3 Things You Can Do Before Leaving Your Job and Starting A New Adventure
It can be scary to leave a full-time job in favor of entrepreneurship, but in reflection — here are a few things that could help you take the leap.
It’s been ~6 months since my latest career pivot, leaving a “9–5” and starting my own consulting business, and in that time, I’ve fielded lots of questions:
- How do you like being on your own?
- Would you ever go back to being a full-time employee?
- How did you know you were ready to open your own consulting business?
Sometimes it’s just small talk, but I’ve wondered if some of these questions are from those quietly curious about whether this move might be right for them, someday.
TLDR:
- I generally like it! I have the flexibility and agency around my work, and, I feel like I have more time mentor those I’ve worked with in the past, without being their manager. It can be lonely, but I have a strong community of friends, peers, and former co-workers (+ an adorable office dog), which fills the loneliness void that entrepreneurs can face.
- My career history probably shows I almost never say never. I’d definitely consider being a full-time employee if I found the right alignment of team, leadership values, and agenda. In today’s workforce, the journey between employee, contractor, consultant, etc, is more fluid. The Future of Work is here, and I’m excited to be a part of it.
- Readiness is complicated. Like many, I have struggled with imposter syndrome throughout my career. Starting a business is a leap of faith and I have found it hard to truly be “ready.”
That being said, I‘m glad there were a few things I did before leaving my previous role — and if you’re thinking about a move like this, you might find this valuable.
- Pay your dues.
This first readiness move likely takes the longest. While a few years of experience could prepare you for starting your own skills-based business (especially for new/emerging skills, technology, or trends), I’m grateful my lengthy career has given me:
- A variety of work experiences, allowing me to fit into many client cultures. I’ve worked on folding tables at schools in LA’s toughest neighborhoods, in factories in China, and in C-suite boardrooms with every amenity you can think of, and am comfortable in each of those environments.
- A set of transferable skills around People & HR that I can adapt to fit my client’s needs.
- A broad network that I can tap into for help, advice, and leads.
2. Get your finances in order.
I think way more about money and spending than before. When you’re working for a company, money magically and regularly appears in your bank account. That comfortable regularity disappears when you own your own business.
Really get down to the details:
- How much does it cost to operate your business?
- How much do you want to take home (after factoring in costs) to maintain (or improve) your existing lifestyle?
- How much do you need to take home if you had to cut waaaay back to your bare minimum expenses?*
- If you aren’t bringing in that amount you need, what’s your burn rate? What savings do you have that you’d be willing to tap into?
STARE at those numbers.
Think about real, actual people (ideally that you know personally) you would sell work/products to.**
Does that feel achievable? How long would it take you to achieve that level of sales/revenue?
If you have a life partner, paint the picture of various future financial states, and have an honest conversation about the support (financial, emotional, etc) you might need from that person, and if they are willing to do so.
*Side benefit, even if you don’t end up starting a business, it’s never a bad idea to have a lil’ financial checkup with yourself every now and then!
- *If you can, talk to those people. Test the waters. If you can land your first client before actually resigning, even better!
3. Approach your launch iteratively.
When launching your business, there are “must dos” and “could dos”. In many cases, all you really need is a business license and compliance with local laws to get operations off the ground, and a paying client.
It’s fun, but also time-consuming, to think of the details, such as a name, branding, colors, location, systems, software, processes.
These are mostly reversible decisions, and IMO, not worth delaying your ability to get started with a paying client. (This depends on the type of business you’re starting, of course. For my cookie business, we spent a fair amount of time on branding, look, and feel. And money on a 30-quart Hobart mixer, which was both an amazing tool that we really did need AND was a less reversible decision due to its weight and resale value.)
As an example of how I thought about reversible investments, for We, the People People — I felt fairly confident that my first clients would be folks who had already worked with me in some capacity, so to some extent — I leveraged my personal brand to land my first contracts (see #1 above).
- I gut-checked this by looking at similarly-sized competitors and their online presence, and felt comfortable with smaller investment.
- I decided that once I had some incoming cash flow, I could always invest more in the brand
Rather than a hard launch where you have every single thing you’d want to start your business in order, pick your battles . Figure out what you need to be compliant, start adding value for your client, and iterate and add aspects of your business as you need them.
Shortly after I left my last role, I was giving a guest lecture at Yale University about career paths, and I showed a slide that charted the various roles I had served in over time (x-axis) and my career happiness along the way (y-axis). A student asked me why I had left, because based on how I had drawn my chart, I was leaving at the peak of happiness to go into an unknown squiggly line in this new chapter.
It’s cheesy, but in retrospect, I realize now that I didn’t draw my chart correctly. I loved aspects of my last job. I did experience peaks in my career while there.
But, I’m already finding that my y-axis is reaching new heights as I continue this journey, and I’m looking forward to what the next 6 months bring.