It seems if I get this question a lot. “Should I quit my day job?” This is a very intricate question that much really be weighed out, but I am wanting to help you walk through some of the process to see if your really ready to walk away from that dreadful day job.
This is what I recommend walking anyone asking this day old question, “Should I quit my day job?” . This can be a huge leap for some and for others is just another small decision depending where you are at in life and what kind of current responsibilities you might have. For example it’s going to be easier for someone delivering pizza’s for $8 an hour to hang it up, than say someone that is earning 6 figure with tons of benefits and perks.
I share this only to let you know that everyone’s background is different and coming at this question with a lot of different backgrounds and that’s why this question can be very multifarious.
Throwing away a good paying job to launch an untested business concept with little to no profits is a immense risk. Though the catch is many people are looking for a secure investment on their money are requiring that your 100% in and have no distractions.
Many people who try to keep on foot in the start up and another foot in at their day job end up feeling restricted to becoming successful and putting the time that is required for many start ups. Though everyone understand that cash flow is must and with startups that cash can be tight.
Taking a sensible look in advance at the financial needs in the early stages of you’re the start up could give you a good indication of how far out you might be from quitting your day job.
So let’s walk through some of my recommends to ask yourself before you quit your day job completely.
1. How Much Money Do You Really Need?
This is the very first question I like to start off by asking. Because if you cannot answer this question your need to some serious financial help. You will need to sit down and figure out to the very last cent of how much money you’re going to need to cover all costs. The amount that you’re going to be paying yourself, to the amount your going be paying your healthcare or not, and how much you have to be bringing in to make sure that the books are balanced. Three important factors to look at is your balance sheet, cash flow sheet, and your profit and loss statement. This will provide you the best overall financial view of your business.
2. How Much Business Are You Currently Doing?
Be realistic when it comes to the out come of the work that your putting into it currently and the potential that you could if you were to quit your day job. Think about the how much more business you could be performing each month. You must be real with the amount of cash that are generating and what you could down the road. The worst thing anyone can do is to be overly optimistic about future and potential work. Make sure that your truly calculating things out correct and realistically.
3. Factor For All Costs.
Once you put in that resignation with your current day job. That means all no more money, health coverage, retirement, company car, company credit cards, etc. While those stop the bills on the other end don’t stop. Just make sure you fully weigh completely the full amount of income, benefits, and perks are accounted for when leaving your job. So sometimes it hard to just call the salary that your needing. I personal suggest to even factor in new equipment within the cost that is need to quit your day job.
4. Ask Others That Have Make The Transition.
No matter how experience and even keel entrepreneur should be asking others that have made the move. Ask them specific questions of how the transition went, when did they feel it was the right move, and what kind of struggles did they deal with in the first 6 months. Remember that you can always learn from others experience, and than I would flat out share a bit of your story. Though this process I would even end the conversation by asking from what you hear, do you feel as if I am ready to quit my day job?