Categorised | Business & Finance

How To Know When It’s Time To Quit Your Job To Work In Your Business Full Time

If you’re an entrepreneur who’s still employed and are patiently waiting for the day to come when you can walk away from your job and work in your business full time, then you may be wondering if that day is ever going to come.

The truth is, though, that day might already be here and you just haven’t noticed yet because you’re not considering the right things that would make it possible for you to quit.

Quitting a job, even if it’s to work on a business that’s doing well is a big step and it’s a scary one, so it’s not going to be an easy thing that just happens overnight, and you will no doubt have many internal battles over it, but at the end of the day, you simply have to trust yourself, and if the job you’re currently working in has nothing to do with the success of your business so far, then there’s no reason why leaving it will make any difference to your business once you do leave.

However, we know you want more practical advice than that, so that’s what we’re going to share with you in the tips below so that you can decide for yourself when is the right time to quit your job and work full time in your business.

If you’re making equal or more than your salary:

There are a lot of people out there who will tell you just to quit your job and go for it in your business because they believe that using the motivation of not having your security blanket in the form of your income will be enough to propel you forward in your business that bit more, but the truth is, this is really bad advice, although it comes from a good place.

The problem with this advice is that no matter how motivated you are in your business and how much effort you put in, there’s really no telling how long it will take to start making money and even if that’s going to be good money, so it really doesn’t make sense to be putting yourself under such epic pressure because you’re not going to be performing at your best.

Also, if you’ve got bills to pay and a family to feed, then doing it this way is just not very responsible and can easily cause other problems.

Instead, what you should do is sit down and make yourself a plan, it can be 3 months, 6 months, or even a year if that’s what you need as your deadline for when you’d like to quit, and as part of your plan you’ll need to have achieved certain things to make it happen, such as have equaled or replaced your full time income consecutively month after month over that  period before you can quit.

Of course, it’s not a huge deal if some months are slightly higher or lower than others because this is part of the ebb and flow of business, but things should be steady.

The other thing you should be aiming for is to have at least 6 months of savings in place by the time you quit so that if you do have a rough month or two, then your bills and expenses are still going to get paid.

If you have consistency:

The next thing you should be looking at before quitting your job to work in your business is the overall level of consistency you have, not just in your income, but in the progress you’re making in your business and the clients you have.

For example, do you have a couple of clients who come on board to work with you for a month or two and then leave so you’re constantly having to hunt for new clients all the time? Or do you have a steady flow of clients who generate repeat business for you?

If you’re struggling with consistency in your business, then you need to be looking at your services and pricing, and the best way of generating that consistent income is through things like packages and digital products.

For example, if you wanted to start a website optimisation business like PRWD, then you could offer retainer packages to your clients, since keeping their website optimized isn’t something that can be done just as a one off job and may require some tweaks along the way.

If you’re making profit:

One thing many people get mixed up when starting a business is the difference between revenue and profit, and although revenue is crucial to your business, it’s important that you’re able to make profit after your expenses and overheads have been paid.

So, if your business is currently generating around $5,000 per month, but you’re only able to pay yourself a salary of $1,000, although your revenue looks good on paper, the amount you need to pay your personal expenses and live on really isn’t going to be enough, so you need to work on increasing this and possibly look at ways to bring down your business expenses.

If you feel like it’s the right time:

As we mentioned above, sometimes you just need to trust yourself and know that you’re making the right decision. Intuition is a powerful thing and it has a funny way of showing up – sometimes when we least expect it – to really guide us to what we want and need in that moment, even if it seems like the logically wrong or bad choice, so if you’re someone who relies on your intuition, then it’s time to tap into that and see what it’s saying, because it’s rarely wrong.

If things are actually growing:

If you’ve been tracking and measuring the growth of your business from the start, then you should be able to determine quite quickly if things are moving forward or if they’re staying stagnant, and if they’re moving forward, then it could definitely be a good time to think about quitting your job and working for yourself full time.

Leave a Reply

  7 Reasons to Subscribe

Subscribe via: (Email / RSS)