Managing Your Business

woman working on technology

Jumpstart A New Year’s Resolution to Be Your Own Boss

December 10, 2015 : Carrie Smith - Guest Contributor

In January 2013 I made it my New Year’s resolution to quit my job and become self-employed. My life was changing, and I needed more financial freedom and flexibility.

If you’re hoping to quit your job and be your own boss next year, here are three steps to take that will help you reach your goal.

Become Financially Stable

The first step toward becoming your own boss is taking inventory of your financial situation. Even if you’re sure of where everything stands, it doesn’t hurt to re-evaluate your priorities.

The first thing I did was add up all $14,000 of my consumer debt, my take-home pay and my monthly expenses. Being self-employed comes with a lot of ups-and-downs so paying off debt and taking control of your spending is key.

Outlined below are the steps that lead to financial stability and the overall goal of becoming self-employed.

  1. Add up all your debts
  2. Calculate your monthly income and expenses
  3. Find areas of your budget to cut back
  4. Allocate any additional funds towards debt

Work Multiple Jobs on Your Own Time

There’s only so many ways you can cut and trim your expenses until you have to start earning more money to make a bigger impact. What other skills do you possess that you can leverage into freelance work or a side-hustle?

For two years, during nights and on weekends, I worked at a local tax office in addition to my accounting day job. This allowed me to pay off my $14,000 in just over a year and start saving money towards my “quitting” fund.

If you want to sell your goods to earn some extra money, consider using sites like Etsy or eBay. You can also start your own website or portfolio of work to promote your services.

Maintain Positive Working Relationships

As you begin the process of quitting your job, it’s important to work on maintaining your relationships. Don’t burn any bridges. Maintain positive business relationships with your coworkers and boss because they could potentially become your first clients.

At the very least, those connections may refer new clients and contacts your way, so you want to make sure to continue fostering those relationships. Finally, give your boss plenty of notice before you decide to quit — I gave my boss four full months’ notice.

Starting your own business is an exciting time, but it’s important to make smart financial moves that will set you on the path towards success.

Share
Carrie Smith - Guest Contributor

Carrie Smith - Guest Contributor

Careful Cents

Carrie is a financial strategist, digital marketer and social media lover who enjoys traveling. She is the founder of Careful Cents, a blog designed to help freelancers, solopreneurs and go-getters how to get out of debt and organize their life, so they can create their dream business.

Copyright © 2014-2015 HRB Digital LLC. All Rights Reserved.