From Employee to Entrepreneur: Will You Take the Plunge?
By Eloiza Mariano Serate
Have you ever found yourself daydreaming about being your own boss? Perhaps the idea of running your own business excites you, or maybe you’re yearning for the freedom and flexibility that come with entrepreneurship.
Whatever the reason, the journey from employee to entrepreneur is both thrilling and challenging.
I know exactly how it feels to want to take the plunge—standing at the edge of something familiar, yet feeling a deep pull toward something more.
Starting as an Operations Manager was, in many ways, my dream job. It was a role that allowed me to harness my skills in leadership, organization, and process improvement—things I genuinely loved doing. But as fulfilling as it was, I knew deep down that I was meant to do something greater. There was a voice inside of me that kept whispering about the possibility of creating something of my own, something that could have a broader impact.
So, I took the plunge and a leap of faith, founding Virtual Champions PH. This blog is my way of sharing the lessons I’ve learned on my journey into entrepreneurship. My experience as an employee turned freelancer laid the foundation for what I know today in running my own business. Every challenge I faced and every success I celebrated as a freelancer has been instrumental in shaping Virtual Champions PH into what it is today.
If you’re contemplating taking the plunge too, here are some actionable tips to help you navigate the transition. And, we’ll explore why freelancing is not only a viable starting point but also a powerful stepping stone to full-fledged entrepreneurship.
1. Start Small with Freelancing
One of the best ways to begin your entrepreneurial journey is by freelancing. Freelancing allows you to manage yourself as the service being sold, giving you a taste of what it’s like to run your own business. You’re responsible for everything—from marketing your services and managing client expectations to handling finances and delivering results.
Freelancing offers the flexibility to work on your own terms while honing essential business skills in a relatively low-risk environment. Plus, it’s a great way to build a portfolio and establish a client base before fully committing to your own business venture. It’s worth noting that in the United States alone, freelancing has become a major economic force, contributing $1.3 trillion annually to the economy.
Action Tip: Begin by offering freelance services in an area where you already have expertise. If you’re a graphic designer, start by taking on small design projects. If you’re an accountant, offer bookkeeping or financial consulting services. Leveraging your existing skills will help you gain confidence and credibility as you step into the entrepreneurial world.
As a freelancer, You’re Both the Boss and the Employee
As a freelancer, you’re the CEO of your one-person company. You decide which projects to take on, set your rates, and manage your time. But you’re also the one executing the work, meeting deadlines, and ensuring client satisfaction. This dual role provides invaluable experience in managing both the strategic and operational aspects of a business.
In fact, freelancers typically manage multiple clients, with some handling an average of 27 clients in just six months. This hands-on experience is incredibly valuable for anyone looking to transition to entrepreneurship.
Managing Clients Equals Managing Customers
In freelancing, your clients are your customers. You need to build relationships, understand their needs, and consistently deliver quality service. This requires strong communication skills, an ability to manage expectations, and a commitment to excellence—all crucial qualities for an entrepreneur.
Parallel: Just as freelancers must maintain high client satisfaction to secure repeat business, entrepreneurs must nurture customer relationships to build a loyal customer base. Both roles demand a customer-first approach and a dedication to delivering value.
If you’re interested in exploring the leadership qualities that have been essential to my journey, check out my article on Effective Leadership Qualities for Startup Success here.
2. Build a Financial Cushion
One of the biggest challenges new entrepreneurs face is the lack of a steady paycheck. Before making the leap, it’s essential to have a financial cushion that can sustain you for at least six months. This safety net will give you peace of mind and allow you to focus on building your business without the constant pressure of covering your living expenses.
Interestingly, nearly two-thirds of freelancers report earning more than they did as full-time employees, with 75% reaching this milestone within just one year. This statistic underscores the potential financial stability that freelancing can provide, making it a viable starting point for those considering entrepreneurship.
Action Tip: Start saving while you’re still employed. Set aside a portion of your income each month to build an emergency fund. Additionally, consider keeping your day job until your freelance work or side hustle consistently generates enough income to cover your expenses. This way, you’re not jumping into the deep end without a life raft.
Remember that You’re Responsible for Your Finances
One of the most challenging aspects of freelancing is managing your own finances. You’re responsible for tracking income, managing expenses, and paying taxes. This financial responsibility is a cornerstone of entrepreneurship. As a freelancer, you’re essentially setting up the financial systems that you’ll rely on as a business owner.
The freelance industry’s economic impact is substantial, contributing approximately $1 trillion to the U.S. GDP, comparable to major sectors like information technology. This statistic demonstrates the financial significance of freelancing and its parallels to managing a small business.
Operating Expenses Are Real
Even as a freelancer, you have operating expenses. These might include software subscriptions, internet costs, or home office supplies. Managing these expenses effectively is crucial to maintaining profitability, just as it is in a larger business setting.
Parallel: Entrepreneurs must account for operating expenses, whether they’re running a one-person show or a larger company. The discipline of tracking and managing costs as a freelancer lays the groundwork for the financial management required in entrepreneurship.
3. Develop a Strong Personal Brand
As an entrepreneur, your personal brand is your calling card. It’s what sets you apart from the competition and helps potential clients or customers connect with you on a personal level. Start building your brand while you’re still employed by creating a professional online presence through a website, blog, or social media profiles.
Action Tip: Define your unique selling proposition (USP)—what makes you different from others in your field? Use this to craft a compelling brand message that you consistently communicate across all your platforms. Share valuable content, engage with your audience, and showcase your expertise. Your brand will be the foundation of your business, so make sure it reflects who you are and what you stand for.
In Freelancing, Personal Brand is Everything
Freelancers quickly realize the importance of building a personal brand. Your reputation, online presence, and the quality of your work all contribute to your brand identity. This is a vital skill for entrepreneurs, who must build a brand that resonates with their target audience and differentiates them in the market.
Parallel: Branding is central to both freelancing and entrepreneurship. In both cases, your brand is more than just a logo or a tagline—it’s the perception others have of your business. Building a strong, consistent brand is key to attracting and retaining clients or customers.
4. Network Like a Pro
Building a strong network is crucial when transitioning from employee to entrepreneur. Networking can open doors to new opportunities, provide valuable advice, and connect you with potential clients or partners. Start by reaching out to your current network—colleagues, industry contacts, and even friends and family.
Freelancers often rely heavily on their networks, with 70% finding most of their work through online marketplaces. This reliance on connections highlights the importance of networking for anyone considering entrepreneurship.
Action Tip: Attend industry events, join online communities, and participate in networking groups relevant to your field. Be genuine in your interactions and focus on building relationships rather than just promoting your business. Remember, it’s not just about who you know, but also who knows you.
5. Embrace the Learning Curve
The transition from employee to entrepreneur involves a steep learning curve. You’ll need to learn new skills, adapt to changing circumstances, and constantly innovate to stay ahead of the competition. This can be overwhelming, but it’s also one of the most rewarding aspects of entrepreneurship.
Freelancers are well-versed in this continuous learning process, with 55% having taken part in job education to learn new skills in the last six months. This proactive approach to skill development is a crucial trait for any aspiring entrepreneur.
Action Tip: Invest in your personal and professional development. Take online courses, attend workshops, read books, and seek out mentors who can guide you on your journey. Remember, every challenge you face is an opportunity to grow and improve.
Freelancing as the Gateway to Entrepreneurship
Freelancing is more than just a side gig—it’s a gateway to entrepreneurship. It teaches you how to manage your business, handle finances, build a brand, and, most importantly, take charge of your professional destiny. By mastering these skills as a freelancer, you’ll be well-prepared to take the plunge into full-fledged entrepreneurship.
The journey from employee to entrepreneur is a significant one, but it doesn’t have to be overwhelming. By starting small, building a solid foundation, and embracing the learning curve, you can successfully transition into the entrepreneurial world. So, are you ready to take the plunge?
Sources:
● SCORE – The State of Freelancing in America
● 99firms – Freelance Statistics to Be Aware of in 2023
● Exploding Topics – 2024 Freelance Statistics, Trends and Insight
● Payoneer – The 2023 Freelancer Report
📞 Ready to turn your skills into a business and your side hustle into something bigger? At Virtual Champions PH, we empower aspiring entrepreneurs to take that first bold step—starting with freelancing. Book a discovery call today and let’s map out your leap from employee to empowered business owner
Let’s have a conversation and get the best Virtual Champion for you!
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