Can I quit my job and start a business? Yes, if you pass these tests
Are you ready to quit your day job to run a business of your own? This is a question most employees often find themselves struggling to answer. If you are one of them, here are four things you must consider before taking the plunge into full-time entrepreneurship.
After going through this article, you will be able to decide whether to say farewell to your boss right away, stick it out a little while longer, or even keep both your job and your business.
Let’s get started, shall we?
Are you financially safe?
Startups take time to become stable and profitable. Within the first few months and sometimes years, a lot of spendings are usually involved. That’s why it is important to make sure you have enough money to see you through this phase. Will you be able to live comfortably until such a time your business begins to turn enough profit to pay you?
Remember, you won’t go far if you dip into your business account to support your daily expenses. Every turnover should go right back into growing the business; at least until such a time when your profits outweigh your business expenses many times over.
So, before you up and leave your 9 to 5, ensure that you have at least six to eight months living expenses saved up. This way, you avoid running your business down before it even stands a chance.
Are you ready to expand but barely have time?
Having a fulltime job is not a joke. You are expected to perform up to par or risk being queried or sacked as a matter of fact. This means you might not give your business enough attention, assuming you have one.
Even if you have managed to do so up till now, a time will come when you’re performing so well that you need to scale. At this point, you might not be able to do those important things you want for your business because of your job.
Does this scenario apply to you? Then you may want to consider shaking hands with your employer and saying those goodbyes.
A sustainable and fast growing venture requires maximum commitment.
Do you have what it takes to beat the big brands?
Most businesses fail due to their inability to keep up with competitors. Even if you have managed to create a unique product or service, you can still lose market share if bigger brands or even other startups take your idea and make it even better.
For this reason, you need to know how to do things a bit differently so as to capture and keep customers.
If you quit your job before you figure out how to stay ahead of the competition, you might be taking a huge risk.
How knowledgeable are you in your chosen venture?
If you are not already an expert in the field you want to start a business in, then you need time to know everything there is to know. Perhaps you came across the idea from a friend and feel it’s something you can key into? Well, do not get too excited that you jump in with both legs. Give yourself time and make sure it’s something you can handle.
Even if you have become an expert, you still have to learn how the market works and also gain some experience in running the business. Keep your job till you are sure it’s reasonable to quit.
Consider this, it’s easier to begin a venture in an area you’ve been involved in for a long time. Leaving your job to start a business in the same field is advisable. In this case, it would be like you’ve been getting paid to learn a trade. This is why you should pick your career wisely.
It feels good to be your own boss and have a venture you call your own. But don’t be too carried away that you lose sight of what you already have. If you’ve made considerable progress in your career, it might not be wise to flush it all down the drain.
If you are really passionate about your business idea, you can run it by the side in the meantime until it becomes completely sustainable.