Are you ready? Wondering exactly when to quit your job and start a business?
I get this question A LOT! Maybe because the thought of doing it can make most of us nervous, anxious, happy, excited, fearful, overjoyed, (and this list goes on and on).
I wish there was a simple one word answer…There isn’t really..
But I can shed some terrific light on what the industry experts all seem to agree on…
When to Quit Your Job and Start a Business – The Bad Move
Here’s the deal: I’ve watched a lot of people quit their well-paying jobs at the wrong time to get started in a business because they just couldn’t wait any longer. They didn’t consider it “the worst mistake” they’d made in life, but they did think that the poor decision to do it at the wrong time was right up there near the top of the list.
When you’re thinking about becoming an entrepreneur and venturing out on your own, it can be scary, exciting, unnerving, and filled with opportunities that working for someone else in a job will never be able to give you.
I’ve also seen a number of people (and been able to help a lot of people) get most of their business lined up BEFORE they quit their well-paid job who have gone on to make fortunes and have more free time and financial freedom than they ever could have imagined if they stayed where they were.
Here’s where I inject with a number: 30%
Figure out what 30% of your take-home pay is and memorize that money number.
The reason this is so important? Because when you can get a business started on the side and get it to the point of making 30% of what you make after taxes on your job…You may have a WINNER!
What the Experts Say…
I’m no expert. I’m not a financial planner or investment guru.
Here’s what I WILL tell you, though…Most of the experts and life coaches that help people become successful and self-employed all agree that if you get a business making 30% of your job take-home pay and it creates that much income (or more) for 2-3 months, you can definitely consider it safer to quit the J-O-B and begin working your business full time.
“Now, we can get into the other details about how much you may need in savings, or how much you need to have for benefits (like health insurance) outside of your job. But I won’t because there’s no set number for every person.”
For the sake of simplicity, I’m going to keep it simple and go with that 30 percent recommendation.
Again, I’m not saying that is definitely the time you can just up and quit your job and work your business full time. Not at all. 30% is only a good indicator.
To keep it simple, we’ll just say once you’ve reached this point you have a better foundation to work with going forward.
Why That Percentage?
The reasoning behind 30% of your take-home pay from your job as well as your side business being consistent for 2-3 months is that it shows good promise for your side business.
Those same experts recommend that simply because if you’ve made it to that point while working at a job full time, your side business is at a place where you’re more easily able to build onto it quickly to make as much or more than you were making on your job.
Once you then quit and devote yourself to that business full time, your business shows promise that it will provide as much or more for you as your job did, and your business can grow.
And that’s exactly what you want!
It’s really just like when you’re looking for another job…You want to try to make sure you HAVE another job before you quit the one you’re working in, but it may (for a short time) be a lower paying job. Same with a side-business.
When to Quit Your Job and Start a Business – The BEST Move
Here’s the deal…You will have a pretty good feel for when you should actually go full time in your side-business. You will.
You can only use the “percentage” above as a general reference and suggested indicator.
What you DO want to make sure of is that you have a side-business that will never interfere with your current job/career. One that you can work on in your spare time and bring to fruition (so-to-speak). But one that will profit you like nothing else.
The best way to make this happen in today’s world is by starting an online business – Bar None.
“I cannot stress this enough. Especially if you’ve spent any time on DoIQuit.com and you’ve seen what I recommend you build.”
Only you can make this decision, but if you use the general suggestion above, the experts agree you have a much better chance of making it and achieving success.
Fear Not, You Can Do This (Proceed only with moderate caution)
The Biggest question or statement we get about this topic is the fear level associated with making the decision to leave a seemingly “secure” job and build a side-business of your own.
“The concept may feel adventurous and exciting. It may also feel risky and flippant.”
You’d be surprised what you’re capable of accomplishing when you put yourself into a position in life where you’re forced to take care of yourself.
This is why I always recommend before you cut the cord on your cog job to start your side-business, you take inventory of what you can actually get out of the job:
- More things you can learn prior to leaving your job
- Work harder at your current job, even if you think it’s below you
- Learn how to deal with any difficult people you either work with or have to deal with in your current job
In other words, realize the positives in your current situation and try to “mine” as much value as you can out of your situation (and job) as possible prior to venturing out on your own in your own business.
So, knowing when to quit your job and start a business really pivots on your own judgment, but there are some things you can do prior to making that leap that will empower you and give you a much better chance at success than if you just leap without looking.
Either way, don’t let fear stand in your way.
Do You Have a Second to Share?
What say you? Agree with me? Disagree? Drop me a comment below and let me know if you think in regards to this article, share it around if you agree and hope that this helps you! And thank you very much…