Quitting your job, especially if it SUCKS, is one of the best feelings known to man.
But it can also be the WORST decision if you take the plunge without a proper exit plan.
I LOVE it when people pursue their dreams. But I’ve also seen aspiring entrepreneurs hit hard mostly because of a lack of money to live on let alone grow their ventures.
Starting a business requires money. You might say DUH! But the reason many start-ups fail is they underestimate this. I know I did.
One of the things I never thought of was how costly it would be to advertise and market our business. It sounds silly because who doesn’t know about advertising costs? Well I didn’t.
Added to that were all the NUMEROUS other expenses we never predicted. Some people advise to have saved up for living costs for up to six months- to be honest I’m more likely to agree with those who say calculate how much you’ll need to live AND to invest in your start-up for a year and then triple that amount! That’s roughly how much you’ll need.
Please hear me. I’m not trying to scare you out of starting a business. It is my heart’s desire that more people become successful entrepreneurs- all I’m saying is go about it wisely.
We hear how many start-ups fail but we never think we might be one of them. None of us start out determined to fail- or even thinking we might fail… We all start out optimistic, energised and ready to “give it all we got!”
But living is expensive. Add start-up costs to that… bottom line is it’s not as easy as it may seem in our heads.
My number one advice for start-up entrepreneurs is start small.
I know we have BIG BIG dreams- and that’s wonderful. Don’t ever lose sight of the massive dreams you have. But getting there doesn’t happen over night, sometimes it might not even happen over the course of a year. It takes time. Be prepared for how long it may take.
If you want to be an entrepreneur one of the number one things you must MUST do is STAY OUT OF DEBT!
Learn to live way below your means.
No matter how tempting do not borrow money- Not from credit pruchases, bank loans or even family and friends. Do not borrow money. Stay out of debt.
Learn to be a cash buyer.
If you’re married make sure that one of you stays working while you grow your business. I know how rubbish it can be working a job you hate but it’s even worse not having a place to stay and having all your stuff repossessed by banks and others you owe money.
I know there are some people who talk about borrowing money to start or grow your business- But I’ve met enough people whose lives became hell following such advice. My advice, from personal experience, is stay as far away from debt as you can.
Then Save. As much as you can.
When I quit my job I had no debt. Zero. One of the things my husband taught me from very early on is not to even have a car payment. So my first car was an old car in good condition but I bought it cash and saved THOUSANDS in interest and other expenses that come with buying on credit.
When I quit my job I also had enough savings to last me at least 2 years of supporting myself.
When I eventually started my business I started small.
I started with what I could- I’m also very blessed to have a wise husband who’d always stop me from spending on things we didn’t need.
Building a business costs far more money than we ever project we need.
While it’s important we live the best lives we can by following our dreams we need to ensure we don’t starve ourselves and our families in the meantime.
What You must know before you quit your job is having a business is not just about starting one- anyone can do that. Having a business is about making a good living from your venture- getting to that point never happens overnight. It takes time.
Be very honest with yourself when taking that first step. Get all the support you can. Ensure, especially from the financial side of things, that you have prepared as best you can for the journey.
Here are two articles I hope will help you:
1. 10 Questions to ask before Quitting Your Day Job
2. What every entrepreneur must know before quitting their job
Hannah Viviers is the Creator and Host of the Dream BIG TV Show
Reach out to Hannah by connecting with her on Facebook. She reads her messages there daily.