How to build a solopreneur safety net

Leaving your corporate job for a solopreneur path is a bold move—and it can feel terrifying. But as long as you’re prepared, it can be a smart move, especially in the current rocky job market.

I worked at one corporate job for 15 years. Then I pivoted to a new career in marketing. Eighteen months later, I was working for myself as a full-time freelance writer. Within two months of going solo, I had replaced my salary at a marketing agency, but I’d also taken a lot of baby steps in advance of making the switch.

You can make the transition to solopreneurship easier if you build a safety net before you walk out the corporate door. Here’s how.

Calculate how much income you’ll need

The first step is to be brutally honest with yourself: How much of a reduction in pay can you stand?

Odds are, you’ll have an “in-between” period: You’ll have left your corporate job, but not built up enough of a solo business yet. Can you withstand 25% of your current salary? 50%? Do you have savings to supplement the rest?

I know some people who won’t leave corporate jobs until they earn enough with a side hustle. But that’s incredibly difficult, since you’ll basically be working two jobs for a period of time. However, if that’s the only way to make it work for your finances, it’s an option.

You’ll also need to consider that you’ll pay self-employment tax. A general rule of thumb is to set aside 25% to 30% of your earnings. You’ll also be paying your own expenses, like any apps or tools you need to run your business. When you’re thinking about how much you need to earn, take your costs into account. 

Build your network

If you’re going solo, your network is a substantial asset during your ramp-up period (and beyond). The people you know become your clients, your referrals, your sounding board for ideas. 

I started posting on LinkedIn consistently a full 18 months before I struck out on my own. At the time, I had no idea that I would become a solopreneur. It just seemed like a good idea to build a network since I’d started a new career.

While you’re still at your 9-to-5 job:

• Start connecting with industry peers, potential clients, and former coworkers.
• Join groups (like professional associations or Slack communities) where your future clients hang out.
• Show up on LinkedIn, adding value and building credibility.

Even though you’re still working your 9-to-5 job, you should gradually reframe your personal brand. You want to become known as the person who can solve XYZ problem. That way, by the time you leave your job, you’ve planted the seeds for your solo business. 

Side hustle, if you can

If your job and life allow, keep one foot in your corporate role and build your solo business on the side. 

This gives you some huge advantages. You can test out your pricing, positioning, and processes without the pressure of needing to replace your salary. You’ve also got a revenue buffer since your 9-to-5 will keep all of your bills paid. If you put all of the money from your side hustle aside, you might have a nice cushion once you’re ready to launch.

I started freelancing alongside my 9-to-5 job two years before I became a solopreneur. I was able to build a portfolio of work and collect client testimonials—both of which helped immensely when I announced that I was starting a full-time writing business. 

Yes, it means extra hustle. I was juggling my 9-to-5 job, three kids, and a raging global pandemic. But I told myself that it was temporary.

Sometimes you don’t get to choose the timing

Ideally, you get to choose the timing of your exit from the corporate world. But sometimes it’s chosen for you. I was laid off from my full-time marketing job. Even though I’d been thinking about full-time freelancing for months, I kept telling myself I wasn’t ready to make the leap.

Because I’d been building in the background, I was able to make a fairly seamless transition. The timing wasn’t my decision, but it was the direction I was headed. I wasn’t starting from zero.

The more momentum and clarity you build for your solo business, the more options you’ll have when the moment finally arrives.

View the full article