Updated: January 14, 2022
Do you want to quit your job and start your own business?
DON’T – because it should work the other way around. You should first try to start your own business, then later on – quit your job.
These and more are some of the advice I gave in today’s edition of Reader Mail.
From Ms. A:
Hi! I just came across your website while trying to search for good businesses in the Philippines. But I think I found something better. Your blog is really helpful, I must say.
Anyway, I am just a regular salaried employee with no savings whatsoever, but I really want to build my own business. How do you think should I start?
Hi, congratulate yourself first for having the initiative to search for good businesses in the country. It means there’s a spark of entrepreneurial spirit within you.
However, I would personally suggest that you first try to build an emergency fund because as you’ve said, you have no savings.
Try the strategy of “paying yourself first” – which means, immediately taking out 10% or whatever is comfortable with you, from your salary and putting it in a separate savings account. Then try to live with the 90% that’s left.
Gradually, increase the percentage every month, until you can save up to 30% of your income. It sounds hard, but it’s doable.
Learning how to properly budget your own finances will certainly develop the money management skills you’ll need when you have your own business already.
Moreover, try to use your time for now in learning more about business and entrepreneurship. Read books, attend seminars, do market research, and maybe perhaps, start writing your business plan.
From Mr. D
Hi. I just graduated and is now working for less than a year already. However, I really don’t see myself being an employee until I grow old. My heart says I want financial freedom and freedom from being an employee but my mind says that if I quit this job and start a business from scratch, I might fail. In short, I’m afraid.
I often consult my mom about this, who is, by the way, an entrepreneur. She always tells me that I should not quit. How about you? What advice can you give me?
Hi. In my opinion, your mother is correct in saying that you should not quit, because there are invaluable lessons that the corporate world will teach you as a person.
If you want to build a business in the future, then take this opportunity to study what goes on “inside the business” from the eyes of an employee. That’s how I saw it when I started to think about entrepreneurship.
Learn about the mission, vision and values of your company and see how it is being applied. Study the processes, the operating procedures, the regulations, and other aspects of the company’s business, and analyze how it’s being done.
Then, make a plan for your own business, while still working in your job.
Once the “blueprint” is ready, then start your business. You don’t have to quit your job. It is possible. Many successful companies today started “in the garage”, during the free time of the people who built it.
The way I see it – you have no reason to be afraid to start a business from scratch because if you fail, you still have your employment to fall back on. That’s the beauty of keeping your job while your business is still a baby.
When should you quit? You will know. There will be signs, both emotional and financial, that will tell you that you are ready to quit the corporate world and become full-time with your business.
Feeling of excitement, feeling of self-confidence… cash flow is stable and steadily increasing… signs which you’ll surely notice and say that you are ready to get out of the rat race. So again, for now, keep your job, but already start working on your business.
From Mr. S:
Hello. I am so impressed with what your website can offer us. I am one of those youngsters that is crazy to have financial freedom.
I’m young but I’m already tired of working as an employee. I already started reading books regarding business and financial matters. And still in the process of preparing myself physically, emotionally, and financially to indulge in business.
As a starter can you give me a piece of advice on the path that I want to indulge with.
Hi. I should say that I know exactly how you feel. You’re tired of being an employee and you’re always dreaming of financial and time freedom. That’s who I was before I decided to pursue entrepreneurship.
My best advice: do your job well, because it’s what secures your “present” – but plan a future now.
Start by writing down goals and make them as concrete as possible. Don’t write, “I want to be a billionaire”; instead write, “I want to have P100,000 in my savings account by the end of the year.”
Writing it down makes it a plan. Don’t type it as a document on your computer, buy a small notebook and write it there. Then every day – polish, edit, improve, make a schedule and act on your plans.
Financial freedom is a journey. It can never be achieved through get rich quick schemes but only through focus, discipline, and persistence.
Again, keep your job. Do good in it. Save money. Plan your actions. Take baby steps and know that every day is an opportunity to get closer to your goal.
This concludes another edition of Reader Mail. Do you have any questions about business, investments, or personal finance that you’d like me to answer? Then just send me an email here.
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