The first question is, of course: what kind of business will you start? Is it related to what you currently do as an employee or does it tap into a particular interest or hobby?

If the business relates to your current work, it could be competitive to your current employer but it certainly doesn't have to be. You can open a similar business but in a different geographic area. You can target a different customer group - young families rather than seniors. You can also open a complementary business. If you work for a fitness club, you could get the rights to sell fitness products and have your employer as your first customer.

Your business could be about your hobby or personal interests. If this is the case, review what you learned from your employer in terms of administration, cost-control, accounting, customer service, marketing and sales. If you pause to think about it, you will discover that you learned lots on the job - even if that job was flipping burgers.

Another way of deciding what type of business to start is to do a 360. Ask your friends, colleagues, mentors - everyone around you - what they think you're good at. Ask them what they see as your strengths and weaknesses, and what kind of business they think you would be successful in. Find the pattern in their answers and you may have found your future.

A business that does not fit your lifestyle will be unsatisfying and a struggle. We all have preferences in how we work, when we work and what environment we work best in. Take note of these when planning your business. If you need people to bounce ideas around with, don't become a solopreneur. If you work best in the morning, don't plan a business that has a lot of evening work. If you have children, consider locating your office at or near home to reduce the tension between work and family responsibilities. Structure your business to serve your needs as well as those of your customers.

Before writing your business plan, do a SWOT analysis - identify your strengths, weaknesses, opportunities and threats. This analysis should cover your ability in sales, marketing and accounting as well as your financial resources, competitors, legislative challenges… Be thorough and very honest with yourself. Do not overestimate the positives or under-estimate the negatives. It's much easier to overcome weaknesses when you are aware of them than when you're not.

In the space of this article, all that can really be shared about a business plan is that it is essential. There are many resources online and in the library on writing a business plan. Follow the templates they provide carefully. While there will be parts of the template that don't apply to your business, attempt to include every section possible. The process of planning will force you to consider all the small steps to be taken, along with the big ones, for your business to be a success.

One of the more difficult aspects of transitioning from employee to entrepreneur is the fact that you don't have a regular pay cheque. To cope with this you must have your personal and business financial affairs in order.

Before starting your business, save as much money as possible to help finance your company and yourself. When you start your business be frugal. Can you work out of your home for a while? If yes, do. Go without when possible. Spend wisely. While there are expenses that you must incur, there are others that are optional. You can only spend a dollar once so save, save, save… until your business is up, running and financially predictable.

While many new entrepreneurs have their eyes on the bottom line - profits - the real focus at start-up should be cash flow. As long as money is flowing through the company at a rate that pays the bills, you can stay afloat. Yes, profit is the goal but not a necessity at start-up.

There are many sources of investment funds for small enterprises and there are articles in this series dedicated to the topic. Typically, you want to use your own savings first. This demonstrates your commitment to your plan and confidence in its success. After yourself, head farther afield.

As you approach family, friends, and angel investors (financially well off people who invest in new and high risk projects with the expectation of a higher return than available through other investments) it is important to remember that they are more inclined to bet on the jockey than the horse. This means that, while they will be interested in the business, your plan and projections, your personal track record and credibility is extremely important as well. In seeking financing, also have a look at what's available through government granting organizations.

Transitioning from employee to entrepreneur is not an easy task but it is an exciting one. Research, read, talk to experienced entrepreneurs and find mentors to help find your sweet spot of success.