Are you considering the leap from your 9-5 day job into your very own business? If so, it’s important to have the proper plans in place before you leave your job.
Nobody wants to resign, only to go crawling back to their boss six months later asking for their old job back. So, you here’s a look at 7 things you should consider before you quit your day job and leap into your business full-time.
1. Are you at a point of mastery?
In order to leave your job you’ll need a sustainable business, but not just any business. Your business should be at a point of mastery, this means you have the proper systems and structure set up and have consistently earned your target income for at least six months to one year.
If you are just starting your business from your computer this weekend it would be a good idea to keep your day job until you’ve taken it to a point of mastery.
2. Business is a long distance race.
Business is like a long distance race. It takes patience, perseverance and stamina to see the race out. If you get into business and presume it is a short distance sprint you’ll only find yourself drained and your business won’t be sustainable.
Think about your business: Are you in it for the long haul? Remember to treat your business as if it is a marathon and establish the fact that success won’t happen over night.
3. Write down your business goals.
Your business needs goals in order to thrive and survive. Otherwise, how will you measure results and know if what you’re doing is working? Write down your business goals and look at them daily. This will give you the focus you need to keep working your day job while you’re building a sustainable business.
4. Calculate your ideal weekly earnings.
Consider how much you need to earn each week, business expenses and how much you’d ideally like to earn. Make an inventory of your personal finances and the exact dollar figure your business needs to earn in order for you to comfortably quit your day job.
5. Don’t forget the time and money investment.
How much time and money are you willing to invest in your business to get it close to meet your goals before you quit your day job? If your business is not at a point of mastery, if you are not earning your desired level of income, and if your business isn’t consistent, then consider investing time in your own business education to help you take your business to where you want it.
6. Create a strong financial safety net.
Before you take the leap, make sure you have reserve funds in a bank account to cover any unexpected expenses while building your business. A good savings amount to have squirrelled away is between 6 months and one year of savings. This financial buffer will smooth out any financial setback that may happen from being in business.
7. Set a date.
If you meet all of the above criteria, then set a date to quit your day job and stick to it. It can be easy to procrastinate and stay on the fence about wanting to quit your day job in lieu of compromising perceived job security.
Create a realistic date, stick to it and don’t waver.
There you have it — seven steps you need to take before you quit your day job and leap off the corporate ladder into your business. Remember change can be scary, but with the proper planning and preparation you can make a smooth and healthy transition into entrepreneurship.
This article has been edited and condensed.
Sarah Liddle is a life coach trainer. She is a certified professional coach, wellness teacher, healer, writer, and the founder and director of Coach School. She has been published in Succeed Magazine, Inner Self, Huffington Post, The Art of Healing, Insight and Vision Magazine. She holds a diploma in Life & Career Coaching, as well as human resources management, and earned an International Certificate in Life Coaching through the International Coaching Academy, a Certificate in Adult Teaching, a Certificate 2 in Body Ecology, and I hold a Level 3 Masters Certificate in Reiki. She is also studying to receive a Bachelors of Law degree. Connect with @thesarahliddle on Twitter.