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Moving from the role of an employee to an employer is certainly exciting. Here are some time-tested tips to help you make the transition.
Several women have proved their mettle by setting up businesses, hiring competent team members and generating profits – all of this, after leaving their conventional jobs.
However, is the transition from ‘being an employee to an employer’ simple? Not really…
Many people fancy the idea of quitting their regular 9 to 5 job and start chasing their entrepreneurial dream. The massive success of companies such as Amazon, Facebook, and Uber has proven that setting up a new business from scratch is not a distant dream anymore. Then why do most businesses fail?
As per 2018 statistics published by the Small Business Association (SBA), about 1/5th of business startups fail in their first year whereas half of the employer establishments fail within five years.
These statistics are displeasing but also indicate that aspiring entrepreneurs must embark on this journey only after thorough homework. This is a significant shift from an employee to becoming an employer.
While there could be numerous reasons for new businesses to succumb, one very important reason is the failure to adopt the ‘employer mindset’. Employees who have spent a significant part of their career in following organizational norms, often struggle to broaden their perspective and think like an employer.
So how does one embrace the employer mindset? Here are some quick tips to help you effectively transition from an employee to an employer.
An employer is responsible not only for business investments but also the operational cost including staff salary. Therefore, financial security is a must before taking that entrepreneurial plunge. To work on your business uninterrupted, make sure to have an adequate financial buffer that keeps you comfortable at least for a year.
As an employee, you are chasing deadlines and completing projects all under the supervision of your boss. As an entrepreneur, you are the boss. It’s completely a different ballgame.
An entrepreneur is the main driver — to set goals, deadlines, conduct reviews and take responsibility for everything in business. The good news is that you will be your own boss. The bad news is that every mistake and missed deadline will directly hamper your success.
Today, the business market is dynamic than ever before. As the central decision-making authority for your business, it is important that you are double sure before taking your idea to the next level. Test market, assess customer behaviour and keep an eye on all big and little changes.
Every plan and action will cost your business not only in terms of money but time and energy too. As an employer, you can’t shrug off the responsibility of making a wrong move.
Networking with the right people will give you the knowledge that no other book can ever give. To best understand the nuances of your new venture, it is imperative that you meet established entrepreneurs — who have already been in the situation and have learned to deal with it effectively.
Attending business conferences, webinars and even informal meetings with CEOs and founders will provide you with a new perspective and fresh ideas.
One of the biggest responsibilities of an employer is to build the right team. An employer needs to thoroughly examine the business requirement and precise skill set that will generate outstanding results.
Don’t focus on just filling up a vacancy, but to bring in employees with appropriate skills and right attitude. The last thing that an employer would want to worry about is the capability, integrity, and commitment of the team.
An employee has very little to worry about business expenses and overheads. An employer’s situation is exactly the opposite. As the owner, every small and big expense must be in your radar so that you can invest better by knocking off undue expenditure.
It’s time to brush up your accounting knowledge. Grab that balance sheet now!
What differentiates an employer from an employee is mainly the attitude. One needs to be far more flexible and resilient as an entrepreneur who generates employment for several others.
Realistic planning, regular reviews, and an effective delegation will help you get closer to your vision but more than that it’s your leadership skills that will take you far and help sustain the growth. Just take that first step with conviction.
As Henry Ford said, “Whether you think you can, or think you can’t — you’re right.”
First published here.
Image via Unsplash
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