It’s probably the biggest risk you have to take once you decide to go into business: quitting your job. It means abandoning the steady paycheck, the fixed 9 – 6 schedule, and the good, peaceful rest on weekends. But aspiring entrepreneurs tend to overlook these risks, and instead fix their eyes on the opposite, that once they become an entrepreneur, they will have more money and time in their hands. Understand that starting a business isn’t a walk in the park and that quitting your job is a huge risk. If you want to be a successful entrepreneur, you need to be smart at handling this type of risk. Before you hand over your resignation, think things through and make sure to tick off these things first:
Research, research, research
No matter how dreadful your job is, it’s never a good move to leave it when you have no idea yet what to do in business. You’d find yourself overwhelmed with so many options, while your savings are dwindling quickly. Before quitting then, try to know as much as you can first about the industry you’re getting into and the particular businesses that would fit your passions and personality. Explore. Visit an office or a store you’d want to run. Pin down who your audience is. Observe what existing businesses are doing. Talk to some friends and colleagues who are entrepreneurs themselves. Consider different opportunities, like acquisition or franchising. Attend networking events. You never know, you might just be sitting next to a potential investor, a future mentor, or a business partner.
Write your business plan
Most people tend to postpone this task, telling themselves that they’d do it once they resign, once they’re freed from pressures of meeting deadlines and demands from their present boss. The business plan is the ‘Bible’ of your entrepreneurial endeavor, outlining everything concerning your business, so yes, it just makes sense to dedicate time for it. But here’s the truth, you will never have ‘time’. There will always be something that will come up that needs your attention even if you already left your job. Three months into not having a job, you still don’t have the business plan you’re planning to do. So, do this now. Do it once you’ve decided which business to pursue. Do it while you’re still tied to a stable paycheck. It doesn’t have to be perfect. You can do this in half an hour or so. If you’re planning to buy a franchise, say, a pizza place or a jewelry cleaning kiosk franchise for sale, you have the essential information already from the parent company, and you’re all good.
Secure your finances
At its core, quitting your job and starting a business is a financial risk. You’re letting go of a monthly salary, and then funding a huge endeavor. So, it’s important to do a reality check of your finances before taking the plunge. Don’t get into the business when you only have a few hundred dollars in your bank savings. If you’re paying rent or mortgage and trying to send kids to school, you won’t be able to focus much on your business because all you’ll do is keep up with personal and family expenses. Most people find it financially wiser to invest in a franchise since they are starting costs are fixed already. They’re able to prepare their finances well, at the same time, protect it with the brand’s proven business model.
Before You Quit
The bottom line here is, don’t quit your job unless you’ve started something out already in your business. Otherwise, you might find yourself in a risk bigger and more serious than abandoning a steady paycheck. Do your homework to increase your chances of business success.