8 Factors to Consider

8 Factors to Consider Before Quitting Your Job to Start a Business

Can you keep a roof over your head?  
Will you have insurance?
How will your livelihood be impacted?
Will you still be able to go on that vacation with your college girlfriends next year?

It’s a little scary when you think about all the things that could happen if you leave your job to start your business, but it’s even more terrifying to wonder ‘what if’. It can be the best thing you’ve ever done or the complete opposite. Here are some factors to consider before quitting your day job to start a business.

1. Make a Sound Plan

Without a plan, you will be aimlessly wandering, trying to figure out how to make your next move. You may end up wasting more time and become discouraged from starting a business altogether.

2. Study the Field You’re About to Get Into

Many businesses fail because of a lack of knowledge. Do your research. You will never learn everything you need to run a successful business overnight however, learning is continuous and will set you apart from business owners who have not done their homework.

 3. What’s Your Why?

Why do you want to start this business? 

Truthfully answer this question. If money is your primary motivation, then it may not be the best time to leave your job, because you’re not ready! Yes, everyone wants to make money, but this business should be something that drives you – something you’re passionate about, something that you believe will make a significant change in the lives of people you encounter.

4. Network, Network, Network. 

Another factor to consider before quitting your day job to start a business is networking. You’re about to dive into a field that’s entirely new for you. Before starting, it would be a great idea to start interacting with people who are already in the industry. Learning from your competition, or even partnering with them, can help you overcome obstacles and learn from their mistakes.

 5. Stick to a Budget.

Financially, it may be tough for a little while. Try to pay off as much debt as possible and set a budget that you will live by strictly. What are some of the things you are willing to live without, to get to your goal? (The Netflix and Starbucks budget should be non-existent at this point).

 6. Savings – Do You Have Enough?

 Businesses don’t make millions overnight. Make sure you have enough savings for at least 9 to 12 months of expenses, according to this Forbes article.

7. Get Over Your Fears

Your fear doesn’t necessarily mean that you will never be ready to start your business. No one is ever fearless when stepping into the unknown. Don’t be afraid of failure, as many helpful lessons emerge from the mistakes we make.

8. Never Burn Bridges

Always leave on the best terms and invariably plan your departure. Give your employer more than two weeks to find a replacement and possibly start the training process. No one ever expects their business to fail or to be slow to break through, but if it does, the opportunity to go back to your previous employer should be an option (even if your old position no longer available, there may be another place in the company for you).

Here are some tools that can help you get ready to start your business.

  1. The $100 Startup by Chris Guillebeau
  2. The Art of Work by Jeff Goins.
  3. Choose Yourself – James Altucher
  4. Escape from Cubicle Nation – Pamela Slim
  5. The Start-Up of You – Reid Hoffman & Ben Casnocha
  6. Go It Alone – Bruce Judson
  7. The Crossroads of Should and Must: Find and Follow Your Passion – Elle Luna
  8. The Economy of You – Kimberly Palmer
  9. Quitter – Jon Acuff
  10. No More Mondays: Fire Yourself and Other Evolutionary Way to Discover Your True Calling at Work – Dan Miller

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