If you’re considering making the move to self-employment from a traditional job, this episode with Matt Baker is going to help you de-risk the move to full-time entrepreneurship!
Matt Baker on How to De-Risk the Move to Self-Employment:
Matt Baker briefs us on some of the barriers that are keeping people from moving to self-employment ?
Hard barriers – People knew that they didn’t have the money to begin or the training. They couldn’t see a way to give up their current benefits.
Soft barriers – Worry about inconsistent income, concern about earning less money, fear of not having the right business plan in place, don’t know exactly what they want to do, loyalty to the company and they don’t want to leave.
Have you found similarities in the mindset or behaviors of people who are thriving as self-employed entrepreneurs?
Based on the data from Freshbooks if the business is thriving or if they are just getting by. We asked people a series of financial tasks that they either do or don’t do – only 1 out of 4 did all 7 of financial habits. And those that did those 7 habits were outperforming all the others. ?
Related Content: Tax-Saving Tips for Entrepreneurs
The 7 Financial Disciplines:
1. Regularly review your finances
2. A budget: having targets around your outcomes from revenue and expenses
3. A process where you save money for taxes
4. Proactively reducing debt
5. A way to pay yourself out of your earnings so you know what you made
6. Establish a specific structure for your business i.e. Inc., LLC, Sole Proprietorship
7. A process to maximize your write-offs for tax time
What are some ways to de-risk the move to self-employment?
Side hustle – Start here but know that it’s not a permanent thing to have two jobs, it’s more of a test to ensure that you like the work and want to keep it up.
Pricing – 1. Think about whether you are getting paid on everything you do, getting a deposit upfront or you can do incremental payments. 2. Possibly use a subscription-based model to create a more consistent income. Figure out what you’re going to charge and then you can see how many clients you will need to sustain the business and yourself.
Sourcing Clients – Prospecting or sales is something that most people are not excited about doing. Online advertising can really be hit and miss so word of mouth and client referrals are a great way to get sales. Start with someone you know. You can delight them, and they will start spreading the word for you.
Resources Mentioned in this Episode:
If you’re planning on making the move to self-employment, how are you going to do it?