5 Key Considerations Before Quitting Your Corporate Job
Are you fed up with your corporate job and ready to strike out on your own as an entrepreneur. If so, it may seem like there no answers to help you make that decision. While it is very possible to transition successfully from employee to entrepreneur/business owner, it is a little bit more complex than you might think. Here are 5 questions that you need to answer to prepare for the shift from your corporate job and becoming your own boss.
1. Do you have enough money to pay for your living costs for one year?
When working on your business plan, don’t forget about a very important factor: the money it will require to take care of you and your family for at least one year. If you are leaving the corporate world, you will not be getting a steady paycheck each week. As your business grows, you may be able to predict what you will make for months 1, 2, 3 and so on, but you probably won’t have a consistent check at the end of each week. You will need enough money to pay your rent or a mortgage, insurance, car payments, utilities and food. You will more than likely need to cut out unnecessary extras that you can really live without (you can make coffee at home and stop paying for a $5.00 cup of coffee). If you need assistance in this area, hire a financial planner to help you not only pay your costs but set aside a rainy day fund for emergencies.
2. Do you have a budget for your new business?
The bottom line on why you will need to draft a budget for your business is that it will help you figure out how much money you have, how much you need to spend, and how much you need to bring in to meet business goals. Having a well thought out budget can also help you minimize risk to your business. A budget can be used to identify the following:
- The funds needed for labor, equipment and materials. This will include your computer and paper, smart phone, fax machine and platform for building an email list.
- For a new business, total start-up costs. You may want to consider just opening your business with a smart phone, computer and business card. Try not to spend all your money during start-up mode.
- Your costs of operations. This list is similar to the funds needed for materials. You will more than likely be working from home, so once again, smart phone, fax machine and platform for building an email list. If you have a vision of a brick and mortar building for your business, you should consider that down the road.
- The money needed to market your business. If you are building a network marketing business, your best marketing tool will be to connect with people by phone, email, online social networks and by text message. New business owners often spend way too much money on brochures, postcards and newspaper advertising. The best way to marked in today’s world is to go digital: Email, social networking sites, telephone and text message.
3. Have you talked to your family, and are they 100% behind this transition?
As I mentioned in point number 1, you will no longer be earning a steady paycheck. As you begin building your business, you will more than likely be living off your savings, and your family needs to buy into the fact that you may need to cut back on some on the “extras” and they need to be willing to be patient with you as you grow your business. If you have a spouse or a partner, he or she is the key person for you to gain buy in from, so spend some time talking over your decision
4. Are you going to work part time, moonlight or quit your job and go for it?
If you are someone who is concerned about your ability to finance your new business, you may want to consider two transition options:
- Moonlighting: With moonlighting, you would keep your full time job and work on your new business after you get home. The challenge here is that you will find you will have very little time with your family, and your focus will be split. If you choose to moonlight, it is really easy to come home at the end of the day and say “Wow! I am really tired. I am going to take a break from working on the business tonight.” While this is fine, it will certainly take you longer to reach your end results, and you may become frustrated with the lack of results.
- Working Part Time. Many business owners will leave a full time job, and find a part time job working 3 days a week and use 2-3 days to devote to building a business. As with moonlighting, this choice is fine, but you will still have a split focus, and it will take you much longer to get to your end results.
5. What will you have to change in order to be successful in your networking marketing business.
I mentioned earlier that you will more than likely have to cut back on the extras and that time with family may be limited as you are building your business. But the list does not end there. You will more than likely be changing friends, colleagues and social activities. You will now be the boss, so your leadership skills and the way you run your business is now fully in your hands. One of the best things you can do for yourself is to talk to someone who has been successful in the network marketing business and ask him or her what actually had to change.
As you can see from the list above, becoming an entrepreneur and building your own business will require work and dedication even before you decide to quit your day job. However, by answering these questions and by talking to others who have walked in your shoes, you can leave your life as an employee with the knowledge you need to make an informed decision.