The decision to jump from employee to entrepreneur is rarely easy, says Costa Vasili, Entrepreneurs’ Organization Melbourne Communications chair, and CEO of Ethnolink, but if you start small, get support and shift your mindset it’s far less daunting.

Entrepreneurship in Australia has been growing over the past decade, with the pandemic and disruption to countless industries resulting in a hike in new business registrations. The allure of leaving the corporate world behind and taking your future and financial security into your own hands is a strong motivator to get creative.

However, the decision to leave a secure job and go it alone is rarely easy. Especially if you have responsibilities as a mortgage holder or parent. The idea of having no safety net, no regular paycheck and no guaranteed income is a huge deterrent. Which is why many opt for side-hustles to dip their toe into entrepreneurship, rather than jump straight in.

Why make the leap

We see business owners from all walks at Entrepreneurs’ Organization in Australia. Side-hustles that have rocketed to success; slow and steadily scaling 10+ year old ventures; investment backed innovations that have paid off; businesses that have pivoted and more than quadrupled their sales overnight; and those who have bought into businesses and franchises with a proven track record of success.

Wherever you’re at – the spark of an idea or a side-hustle that is taking over all your spare time and space – having the essential ingredients of peer support, mentorship, an entrepreneurial mindset and a well-mapped out plan, can help you transition from employee to entrepreneur as seamlessly as possible.

Before handing in your resignation letter, make sure you’ve considered the following.

Start small and start slow

Taking a leap doesn’t need to mean investing all your life savings and quitting your job before you’ve started. If you want to go it alone, it’s best to start small and start slow.

If you have a strong idea – test it first. Ask questions, identify your MVP, research the market, create a landing page, even just for signups if you haven’t got a product yet. If our offering a service, research competitors and know how you can differentiate yourself.

• Start with something low-risk and low-investment
• Start with a small team (or even just yourself)
• Test out your idea before spending too much money on it

Before you go it alone, ask yourself these questions:

• Why am I doing this?
• Does my business really fill a gap in the market or solve a problem that people are willing to pay for?
• Do I work well alone?
• Do I have a contingency plan if it fails? Or if it takes longer to start than expected?
• What are my broader life goals and how do they align with the business idea I’m considering?

Know your why

When you know why you’re doing something and you’re strongly connected to your purpose, it’s easier to stay motivated and focused when challenges arise.

If your why is to provide for your family, then the thought of not being able to pay the bills will be much more motivating than if your motivation were just to make money.

It’s easy to lose focus when things aren’t going as planned—and they won’t always go well! But if you have a clear picture in mind of what success looks like, then even if things get off track or don’t work out perfectly, it’ll still be within reach.

Carve out a clear niche

To be successful in your new role, you need to know who you’re serving and why. What problem are you solving for this audience?

For example, if you’ve been working in the hospitality industry for years, you might have noticed that many hotels hire uni students as housekeepers during busy seasons. You might decide that there’s a market opportunity there: online courses on how to be a better housekeeper aimed at young people.

Test the market

The first step to starting your own business is to test the market. Most business ideas can be tested to some degree before investing all your time and money. Start with a lean startup plan, which means doing everything possible to minimise upfront costs or commit resources without counting on any kind of return.

Once you’ve developed your idea, try testing it on a small scale by offering it as an online service or product for free. This will allow potential customers the opportunity to see how your product works in practice and provide feedback that helps improve the final version. It also shows them what value they’re getting out of it. So when they do purchase something from you in the future they’ll likely perceive your offer as more valuable than it would otherwise have been.

Plan for growth

Investment is not a requirement to start a business, but it is a requirement to grow one. You can bootstrap for as long as you want, but eventually your cash flow will dry up and it’s time to either find investors or shut down.

If you are going to bootstrap, make sure that your plan for growth includes an exit strategy in case things go wrong along the way. A lot of people think they’ll have time to pivot once they have more capital or experience—but what if that never happens? What if this is your last chance at success?

Find your support team

To get started, you need some people in your corner. If you’re lucky and have friends or family in business they’ll be an excellent resource, but if not, that’s okay—there are plenty of other folks who can help.

There are many entrepreneur networks and business groups in Australia where you can find your peers and grow together. While some business club models rely on a referral model, others focus on networking and forming close bonds with other high net-worth businesses to support each other in overcoming both business and personal obstacles.

For example, with Atlassian co-founder Scott Farquhar Kikki K founder Kristina Karlsson among our former members, the calibre of talent at Entrepreneurs’ Organization is high. Membership is invite-only for businesses turning over $1mill USD and above, but for fast-growth startups in their infancy, EO has an accelerator program worth investigating.

Finding a mentor is a must. A mentor is someone with experience in business who’s willing to offer advice on specific topics. That might be how much money to raise from investors or how to grow your social media following. Find mentorship through clubs, co-working spaces or incubators. Or try an informal relationships where one person helps another out whenever needed.

Lastly, the government and local councils often provide resources for small businesses starting out.

Have a buffer and a contingency plan

One in three business ventures fails. We’ve all heard the statistics, but it can be easy to get wrapped up the excitement of an idea.

Keeping a positive mindset doesn’t mean being unrealistic. It means risking what you’re willing to lose and backing your idea when you’ve done a reasonable amount of research and due diligence.

Having a buffer might mean money in the bank if it fails, money to invest, an alternative income stream or alternative employment should things fail.

Shift your mindset

It’s not just the physical shift from being an employee to entrepreneur. A key part of being an entrepreneur is shifting your mindset. You have to be ready to take on the risks and responsibilities that come with starting a business, including farewelling the consistency and security of a regular paycheck.

Fear can be overwhelming when starting out. Set things up properly from the outset, with a good accountant or bookkeeper, a mentor and a willingness to show up and learn.

Preparing for failure is important, but don’t let it stop you from trying something new. Get out there, ask questions and do your research! If there was no risk involved, everyone would do it right? The most successful entrepreneurs are simply calculated risk takers – many with a string of failed ventures to their name before a successful one.

Want more? Get our newsletter delivered straight to your inbox! Follow Kochie’s Business Builders on Facebook, Twitter, Instagram, and LinkedIn.