When Can I Quit My Day Job?

You are excited about starting your own small business. For the first time in your life, you are going to be able to call the shots. Make your own business decisions. Design your own future. Time to kick that job you don’t like so well to the curb.

Not so fast. When you are starting a new venture, it is going to cost some money to get started. It can be really tempting to use your credit card and just go for it, but this isn’t always the best way to get started. Adding debt payments to your business budget can strain your new business to the point of not being able to survive. If you have another form of income coming in, you can buy yourself some time to get your own business up and running successfully. So no, don’t quit your day job, at least not yet.

If quitting your job cold turkey puts you in a position of not being able to pay your rent or buy groceries, you’re not going to make responsible decisions. Be realistic about how long it may take to actually start making a profit. Many small business owners reinvest their initial profits to be able to acquire the equipment and supplies they need to run the business. Taking the very first profit out of the business to live off of can sometimes be the equivalent of shooting the business in the foot. Don’t set yourself up for failure in this way.

Another benefit of having a job while you are starting up your own business is networking. The more people you can be in contact with on a daily basis, the more potential customers you have. Unless you are starting a business which competes with your current employer, consider the people you work for and with as future customers.

I want you to be successful in your business, but I also want you to love the process. This is an exciting time, especially if you’ve been thinking about your new venture for a very long time. You want to lay down a solid financial foundation so that you don’t end up running out of money before you’ve had a chance to build a steady income from your new business. This is what is referred to as “paddling closer to shore before you take the final leap.”

Don’t get in a hurry, even if all your friends have assured you that this business is a sure fire hit. It takes a bit of time to market yourself, provide your wares, attend to customer service issues, and rework your plan as needed. Most new businesses don’t make a full income immediately, and if you aren’t in a financial situation that allows you to work on your business without any other money coming in, keep that day job for a while longer. It won’t be forever before you really can quit your day job.