Transitioning from Corporate Life to Entrepreneurship
Leaving the stability of a corporate job to dive into entrepreneurship is both exciting and a little nerve-wracking. The freedom and fulfillment can be incredible, but so can the challenges of running your own business. And making that mindset shift from “employee” to “it’s all on me” takes practice. To help make the transition smoother, here are some key things to keep in mind—from mindset shifts to financial must-dos!
1. Start Off on the Right Financial Foot
Many new entrepreneurs make the mistake of mixing personal and business finances. Set up proper accounting from day one:
Open a separate business bank account.
Establish an LLC or other entity for liability protection.
Use accounting software to track income and expenses, such as Xero or Freshbooks.
How will you fund initial business expenses? If you’re hoping to secure a business loan, know that securing funding for a pre-revenue startup can be challenging. Lenders typically want to see a track record of revenue and profitability before approving financing. An experienced business advisor can help you explore options.
Work with a bookkeeper or fractional CFO to set up financial processes and strategy.
2. Know Your Revenue Model
Unlike a salary, business income can be unpredictable. Clearly define how your business will generate revenue and test your pricing strategy. Do you have recurring revenue or project-based income? Will your business see seasonal fluctuations? How vulnerable will you be to supply chain disruptions? Understanding profitability, pricing, and potential pit falls early on will prevent financial stress.
3. Build a Support Network
Entrepreneurship can be isolating, so build a network of mentors, peers, and advisors. Whether it’s joining an entrepreneur group, working with a business coach, or hiring financial experts, surrounding yourself with the right people can make a huge difference!
4. Be Prepared to Market Yourself
In corporate life, your work speaks for itself within the organization. As an entrepreneur, you must actively market your business. This can be uncomfortable at first for many business owners! After all, unless you’re starting a marketing agency, marketing is not what you left corporate life to do. However, it is crucial to the success of your new venture. This means networking, personal branding, and building an online presence. The good news is, there are lots of resources available to help!
5. Hold Yourself Accountable
One of the biggest appeals of entrepreneurship is freedom. However, it often comes with blurred lines between work and personal life.
Establish routines and boundaries to prevent burnout. It’s easy to overwork in the early days, but sustainability is key.
Or, it’s also easy to underwork–particularly if you’re still in the building stage and your book is not yet full of client work. It’s tempting to see any time not spent directly working with your client or product as “free” time to fill with the endless demands of modern life outside the office. Instead, we tell our new advisors to start by deciding how many hours per week they want to work once they are at full capacity. Then, subtract time currently spent on client work. The difference is the amount of time you should spend working on your business–marketing, business development, networking, professional development, etc.
Since you are now your own boss, develop concrete guidelines to keep yourself accountable, to prevent either under or over working. How many hours per day will you spend on all aspects of your business? How many sales calls will you make each week? What time will you stop working each day to be fully present for your family?
6. Make a Plan for Continuous Learning
Unlike in a corporate job where training is often provided, entrepreneurs must proactively seek knowledge. Stay informed about industry trends, marketing strategies, and financial best practices. Investing in yourself is one of the best ways to ensure long-term success. Industry newsletters are a great way to do this, as are conferences or self-paced courses.
Transitioning from corporate life to entrepreneurship is a big step, but with the right mindset and financial foundation, it can be incredibly rewarding. At Breakaway Advising, we are passionate about entrepreneurship–encouraging both our advisors and the small business clients they serve in a wide range of industries.
If you’re considering making the switch and need help setting up financial systems or strategy, we are here to support you! Learn more about how we embrace and support the entrepreneurial spirit at breakawayba.com.
