How to become an IT business owner from an employee: a step-by-step guide

In this article, Ekaterina Nikolaeva explains how to take a step toward creating your own IT business, from defining your path and transforming your financial mindset to saving and investing in your ideas. Read the first part of the article at this link.

Ekaterina Nikolaeva, city — Tashkent, co-owner of the AMEGA group of IT companies

Currently, there is a trend toward startups, but a startup is not equivalent to a business. Self-employment also cannot be called a business. So, what is a "business"? A business is an organized activity that regularly generates profit.

Why is it considered that entering the IT business is "easy"? Because it conditionally does not require initial investments. You do not need to purchase goods or raw materials, rent premises, buy equipment, and much more.

In this article, we will consider a step-by-step guide on how to transition from the level of "employee" to "owner of an IT business."

1. Define your path on the ladder:

— employee without management and leadership skills

— employee with experience in managing people, deadlines, and everything we include in the concept of "management"

— self-employed person, freelancer, or individual entrepreneur bearing responsibility for their income

— startup founder/beginning entrepreneur

— entrepreneur

— businessman

— serial entrepreneur.

Each level has its own features of work, worldview, and its own set of difficulties and tools for solving them, but the main difference in this chain is experience and vision of the world.

2. Make decisions and take actions that will help you move up a step:

1. Make a decision about your readiness for a new level and take responsibility for the consequences. Be prepared for changes in your environment and relationships.

2. The speed of your growth and business depends on the time you are willing to dedicate to the matter. If you are willing to wait, then eight hours a day will be enough; if you want everything at once, be prepared to live in 24/7 mode.

3. Acknowledge that you cannot help everyone, especially your "past" self. You cannot pay employees more than they ask or take responsibility for someone else's life.

4. Sometimes you will have to fire people and be the "bad cop." Do not become a "nice guy" manager who justifies tardiness and unfinished tasks.

5. Abandon perfectionism. An "excellent" rating comes after crises and business stabilization.

6. Do not involve everyone you want to please in your business. Relatives and friends can support you morally, but in business, they can become a burden. It is better to work alone or conduct business with a friend as a partner.

7. Keep learning. A business owner must be aware of all processes and new technologies. Read at least 25 books a year and take courses.

8. In the first one to three years, you will not have free time. Dedicate all free hours to mental work on your business and self-development.

9. Reconsider your lifestyle: follow circadian rhythms, exercise, and eat properly. This will provide internal resources for development.

10. Business must generate profit. If it does not, work on this task, or make a decision to close/reorient the business.

11. Spiritual growth is also important. The connection between business and spirituality can reduce anxiety levels and increase gratitude.

3. You will have to transform

Your vision and perception of the world will change every year, and the deeper these changes, the faster your business will reach high profitability. You can go this path alone or seek help from a psychotherapist for three to five years. Going an uncharted path alone is always more difficult and risky: there is a high probability of losing your course or wandering aimlessly. A psychologist is an excellent guide who will help you notice small signs on your path indicating the right direction.

Do not be surprised if over time you become more "thick-skinned." You will get used to employees' idleness, suppliers' dishonesty, clients' audacity, and other situations that initially will take your time, energy, and emotions.

4. Your financial mindset will change

If at first you live on $1000 a month and consider it normal, then in five years you might not even have enough $10,000. Your business will grow from a turnover of $10,000 a month to infinity. Expanding the financial capabilities of the owner is directly related to the success of his business. If you perceive money as "dirty," "exposing vices," or "bringing discord," you will not become rich, and your business will not be successful. You must build a healthy relationship with money: money is just a tool to achieve what you want.

5. Save and invest in your business

You will need funds for registering a legal entity, marketing, and a reserve for salaries and taxes, especially if a client refuses to pay. To start a business, you need to have from $1000 to $10,000, depending on employee salaries. Nothing can be created without money, but even $1000 can become the starting capital for an IT business.