Should You Quit Your 9-5 to Work on Your Business Full Time? Here’s How to Know When It’s Time to Make the Move
Hustling at your 9-5 job while trying to get your business up and running is no easy task. At first, you may be so excited that you don’t notice the toll it’s taking on you. But over time, the long hours and stress will build, and as the months or years go by, you may feel like something has to give.
Holding onto both your full-time job and your business is a great strategy to ensure that you’re financially protected while you wait for the business to become profitable. That’s meant to be a short-term strategy, however, not a sustainable option in the long term.
Eventually, you will need to choose between your full-time job and your business. Knowing when is key to both your security and the security of your business.
When to Quit Your Job
We’ve all heard stories of entrepreneurs who quit their job one day and their business took off, making them practical overnight millionaires. Though it happens, that’s extremely rare. The more likely course is quitting too soon and ending up with no cash flow, or waiting too long and burning out.
Here are the signs you should quit your job:
You Have Good Income
There are suggestions for how much you should make or what percentage of your full-time salary before you can quit your 9-5. This guideline is helpful, but it’s not ideal for every situation.
If you’re making more money than you need to at this point with your full-time job. If that’s the case, you don’t need to wait until you’re making a certain percentage of it. Maybe half is enough for you to live comfortably for a while.
Consider how much your business really needs to bring in for you to feel comfortable. Are you willing to sacrifice anything to make this decision more feasible, like a streaming entertainment subscription, happy hours with friends, or that Sunday football package? Are you willing to prepare more meals at home, even if you’ve had a long and tiring day?
The answer and decision are yours and yours alone. No matter how much you make or think you can live on, it’s important to plan it out to make sure there are no surprises.
You Have Savings
If you have a robust savings account and emergency fund from your full-time job, you may have enough to be confident in quitting to pursue your business full-time.
Remember, some businesses and industries take longer to launch, have greater startup costs, or have a longer period before they become profitable. It doesn’t mean they’ll fail, but simply that you may need to wait longer before they generate a return.
If your savings account isn’t quite there yet, think about how much more you want to have before you’ll feel comfortable quitting. Then, consider whether you could put a bit more away each pay to reach that goal.
You Have a Plan
Going full-time with your business and leaving a stable 9-5 can seem exciting, but you still have responsibilities. Make a plan and establish your budgets before you make any rash decisions.
Though it may not be as fun as some dramatic exit from your job, having a plan in place ensures security and sustainability. Your story may not prompt anyone to make a movie about your dramatic path to success, either, but you’re more likely to succeed in a way that counts.
Are You Ready?
Quitting and going full-time with your business is a huge leap. Fortunately, with some planning and financial security, you can make your dream a reality in the smartest and most practical way possible.
Looking to get your business from startup to successful? Work with Allison directly!