{Money Mondays}Being Your Own Boss: From Mere Employee to Thriving Business Owner

According to Robert Kiyosaki, the author of the best-selling book “Rich Dad, Poor Dad”, obtaining financial freedom is matter of generating passive income. In other words, one must either be a business owner or an investor — if possible, both. In his conceptual tool called The CASHFLOW Quadrant, he states that there are four major ways to generate income: as an employee (E), a self-employed individual or small business owner (S), a business owner (B) and an investor (I). Kiyosaki says that those on the left side of the divide (E and S) may never obtain true wealth. Why? Being an employee or a self-employed person means being actively present to generate income. No work? No pay. When the company you’re working for lays you off, where will you go?

Perhaps you agree that this concept rings true. One cannot just work for somebody for life in order to have money. Almost everyone dreams of leaving their 9-5 jobs for a small business ownership — and probably better than that. That’s a good idea, but in reality, only a few will jump at the chance. And unfortunately, fewer of this group can be considered truly successful in the long run. Not everyone jumps into entrepreneurship knowing the risks involved even after knowing the rules. A “steady” paycheck and a lump sum of benefits can be hard to resist, you know.

The thing is, if you are considering it, why not do it? We all have “what ifs” in life. But the first step to gaining financial freedom is actually taking those risks and overcoming it. Remember that there will never be an ideal time to start a business. So, why wait?

Hold on to that dream for a while. For now, equip yourself of the following tips as you are about to make a transition:

1. Invest your own money first. Financing with the help of banks and lenders should be regarded as an option, not the first choice, when it comes to business start-ups. Attracting investors might be impossible if you’re not willing to put your money down as well. In order to make money, you need to shell out money, too. So, before leaving your job, make sure you have enough (perhaps more) cash to bounce back on during the first 6-12 months.

2. Understand what you are and are not capable of. Business ownership is anything hands-on — for the first part, at least. Whatever industry you’ll be penetrating, the aspects of starting up are similar. While you take note of the different operations, know your strengths and limitations. You will eventually need the help of other people to fulfil the duties you deem you’re weak at.

3. Consider seeking professional services. You may be a multi-tasker, but you need a team of professionals to get you going. For a start, you will need a lawyer, an accountant, a bookkeeper and a tax advisor. And if you’re planning to pay your social
security voluntarily, you may also need help with that. As your business grows, you might need the help of IT, web design and marketing professionals.

4. Know your market well. There has to be some reason why you wanted to put up this particular business. It all started with a great idea, right? However, some entrepreneurs fall into the trap of not understanding who will actually need their products or services. Remember that the first rule of business is to focus on the clientèle and their needs. This business isn’t about you — it’s about them.

5. Build your network. If you have had experience in the corporate scene, then you probably have a lot of contacts as of now. However, there’s no need to be pushy on them with all of your sales talk. Turn to them for advice and let them sample your product or service. On another note, don’t forget to build your online presence. Nowadays, we are a society dependent on instant information via the Web. Take this opportunity to let your business be known to everybody.

Your job may be more “stable” for now compared to this venture. But if you’re looking for ways to become financially free, then take the chance—the smartest way possible. Good luck!

AUTHOR BIO

Anna Garcia is a lifestyle blogger and works for Regus, a multinational company offering world-class serviced accommodation and business solutions. The corporation has operated business centres in 100 countries around the globe, including the Philippines.