No matter your current role, when work gets to be too stressful or monotonous you may begin to daydream about moving on to bigger and better things—things that you’re in charge of. The thought of starting a new chapter of your life where you call all the shots can be thrilling, but the reality of making such a move isn’t always what you dreamed of.
Before you make the life-changing decision to trade your position in an organization for entrepreneurship, take the time to consider what that really means. Below, 10 professionals from Young Entrepreneur Council discuss the most important things a person should consider before quitting their job to become an entrepreneur.
Young Entrepreneur Council members recommend considering these steps before going all in on entrepreneurship.
Photos courtesy of the individual members.
1. Testing Out Your New Venture First
Consider testing out your new venture first. Validating a business model takes time, and the safety of a full-time job would allow you to go through multiple iterations until you find the right course. Entrepreneurship isn’t a 9-to-5 job, so you may as well get a taste of the journey before quitting your job for good. – Mario Peshev, DevriX
2. Planning How To Generate Consistent Sales
Before cutting off your primary stream of income to become an entrepreneur full time, the main consideration should be how you’ll consistently generate sales. Early sales can deliver a huge confidence boost when starting a new venture, but it’s crucial to ensure that success can be reproduced month-in and month-out. Otherwise, the venture could become cash-starved, making it difficult to scale. – Richard Fong, PageKits.com
3. Determining The Time And Dedication Required
Do you have the time and dedication to make this work—especially if it’s your first business, you have little or no experience or you have a family to support? I initially thought being an entrepreneur would give me more time and freedom, but it turns out I had very little time to invest in anything but my business in the initial stages. Many businesses fail in the first year, so be ready to hustle. – Givelle Lamano, Lamano Law Office
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4. Understanding Your Personal Flexibility And Perseverance
The difference between successful and unsuccessful entrepreneurs is mostly driven by flexibility and perseverance. So, do you have the flexibility to constantly adapt your vision to achieve product-market fit? How long can you sustain in this period that will be financially challenging both professionally and personally? Answer these questions and you’re more likely to have enough runway. – Fehzan Ali, Adscend Media LLC
5. Preparing Yourself Mentally
Everything will rest on your shoulders now, from tracking your expenses to envisioning your future. You need to make sure you’re mentally prepared for the challenges you are going to face as well as how you are going to defeat them. In preparing yourself, your mind will be the greatest asset you have as you move into your new endeavors. – Blair Thomas, eMerchantBroker
6. Planning For Health And Dental Insurance
Do you have a plan for health or dental insurance? Many jobs include affordable insurance options so that employees can get regular checkups. Sometimes, leaving a position with benefits means that you qualify for COBRA, but COBRA health plans can be quite costly for most budding entrepreneurs. Your health is valuable, as is the health of your dependents. Make sure to conduct your research. – Duran Inci, Optimum7
7. Diving Deep Into Your ‘Why’
If you are just wanting to call the shots because you do not like the leadership style of your boss, or the corporate culture is toxic, consider another job. If you are feeling burned out, consider having a discussion with your current manager. Being an entrepreneur is not about calling the shots. Building a culture is exhausting if you are not 100% invested. Know your “why.” – Matthew Capala, Alphametic
8. Having An Exit Strategy
If you’re thinking about starting a new chapter as an entrepreneur, you should make sure you have an exit strategy in place before you leave your existing job. You’ll want to know how long you can continue to pay bills for after you’re no longer receiving a consistent income. Similarly, you’ll want to know how you plan on growing your new business, whether through investments or bootstrapping. – John Turner, SeedProd LLC
9. Getting Advice From Experienced Owners
Before quitting your job to become an entrepreneur, consider getting advice from experienced business owners and mentors who can share their points of view. It might feel exciting to think about quitting your job and taking a leap of faith, but it’s also important to be wise and not forget about your financial obligations. – Stephanie Wells, Formidable Forms
10. Building Up Enough Savings
Being able to call the shots comes with a lot of responsibility. Before you take the leap, especially for your first startup, make sure you’ve saved up a good amount of money so you can focus entirely on the business. It’s also good to bring on a good business partner who culturally aligns with you but provides an additional and helpful skill set that you don’t have. – Andy Karuza, Base64.ai
