5 steps to becoming your own boss
Everyone's selling something.
It’s enough to make you go mad: one dumb boss after another. A never-ending list of whining subordinates. Companies that couldn’t care less for you. Maybe it’s time you struck out on your own. Here are five steps to get you started!
Let me let you in on a little secret before you read any further: being your own boss isn’t a novelty anymore. It’s a fad. Everyone’s doing it, from accountants to writers, to music teachers and pet groomers. It’s a way of life. It’s so, well, twenty-first century.
“But how?” you ask. The money? The security? How are you ever going to find enough to survive? What if you fall sick? Well, you’re in for a surprise. Being your own boss is easier than you think.
Step 1: Know what you’re selling
The first question to ask yourself is, “What am I selling?”. Business and making money is all about selling, when you stop to think about it. Even as an employee, you’re selling your services to your company. You’re going to be doing the same thing if you set out on your own. The only difference is that you won’t be selling your company anymore — just yourself.
Loading ...Invariably, you’ll settle on a skill that you have as your best product, and rightfully so. Writers have a knack for the written word. Teachers are great in instruction. Some of us are blessed in an artistic way (music, handicraft), and some in more traditional ways (salesmanship, medicine), but there is always something you’re good at. It’s especially good if it’s unique, and not easily available. The trick to being your own boss is being really good at what you do, and honing that talent until you stand out from the rest.
Finding out what you’re going to be selling is probably going to be the most difficult step, but once you have it out of the way, you can start focusing on your venture. You will feel uncertain about your ability, and when people don’t buy, you’ll get disheartened. But stick to your guns, and you’ll soon find appreciation for your talent in some of the most unlikely places. Know what it is you’re selling, and start doing it!
Step 2: Get the word out
Now you’ve decided what it is you’re selling, it’s time to start doing so. Promoting your services or products is an essential part of the whole be-your-own-boss process, because if people don’t know about you, they can’t buy from you. But before your do go to all this trouble, make sure you are readily available. A permanent email address and phone number are indispensable.
Start off small: send emails out, and include your promotional pitch in your signature. Don’t spam, though — that’s an unpleasant way for people to find out about you. Next, invest a little. It costs less than USD10 to get a stack of professionally-printed cards to hand out whenever you get the chance. Scan the newspapers and Web for opportunities to pitch your services at events, exhibitions or functions that seem to fit your potential clients. Attend them and hand out those cards!
Make phone calls, too. Nothing is more effective than cold-calling. Writers call publishers to offer their services. Actors call production houses. Accountants call small companies with no resident accounts department. Who are your customers? You’ll be surprised with how receptive they can be to your proposals.
After that, you can start moving on to some serious A & P work. Build a website for yourself that shows what you’re offering and how to contact you. Make sure you include it in all email correspondence; and list yourself in websites that share your clientele. Don’t forget the online Yellow Pages (or equivalent). The Internet is a powerful marketing tool, and it’s free (most of the time). Use it to the best of your ability. If you’re willing to invest a little more, place some classifieds advertisements in newspapers.
By now, you should have started generating some enquiries already. It’s important to remember to not over commit yourself. Don’t make promises you cannot keep, or deadlines you cannot meet. Judge for yourself how much work you can handle. Ultimately, you’ll find that most of your business is going to be from repeat customers: clients that are happy with your work, and trust you to deliver consistently. This is where your client-supplier relationship skills will be tested. When you are your own boss, the adage that “The Customer is King” is never truer.
Step 3: Watch your interests
Insurance prohibits ladders.
Part of the reason that a lot of us shun setting out on our own is because of the lost benefits that we get from being employed, the two biggest concerns being retirement and medical benefits.
What you have to do is set up your own retirement fund. Most insurance companies these days offer plans that are similar to statutory retirement funds. Yes, you do lose a little in terms of your employers’ controbutions to your fund, but most self-employed people believe it is worth every cent to be able to wake up and say, “I don’t feel like working today,” and go back to sleep.
Medical benefits are a lot easier to replace: a simple medical plan will serve your needs just as well as any company’s employees’ medical benefits. In some instances, you’ll likely find them even better. Medical plans vary according to age and health, but in any case, it’s unlikely that you’ll find yourself paying anything more than USD100 a year – less than USD10 a month.
Step 4: Pay your taxes
One of only two things that are certain in life, being self-employed doesn’t mean that you’re excluded from paying taxes. You might ask how they will ever know, but if I told you the story of one man who didn’t pay taxes for ten years, and found a demand for over USD15,000 in backdated dues on his doorstep one day, you’ll know better than to try evading it.
Filing tax returns is simple, and most of us have done it at least once. Spend a day at the income tax department, and sort out your correspondence address for them to send you your documents. Fill them up, and attach relevant proof of income and relief, and that’s it: you’re done. Make sure you do it every year, else you’ll fall out of practice and get lazy.
Step 5: Enjoy the good times; prepare for the bad times
Every business has its cycle, and so will yours. One day, you will find business tapering off a little, and your income fluctuating quite disconcertingly. For this reason, you should always try to save for rainy days… of which there will be many. Some companies will issue cheques late, some not at all. As you gain experience, you’ll learn whom to trust and whom not to. Some people will ask that you redo your best work. Others may reject it outright. Sometimes you’ll find yourself faced with an irate customer. Sometimes, you’ll lose them altogether. It’s a sad reality that the world, like your customers, is not perfect.
But all this is invaluable to your development as a person, and you will have many bittersweet lessons to learn from. Take them in stride, and one day, perhaps as soon as a year later, you’ll be able to say “I’m the boss”.
