I’m not sure if it’s the Scorpio in me, or the growing-up-in-the-90’s-celebrity-gossip-era in me, but I’ve always been endlessly fascinated with the the lives of the people around me.
It’s what has made me a good and curious friend, always wanting to know whatever the latest is with someone, and it’s also the thing that has made me live life as a detective, observing human behavior over and over again until I can see clearly the patterns that happen for us all.
This has served me well in my career as a business coach, because I’m able to see what someone is asking about, and also see some of the context between the lines. In today’s AUIYB column, Jenny is asking a super straightforward question, and I’m gonna give her a somewhat not straightforward answer.
If so…this one’s for you.
Dear Sally,
I’ve been working a job I like only OK for many years, but I’ve had in the back of my mind an idea for a business that makes me feel excited and inspired. I’ve never done anything on my own, and I do like having that regular paycheck, but my business idea is calling to me more and more. I feel like if I quit my job, I’d have more time to work on my business idea. How do I know when/if it’s time to quit my job to start a business?
Thanks,
Jenny with the Good Job
Dear Jenny,
This is a really great and common question and while there are some pieces of advice I can give about this, the decision really comes down to what you need and want, and who you are as a person.
Below, I’ll share 4 things to consider, as well as 3 common approaches to this question.
I would start by taking an overview of your life. Here are some things to consider:
1) Start by looking at your needs and responsibilities and how much money you need to make to make your life work. For example, if you’re a mom of three and the main breadwinner who pays the mortgage, your needs will be really different than a single 20-something with disposable income living with four roommates.
2) Then, look at your current situation and see how what you're doing now lines up with your needs and responsibilities. Is there room for risk? Do you have savings if you quit your job and it took awhile to build your business?
3) See what kind of personality you have when it comes to risk and security and stability. Some folks get really motivated when they don't have any money in the bank and a mortgage payment coming up. Other folks get paralyzed and overcome with anxiety in that scenario. Which one are you?
4) If you don't have many responsibilities, and are ok with a certain amount of risk and financial uncertainty, then you might want to quit to work on your business full time. But if you have more responsibilities and need some security, then you might want to come up with an exit plan for your job where you have some money saved, or a plan on how to build your business while you're working and once you quit.
I can say that more often than not, people think that if they quit their job and have more time to work on their business, it'll grow faster, but I actually find the opposite to be true, because having more time doesn't usually lead to more productivity. It's often the opposite.
Most people get very uncomfortable when they don’t have a deadline or someone telling them what to do, and this is a learning curve that takes a lot longer than people expect (often years). And you know what else having more time allows you to do? Worry about how you’re not making any money yet, scroll around social media wasting a ton of time, and ruminate over whether or not anyone will every want to buy your stuff.
Additionally, the stress of not making that steady paycheck makes some folks overwhelmed and desperate for business, which is an energy that repels potential customers and doesn't give the person enough space to take the time it really takes to build a business.
So even if you do decide to leave your job and work on your business, I think it's super important to have really good time management skills, and it's important to realize that business will probably take a lot longer to build than you expect. If you are ok with all of that and have a plan for how to manage that, then it might be time to quit.
If you’re not sure if you’re ready to quit yet, here are three common ways to approach this scenario:
Stay in your job for now and start exploring your ideas and inspiration and working on your business after/before work and on the weekends. A lot can be done in not a ton of time, including testing out your ideas, learning business and marketing skills, and following the crumbs of your curiosity. Look at your job like an investment in your business, and quit when your business is at a stable spot.
Stay in your job and set a goal to save a certain amount of money so you’ll have a nest egg when you quit. Have an exit plan of leaving your job when you’ve saved what you wanted to save.
Quit your job and get a bridge job (a job that takes less of your time and brainpower so you have more time to explore and work on your business while still earning a steady paycheck) Make it a goal to quit your job when you’re making as much money, or more, in your business.
I opted for #3 when I built my business and it worked for me because it gave me a steady paycheck while I learned the skills I needed to have to grow a business, and it didn’t make me desperate for clients. It was playful and fun and I felt a lot of freedom to experiment. As soon as I made as much money in my business as I did my job, I quit and never looked back. But again, there are lots of options and you’ll want to choose the one that aligns closest to your needs and personality.
And now I want to hear from you, dear reader…
Are you asking yourself this question now? If so, what approach is the most appealing?
Have you already quit to start a business? If so, how’s it going?
Share yours in the comments below and let me know what questions you have about the stage you’re at. Happy to help.
And if you’d like me to answer your question in my next column, you can ask it anonymously here.
P.s. If you know someone who could benefit from this, please share it with them!
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