Quitting your job to become your own boss can give you a new kind of freedom, but it’s also risky and uncertain. Timing and foresight are crucial if you want to leave your job and land on two feet. With the right amount of careful planning, you may find yourself in an ideal position to leave your job and start the business of your dreams. How do you know when the time is right?
When Your Business Is Your Focus
If your main motivation for quitting your job is that you have an idea you’re passionate about, that’s a great time to consider making the switch. If, on the other hand, your main goal is to get away from a job you hate, that’s not the most solid foundation for this often challenging journey. It will be difficult to make it through the many grueling steps of starting a successful business if you’re simply doing it to avoid your current job.
When Your Business Plan Is Solid
We all love the idea of fast money. While it’s not impossible, you need to have a thorough plan in mind before you can expect to make a profit from entrepreneurship. Having a brilliant idea is only the first step. Make sure to iron out all of the details: Where will you get customers? What are the initial costs, and how will you raise money to pay for them? What is your model for turning a profit, and when do you expect that to happen? If you’re absolutely sure of the answers to these questions, this may be the right time to plan your resignation. If not, work on your business plan outside of work hours until it’s truly ready to go.
When You Have A Nest Egg
Starting your own business takes capital, and depending on your plans for financing, you may be living on a shoe-string budget while your business gets off the ground. Additionally, attracting investors may not be a viable part of every business model, especially if you don’t yet have a customer base. The more you can save up beforehand, the better. That might mean staying at your current job longer than you would like until you can add sufficiently to your savings. However, you can accelerate the process by looking at ways to make a bit of fast money on the side, perhaps by working a side gig, selling extra items, or taking on extra hours at work.
When You’re Prepared for Adjustment
Everyone knows that quitting your job means giving up a reliable paycheck, but it also involves many more changes. For example, being employed usually comes with a specific role to perform, while being an entrepreneur can mean wearing twenty hats at once. With a job, you have a discrete workday with a set schedule, while owning your own business can have you working at all hours of the day and through the weekend. Consider your current lifestyle, and whether you’ll be able to keep up with this instability, especially in the beginning stages of your business. The optimal time to become an entrepreneur is when you’re in good health, have a flexible schedule at home, and are disciplined enough to enforce your own daily routine.
When You Don’t Have to Burn Bridges
A great time to quit your job is when you’re staying in the same industry as your current employer and can remain on good terms with them. While it’s never a good idea to poach clients, you can use your connections and resources from your former job to help you get started. This will also give you the psychological security of knowing you could go back to a stable job in case of an emergency.
Time your transformation into an entrepreneur carefully. With a few considerations and a healthy dose of patience, you can start your new life well-positioned for success.