When Should You Quit Your Job?
Today I want to discuss a really common question – ‘When should I quit my job?’
A lot of the people that follow me are either working online full-time, are doing it on the side, or are contemplating starting some sort of online business.
When you’re first building a side-business, it can be difficult. You have other obligations such as a job that take up your time. But most of us still have bills to pay and we need that income, so quitting the job isn’t an option right away.
Building a business on the side can be tough!
And eventually, it gets to the point where you need to make a decision. Do you either quit your job and focus on growing your business, or do you keep your job, and leave your business to continue to stay at the level it’s reached.
Personally, I quit my job almost 2 years ago now. In the 3 months following my resignation, I was able to triple the revenue in my business. For me, quitting my job to focus on my business was a great decision.
In this post I’m going to share the 4 things I considered before quitting my job, that I think you should look at as well. Hopefully, these 4 things will make the decision a little bit easier for you, and give you a timeframe for when you will achieve that freedom!
If you’d prefer to watch, rather than read – I have a video version of this post below!
So, let’s dive right in!
As I said I believe there are 4 things you should consider before deciding to quit.
1. Your Budget
I highly recommend doing a cashflow budget before quitting.
To do this, start with your starting capital (savings) as your base point. Then, work out what your expenses for the first month will be. This includes living expenses and business expenses.
Minus those expenses from the starting capital.
Then, add in any income you expect to make from your business during that month.
What you end up with, is your profit/loss for month number 1, and your net position at the end of it.
I recommend doing this for at least 6 months in advance, and be very conservative with your numbers. Add a little bit to your expenses, and lower what you expect to make a little too. We want to be absolutely sure that you’ll have enough cash at the end of the day.
I would recommend staying at a job until you can live for at least 6 months on your budget without having your business improve at the rate you would like. It’s important to crunch the numbers to give yourself a reasonable idea of what your bank balance will be from month to month, and if quitting right now is feasible!
2. Risk Tolerance
The next thing you need to consider is your level of tolerance for risk.
I know some people that have saved up $10,000, booked a flight to a cheap destination such as Chiang Mai, and started a business from scratch there! These people obviously have a high level of tolerance for risk.
However, you might be a little less risky in your approach, and want a certain level of financial stability before throwing in the towel.
Take into consideration your personality, and how well you handle risk. Being in risk financially works for some people, but for others it makes them make bad decisions and get overly stressed.
If you’re super comfortable with risk and don’t have too much to lose, then maybe you’d like to quit before even starting your online venture. For others, you’ll want to have a good bit of savings and a solid business in place before handing in your resignation.
3.Fall Back Plan
The third thing I believe you should give at least a little bit of thought to is your fall-back plan. Don’t focus on it too much, but I think it’s important to have some sort of a plan in place.
Would you be able to go back to your job if all else failed?
Do you have other job/business opportunities you could take if your business fails and you need the money?
Don’t focus on this too much as it might detract from your motivation a little bit, but I think it’s smart to have some sort of a plan B in mind.
4. Your level of happiness
The fourth and final consideration I would recommend is your level of happiness.
I think this is totally underrated, and not enough people consider it when it comes to their professional life.
Are you miserable in your current situation? Do you hate your job, your boss, your lifestyle?
If so, you might want to quit a little bit sooner, and take the riskier route.
It’s not worth your happiness to make a few extra bucks. I’ve seen so many people sacrifice their happiness just to make more money, or just to make ends meet.
Personally, you could offer me twice as much money as I currently earn to work a 9-5 job, and I’d say no.
Doing what I do makes me so happy.
If you’d be happier earning less, living in a tropical country and rolling the dice on your own business – then go for it! Don’t wait a second longer than you have to!
On the other hand, if you love your job and your lifestyle, maybe hold in there a little longer. Maybe, don’t quit at all. It’s not for everybody.
The point is you have to be honest with yourself. Are you happy in your current situation, or would you be happier going all in on your business and rolling the dice?
Only you know the answer to that one.
I highly recommend taking the time to consider the 4 points above. Write a detailed budget, and really be honest with yourself about your risk-tolerance level, and also your happiness levels.
Once you’ve done that, it’s time to set a date.
In might be a week from now, a month, 6 months, or a few years away. But you need to set a date for when you aim to quit your job.
Then, work like crazy until that amazing day comes!
I hope this helped.
Until next time,
Adrian IngramShare This Post: