One of the most important decisions for entrepreneurs appears to be when they decide to quit their full-time job and completely change their career direction. This definitely is stressful part of the entrepreneurial path, which marks the beginning of one significant phase of the startup process.
This so important moment often is the place where entrepreneurs make big mistakes which can affect the future of their company and their own well-being. To avoid some of these mistakes, here you can find useful tips to help you make the switch in your career in the most stress-free way.
Evaluate: Where is your startup now?
Before you decide to pursue your dream and quit your job, you should know where your company is at this moment. Do you even have a company yet? The stage where uncertainty prevail everything else in your startup is not the best stage of your entrepreneurial path for quitting your job. Take the time to build your startup foundations even if you have to sacrifice your weekends, week nights and yearly vacations.
Create an estimated business plan for your startup. Depending on the stage of your work, you are able to predict the moment when your business will become profitable. Make sure that you have enough money to support yourself until you actually start earning. Remember that the first profits of your business will probably get into the investment circle of the company in order to secure growth through investment.
The stage of your startup really matters when you decide to make the transaction from full-time employee to a completely devoted entrepreneur. Early stage startup owners need to wait before they make this transition. Find the balance between your job and your startup. Better grow with small steps than to make big jumps and increase the risk to fail. Entrepreneurship is risky enough and you should save yourself some trouble whenever you have the chance to do so.
Prepare: Review your personal finance plan
Calculate your monthly expenses and determine how many months you will be able to live with the savings you have. The ideal moment for your quitting will be when you have between six months to a year living expenses worth of savings. Like this you will be comfortable with maintaining good lifestyle which will make it easier to concentrate completely on your startup.
Many entrepreneurs rely on bank loans to secure their life expenses, but the best they can do is to use this assets for the company. Divide your personal expenses from the spending for your startup. By doing this you are more likely to maintain good financial culture and to succeed in your venture.
Think about your medical care and make sure that you can afford your insurance for the near future. These are aspects which entrepreneurs often overlook and later deal with unnecessarily high medical bills.
In general, think about the responsibilities you have and make sure that you can have it all covered even if you don’t receive your monthly paycheck as you used to do.
Execution: How to make the transition?
Make sure that you quit your job with positive attitude and stay in good terms with your boss and co-workers. You never know when you will need to look for a partner or employees for your company and the best place to search is the place which you know best.
Many people may disagree with your choice, but you need to make your decisions according to your plans and pursuant to your preparation, combined with the trust to your intuition.