When should I quit my job to focus on an online business startup?
I am planning to quit my current job from which I am earning sufficient income because I have a lot of excitement for a new startup. I have a business idea for an online business for repairing service booking app. What will be the best way to grow with minimal risk?
If you started a side hustle while maintaining a full-time job, it's inevitable that at some point you will face the decision of should you leave a stable position to focus entirely on your startup. There are a lot of external factors that vary the situation like personal finances, how many people does your current income support, the viability of the business idea, and the market. Before giving any notice to your full-time job, consider the following:
-Map out your finances. You should be financially prepared to launch your startup, with an adequate amount in savings in case of an emergency.
-Craft a business plan. The first year of business should focus on developing your product/service, marketing, and business growth. You'll want to have a detailed plan on how to tackle each of these areas.
-Network with people in your industry. It's all about who you know. Think of who your connections are and how many of them could be customers or connectors to potential customers.
The Business.com team recently published this guide Quitting Your Day Job for Your Startup which elaborates on these points more. Leaving a full-time job to pursue a startup is a risky move. There is never a perfect time, but the risks can be minimized by taking certain precautions.
Keep your sales orders pile up and ensure bush up your (or your team) productivity.
Why doing this? To keep you survive while shaping up your company at the same time.
Minimal risk is a relative term. Make sure you have a net beneath you before you make the jump. Putting 100% of your focus is important to business but theres nothing wrong with doing both. I myself have a day job and do all my freelance on the side. Yes that means little sleep and alot of work, but Im not in a financial position to only do the one right now.
If you know you can make it on your own then by all means take the plunge. Worst case you can always get your job back. Best of Luck to you.
Dinesh, business means risk for sure. Employment is no less, but with relatively lesser risk as you may see.
How can you mitigate it will depend upon how well prepared you are before jumping into it. You don't jump into water without knowing its depth, or whether it is a canal or a river or a ocean.
So, put your planning in place; set goals; set realistic ones so that you feel motivated to achieve; keep expectations low; this does not mean that you set low benchmarks. It is about result; focus on your efforts, smart work, smart strategies and result will follow.
Keep good mentors to support you, who you can trust and those who can see through many options having been that, done that, types!
If you can do both - your current work, as well as your business, by spending quality time for both, go ahead; you can jump ship at the right time. But if you cannot give its due attention, and focus, then better to quit and build your business with passion, as like that's your life. Enjoy your work, and results will follow!
- Shyam (Startup Xperts)
After you have established a predictable 2nd income and a strong base to support yourself. For me, it took 2 years until I was able to move away from traditional employment.
Don't quit until you are sure you have another source of income to replace your weekly paycheck.
Here are some of the factors that you will need to consider -
1. Have a sizeable savings account - Save up for a minimum of 6 months and don't quit unless you are sure that you have another source of income to replace your weekly paycheck.
2. You have ready to go paying clients - You mentioned that you are starting an online business for repairing service booking app. Do you have clients who are ready to pay or are you going to receive any funding for your new venture?
If not, you should consider saving extra on the spends which you are going to make in order to develop the app.
3. Weigh the benefits of job compared to the business opportunity - Taking the plunge and starting a business is great but there are risks too. Consult with family and friends and it would also be a good idea to talk to fellow entreprenuers who might have worked in a similar niche to you.
If you have to grow with minimal risk, then have a side by side job till the time you are confident that you can support yourself by going independent.