SHOULD I QUIT MY JOB AND START A BUSINESS?
What do you think?
Should you quit your job and start a business?
I am going to go through the pros and cons and hopefully you will learn a thing or two.
So, you’ve got that bug…you’ve got that itch…and you want to become an entrepreneur and start your own business. I commend you, I applaud you, congratulations; however, don’t jump just yet.
First of all, when starting a new business you have to ask yourself this:
“What type of business am I starting?”
There are a couple of things that you have to take into consideration, for example, there are different business models out there and there are different businesses out there.
The first question you have to ask yourself is:
“If I’m going to start a business, what kind of business should I start?”
It is really important that you figure this out right away as there are many different businesses.
You’ve got e-Companies, tech-companies, online businesses, clothing companies…all these different categories of business and each business comes with a different operational cost; meaning that it is going to cost you differently for each single business that you want to focus on.
That being said, once you have identified the business that you want to go into and you have identified the exact operational cost, this is going to determine your next step.
Let’s say that you want to start an e-Commerce business; that means you have to figure out how much you are paying for your products.
…So if you go to Alibaba you have to figure out how much you are paying for products.
Let’s say you will be paying $2K — $4K for first shipment, and then you have to build a website, figure out how much money you need for marketing, how much money you need for unforeseen costs etc.
It comes down to your monthly cost.
Let’s say your business costs $2K monthly to run, and then your time (obviously the most important commodity of all).
Once you have all these different things written down: $2K — $4K for your initial purchase (and that is really cheap), how much it’s going to cost for your website, your marketing budget, unseen costs (e.g. legalization, lawyer fees and other set up fees, software feesonline which could be a couple hundred dollars per month)
let’s say everything comes to about $2K per month to run the business.
Now it is costing you $2,000 per month to run your business, and it is also costing you your time.
Let me ask you this :
How much money are you bringing in at your current job?
Let’s say you are…bringing in $8,000 monthly (after tax — keeping it very liberal).
What type of lifestyle are you living with $8,000?
I am considering maybe you have a mortgage or rent for $2,000 per month, a family (wife and kids) so food could cost another $2,000 per month, entertainment cost could be $1K per month, car payments could be another $500, insurance that is another $500. So far we’ve got $6K r and I didn’t calculate everything else so maybe you’ve got $1K over for savings.
Then you have the bright idea of starting your e-Commerce company, like:
“I’m going to quit my job!”
That’s all fine and dandy; you are going to quit your job but you are forgetting that you are going to need $2,000 to run your business, about $6,000 per month to run your household.
Where is the money?
That’s “no bueno”! It doesn’t work that way, you don’t just jump ship.
What you need to do is figure out the balancing. It’s going to be really hard. I’m not going to lie to you…it’s going to be really difficult going from your full-time job over to your business; however, this is smart.
I have seen a lot of people sabotage themselves. I like this lesson that Gary V talks about. It is about grinding yourself out for a short period of time until you get enough momentum on one thing so you can let go of another thing.
If we know for a fact that just to get off the ground, your e-Commerce business will cost you $2K and you know for a fact that you need a minimum $7,000 per month for you and your family. That’s $9,000 per month: $2K for your business and $7K for your family.
What you need to do is this:
If your job is 9 a.m. to 5 p.m. like everybody else’s, I recommend you get up earlier (I’m not kidding you, I said it was going to be tough) for the next 2 years, grinding it out day by day and at the end, guess what? You win!
You will be doing the work that nobody else wants to do
You’re doing it smart.
I would recommend that you have a talk with your family, a talk with your partner, a talk with your kids because being an entrepreneur is no joke. There is a lot of stress on you as the founder, a lot of stress on your partner and a lot of stress on the family and the household.
It is really important for you guys to communicate.
If your job is from 9 a.m. until 5 p.m., and you wake up at 7 a.m. in order to get ready to leave at 8 o’clock, I would recommend that you get up at 5 a.m. and work until 7 a.m. From 7 a.m. to 8 a.m., you get ready to go to work.
In those two hours, you need to hustle on your side business. Do some email marketing, create some blogs, do some email outreach, PR campaign, if you are big on guest writing, reach out to journalists.
Make a list before you go to bed the night before and as soon as you wake up, you hit it hard running.
So, you get out your laptop and start typing away, grinding it off for two hours. You come back home say, at 5:45 p.m. or 6 o’clock, spend some time with your family, but you are going to be cutting back some time because it is tough building a business.
You are putting in sweat equity right now as well as working the other job because you’ve got to pay the bills in the house and you’ve got to pay the bills for your business as well.
So spend some time with the family for dinner (or whatever you want to do) and then from 8 to 12 (that’s four hours), you work on your business and you grind it out. You do your marketing, make some sales, you do customer service — you’ve got to do what you’ve got to do!
You’ve got to put in the work…you’ve got to put in the time and that’s that — there’s no way around it.
Basically, you’re going to do this until your numbers on your business start growing past your salary.
Not just the business number, as there is a difference between how much the business makes and how much you’re taking out, whether it is salary or dividends of the company.
The whole idea is that as soo as this business has enough revenue to pay you the exact salary as your current position, that’s when you drop ship and that’s when you have all this free time opened up — 9 to 5 is now opened for you to focus on your business.
That’s the recommendation that I have if you are considering quitting your job and starting a business.
Don’t! You need cash to survive; plus, this method of grinding in the morning and in the evening also will validate whether your business is good or not.
Many times people will drop everything (and I have done it a million times) all at once and dive into the business without having any minimum viable product, you haven’t proven anything, you don’t know if people want to buy it and you are wasting all this time for what…a dud? It isn’t working, no one cares about it.
However, if you focus on this and you hustle in the morning and hustle in the evening, you are going to validate your idea and your product and at the same time you are also providing for your family and for yourself.
That’s pretty much it!
Don’t quit your job. Grind on the side and hustle on the side, prove your business model and then transfer over.