About 18 months ago, in the midst of this recession and a diminished jobs market, I gave up the security of working for established firms and launched my own business. My new company, Hire Partnership, is a full-service staffing and workforce solutions firm serving Boston-area businesses. While some may think I’m bold for starting a jobs-based business in the midst of high rates of unemployment, I see it another way.  I believe it can be less risky to work with start-ups – which typically have less payroll and overall management expenses to meet than established firms –in this market.  If you’re thinking of striking out on your own, I offer the following tips, based on my experience:

Experience Counts
Entrepreneurs tend to be passionate about their jobs. They have to be, because they spend so many hours working to get the business on track!  Many work for years in an industry and strike out on their own because they see a better way of doing things or simply think “why should I work so hard so someone else can profit?”  Are you at this point? If not, think about the experience you still need to gain.  Draft a realistic list of your strengths and weaknesses and see if what you’ve got adds up to what is needed to be in charge of your own business.  Be pragmatic and try to fill in the experience gaps while you’re still getting a steady paycheck, either by taking on new projects at your current position, taking a new job or going back to school.

Nurture relationships
It’s a small world: anyone operating at the top of their field should know who the other serious players are.  Of these, identify the people who you trust and most want to emulate.  Develop mentor relationships and work hard to keep up good relations. Entrepreneurship is tough and can also be lonely.  Good relationships can sustain you when you need the support and learning from others who’ve done this before you can make your goal easier to attain. They also can be a source of business referrals.

Understand where the money will come from
There are essentially two ways to finance your new venture:  by yourself, using credit advances and loans, or with investments from other people.  
Doing it yourself is called bootstrapping and is the most popular method of financing, especially for smaller firms. The most critical aspect of bootstrapping is accurate forecasting.  You’ll likely go through an initial investment quickly – there will be plenty of expenses vying for it – so be sure to forecast even after you anticipate becoming profitable.
If you are looking for investors, you can consider asking people who know you – friends, family and business acquaintances – or you can approach professional investors, such as venture capitalists. Venture capitalists are typically not interested in very small ventures, such as a one- or two-person service business. With either type of investor, you’ll need to be prepared and hone a business pitch that explains how their investment will be used, your projections for the business’ success and when and how they’ll be reimbursed. If you’re going to ask a business acquaintance for money, pick someone who knows your track record and knows you can get the job done.  

Hire the right people
Hiring the “right” people is always important, but even more so when you are starting out. Staffing and personnel needs change as a business grows. In the beginning you’ll likely need employees who are adept at serving multiple roles. You will want your employees to be flexible and as their employer you should be too. Keep an open mind about the positions you need filled. Perhaps you can afford to bring someone with deep experience on board, but only temporarily.  Or perhaps it’s all right to hire that candidate who doesn’t have all the skills you need now, because they are willing to commit to your vision and grow with the company.  Consider whether you really want to shoulder all the responsibility yourself or whether it makes sense to recruit a business partner.

Create a new network
It can be a shock to find that you don’t have the built in support of your former office colleagues anymore.  A professional network is essential for providing support, expertise that you and your startup staff lack and business referrals.  Participation in industry associations, as well as complementary networks outside your industry, is also more important now for both support and helping you build your new brand.

Have outlets
No matter how passionate you are about your new venture, both the business and you can suffer if you don’t take a break once in awhile.  Have an outlet – spending time with family, exercising or taking the stage for stints as a stand-up comedian (personally, my favorite outlet).

Jeanine Hamilton is the founder and president of Hire Partnership, a minority- and woman-owned SOMWBA-certified, full-service staffing and workforce solutions firm serving Boston-area businesses.