How to Transition from Employee to Entrepreneur

In February of 2001, I unknowingly went from a $12.25 per hour bedside nurse to a business owner.

As I reflect back, I can begin to see the steps. A pattern, if you will. While I want to believe it was all fate, luck, and right place, right time stuff.

The truth is that success leaves clues.

Transitioning from employee to entrepreneur may seem complex and overwhelming, but it's actually quite simple. At least simpler than one might think. It takes a little bit of planning and understanding of what is required to be a successful entrepreneur before starting the journey.

Don't transition to entrepreneurship without the funds needed to be successful. However, you need to follow specific steps first to ensure you have what it takes to succeed.

I mention funds, or dough, right off the bat because before anyone even thinks about leaving a 9-5, you have to be able to support your day-to-day expenses.

Feel me?

The following are five steps to follow to easily transition from employee to entrepreneur.

Step One: What's your passion?

The first step to entrepreneurship is discovering what you actually enjoy and learning how to monetize it.

Being passionate about something is one thing. But if you can't monetize it, you can't expect to transition as entrepreneurship requires funding to be successful and get started. You'll notice I'm again talking about money.

If the subject of dough makes you feel squeamish, you may need to just stop right now and re-eval.

If it doesn't make you squeamish, step one is to figure out your passion and ask if it CAN make you money.

Step Two: Set biz goals and create a biz plan

Once you have determined which business is right for you, fill out your business plan.

I'm def not saying you need to write up a 50-page plan with stats, figures, and metrics that you likely won't understand.

Instead, map out where you want to be in 3 years, one year, next quarter, then next month. Make these goals attainable and tangible. Then map out the steps to make each goal a reality.

Keep it wicked simple.

It doesn't matter if you can't get started yet. Creating a straightforward business plan helps to establish a viable business idea. In addition, it enables you to outline the necessary resources you need to get it started and running in the long term.

This is the information you need to safely break free from your current job.

Step Three: Create a money plan and strategy

In other words, do you have enough funds to pay your bills?

This is such a simple question, yet one that many budding entrepreneurs gloss over.

What about emergency savings?

Do you need to supplement your income if you leave your job?

If so, how do you plan to do so?

These are all critical questions to ensure you leave your job and transition to entrepreneurship safely and effectively. You can't expect to run a business If you can't pay your rent. There is nothing wrong with needing to stay at your current job or taking on a side hustle for a few years to save for this transition.

Many successful entrepreneurs today had no other option.

Step Four: Build your biz skills, knowledge, and network

While you save or wait to leave your job, it is always a good idea to continue to grow your skills and knowledge about your industry.

Read books, join groups or forums, and ask questions. Gaining experience can help ensure the products, services, or value you provide to your (soon to be) customers are worth their time and investment.

I had zero business skills and absolutely no startup experience when I first ventured out.

But I asked, learned, read, and filled my head with knowledge.

Step Five: Take action toward your biz goals

Finally, you must take action.

Things just don't magically happen because you have the right mindset and a plan to win.

You have to actually go do shit now. Follow the financial plan and strategy you put in step three to break free from your job and transition into full-time entrepreneurship. You know you are ready to leap once you have the funding to support your business, bills, and a good emergency fund.

The final word

Entrepreneurship is not for the faint of heart.

It takes hard work, dedication, and a lot of hustle to make a business successful. The five steps I've outlined provide a roadmap to help you transition from employee to entrepreneur quickly and safely. It's not perfect, and it's not foolproof, but at least now you know the first five steps.

Entrepreneurship may be right for you if you're passionate about something and can monetize it.

So what are you waiting for?

Get out there and start building your dream business today.

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