- Apr 8, 2020
At age 16 we are forced to make a choice- one that may very well govern our life’s path: Sciences/Maths or English/Arts? A lot of us chose our career path then, moving on to university or college with a particular dream job in mind.
My path was far from steady. I went to University with the goal of becoming a journalist and ended up changing majors to Political Science because my best friend loved his major and I had absolutely no clue what I wanted to do! Although I had always thought about law school (Elle Woods, hello!) I didn’t set out thinking that my path would eventually lead me to law, but it did, and I fell in love with it. Life continued after law school but nobody really prepared me for what was next.
Ever wonder what happens to the percentage of us that start working and begin to question whether we chose the wrong career?
Like me, you may have landed your dream first job, working at a prestigious company, earning a great salary, and tackling interesting projects. However, your reality feels confined, limited and this results in questioning your career choice. Some people may feel the need to ditch their profession altogether...
The key to happiness and finding the light in your career may be more simple than you think. If you are like me, you can even keep your career but become your own boss, which is what I did!
Here is my How-To Guide for Self-Employment based on my own experience:
1. Ponder (and ponder hard):
Losing your status as an employee means losing the comfort of a pre-made schedule and duties, as well as the steady salary that comes with having a boss. If you are not a self-starter or good with time management, you may prefer working for someone else. You may also just really enjoy the perks associated with corporate work, such as a lunch budget, travel expenses, healthcare/ other benefits, and that’s totally understandable too! However, if you are ready to take the risk and are comfortable with the potential outcome (including some of these losses), self-employment may be calling your name!
Self-employment offers you flexibility in your work hours and work space location, control of your work projects and finances, and fuels a fire underneath you so that you no longer have the option to coast through your career!
2. Save money:
You are going to need some wiggle room after leaving a steady income and potential health benefits and paid vacations. Prior to becoming self-employed, make sure that your schedule doesn’t include any expensive or extravagant purchases, travel plans, or deposits in the near future that may be too hard to maintain without a steady cash flow.
As a rule of thumb, it is important to save up to three months of rent or mortgage payments in advance, in order to provide wiggle room and ensure that you will continue have a roof over your head. In the event that you are living rent free (aka. with your parents), don’t get too comfortable!
Other costs that you should keep in mind prior to leaving your current role include: initial opening costs for your business; any operating costs you will require in moving forward, expert payments, potential employee or assistant payments, advertising and marketing costs e.t.c.
3. Plan, Plan, Plan for your Business:
Create and strategize a business plan. It is important to develop as many connections within your new field as possible. Meet with other people who have gone down similar paths to yours and strategize/ pick their brains over the best course of action in moving forward. Learn from successors who have experience in your field by way of breakfast, lunch, dinner or formal meetings.
Write down your formal business plan, including business goals, potential client lists, and a budget for each avenue within your business (including inventory costs, costs of any potential goods and services, advertising and marketing costs, accounting costs, legal fees e.t.c.).
4. Consult with Potential Experts (such as Marketing Agents, Brand Experts, and/or Advertising Venues):
If you are starting a business, it is important to consult with experts PRIOR to moving forward on your own. You want to have all the logistics set up so that you can begin working and making money as soon as possible.
In the event that this is not possible given a busy work schedule at your current role, pick people’s brains and develop relationships with them prior to leaving your job, even if you are unable to contract into a defined relationship. Try to leverage your own network because this may be more cost effective and save you money. Don’t be afraid to reach out to friends or friends or friends to get suggestions, advice or quotes for service!
5. Contact an Accountant (and Lawyer, if need be):
One of the BIGGEST incentives for starting your own business are the tax incentives that come along with Incorporating your Business. Through self- employment, it is possible to expense more business- related expenses, including necessary carrying costs, costs of paying employees, and other corporate related expenses.
I encourage you to seek out a trustworthy accountant that will advise you of your options, including incorporating your business. To incorporate, you must chose a business incorporation name. If your job requires you to be part of an association, such as a CPA or lawyer, the incorporation of your business may take a longer than average period of time, so keep this in mind. The costs of incorporation on avg should range from $1,000.00 to $2,000.00, depending on the complexity of your business. It may take up to several months to incorporate your business, so don’t be afraid to commence the process while you are at your current employment.
6. Create a website (& get a corporate phone number/ create business cards):
You will need to be reached and given that you are responsible for creating all methods of contact at your new role, you might as well get this ball rolling as soon as possible. Website costs range in price and finding the best company to fit your needs also takes time. You will be your own boss, so the decision with respect to the name of your new company, the branding and modes of contact will fall on your shoulders. Be prepared!
7. Quit your Job without Burning Bridges:
The most responsible and mature way to quit your job likely won’t be like any of the methods seen in the movies.
In the event that you are disgruntled or have animosity- unless you are literally Greg Smith from Goldman Sachs (google his departure) do NOT publish a post on facebook and leave in a trail of blazing fire. There are standardized letter templates online for quitting your job. Print one off, amend accordingly, and bring it with you to H/R when you announce your two weeks notice (or the notice required in your contract).
Taking the high road is always the best road! A solid rule of thumb is to avoid saying too much, remain direct and voice your desire to leave. “Thank you so much for the opportunity. This has been a great stepping stone, however, a new opportunity has presented itself”. When asked what that opportunity is, a simple “I will let you know once everything is confirmed in the future” will suffice. Happy quitting!
8. Have fun and believe in your path:
Embarking on self-employment is both empowering and terrifying. When I became self-employed years ago I was completely terrified and unsure that I would have any clients! What I did have was belief in myself and the work ethic to get you through the process in one piece. Put faith in the process, work hard and be true to yourself and benefits WILL come to you.
