Can You Quit Your Day Job?
Is it time to go solo? Can you quit your job and run your part-time business full-time? This is the million-dollar question for entrepreneurs who are still working the 9 to 5 and building a business on the side. Only having to answer to yourself is quite enticing, but it’s important not to jump the gun when you have bills to pay, or your foray into self-employment land might end before it starts.
There are a lot of factors to consider, and knowing whether or not you’re ready to take the big plunge into self-employment can be tricky.
WILL YOUR SIDE GIG SUPPORT YOU FINANCIALLY IF YOU MAKE IT A FULL-TIME VENTURE? THAT IS ONE CRITICAL QUESTION TO ASK
So, how do you know when it’s time to make your side-project your main gig? Read on.
1. You Feel a (Real) Sense Of Momentum
If you put aside all of your wishful thinking and big dreams, and try as hard as you can to examine things from an objective perspective, and you still feel that your little startup is taking on a life of its own, then you’re getting closer to the point where it makes sense to consider making your small business your only business.
Make no mistake, it will require patience, dedication, and long hours spent balancing your job, your business, and your social and family lives to get to this point, but once you do, you’ll start to get the feeling that you can really make your business work.
2. You Have It Down Pat
If you’ve gotten to the point that most moves you make as a small business owner are feeling right and natural, that you feel confident in your decisions and you’ve stopped second-guessing your own every move, then you’re well on your way.
Being a business owner takes a lot of confidence. Sometimes owning your own business calls for swift and decisive action, and you’re the only one you can rely on to make the important calls. If you feel confident in your ability to do so, and its based on valuable experience, take it as a sign that you’re nearing the point where you’ll be ready for self-employment.
3. You Have a Dedicated Clientele
This is key.
We’re not talking about the fact that people occasionally support your business. We’re talking about your regulars: customers to whom you’ve proven yourself. These are the people who not only regularly give you their business, but also bring their friends in to prove you’re as great as they’ve been claiming.
Regular customers or clients are are a big piece of what will make your business a success and what will give you the economic freedom to go for it. Make sure to treat them well, and they’ll be there through good times and bad, and will provide you with a strong foundation to build your business on.
4. It’s Costing You Money Not To
OK, this might seem obvious, but if you could be making more money by investing the time you’re currently spending at your day job in your business instead, then you’re ready. It’s important to make sure you take stock of all of the things that your day job provides, and what they will cost you on your own.
Things to think about include your health insurance, your 401k match, and other things that your enthusiasm might cause you to overlook. If the cost of not dedicating all of your working hours to your business outweighs the benefits, then you know it’s time.
Did we miss something? Have you found one or two key indicators that it’s time to take your self-employment status seriously? Let us know in the comments section below.
Written by Rick Klaras.