to be successful and the best to way to ensure that success is to make sure you have a roadmap to follow.
I guess that is one reason when I started this training for local small business owners, I knew I needed to start at the beginning. The first training materials I put together actually were for new local small business owners. I wanted to make sure that I could give free materials to help these folks get going. Heck, I even have a website I hope they stumble upon over at startalocalsmallbusiness.com. I’m not saying this to send you over there, but rather to emphasize the importance of all of us to take the time to help folks that want to enter our world of the local small business owner. We need to help them get started, share the pros and cons and offer to be mentors along that journey.
I am sure many of you made that leap before you were ready. If you could go back in time and offer any advice to the you of back then, what would you tell yourself? I’d love to hear from you. So please shoot me an email at email@example.com
Your feedback might just help a few other folks looking to start their new business. So once again, shoot me an email at firstname.lastname@example.org and tell me what you would tell yourself back in the days before you started your local small business.
And as we wrap up this episode I want you to know, that I realize being a local small business owner can be a lonely gig at times. But you don’t have to do it alone. Just know, I’m always here for you.
By the way, If you like what we are taking about, then make sure to subscribe to the podcast so you don’t miss an episode, if you love the podcast and what we are talking about, then please leave a 5 star review so other local small business owners know this is a podcast that they can’t miss.
And don’t forget to visit the website at LocalSmallBusinessCoach.com to leave your question for me to possibly answer on the podcast in the future. You can leave it via the Speakpipe button or just shoot me an email.
Meanwhile, I wish you the best in your business and remember: Great Customer Service, coupled with Great business practices will set you on the path to Great Profits!
Bye for now…..
Have a Question You Want Asked on Air? Shoot Me Your Question
Podcast Website: LocalSmallBusinessCoach.com
Leave your Message on the website with the SpeakPipe Button or just email me at Tammy@LocalSmallBusinessCoach.com
Our Training Materials for Local Small Business Owners: TrainingforLocalSmallBusinessOwners.com
Starting a Local Small Business Website: StartALocalSmallBusiness.com
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Today's episode, as well as all of our episodes, is brought to you by trainingforlocalsmallbusinessowners.com. Where we provide free tips, tools and resources for your local small business. So whether you are just starting out or you've been in business for a while and want to learn more ways to increase your profit, boost your sales, improve your processes and develop stronger teams then head on over once again to trainingforlocalsmallbusinessowners.com..
And if you are Thinking of Starting a Local Small business, over at StartALocalSmallBusiness.com we have lots of free tools and resources to help you get your local small business started. Plus, we now have a more in-depth course to Help Get you going. It has 12 modules, 50 mini videos and 13 downloadable tools a person can use to start their local small business. You can find the link once again at StartALocalSmallBusiness.com. I also have set up a special discount code for listeners of the podcast. At checkout, just add the code PODCAST to save 25%.
See you on the next episode!
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