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I quit, effective today I’m self-employed! I have $10,000 and I am going to start my own business on a full-time basis next month. I’m tired of working for someone else. My boss is trying to run my life. I’m tired of working all of this overtime, I want to work, when Iwant to work.

Are you contemplating becoming self employed within the next year?

Are you ready to put in the time and financial commitments it takes to get a small business off the ground?

Things to remember when considering self employment:

  • When you employ others to work in your company you might sometimes feel that you are responsible for supporting “other peoples’ households”. In addition to being required to make sure that payroll checks are available on pay day you may have to act as counselor, referee, negotiator, sales person, secretary, etc. You will wear many hats.

  • You might work considerable overtime without always getting paid, especially in the beginning.

  • You must be able to understand your cash flow, business cycle, client base, etc. If possible consider collecting your fees up front.

  • Although there are no guarantees, you might want to use a marketing consultant to assist you in identifying the proper marketing strategies to generate revenues from your target market.

  • You should obtain adequate capital to survive until your
    business becomes profitable.

At a minimum you should do the following before you decide to enter the self employment arena:

  • Prepare and complete a competition analysis grid
  • Prepare a budget and estimate how much money you will need in the worse worst case scenario. Don’t forget to include a salary for yourself and insurance for professional
    liability, disability and general insurance. Also include a budget for professional assistance from attorneys, CPAs and marketing consultants.
  • Always plan a time line for accomplishing your target sales/service level. Always have a backup plan, in case your business does not get off the ground.
  • Join entrepreneur groups and/or clubs to get business ideas and advise.
  • Attend seminars related to your business venture as well as bookkeeping, marketing and budgeting courses. Read as many small business magazines as you can, PRIOR to starting your business.
  • Meet with individuals who are already successful doing what you are interested in doing and try to form a mentor relationship with him/her.
  • Make sure you have the adequate licenses, experience, capital and personality to run the business of your dreams.

Becoming an entrepreneur is not easy. It takes a lot of hard work, dedication and focus. Before taking the plunge into entrepreneurship you have to make sure you are ready. You may be jumping out of the frying pan and into the fire.

This Entrepreneurship article was written by Genevia Gee Fulbright on 2/11/2005

Genevia Gee Fulbright, CPA is a practicing tax and income enhancement advisor with over 18 years of experience. She is the Vice President and Marketing Director of Fulbright & Fulbright, CPA, PA (a CPA consulting firm). Fulbright is the co-author of the upcoming title Make the Leap: Shift from Corporate Worker to Entrepreneur. Genevia can be reached by phone at (919) 544 0398 or via