When to leave the daily job and plunge into full time business?

[zerzis]

Many of us will be in a situation we are having a business idea and are also doing a daily job. You may encounter many questions like what is the exact time to leave your job and work full time on your business? Business welcomes risk and excitement while job is accompained with security and less excitement in work.

There are many who do both the things - do job from 9 to 5 and then go home and do their business on a small scale. Now a time comes when your business starts earning you some amount of money ( not more than job but certainly a good amount). This is the time when I think most of us are confused the most!

How do you tackle such confusions? Have you been through such a situation?

[Fergal]

Zerzis, are you asking this question out of general interest or are you looking for help to make a decision yourself?

One of the major reasons why businesses fail in their first year is because they are under capitalized - in other words they don't have enough start up funding. So before you leave your job you should complete a business plan with financial projections. Then look through your financial projections and try to determine how much funding you will need to keep the business going.

If you are not confident that you have enough funding in place, you will probably want to try sourcing the required funding before you leave your job.

People who are running a business part time should be able to get a good feel as to whether they can survive and be successful if they leave their job and work full time on the business.

[Kay]

Good post, Fergal.

Welcome zerzis! I wouldn't advise anyone to make the leap from a solid paycheck every month to self employed without them having the cash to pay the most basic of bills (mortgage, utilities, etc.) for the next year minimum in the bank or the funding arranged that would cover that.

Speaking of business plans, I thought this article on tools that can help you write your business plan (http://www.allbusiness.com/company-activities-management/company-structures/8127928-1.html) was handy.

[Fergal]

Thanks Kay, there are also some links to business plan templates in our Useful Business Resources / Links (http://www.businessadviceforum.com/showthread.php?t=405) thread.

[kguru1979]

Many of us will be in a situation we are having a business idea and are also doing a daily job. You may encounter many questions like what is the exact time to leave your job and work full time on your business? Business welcomes risk and excitement while job is accompained with security and less excitement in work.

There are many who do both the things - do job from 9 to 5 and then go home and do their business on a small scale. Now a time comes when your business starts earning you some amount of money ( not more than job but certainly a good amount). This is the time when I think most of us are confused the most!

How do you tackle such confusions? Have you been through such a situation?

Zersis .. I like to suggest one good thing for you...

When you are an employee and working under another person, may be a company, then it is implied that you are sticking with him because of the remuneration he is paying to you and also your "dark-area" about how to do an own business... In such cases only people will do such kind of small scale businesses at home, say for example online businesses...

For people in those categories, I recommend to still stick with the job they are going from 9 to 5 and then continue to explore possibilities for earning in the part-time job they are doing at home.. Once they reach a situation and confidence that they can capable of safeguarding themselves with the part-time business alone, then they can quit the main job .. I am sure this is risky, but still he need to ascertain the risk factors very clearly before taking such a decision...!!

Fergal, I hope I am right.. What you say about this??

[Twi$ted]

I have previously before been in such a situation. It depends solely on how you feel about what your outcome will be. My personal opinion is don't decide to quit your job and just take the internet business on fully until you are pretty positive about what you're doing. Positive attitude I mean.

If you have any type of negative attitude, there's a greater possibility you'll fail rather than vice versa.
Keep in mind, no matter what, everything happens for a reason, whether you quit your job and the business doesn't work out like you were planning, or if you turn out staying with your job and continue to make the decent amount of extra income. In the end,there's a reason for your decision, and fate will help you through it.

[Fergal]

It also depends on your own personal situation and attitude to risk. If you are in your thirties or forties and have kids and a mortgage your attitude to take a risk will most probably be different than if you were in your teens with no children or mortgage.

If you're young and don't have major commitments, why not take a chance and go for it. I don't think you'll regret it in 10 years time, even if things don't work out. But if you don't take the chance and in ten years time you are still in a job working for someone else you will definitely wonder - what if? It's worth remembering that 10 years can pass by very quickly and the older you get the quicker time goes by.

Some longer term perspective also helps. Think of where you want to be in three or five years time, and don't confine yourself by focusing on where you will be next month or next year.

[simplyjo]

Well, here is what I did. I took 1 month leave from my full time job to see if i can make that much online - result is, i made more than that :) so, tomorrow, i quit my full time job :) Yay !

[Fergal]

Congratulations and good luck with it Jo. That is a great idea for anyone that can get a break like that.

A longer break would really provide people with the opportunity to set up a business and see how it is working out and still have the opportunity to go back to the day job if things don't work out. Many employers are now offering career breaks in an effort to reduce their costs during the recession so this may well be a great time to take the leap.

[Twi$ted]

Congrats Jo! I'm glad to hear you were successful with your online endeavor. I hope to hear more about your success, if you could possibly share it with us at a later time.

[Sahil]

According to me when your dream of business becomes minutely clear to you means you have an exact idea of the matter or what you are going to do and how will you do.Do not leave the job and also earn as much as that if you have to sit for one full year home there will be no difference to you till that situation you must not leave your job.See don't feel I am against business but this much support is at least required or else you will have no alternative then to do a job.

[Mynameis...]

A person is full with ideas and a person is usually creative when it comes to getting new ideas for making a new business. But, there is always a limitation which prevents him from successfully accomplishing and achieving his goal and this is the initial funding of the project. Well, actually I didn't get what you want, but I guessed you are confused about leaving your job and getting your own business.
I advice you not to do that, because as you said that your own business is full of risks and dangers, while the job is secure and good; but, if you're willing to risk it or you already want to invest a certain amount of money and you have more backup (money), then just go for it, because it's always the person's choice & will that determine these delicate issues.
Hope you did the right thing and I just read that you have been successful with your online project. Congratulations.

[Fergal]

...I advice you not to do that, because as you said that your own business is full of risks and dangers, while the job is secure and good;...

I'd imagine that the founders of companies like Facebook, Microsoft, Google, etc. are glad that they didn't listen to advice like that?

Leaving your job to start a business is risky. When we take a risk we have to be prepared for the fact that it may not work out and do what we can to minimise the downside, should things not work out. But great success is never achieved without some level of risk.

[zerzis]

I think the dicussion isn't moving in the right direction. Speaking about myself, I am thinking of starting a business, but I am not very clear with the business plan. I don't think this is proper time to leave my job.

I recently read a blog post of some entrepreneur. He says one has to really plan his exit from his job and that decision is not an easy one. He says you should start the business along with the job and see it grow. Then carry out some important steps to put the business right on track - just starting isn't enough. As far as money is concerned - he says - when your business gives you 50% of your salary consistenly for some months, and you are confident that it will continue - thats the perfect time to kick your job and plunge into business.

These were his views.... not mine. But I completely agree to it. I may do the same thing when it comes to my business. What you guys think?

[Fergal]

It sounds like a good way of looking at it Zerzis, but it really does depend on your personal circumstances and the type of business you are setting up. The Founders of Twitter are still not generating any revenue, yet they have still established a huge business worth hundreds of millions of dollars. It would not have been possible for them to set up the business part time and wait until they were generating 50% of their salaries before leaving their jobs.

You gain experience and learn about discipline in your day job, which will both be very important when working for yourself. Before leaving your job you should ask yourself if you have enough experience and self-discipline to run your own business.

Don't forget that there is never a perfect time to start your own full time business and if you wait for the perfect time you will never do it.

Please keep us updated and let us know your thoughts.

[BenjaminCip]

I am about to loose my job soon, and have no alternative than continue my professional blog and prove people we can make a living from blogging if we make the right decision and are well determinated about making profit online. I'll offer some great opportunities to my readers so as to build a successful blog, not to mention, make money from subscribing to some of my special offers about products you'll be interested in etc. Of course, most of people need some fund to continue their bussiness, in the case of blogger, we need at least a domain name and a webhosting, unless you start with a free limited blog. I went from nothing and increased my traffic more and more, even thought I just have three months blogging, It's probably because I've learnt many way about making a decent income online for the past 4 years. I'm open to learn new bussiness opportunities.

[zerzis]

Fergal,
You pointed out a very good thing about what we learn at job. As said earlier every business is different and should be approached differently. Leaving job and plunging into business invites risk and the risk taking capability also matters - if your dad is rich enough to support even if you fail financially, naturally you will have a higher risk taking ability than a person who isn't rich enough.

The gut feeling is necessary and that comes when you are confident about your business plan - this is the most necessary feeling you should have when you start your business. Also you should verify that the way you think about your business growth is accepted by some of the visionaries. elders and businessmen you know - so that if there are any pitfalls you should resolve it early.

Ben,
I think you have a lot of enthusiasm and he shouldn't look back. Goodluck!

We have unknowlingly listed out some things to consider when you feel to leave your job and start your business.. well well, any more points friends?

[Fergal]

I am about to loose my job soon, and have no alternative than continue my professional blog and prove people we can make a living from blogging if we make the right decision and are well determinated about making profit online. I'll offer some great opportunities to my readers so as to build a successful blog, not to mention, make money from subscribing to some of my special offers about products you'll be interested in etc. Of course, most of people need some fund to continue their bussiness, in the case of blogger, we need at least a domain name and a webhosting, unless you start with a free limited blog. I went from nothing and increased my traffic more and more, even thought I just have three months blogging, It's probably because I've learnt many way about making a decent income online for the past 4 years. I'm open to learn new bussiness opportunities.

Sorry to hear that you are about to lose your job BenjaminCip, I've been there myself (http://www.businessadviceforum.com/showthread.php?t=2809) and you do have my sympathies. Hopefully it will be a blessing in disguise for you.

You might find some of the links in the blogging section of our Useful Business Resources / Links (http://www.businessadviceforum.com/showthread.php?t=405) useful for building and promoting your blog. Fell free to add a link to your blog in your signature here on BAF. Once you have five posts you can also plug your blog in our Member Ads (http://www.businessadviceforum.com/forumdisplay.php?f=11) section.

Please let us know if there is anything we can help you with or if you would like a review of your blog by posting your questions in the relevant forum.


...Leaving job and plunging into business invites risk and the risk taking capability also matters - if your dad is rich enough to support even if you fail financially, naturally you will have a higher risk taking ability than a person who isn't rich enough...

That's very true Zerzis, it would be very comforting to know that you would be OK, should your new business fail. It's also very easy to overestimate the potential negative consequesnces that will occur should the business fail.

I'm not a fan of focusing on the negative, but in my experience sometimes it can help a little. If you are afraid of doing something because of what could go wrong, it is good to ask yourself "what is the worst that could happen". When you actually think about it and even write it down, you will often see that it will never be as bad as you originally feared. Plus you can begin to put back up plans in place, should things go wrong.

When thinking about "what is the worst that could happen" you should also ask yourself what you are really afraid of. If you keep asking yourself this, the true answer might surprise you. It sometimes happen that our real fear is something that we are not even conscious of. Our real fear could be related to what other people will think of us, if we fail, and that's not something we need to be afraid of. Once you bring this fear out in the open it is much easier to deal with.

There are also advantages associated with not having security behind us if things should go wrong. The lack of a safety net can be a great motivator to work hard, focus on what we actually need to be doing and to do things right.

Please let me know your thoughts on this.

[Norrad]

If it was me, I would keep my fulltime position and work on my own business during my free time. When my part-time salary matches or better my full-time salary, then I would consider leaving my job to go into business full-time. If you are comfortable taking risks or you have sound financial backing, then you could probably do it earlier.