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Have you ever looked at your current job and thought, "How can I quit my job and start a business doing what I love instead"? I have. And you probably have too. It’s easy to dream about making the leap, and starting your own business. But starting a business is a lot of work. You have to keep a few things in mind.
Seven Things to Think About Before You Start a Business
If you're constantly thinking about quitting your job, take a step back first and think about these seven things before you make the big move.
1. Take Time to Think About Your Goals and What You Really Want From Life
You need to assess what your current situation is and what you intend for it to be in the future which will allow you to think about if the entrepreneurship route is right for you.
2. Make a List of Options
What are your options once you quit? Do you have a number of business ideas to build upon? With options, you can critically assess how you intend to show up in the entrepreneurship space.
3. Be Honest With Yourself About Your Skills, Talents, and Interests
Just like the traditional job market is saturated with lots of people who have the same skillset as you do, so is entrepreneurship and due to this, analyzing your area of expertise and what skills you can horn on to stand out is vital.
4. Set Aside Some Money as a Financial Reserve or Savings Account
This can look like setting up an emergency fund for health care or insurance as shared by Chianté Jones on The Money Exchange Podcast. She also stated that this can come in handy so you are not caught off-guard when the need arises.
You can also use a great online banking resource to help you out. Novo gives you a bank account you can use for your small business. You can check it out here.
5. Do Not Quit Your Job Right Away
Ensure you have a well-laid-out plan before you take the big leap. Don’t let your emotions get the best of you as sometimes it can only be a feeling you will get over in case a suitable change is made in your favor.
6. Think Carefully About What You Are Willing to Give Up to Pursue Your New Business Idea
Good employment opportunities usually offer benefits like insurance, retirement plans, paid leave, and much more perks however with entrepreneurship you won’t be able to access these benefits unless you provide them to yourself.
7. Consider the Impact a Change in Employment Status Will Have on the People in Your Life
In case you are the breadwinner or contribute to family finances, thinking about how an entrepreneurship venture will support your family is something key to consider before quitting as you would not want to impact them negatively.
If you need a little help budgeting, you can check out some of the free resources on my resource page. It’s a great way to get started with a budget for your business. It’s so important to have good management over your finances especially if you want to start a business and you’re unsure of how it is going to go!
If you want something a little more complex to help you budget, you can check out Rocket Money. This is a great resource to help you manage your bills and even save some money!
Advantages of Quitting Your Job to Pursue Entrepreneurship
Once you are clear on what it means to advance into the entrepreneurship world, you can now enjoy the benefits that come with it. There are so many great benefits!
1. Flexibility and Freedom.
As an entrepreneur, you are in charge and there are no rules except the ones you set. You have autonomy over what you want your schedule to look like and where you want to work from and above all have the permission to shift whatever is not working for you.
2. Increased Income
As the owner of the business, you get to snag all the profits in case you are a solopreneur and if you have a business with employees now you get to decide what your take home is.
It is important to note though that these are perks one can enjoy once the business has fully blossomed because if you are starting out and having trouble keeping everything afloat, cashing in all the business profits may not be such a great idea.
However, now that you are in control, there is no limit to how much you want to grow your business and what you can earn from it.
There are a lot of great products you can use to get started. Check out my Amazon page to get some of the items you might need to launch your business!
3. Personal Development
Starting a business comes with a lot of growth and getting able to accomplish that offers you a greater sense of responsibility because you can't just shrug off mistakes. You have complete control over the execution of your vision and the final result.
However, where there are advantages, come disadvantages, and committing to entrepreneurship does have some challenges.
1. No Room For Quitting
Entrepreneurship requires you to take up the blows thrown at you and you will always have to take full responsibility when things go south.
2. Greater Time Commitment
Although the idea of freedom and lifestyle is presented to you once you start a business if you don’t commit a substantial amount of hours to your business it will reflect in how successful it is.
3. Financial Risks
You normally have to spend money to make money, and initially, you might find that you're spending more depending on the type of business you're starting. If you don't manage your money well you can accumulate debt that you can't afford to repay. This is only one of the important reasons why you must have a business plan in place before starting up.
There are certain things to consider before leaving your job, and there's no one-size-fits-all answer. But if you weigh the pros and cons of starting a business against continuing with your current job, in the end, it just may be worth taking the leap.
Heavily giving entrepreneurship thought? Listen to how Chianté Jones was able to leave her job and build a successful financial coaching business.
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