Business Loans

4 Signs You’re Ready to Quit Your Full-time Job to Pursue Your Small Business

Starting your own business and being your own boss can lead to amazing freedom, personal satisfaction, and unlimited potential. However, going out on your own can be a scary leap! But, if you’re not willing to take the risk, you’ll never experience the rewards. Here are four signs you’re ready to quit your full-time job and follow your entrepreneurial dreams.

1. You Have Support

Business ownership is not easy. Entrepreneurs put in a lot of hard work, day and night. It can be worth it, but it will difficult. Therefore, it’s imperative that you have the support of your family and close friends when you get started, both emotionally and financially. You will need them to be your sounding board, give you hugs when you need them, and provide encouragement when you want to give up. And it doesn’t hurt to have someone to help you pay the bills while you’re getting things off the ground. This could mean living with your parents for a time, or it could mean your spouse keeps his job so you can have a steady income and health insurance at the start.

2. You Have Savings

Starting a business is a huge financial risk. You might not be able to take a salary from your business in the early years, so it’s important to have savings to carry you through this time. Statistics show that a good portion of new businesses fail in the first year. That’s not a reason to give up on your goals (many do succeed), but it’s still something you need to be mindful of. Having money in the bank can help ease the blow if your business shuts down and you’re back at square one. If you don’t have enough cash to even get started, consider a small business loan or other type of financing.

3. You Have Potential Customers Lined Up

Many would-be entrepreneurs choose to start their business as a side gig while they keep their “day job.” When you are starting to have to turn down business because you just can’t keep up, it might be time to consider going full time. If your startup idea isn’t one you can do while maintaining another job, make sure you’ve at least done some proof of concept research to ensure your business idea is one people actually want and will patronize.

4. You Know Your Industry

If you’ve already worked in the same industry as your startup, you’ve got this covered. If not, it might be worth it to make a career move, so you can learn the ins-and-outs of the industry on someone else’s dime before you start your own business. For example, if you work in corporate marketing and hope to open a bakery, consider leaving your current job and going to work at a bakery instead. This might mean a large pay cut, but in the end it will save you so much money (and frustration), as you learn and make mistakes while working for someone else.

While you may never feel truly prepared despite the signs you’re ready to quit your full-time job and start your own business, if you do some work to lay a foundation for success, taking the risk will be a lot easier.

 

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