How to Transition from a Corporate Career to Being Self-Employed
Vivian and Neal Eilers sat down to discuss Neal's inspiring journey and how he transitioned from a corporate career to self-employment. Neal shared how he achieved success, resilience, and growth by utilizing a multi-stream cash flow system. He also shared his insights on decision-making and customer service. Tune in to hear about Neal's experiences and learn how to use his method to transition from a corporate career to self-employment. Links to the podcast episodes with his interview are at the end of this blog post.
About Neal Eilers
Neal Eilers is an entrepreneur who has gone from a corporate career to owning a business. After he attempted to join the Military and was denied due to a heart condition, Neal bounced around trying to find what he wanted to do. Eventually, he opened his storefront, NE Custom Framing and Furniture. His combination of sales experience, traveling, and passion for framing and woodworking has helped him build a successful business and develop a passion for customer service. Neal is a natural entrepreneur, passionate about helping other business owners reach their goals through hard work and dedication.
Why is it important to transition from a corporate career to being self-employed?
Transitioning from a corporate career to being self-employed can feel daunting, but it can be a thrilling step for those looking to take control of their destiny. Being self-employed allows individuals to pursue their interests and goals without the confines of a traditional corporate job. By taking the leap and becoming self-employed, entrepreneurs can have more control over their work, income, and life. Self-employment also allows entrepreneurs to develop new skills, gain experience, and work towards a career centered around their passions.
The transition to self-employment can provide a more secure financial future. Being self-employed allows entrepreneurs to maximize their earning potential and create a more reliable income stream without worrying about a surprise layoff ( Check out Todd Studer's story of starting his business after a massive layoff.) You are in control. You call the shots.
Self-employment can diversify your income streams and can lead to exploring new business opportunities. The freedom to pursue a career in which you design can provide entrepreneurs peace of mind and excitement. The future is in their own hands. It is also an opportunity to impact the world. Entrepreneurs have the power to create something new and innovative.
Transitioning from a corporate career to being self-employed is worth considering if you want to take control of your future.
If you are considering a move from your corporate career to the world of self-employment, here are a few steps to follow:
1. Identify your passions and interests.
2. Research and analyze your options carefully.
3. Set financial goals and projections.
4. Develop a plan to diversify revenue streams.
5. Take calculated risks.
6. Develop a passion and enthusiasm for your business.
7. Create a customer service culture that is focused on satisfaction.
8. Learn to stay resilient and focused in the face of scarcity.
9. Build relationships with the community and local leaders.
10. Anticipate and plan for delays and setbacks.
1. Identify your passions and interests.
Identifying your passions and interests is an essential part of starting a business. It can be daunting to begin the process, especially if you are still determining what you are passionate about. However, the first step is to take some time to reflect and think about your life and what has made you the happiest and most fulfilled.
Ask yourself:
What activities have I done that have made me the most excited?
What have I done in the past that I have genuinely enjoyed and felt passionate about?
What values or beliefs do I have that I am particularly interested in exploring or pursuing?
Once you have identified your passions and interests, make a list and consider how they can form the basis of a business idea. Next, consider how you can use your passions and interests to create a unique and marketable product or service for potential customers. Finally, consider the challenges and opportunities that may arise from pursuing a business in this area. By reflecting on your passions and interests, you can make informed decisions about what type of business to pursue and how to make it successful.
Once you have identified your passions and interests, it’s essential to research the market to determine if your business idea has potential. Take the time to explore the industry and assess the competition and growth potential. Next, consider the potential customer base and the demographics of those potential customers to develop a marketing strategy. Additionally, look into the costs associated with starting and running a business in this industry and consider any legal or licensing requirements that may be necessary. Doing research ahead of time allows you to make informed decisions about the viability of your business idea and the resources needed to succeed. Once you have researched, developing a business plan that outlines your goals, strategies, and tactics is essential. Your business plan should include your proposed product or service, marketing strategy, financial projections, and an operational plan. This plan should be tailored to your specific business and industry and should provide a roadmap for how you will reach your goals and objectives. Having a clear and comprehensive business plan will help you stay organized and focused on the long-term success of your business. Often this starts as loose ideas you jot down and expand on. Seek out your local SBDC (Small Business Development Center), a professional and free resource to help you create a business plan and conduct competitive research.
2. Research and analyze your options carefully.
Identify your target audience and understand their needs and wants. This includes researching the market and its competitors to understand what products and services you will be offering and how. At Tandem Works, we teach our clients how to conduct validation calls using tailored questions to discover your target market and the perfect client's wants and needs. It is easy to think that your idea is already excellent; you likely have thought about your product or service and may feel you have it all figured out. So often, potential business owners skip this step and launch their idea before doing accurate customer research. Validation calls should be with at least 20 or more people who fit your target audience.
This research considers the financial part of starting a business, start-up costs, pricing models, and potential revenue streams. Consider the business's legal aspects, such as tax requirements, licenses and permits, and any needed legal agreements. Find a mentor to help guide you through this process. You’ll thank us later for this one. Someone who has been where you are can answer the questions and avoid pitfalls.
Analyze options - explore your personal and professional goals and the impact of starting a business. Then, create a plan that is realistic and achievable for your current situation.
Ask yourself questions like:
What are my long-term goals for the business?
What do I need to invest in?
What resources do I need?
How will I fund my business?
What are the risks involved?
Do I have the support I need from essential people?
What am I willing to give up to make this dream happen?
What am I NOT willing to give up on this dream?
Answer these questions to evaluate your options and make informed decisions. When you carefully research and analyze your opportunities, you can be sure you are making the right decision for your business. This will help you stay focused on your goals and ensure your business is booming in the long run.
When researching and analyzing your options, it is also essential to consider the potential impact of your decisions on other people. This includes understanding how your business and decisions might affect your potential customers, partners, and suppliers. In addition, you should consider the environmental and social implications of your business. This means analyzing the potential environmental impact of your products and services and ensuring that your business practices are ethical and respectful of all stakeholders.
Finally, it is essential to research and analyze the potential impact of changes in your external environment. This includes monitoring changes in technology, the economy, and the political landscape. By doing this, you can adapt and respond quickly to changes in the market and ensure that your business remains competitive. You can make informed decisions that will help you create a successful business. Doing the necessary research and analysis will help you identify potential opportunities, create a realistic plan, and develop strategies to help you reach your goals.
3. Set financial goals and projections.
Setting financial goals and projections is essential to running a successful business. It involves looking closely at your current expenses, income, and cash flow and then predicting what those figures may look like. To begin, you should think about assessing your current financial situation. This includes inventory, labor, operating, and other expenses related to the business. Then, you should create a budget that outlines your business income and expenses and projects your cash flow. Then follow these same steps for your finances and consider if you need cash reserves or investments to ensure you meet your personal needs until the business can meet them.
Once you understand your current financial situation better, you can set financial goals and projections for the future. This includes setting goals for sales/revenue, expenses, and cash flow. To make sure your forecasts are realistic, consider factors like the seasonality of your business, customer demand, and industry trends. By setting financial goals and projections, you will have a better understanding of your financial position. You will be able to make smarter decisions when it comes to running your business.
Once you have set financial goals and projections, consistently monitor and review them. This means tracking and analyzing your financial performance and comparing it to your projections. Regularly checking your performance and forecasts can identify areas where you need to make adjustments or changes. This will help you stay on track with your financial goals and ensure you are running a profitable business. When setting financial goals and projections, consider potential risks and how you can get ahead. This includes looking at industry trends, economic conditions, and changes in customer preferences. By taking these risks into account, you can prepare a financial plan for unexpected events or changes. With a plan in place, you can ensure your business is always financially secure and adjust quickly to any changes.
4. Develop a plan to diversify revenue streams.
Developing a plan to diversify revenue streams is an essential step in ensuring the stability and success of a business. To do this, it is necessary to identify all potential sources of income, assess each one's viability, and create a plan to take advantage of them. This can include diversifying products and services offered, as well as differentiating pricing strategies and sales channels. Additionally, it can involve exploring other forms of income, such as affiliate marketing, advertising, and sponsorships. Or it may mean a temporary part-time job. Decide what is right for you. When planning to diversify revenue streams, it is crucial to understand the strengths and weaknesses of each potential source of income. It is important to remember that diversifying revenue streams is an ongoing process, as new opportunities may arise and existing sources may become less viable over time.
To implement a successful plan to diversify revenue streams, create a timeline and set measurable goals. This should include implementation and specific goals for each source of income. We teach the setup and use a scorecard method here at Tandem Works to track KPIs and adjust these each quarter as needed. We track every week. This can include monitoring key performance indicators such as the cost of goods sold, customer acquisition costs, gross profit margins, number of booked clients, number of meetings with potential clients, open email rates, etc. Every business will have different KPIs they wish to track, and they may change over time. The point here is that by setting measurable goals and monitoring progress, it is easier to identify opportunities for improvement and make necessary changes quickly.
Finally, it is essential to remember that diversifying revenue streams is a long-term process. This can involve trial and error and a lot of experimentation. It is essential to remain flexible and open to new ideas as the market evolves. For example, during the pandemic, we spun up a service offering we had previously planned to retire, and it was the service that cash flowed us through a few rough months. We decided to do this based on the scorecard we had developed. By developing a comprehensive plan and monitoring progress, businesses can ensure that they are taking advantage of all possible revenue streams.
5. Take calculated risks.
It's all a risk. Taking calculated risks is part of transitioning from corporate to owning a business. It is important to be aware of the risks associated with a new venture and to be prepared to address them. Vivian discusses with Neal Eilers his experience of going from the corporate world to owning his own business. He talks about considering various factors when he decided to open a storefront, such as his passion for the business, his ability to make money, and their financial situation. He also notes that it is vital to be aware of the risks associated with starting a business, such as the possibility of a lack of customers at times, delays in getting open, changes in the economy, or cash flow problems. Neal and Vivian discuss how having a positive attitude and being prepared to adjust as necessary when things don’t go as planned is critical. Taking calculated risks is essential in transitioning from corporate to owning a business.
Having a solid support system is also important when taking calculated risks. A supportive family, friends, and business partners can provide emotional and financial support, helping reduce the transition's stress. Additionally, having an experienced mentor or coach can be beneficial as they will provide advice, guidance, and resources to help entrepreneurs navigate the transition from corporate to owning a business. Taking calculated risks is essential when transitioning from corporate to owning a business. It is important to be aware of the potential risks associated with a new venture and to be prepared to address them. Having a plan of action, a robust support system, and seeking expert advice can help reduce the stress of taking a risk and increase the chances of success.
6. Develop a passion and enthusiasm for your business.
Developing a passion and enthusiasm for your business and then figuring out how to maintain it is crucial to achieving success. It is essential when starting a new business, as it helps to keep you motivated and focused on the tasks at hand. When you first start, there is a lot of enthusiasm and energy to ride on. You want to capture that and be able to maintain it. Only some things about creating your new path will be in your wheelhouse; you will be stretched and have to do things you are uncomfortable with. It's your passion and enthusiasm that will carry you through these times. Before you start, be sure you are passionate about this business idea and know it will tap into your passions and bring you joy. Consider activities you are already interested in. For example, Neal combined his passions for woodworking, photography, and customer experience. Then, focus on how you can incorporate these passions into your business. Next, make sure you are passionate about the service you provide to your customers. This will help ensure that they have a positive experience and will be more likely to return. Finally, maintain a positive attitude and enthusiasm for your business, even when things get tricky. This will help to ensure that you keep going and remain successful.
While taking your business seriously, it is also essential to maintain a sense of enjoyment and enthusiasm. Finding ways to enjoy the process of running a business can help you to stay motivated and committed. Additionally, this can help to make your business more successful. Take the time to celebrate your successes and recognize the hard work that you have put in. Having fun with your business can make all the difference in achieving success. It’s all about Loving your Mondays!
7. Create a customer service culture that is focused on satisfaction.
To create a customer service culture focused on satisfaction, it is essential to prioritize the customer experience and provide a positive and helpful experience. This means that employees should be friendly, helpful, and knowledgeable, and they should take the time to explain products, services, and processes to customers in an easily understandable way. It is also essential to be mindful of customer needs and willing to go the extra mile to ensure that customers are satisfied. Additionally, businesses should strive to be consistent in their customer service and to ensure that customers are treated equally regardless of their circumstances. To foster a customer service culture focused on satisfaction, business owners should dive into good customer service practices, provide customer service training to their employees, and reward those who provide excellent customer service. They should also ensure that customer feedback is taken seriously and acted upon accordingly. For example, remember to respond to google reviews, good and bad! Finally, businesses should never forget to thank their customers for their business and show appreciation for their loyalty.
To maintain a customer service culture focused on satisfaction, businesses should be willing to listen to customer feedback and make changes based on that feedback. They should also strive to provide a personal touch to the customer experience by offering personalized recommendations and services. Additionally, businesses should ensure that customers get timely responses to their questions and complaints and that any issues are resolved quickly and efficiently. With an exemplary customer service culture in place, businesses can create an environment where customers are valued and are more likely to be satisfied with the services they receive.
Transitioning from a corporate career to being self-employed can be a daunting task, but it can also be an enriching experience. By taking the time to reflect on your passions and interests, researching and analyzing your options carefully, setting financial goals and projections, and developing a plan to diversify revenue streams, you can make sure that you are making the right decision for your business. Additionally, you should take calculated risks, develop a passion and enthusiasm for your business, and create a customer service culture focused on satisfaction. Then, with hard work and dedication, you can achieve the success, resilience, and growth you desire.
Listen to Vivian’s interview with Neal Eilers on Riding Tandem for more inspiration.
The Riding Tandem Podcast
Are you a business owner? Or are you on the verge of taking that side hustle to the next level? Or curious about the world of entrepreneurship? Join Vivian Kvam, Co-Owner of Tandem Works, each week for a behind-the-scenes at small businesses and what it takes to succeed.
Each episode is full of inspiration, education, tips, and great conversation with people like you, people who are figuring it out. Take your business to the next level with insight from expert guests in business, leadership, and marketing.