How to Prepare to go From Employee to Business Owner?

Have you had dreams of owning your own business? If so, you’re not alone and realising your vision may not be as complicated as you think. Most people fall into the trap of thinking that starting a business is something they’ll have to wait to do. Before they can jump in, they’ll have to secure a significant amount of experience under their belts. But you can turn from an employee into a business owner now with proper planning and a few easy steps.

1.Familiarise Yourself with the Businesses Financials

Familiarise yourself with the businesses financials. That will depend on your current position, the company you work for now and the transparency levels… For example, you may have full access to the financial information if you work in a small business or for a public company.

In some cases, however, you might not get full financial clarity. You’ll always be able to access a certain level of knowledge about the company and their financial position. And as a bonus, taking an active interest in the company beyond your role may connect you to your boss as well.

Make a point to understand where the businesses cash flows in and out. Get an understanding of its expenses and why certain expenses are required to run the business. Get a good understanding of revenue, and learn what the differences are between a balance sheet and a profit and loss statement.

In turn, this will grow your understanding of the difference between the company’s overall financials and what goes on the books each month. Owning a business is all about knowing how to create something that generates profits and revenue while simultaneously keeping the costs as  low as possible.

2.Involve Yourself in as Many Business Areas as Possible

The year before you go from employee to owner is the time you should work harder than you’ve ever worked before at your current job. You’ll use this time to broaden your business knowledge in every way you possibly can. Make a point to involve yourself in departments beyond your own. Ask if you can participate on some scale with human resources, sales, operations, accounting and marketing.

Expanding your knowledge in these areas will allow you to learn invaluable lessons that could take you years, and a lot of trial and error, to learn as your own boss. Since you’re going to spend time around other departments, you may have to dedicate more hours than you currently are or have in the past. However, since you’re likely to have more extensive hours when you run your own business, its a good idea to get used to it right now.

3.Use Passive Time to Learn

Passive time includes time in the car you usually spend listening to music or preparing for your day. Instead, you’re going to turn your car into a learning centre. It doesn’t matter if you have a business degree or are just starting; you can learn a lot of knowledge in your passive time.

Commit to yourself that you’re not going to do anything while you drive except listen to business podcasts. Find podcasts that are relevant to your situation, maybe targeted explicitly at entrepreneurs and small business owners. If there’s some aspect of owning your own business you don’t understand, educate yourself. Download audiobooks about finding and hiring employees, setting up policies and procedures, running a business, marketing new products/services, finances and being a good manager. If you don’t have a long commute, grab any passive time you can and learn.

No matter what type of business you want to buy, we can help. Our experienced business brokers are just a click or call away, and you can contact us today on karli@justbusinessbrokers.com or 0409 965 540.