Thinc Tank / Employee Engagement & Retention

Employee to Entrepreneur: Tips Before You Switch

Employee to Entrepreneur: Tips Before You Switch

Entrepreneurship is on the rise and it’s more accessible than we’ve ever seen before. Today’s economy has given birth to a new wave of innovators and creators, and most of those individuals have innovated and created in tandem to full-time employment.

  • Drybar, now a $100 million operation, was first launched by a stay-at-home-mom, who found time between naps and infant feedings to start a business with just a hairbrush and a blow dryer.
  • Carol’s Daughter was created by a full-time working mom, who created and sold beauty products from her Brooklyn apartment kitchen before ever opening her first storefront. Lisa Price took her desire to offer better multi-cultural products and converted it into a thriving business that eventually sold to L’Oréal for an undisclosed amount.

The faces and founders behind these mega-brands didn’t birth their businesses overnight, nor did they experience immediate success. Like many budding entrepreneurs, they built the foundational elements of their business slowly, operating as both employee and entrepreneur.

What’s the smartest way to transition from salaried employee to full-time, self-employed entrepreneur? The answer is complex, and it requires elements of business you may have yet to consider.

UNDERSTAND YOUR WHY

Understanding and connecting to our “why” helps provide everyday focus. That connection – what allows you to see beyond day-to-day tasks – is the key to being able to withstand the moments of high stress and slow financial growth. Take the time now and outline your motives and drivers, that which you are most passionate about and willing to make sacrifices for to ensure your business succeeds.

PREPARE FOR BEING THE BOSS NOW

Most entrepreneurs have an innate desire to lead and feel comfortable at the idea of being in charge. That’s a valuable trait, but the idea of leadership is different than the reality itself. The feeling of not having to answer to someone else may sound great, but that will never be a reality, especially as entrepreneur. Being at the top means you are responsible for answering to everyone – your employees, the government, financial institutions and the general public. At the end of the day, you are the face of the organization, which adds a completely different level of pressure and responsibility.

START SLOW, BUT DREAM BIG

Having an idea is great, but don’t quit your day job on an idea alone. Take time to carefully think through your next steps. Be purposeful and conduct adequate research on what it will take to build this concept into a business, and then create a business plan that will guide you forward. Then evaluate the market and test that evaluation to better measure the likelihood that your idea will convert.

Yes, you should take a leap of faith. You should absolutely bet on yourself and be bold, but do your due diligence first. Get comfortable with building your business in stages. That gradual process, while it feels slow, will actually help you reduce risk and achieve success faster.

SET A TIMELINE AND COMMIT

You are doing the hard work now, diligently preparing your business on the sidelines of full-time employment. But your likelihood of actually stepping away from salaried employment will continue to lessen if you do not hold yourself accountable for the transition.

Outline everything you need to complete or accomplish before transitioning. Determine how long those accomplishments will take, and then set a deadline for yourself to leave the employee status behind. Setting a deadline is a tangible reminder that time is continuously passing us by, and will help serve as a marker and driver for the goals you are chasing.

SURROUND YOURSELF WITH SMART PEOPLE

You are on a journey filled with unknowns. You don’t have to know it all, and you never will. The best thing you can do is embrace the journey ahead and build a bench of smart leaders who’ve gone before. Don’t hesitate to lean on others, ask for advice and admit your shortcomings.

Remember, there is a difference between taking a risk, and then taking a calculated risk. Do the hard work now, and you’ll feel more confident about entrepreneurship and your chances for success.

Start Your Journey With Thinc Today.

Employee to Entrepreneur: Tips Before You Switch
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Acquisition Project Management

Our clearly defined process includes expertise in the areas of management, research, market search, analytics, and reporting
Project Manager
Set up playbook
Research
Set up data room
Campaigns
Campaign Follow-up
pm-step-arrows-wide
Initial Criteria Match/Viability Meeting
NDA Signed, PM Onboarding
Growth Team continues search
Project handoff to PM
Prospect and Process Discussion
Financial modeling and valuation
pm-step-arrows-wide
Advisor to client
Meeting coordination and facilitation
Deal structure recommendations
Due diligence process
Pre-close legal coordination and support
Post-close integration
Project Manager
Set up playbook
Research
Set up data room
Campaigns
Campaign Follow-up
Initial Criteria Match/Viability Meeting
NDA Signed, PM Onboarding
Growth Team continues search
Project handoff to PM
Prospect and Process Discussion
Financial modeling and valuation

Acquisition Project Management.1

Our clearly defined process includes expertise in the areas of management, research, market search, analytics, and reporting

Project Manager
Set up playbook
Research
Set up data room
Campaigns
Campaign Follow-up
pm-step-arrows-wide
Initial Criteria Match/Viability Meeting
NDA Signed, PM Onboarding
Growth Team continues search
Project handoff to PM
Prospect and Process Discussion
Financial modeling and valuation
pm-step-arrows-wide
Advisor to client
Meeting coordination and facilitation
Deal structure recommendations
Due diligence process
Pre-close legal coordination and support
Post-close integration

Evaluate the merits of any business idea

Thinc specializes in conducting comprehensive feasibility studies to evaluate the viability, risks, and rewards of new business initiatives, ensuring informed decision-making and strategic planning for success.
Thinc will conduct individual interviews with key stakeholders to gain an understanding of their ownership goals and future objectives.

Thinc will review a variety of materials from the firm including, but not limited to, the past 3-5 years of financial statements, organization chart, key roles, and other relevant materials.

Thinc will meet with the owners to confirm the direction gleaned from our initial interviews and information analysis. We will use this meeting to refine the direction and inputs for the different models.

Thinc will build out the different options using the provided inputs showing the potential outcomes and implications for each model.

Thinc will present the feasibility study, documenting the various options and models. We will also schedule a follow-up conversation, allowing the owners time for reflection on the study, to answer questions and discuss next steps.

Due Diligence Services

Our Due Diligence services offer a detailed examination of the target company, providing critical insights into risks, opportunities, and financial health to support informed business decisions and successful transactions.

Contracts

Contracts

Ownership Structure
Government Documents
Legal Filings
Client Contracts
Leased Properties

Finance, Tax, Insurance

Financial Statements
Tax Returns
Payroll
Managed Reports

IT & Fixed Assets

Software
Hardware
Furniture
Vehicles

Marketing

Customer Segments
Market Segments

Organization

Current Salaries
Benefits & Bonuses
Hiring & Firing Practices
Employee Engagement

Due Diligence Services

Our Due Diligence services offer a detailed examination of the target company, providing critical insights into risks, opportunities, and financial health to support informed business decisions and successful transactions.

Ownership Structure
Government Documents
Legal Filings
Client Contracts
Leased Properties
Financial Statements
Tax Returns
Payroll
Managed Reports
Software
Hardware
Furniture
Vehicles
Customer Segments
Market Segments
Current Salaries
Benefits & Bonuses
Hiring & Firing Practices
Employee Engagement

Due Diligence Services

Our Due Diligence services offer a detailed examination of the target company, providing critical insights into risks, opportunities, and financial health to support informed business decisions and successful transactions.

Ownership Structure
Government Documents
Legal Filings
Client Contracts
Leased Properties
Financial Statements
Tax Returns
Payroll
Managed Reports
Software
Hardware
Furniture
Vehicles
Customer Segments
Market Segments
Current Salaries
Benefits & Bonuses
Hiring & Firing Practices
Employee Engagement

Evaluate the merits of any business idea

Thinc specializes in conducting comprehensive feasibility studies to evaluate the viability, risks, and rewards of new business initiatives, ensuring informed decision-making and strategic planning for success.
Thinc will conduct individual interviews with key stakeholders to gain an understanding of their ownership goals and future objectives.

Thinc will review a variety of materials from the firm including, but not limited to, the past 3-5 years of financial statements, organization chart, key roles, and other relevant materials.

Thinc will meet with the owners to confirm the direction gleaned from our initial interviews and information analysis. We will use this meeting to refine the direction and inputs for the different models.

Thinc will build out the different options using the provided inputs showing the potential outcomes and implications for each model.

Thinc will present the feasibility study, documenting the various options and models. We will also schedule a follow-up conversation, allowing the owners time for reflection on the study, to answer questions and discuss next steps.

Start Your Journey With Thinc Today.

Employee to Entrepreneur: Tips Before You Switch
TSI_logo-color

Employee to Entrepreneur: Tips Before You Switch