You may have started out believing that your small business was just enough for you to maintain a realistic lifestyle while doing something you love. As time progressed, however, you began to realize that your business is actually a pretty good idea – one that might grow if you were willing to take some risks.
At the same time, you may begin feeling like working as a contractor, while it served its purpose for a while, is actually starting to wear you down. You’re ready to move on to the next stage in your business.
Making the change from independent contractor, where both the work and income was based on your efforts alone, to a business owner, where you can actually get away for a couple of days of vacation without taking a huge hit, can definitely be difficult. You’ll be faced with challenges and situations that will make you question your decision over and over again. But it can be worth it if you do it right.
An important first step in the transition from contractor to business owner is to ask yourself questions about why you want to make the change. Are you looking to make more money and grow your business? Do you wish you had more time to spend with your family? Have you always known that you wanted to build your business into something bigger?
Knowing why you want to make these changes will be helpful down the road as you run into challenges. You’ll want to have these reasons for change written down somewhere so you can easily remind yourself.
A Good Game Plan
Building your one-man show into a thriving business might sound great, but is it realistic? Be sure that you develop a strong game plan and that you think this game plan through carefully before you make your move. This game plan might include deciding whether to hire employees or use other contractors. How long do you estimate it will take to get the business up and running? What will you fall back on when unexpected expenses come up?
Game plans are essential in transitioning to a business owner. You’ll want to have thought it through carefully and know when the right time to move forward is.
Be Prepared to Be Flexible
If you are not good at handling unexpected trials and challenges, transitioning to a business owner may not be the right move for you. You need to go into this transition expecting that things will not always go the way you planned. You will have clients that can’t pay their bills or malfunctioning equipment, etc. Keep a cool head and be flexible. There will definitely be some trial and error that you will go through, but you’ll come out on the other end more confident and ready to watch your business grow.
Are You Transitioning From Contractor To Business Owner?
Hacker Accounting is ready to be in your corner as you make this big transition. We’ll continue to provide reliable services that you can count on. For answers to your questions about how the transition from contractor to business owner might affect your finances or taxes, give us a call at 602-375-5251.