Chapter 4: Transitioning from an Employee to an Employer

There are multiple ways to commence a business. We can either go the fast and furious route through investors or grow at a snail-like pace, similar to what I did. I'm a firm believer in taking one step at a time. It's a marathon, not a sprint. Besides, it depends on the outcomes we're looking at for our businesses.

Some may aim for an initial public offering (IPO). Technically, it means selling the company shares to the public. On the other hand, some groups grow businesses quickly with borrowed funds and sell them for a profit.

My goal was sustainability and longevity, hence the slower path. As I mentioned in the earlier chapters, I aim to form a high-cultured company, focusing on its people while prioritising integrity and kindness.

Cultivating any form of relationship takes time. If someone tells us that a person is marrying their dream partner after one week of dating, we wouldn't believe it ourselves. How is that even possible? Strengthening bonds and connections may consume months and possibly years. Likewise, it took me some time to find the right people to join me on my journey.

As a result, I started my journey alone in the beginning.

How to Transition?

For me, it was a gradual process. I didn't quit my day job and started the business immediately. As I wasn't sure if I could turn it into a business, I began freelancing to evaluate the market first. I was designing websites as a side hustle. While I performed my duties during my day job, I completed design projects by night.

In the process, we need to prepare ourselves before embarking on our entrepreneurship journey. Contrary to the famous you-only-live-once (YOLO) concept, I prefer the better-be-prepared option because I have only one life to live.

Financially

The older we get, the more commitments we have. It could be family, children's education, housing loans and other forms of financial debt. I wasn't in a position I could take the jump without considering all these factors, as those were my obligations.

Hence, I started gathering funds through my projects. As I have my day job to cover expenses, I saved the rest of the revenue in a separate bank account. While doing that, I continued to set aside a portion of my paycheck. So, even without drawing any salary in the future, I could sustain my family for at least six months or more.

Knowledge

We can't run a business without understanding the fundamentals. As my first business failed, I didn't intend to repeat history. I started learning about managing expenses. I looked into the profit segment between selling products versus services and opted for the latter. Services enabled me to trade time and sweat for revenue without incurring additional costs.

I also spent time mastering brand and marketing. As I was sales-focused in my failed e-commerce business earlier, I left out the essentials of marketing and put myself in an undesirable spot. No one knew who I was, and I spent a lot on ad expenditures. It was a total flop. I'll write about the required knowledge to start a business in another chapter, as there's much to cover.

Time

As simple as it sounds, time is the most essential factor of them all. With our day jobs, we have a few hours left in the evening before we head to bed. Besides, our focus wanes off by night, and productivity is at an all-time low. I can testify that it's not going to be easy to multitask a day job while completing freelancing work at night, let alone running a business.

Fortunately, I managed to secure a job in lecturing, which allowed me time flexibility. On days I didn't have to get on campus to teach, I could focus on building a brand. I spent most of my time writing on LinkedIn, generating awareness and creating a network.?

While I understand that the chance of finding a job that offers this type of flexibility is considerably low, it did help me by giving me more time. With time on my side, I used it to my advantage.

It enabled me to meet people from different industries outside my circle. The more time I met with others, the stronger the relationship got.

Soon, more projects started trickling in.

Is there any Conflict of Interest?

A conflict of interest happens when our interests clash with our professional duties tied to the existing company we're working for. In this case, starting a business that competes with our full-time employer. We ought to consider the products or services we're selling. Do plan ahead, so our journey will be a smoother-sailing one.

Also, we don't want to get caught moonlighting. Therefore, we should make it clear to our employer from the get-go. I discussed with my previous boss that I operated a small business designing websites. She understood and gave me the green light since it didn't contradict my duties as a lecturer. As long as I completed my work during the day, she had no qualms about me running my business at night.

Then comes the usage of social media. While building my brand on LinkedIn, I kept neutral and spoke minimally about my work. Although there were limitations to what I could do as I was bound by the official work hours, I could write freely about my past experiences and life.

However, there's one thing to note. While we are still an employee of a company, we must make it a point not to tarnish its image while we work on our brand.

It's tempting to hide our business from our existing employer. Yet, it goes against my self-consciousness. Hence, I decided to declare it upfront and be honest about it. Thankfully, it all went well without any hiccups. If we get caught hiding it, there can be repercussions. I highly advise against it.

What's the Time Frame for the Transition?

I started freelancing in 2016 under a sole proprietorship. Then, incorporated a privately-held company in April 2020. It took me four years to acquire the appropriate skills and be financially prepared. Yes, four years isn't a short time. That's why I said I was going at a snail's pace. In that period, I found my business partners too.

As I mentioned above, building relationships takes time. I don't want to rush into partnering with the wrong people. If values don't align, the business will eventually succumb to cracks in the future.

We can start as solopreneurs first, then begin our partner search while we accumulate our resources. Over the past years, I managed to secure some reserve, allowing me to hire my first employee. Thus, switching my mode from a freelancer to an employer.

From 2020, I continued to grow the team. It enabled me to get work done without me being present physically. I transitioned from operational work to decision-making tasks. As I had more time, I got additional opportunities to meet more people. Forging trust is the foundation before any business transactions can occur.

It may not be everyone's cup of tea to go through this slow and painful process. Even I didn't expect to take such an extended period to reach this stage.

Nevertheless, I'll likely retake the same path if I can turn back time due to the responsibilities I shoulder. These preparations provided me with adequate mental #readiness and resilience to undertake the journey ahead.

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