Ladies ever felt you were burnt out from your current position and just wanted to work for yourself? You know you have a brilliant idea for a business or you may even be working part-time for yourself, but you want to make it full-time. When is the right time to quit your job and work for yourself? Many entrepreneurial minded individuals find themselves in this predicament. They have a stable 9 to 5, with steady income, but are unfulfilled or hit the glass ceiling. Working for yourself is a great feeling, but also extremely risky. There are a few things to keep in mind when considering the standition.
1. Are you ready? When owning your own business there are a number of steps you must take before you can even open your doors. Have you registered with your state, do you have an EIN number, you have a bank account, a business plan, a bookkeeper or accountant, business insurance, any necessary licenses, materials, equipment, office, office supplies, staff, most importantly, do you have the capital? Starting a business is not merely having an idea and hoping it works; it takes time, commitment and dedication. Are you ready to work around the clock to not only start your business, but to run it as well. This will take more than 40 hours a week. I found myself working a full-time job, going to school full-time, and still running my business, and of course, I had to make time for my significant other; sometimes I got little to no sleep.
2. Can you afford to quit your job?-As previously mentioned, running your own business is risky and costly. As a new entrepreneur, there may be times where you can’t pay yourself because you haven’t made a profit. Can you financially survive? Remember, if you quit your job to work for yourself full-time, there will be no steady paycheck.
3. Why are you actually quitting?-This is a very important question. Are you wanting to quit because you truly want to work for yourself and have a vision for your business, or are you quitting because you do not like answering to authority. There is a difference between being a true entrepreneur and leader and someone who can not follow directions and thinks the best option is not to work for or answer to anyone. Even as an entrepreneur, you answer to someone, that may be investors, clients, partners, etc.
4. Have a solid business plan with capital- If possible, have six months of income saved before quitting for you to use for your expenses: rent, mortgage, car payment, etc. Example, monthly salary is $3000. Before you quit, you should have at least $18,000. This may be money you have saved, a loan, family contributions, crowdfunding, or whatever you deem best for accumulating the funds. This does not include funds needed to start or run your business.
5. Consult with someone. You can find a mentor, business coach, organization, and don’t forget to consult and discuss this decision with your significant other!
6. Make sure this is the right time– Timing is everything in life. You may need to work six months to a year longer at your current job to learn the necessary skills needed to effectively run and sustain your business.
7. Have an exit strategy-Exit strategies can help quitting your job and running your own business a seamless transition. Exit strategies include learning everything you can at your job, taking advantage of free classes, trainings or education your company may offer, networking with the appropriate people in your workplace and like number 4 stated, making sure it’s the right time.
I hope this information has helped you decide what is best for you. Again, owning your own business and working for yourself is some people’s dream, just make sure you consider all options and I am sure you will be extremely successful!!!
For more information about standitioning, email us at firstname.lastname@example.org or check out our upcoming E-book Learn, Lead and Leave a Legacy: Advancing Women to the Top.