Updated: September 30, 2020
Starting a business remains as one of the top aspirations of many employees.
I also had that dream once… a dream that I was able to turn to reality almost a decade ago.
And today, I’m sharing with you how I knew it was time for me to quit my job and become a full-time entrepreneur.
These are the questions I asked myself before I decided to tender my resignation letter to my boss.
Do I have a good, running business?
I highly discourage anyone from quitting their job to start a business.
The business should already be running before you resign from work. If you think this is impossible, then you’re underestimating your capabilities.
Before I quit, my software development freelance “business” was already set and I had clients lined up to last me the whole year.
Likewise, I’ve met countless business owners who also started their ventures while they’re still employed.
If we can do it, you can too.
Do I have enough savings to last me at least 6 months?
Quitting work will affect your cash flow because you’re losing a good source of income.
So be sure you have enough savings to survive at least 6 months. This will allow you to focus on the business without worrying about your own costs of living.
What you can do is to live only with your salary income, then save all your business profits and make it your buffer fund for use when you finally resign.
What will I do when I resign?
Once you get out of the rat race, you’ll get an extra 40 hours a week (probably more). What do you plan to do with all that extra time?
The answer is to come up with a list of tasks that will keep you productive, and more importantly, contribute to the growth of your business.
Design your new, post-corporate-world, daily, and weekly work routine.
How do I want the business to grow when I go full-time?
The business should not remain the same when you quit your job. If you have no plans of growing it, then there’s very little point in resigning because all you’re doing is just straining your cash flow by cutting off an income source (your job).
So before you quit your job, review your business first, especially its mission, vision and values statements.
Reflect upon them and plan for the “next chapter” of the business.
What’s my “Plan B trigger”?
When you don’t have a back-up plan, you’ll be more determined and focused to make your one and only plan to work. However, you should be practical enough to define the situation when drafting a “Plan B” becomes necessary.
Back then, I set a minimum acceptable monthly net profit for the business.
And if I fall below that target for 3 consecutive months, then that’s my signal to consider my available options regarding the business, and my personal finances, including the possibility of going back to employment.
How about you? Any other tips you can share? Please write them below in the comments section and let’s talk more about this.