5 Challenges with Career Transitions
Transitioning from finding a job to opening a business can be a challenging process.
While finding a job involves applying for positions and going through the interview process, starting a business requires a different set of skills and knowledge. There are no formal handbooks of what to do and often, business owners are ‘in business for themselves and by themselves.’
Here are 5 challenges in transitioning to a business owner:
Financial shifts/challenges: One of the biggest challenges of starting a business is the financial aspect. Unlike finding a job where you receive a steady income, starting a business requires a significant financial investment of time and money. This investment can include the cost of setting up the business, operational expenses, purchasing potential equipment, hiring employees, and marketing the business. As an employee, you have a steady monthly income; for business owners, this can be quite varied. Often, business owners may have to hustle and do other side jobs or make adjustments/tradeoffs to their lifestyles in order to build the business and pay for their day-to-day expenses.
Time considerations. Another consideration is time. Operational activities that need to be sorted take time away from the business owner. There are opportunity costs, as the business owner needs to take time away from the business, reducing the ability to generate greater income. If you’re a solopreneur, this often brings up tradeoffs, as you are the only one who’s doing everything. When you’re a one-person business, you are doing the best that you can and you’re often dealing with tradeoffs for your time. When you’re in a job, you have paid time off for sick days, holidays, and statutory holidays, though if you’re a business owner, you often don’t have these luxuries if you’re challenged with cash flow/financials. Additionally, if you’re busy working on the business during the day, you have to make time (often in your evenings and weekends) to sort out operational activities such as payroll, invoicing, administration, etc. This pressure of not having time off can create more stress and pressure on the solopreneur to the point of burnout.
Structure and systems. Another challenge is the lack of structure and guidance that comes with starting a business. When you are working for someone else, you have a clear job description and expectations. However, when you start a business, you are responsible for creating your own structure and setting your own goals. This can be overwhelming for some people who are used to having a clear direction. It can also be challenging to be fully responsible for your own success and failure. When you’re an employee, you will still get paid if you fail and sometimes, there is no ‘motivation’ to improve. You see this with employees who just want to do their bare minimum to get paid. As a business owner, you have to consistently find ways to get better and better to succeed.
Building your business by yourself. Networking and building a customer base is also a challenge when starting a business, as you are investing time and energy to build trust. Being open to meeting new people and getting out of your own way is key. You need to be able to connect with potential customers and build relationships with them. This requires a different set of skills than finding a job, such as marketing, sales, and customer service.
Emotional considerations. Finally, starting a business can be emotionally challenging. You may experience self-doubt, fear of failure, and stress. It is important to have a support system in place and to take care of your mental health throughout your journey. It may be challenging to find a support network that truly understands and can relate to what you are going through. I know that I experienced (and still experience) challenges talking to individuals who have never opened businesses and didn’t understand. They even sometimes judged my transitions, as they could not emphasize with my situation. Do your best to network and find those individuals and groups who are there to support you through the good times and the challenges.
In summary, transitioning from finding a job to opening a business can be a challenging process. Financial investment, lack of structure, networking, and emotional challenges are some of the obstacles that entrepreneurs may face. However, with the right mindset, skills, and support, it is possible to overcome these challenges and achieve success in starting a business.
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Thanks as always, for taking the time to read my articles.
