If you’re an employee looking to pursue financial and professional freedom, becoming an entrepreneur may be an excellent option for you. However, before you leap, you’ll want to seek a greater understanding of the employee vs. entrepreneur mindset and have your other important questions answered.
To gain the insight you need, you will want to learn as much as you can about the entrepreneurial lifestyle to see if it aligns with your priorities, goals, and dreams.
What to Know Before You Become Your Own Boss
Of course, most people’s eyes light up when offered the opportunity to be their own boss, but it’s important to consider the additional responsibility, effort, and dedication required to accomplish what you seek. Take a wide and comprehensive look at the overall responsibilities included as well as day-to-day activities and expectations so you get the perspective you need to decide if this is a career path for you.
The Employee vs. Entrepreneur Mindset
If you’re considering owning your own business, it can be valuable to understand the differences in the employee vs. entrepreneur mindset. In an employee mindset, employees are held accountable by their direct supervisors. They complete assigned tasks and usually have a required work schedule. They are not responsible for the growth of the company and raises and promotions are typically determined by company leadership.
In an entrepreneur mindset, you are their own boss. You set the guidelines for business growth and are in control of your schedule. Your focus is on supporting the business through strategy implementation, leadership, smart hiring, training, and monitoring for opportunities and success.
Two Entrepreneur Examples
The two entrepreneur mindsets involve very different options and challenges. With the first example, starting from scratch, you’ll need a business plan that will be the model for how you start and run your venture. You’ll also need to know everything about the type of business you choose from the day you open your doors, as you will not only be responsible for all corporate strategies, operations, and processes but also be responsible for training, leading, and motivating your employees to make your start-up successful.
Because of the often large investment required, you may find yourself tempted to shoulder more of the work until your business is doing well enough to hire additional employees. This temptation can have consequences, which is why Business News Daily found burnout to be one of the biggest challenges of owning a small business.
The second entrepreneurial example is to become an independent franchise business owner where you license a business through an organization that is already established and successful in the industry, and hire and manage a team rather than perform the technical work yourself. The U.S. Small Business Administration states that, “Starting a business from scratch can be challenging. Franchising or buying into an existing business can simplify the initial planning process.”
As a franchise owner, you’ll be able to run your own business with the support of a franchisor. However, not all franchisors are the same. Some companies that offer franchise opportunities may not provide training, resources, and needed information to get your business off the ground. Find one that will become a trusted advisor and major source of systems, resources, referrals, and business strategies.
Should You Be an Entrepreneur?
Being an entrepreneur has potential for obvious and significant advantages and freedoms that life as an employee does not offer, but it’s not for everyone. There are also demands and responsibilities that potential entrepreneurs need to consider before they step out into this challenging world.
Funding
Many aspiring entrepreneurs worry about the financial risks of leaving a steady paycheck. Are you comfortable with funding your new business? For many, this can be an exciting opportunity to improve your financial situation by investing your financial resources into a smart business venture. Others find this part of running a business more challenging and stressful.
To accomplish this, you need to develop a thorough financial plan that includes savings, a budget for startup costs, and a realistic projection of income and profit. You can also consider exploring part-time entrepreneurship initially to mitigate financial stress.
Keep in mind that there are options for funding your business. Some of these options include existing capital such as from a savings account, securing a loan from a bank, SBA loans, investment account rollovers, and securing a loan from friends or family.
Ownership
Can you break free from the employee mindset and take up a leadership role as the decision maker for your business? If you’ve had ideas for improving your current company’s business model, then becoming your own boss may be the right call. Do you already take on responsibilities and ownership in the work you perform? This is a good sign that you’ll find it easier to be the boss and motivate others.
This is also true if you find yourself helping your co-workers succeed. You can take this same supportive approach and apply it to help your new employees succeed in their roles.
Goals
Becoming an entrepreneur starts with knowing that this role will fulfill your professional and life goals. If you have a passion for a specific industry, then you’ll want to look into how you can take your passion and turn it into a thriving business.
Vision, direction, and goals help you focus and monitor your success along the way, allowing you to succeed on the schedule you’ve planned for or make any adjustments to stay on course. Without these, new owners can feel overwhelmed and unprepared, to weather the challenges inevitably encountered as a business owner.
You may have a head start if your passion includes one of the following home service industries:
- Cleaning and Organization
- Windows, Glass, and Doors
- Maintenance and Repair
- Professional and Specialized Service
- Outdoor Maintenance
- HVAC, Electrical, and Plumbing
How to Become a Franchise Owner with Neighborly®
If you’re ready to break from the employee mindset and gain the freedom of entrepreneurship, Neighborly is here to help. With a wide range of booming service industries to choose from, you can become your own boss while doing what you love.
For more information, get your free copy of our eBook, “Franchising: A Path to Your Future”. You can also contact us today and we’ll help you find the right franchise fit for your skills and goals, and put you on the path to personal and professional fulfillment.
