The 5-Step Guide to Transition from Employment to Self-Employment

Transitioning from a traditional job to becoming self-employed is an exciting yet daunting journey. Many people are overwhelmed by the unknowns associated with starting a new business from scratch. However, by making a plan based on your current situation, you can create a smoother and less intimidating path to self-employment. In this guide, we will explore five practical ways to help you make the leap from employee to entrepreneur.

1. Turn Your Current Role into Freelance Work:

An excellent starting point is to offer your current services as a freelancer for the same company you are employed with. You can negotiate a contract based on a specific number of days per month or outcomes instead of focusing on the number of hours worked. This approach allows you to free up time to find additional clients while maintaining a steady income source.

By eliminating mundane aspects of employment, such as attending unnecessary meetings and performance reviews, you can enjoy more flexibility in your work life. With the right approach, your employer may see the benefits of having you as a freelancer rather than a full-time employee.

2. Join Freelance Marketplaces:

Platforms like People Per Hour, Fiverr, Upwork, and 99Designs allow you to list your skills and services to secure project-based or ongoing work. By creating an impressive profile with work samples and references, you can attract clients and grow your reputation on these platforms.

Start by setting up your profiles while still employed, and transition to self-employment as your workload increases. Remember, there are always companies and individuals seeking your skills – you just need to make yourself visible.

3. Partner with Other Self-Employed Professionals:

If you prefer to focus on your work rather than business development, consider partnering with professionals in your field who may have more clients than they can handle. This collaboration allows you to take on projects from other self-employed individuals, either on a white-label basis or for a finder’s fee.

Look for potential collaborators instead of competitors, and seize opportunities that may lead to a steady income stream. Be confident in your proposal and demonstrate exceptional skills to secure partnerships.

4. Become a Contractor for Multiple Companies:

Reach out to companies within your industry and offer your services as a contractor. This approach provides variety and flexibility, allowing you to choose the projects you accept.

Start with smaller projects and gradually take on bigger commissions as you prove your value. Build a diverse client base and adjust your workload to meet your revenue and lifestyle goals.

5. Develop a Membership or Retainer Model:

Consider offering a membership or retainer model for your services. For example, a legal advisor could start a $99 monthly club, offering ad hoc advice and helpful resources to businesses in return for a small fee.

This model can be applied to various fields, such as HR, accounting, design, and research. Determine your revenue goals, set a monthly fee, and aim to provide exceptional value to your subscribers.

Transitioning from employment to self-employment doesn’t have to be an overwhelming experience. By following these five steps, you can smoothly move from your current job to a fulfilling entrepreneurial journey. Consider the worst-case scenario, and if needed, you can always return to traditional employment. However, with careful planning and determination, you can create a successful and rewarding self-employed career.

Fiskl can be an ideal tool for someone transitioning to self-employment, as it offers a user-friendly interface that makes it easy to navigate and use. The platform’s automation features can simplify all accounting tasks, allowing the new self-employed person to focus on growing their business. For instance, Fiskl offers AI auto-categorization of expenses, which can save time and ensure that expenses are accurately recorded. Additionally, Fiskl’s mobile app makes it easy to manage finances on the go, as it enables you to track expenses, create and send invoices, and receive payments from your clients. By leveraging Fiskl’s automation features and ease of use, someone transitioning to self-employment can reduce the stress and complexity often associated with accounting and focus on building their business.