If you are interested in quitting your job to start a business, then this is the post you want to read.
The reason why?
The information you are about to ingest will guide you in the best way to go about owning your business after turning in your resignation letter.
So many career people have the burning desire to be their boss, but majority of them are going about it the wrong way.
There are steps to quitting your job and joining the club of the self employed.
If you do it the wrong way, you might get stuck. But if you apply most of the steps in this post, there is a great chance you will have a successful transition from a worker to a CEO.
I understand that resigning for your job to take charge of your income and finance is a bold step.
Yes I would understand if you are scared to take that step.
However, because the future is unknown and there are two possible outcomes, which are success and failure, it does not make succeeding in your new startup impossible.
It is all about preparation.
Getting ready emotionally, mentally, physically and financially is the key.
In this post, you will be thought a step-by-step guide to quitting your day job to launch your startup.
It is my desire that you will succeed, and I believe you will – at least that is one of the major reasons why I started this blog.
Meanwhile, ensure you subscribe to our email list so you will be informed when we published new posts that help new startups succeed in this challenging business world.
Let us now take a look at the steps that can help you go from employed to a self employed.
Guide To Quitting Your Job To Start A Business
- You Need A Resume
I can hear someone saying, I am not searching for a new job but tips on how to quit my miserable job and start my own business.
Well, I hear you.
Take a moment to understand the message I’m trying to pass. It doesn’t matter if you are changing a job, career or leaving the corporate world to start a business.
What is common with all these transitions is that you will need some kind of a resume to show to people that are interested in your idea.
If you are changing a job, you will need a well polished and improved resume to show your new employers.
Changing a career is the same.
You need to prove to your employers that you can fit in fast.
In terms of business, you will need a special kind of resume to show that you have it all planned out – most times I am referring to a business plan.
It doesn’t matter if you will be financing the project yourself or seeking for a loan;
You need some kind of plan to show investors or plan that will put you on the right track.
So whatever path you have decided to take, start getting your papers ready. You are about to take a major step in your life.
- Learn The Business Waters
learning the waters of a new business, it means understanding how much you know about the business you plan to invest in.
Most businesses are not what they seem on the outside.
If you carry out proper research, you will find out that there is more to what the eyes can see.
There are tips and tricks of succeeding in every kind of business in any sector.
This is more reason why you should carry out proper business research before embarking on it.
Most startups fail even before launch because the people involved are not fully aware of the challenges that come with the industry they are in.
So if you want to quit your job to start a business but scared that you might fail at it, I recommend you carry you research; test the waters to know if leaving your job at the moment is the right thing to do.
- Now Let’s Talk About The Finances Involved
Finance involved when you are still in the corporate world and the finance involved when you branch out to own your company are not same.
Trust me you don’t want to make a mistake in this area.
Ignore it and you might see yourself struggling to sustain your business while trying to keep your expenses in check.
Firstly, you have to factor in the amount you’ve saved before branching out.
This savings will determine how long you are able to sustain yourself and the new business until it starts bringing in profit or at least is able to sustain itself.
This means that you have to factor in the benefits of your current job aside from the regular salary.
That’s not all.
You have immediate expenses like rent, utilities, food, clothing, costs of health insurance and so much more.
All these probably were manageable when working for your employer.
Quitting your job to branch out and focus on your business means that these responsibilities are now yours.
What kind of business do you want to start?
Will you run it from home or outside your home?
If it is outside your home then it means that there are added utility bills to pay.
Will you hire workers?
You want to factor in their wages too. You already know they are not partners so they won’t work for free.
With that said, here is a recommended summary of finance to have in place before you resign from your current job to start a business.
Save an amount that will sustain you and your business for at least 12 months to be on the safe side.
If you know your way, you business might grow fast enough to sustain itself before you exhaust your savings.
- It Time To Start Saving Money
You now have an idea of the finance you need to put in place to before quitting your job to become your own boss.
Taking this step will now be easy
There is no asking how much you need to save to quit and start your business because you can come up with an estimate on your own.
While there are sites that recommend 6 months, from experience I say 12 months.
Most times it all depends on your skills and know-how of the business turf.
If it’s a competitive one, it might take quite some time and innovative ideas to scale through and win your own share of the market.
If it’s less competitive, then you might grow the business fast before the estimated 12 months.
With your calculation and estimate, you know have to come up with a plan on how to save money.
It might demand you take up extra part-time gigs on the side to increase your earnings.
There is a chance that you might start a part-time business to bring in some cash on the side too.
The sooner you are able to come up with your estimated amount, the sooner you will be able to submit your resignation letter to your boss.
- Start Identifying Potential Partners And Employees
This is most times the case where you want to leave your company to become a competition.
Starting a business in the sector you work in can be a nice idea.
It means you already know the waters and what it takes to succeed in that sector.
Succeeding in becoming your own boss can be easy if you can collaborate with like minds.
In your place of work there must be some co-workers that believe they deserve more.
I am talking about those that will be willing to join forces with you to launch a co-owned startup that can become successful.
Two or three great heads are better than one.
And since there will be sharing the management responsibilities with you, it makes so many things easy.
First you don’t have to save so much again to sustain yourself and the business on your own.
Shared investment means less risk on your side and more chances of success.
Diversification of roles and strategies becomes easy because you are not the only one thinking about ways to grow the business.
You also want to consider possible employees you think will be interested in the idea of joining a startup.
It can be fun and thrilling becoming a foundation staff of a company that grew from a garage to a multi-million dollar company that went public.
Having potential employees that can key into your idea can increase the chances of successfully owning your own business.
Nothing beats having quality hands managing things from the beginning of a startup launch.
- What Is Your Marketing Strategy
A business that is void of a solid and innovative marketing strategy has already started failing from the beginning.
You know this to be true because almost all marketing channels have the big dogs actively involved in them.
This means that your young startup with limited financial resources is going against the millions already established firms have budgeted for marketing campaigns.
You need to be innovative to get your own share of the market.
Every business needs customers that are willing to pay them for exchange in goods and services.
How do you reach out to your potential customers?
How do you get them to dump the already established brands they’ve come to trust to try you out?
How to you convince them that you are the real deal?
Before you resign from your day job to become an entrepreneur, you have to set plans on how to reach out to potential clients that will pay you.
If you have not started thinking about it then you should take out your pen and start cracking that head of yours.
Marketing on its own is another turf that needs some good heads and ideas.
You can contact me for ideas.
I offer consultations for business that are interested in improving their online presence amongst other channels.
- Diversify Your Income Sources
I have talked about this earlier in this post but there is a need to reiterate it.
You need money to quit your job to focus on your own business.
This means that the sooner you have this money the faster you can get to leave that company – especially when your job is causing you to be depressed.
We talked about saving more from your salary.
But that is not all; there are other two ways that you can use to pad your wallet faster to come up with the estimated savings.
One is by taking on part-time jobs and two is starting a part-time business you can attend to in your spare time.
Making more money faster is not the only idea about this step…
They also help you gain first hand experiences of want are expected from a business when you become self-employed.
While you are making more money to save up for your new business, you improve your knowledge.
Quality knowledge about a business world improves chances of succeeding at one.
- You Need A Registered Business Name
Registering a business name is one of the biggest steps to starting your own business after leaving your office job.
There are lots of reasons why you need to register your business because the benefits are immense.
Some advantages to registering your trademark names are:
- You get to secure your idea and brand first before someone else beats you to it
- You get to secure your trademark against being used illegally by others
- With the right advice you pay less in taxes
- Your business becomes an entity of its own saving your from lawsuits from financial carnivores
- You now have a brand you can build (Most times brand names have more financial value than the business itself)
The list goes on and on.
But if you get the idea, I recommend you seek out brand name for your intended business and register it as a trademark.
You want to set yourself on a business path that is less likely to get you derailed.
- Set Your Work Schedule
There is a big difference between working from home as a freelancer and working from your office.
Both are not the same.
While working from the comfort of your home might seem like a life many would love to live, there are challenges that come with it.
One is that your friends and family members might not realize that you really have to work.
Encroaching on your work space might become a common practice.
This causes distractions that affect your productivity and I know you wouldn’t want that.
Starting a business that demands you work from home takes lots of discipline and responsibility to make it work.
You have to let your family members and friends know when you will be available to hangout.
Other than that,
…they should respect your work space and time.
You are trying to build a business that will help you get your freedom – you need to take every aspect of it serious.
Helping them understand your drive and reason for work space and privacy can really boost your productivity.
- Identify What Drives Or Demotivates You
There is a reason why you need to identify what drives and demotivates you.
These are the factors that affect your efficiency and productivity.
It is important you are able to identify these factors if you are to build a successful business after you quit your job.
Transitioning from an employed staff to a self employed business person is a big step in life and career.
You want to make sure you get it right.
You also want to make sure it is the right step to take.
I insist you check yourself properly because the truth remains that being a business owner is not a task everyone can accomplish.
What I mean is this…
…not everyone is built to survive the business world.
At first the thought of owning a business might seem interesting from an external point of view.
When you get into the real deal, you will discover that these are not easy waters to swim.
So it’s important you check yourself to know if you are mentally, emotionally and psychologically built to handle a business.
If not, you might want to reconsider your stand and plan.
Here is an example.
There are people that work well in company of others or away from home.
If this is you,
Working alone from the comfort of your home might not be ideal for you.
This is just an example and what I mean is this.
Check your strengths and weakness and compare them to the business you plan to embark on.
Check the intended condition of the business and compare them with your strengths and weaknesses.
Be prepared to tell yourself the truth.
Honesty is important in this case because you are about to take a big step and you don’t want to make a mistake.
If you feel there are areas you need to improve.
Please ensure you do.
But until then, do not attempt to take a dive at your intended business until you are able to survive the settings and challenges that come with it.
- Are You Credit Worthy
Being credit worthy is one important factor you need to consider before quitting your job to start a company.
You don’t want to quit your job unprepared for the business world only to ruin your life in the process.
A common source of funding for new businesses and small startups is through loan.
Getting your hands on the loan you when you have a poor credit score might be challenging.
If you fall into this category, you should consider taking steps to rebuild your credit rating before venturing into the business world.
You don’t want this low credit rating to minimize your chances of laying your hands on the funding you need.
That is if you desire to walk down the path of using external funding to kick start your business.
- Punch Holes In Your Ability To Run A Business
Firstly, you should know that it is not my intention to get you scared of going the self employed part.
Starting a business is serious business and should be for the business minded alone.
That said, I still believe that starting a company of your own is one of the sure part to wealth and freedom.
This is why you need to access yourself properly to identify your strength and weakness.
Identifying your weaknesses is not suppose to make you quit or give up the desire to own a business.
It is suppose to help you plan well so you know areas you need to work on and the ones you need to delegate.
You cannot be a master of all.
There must be sections of the business where you will have little or no knowledge of.
Spotting those areas will help you consider hiring someone to handle them while you concentrate on sections where you are highly skilled and capable.
You can spot these weaknesses by being really critical of your skills and being honest about it also.
You don’t want to assume you know accounting or tax laws only to find out later that you suck are them.
So it is with handling the tech side if you know little or nothing about those areas.
Find sections of the intended business where you are not too skilled and think of ways to handle them.
That is how you minimize your chances of failing at a business you intend to start after quitting.
- What Is Your Ability To Handle Challenges And Uncertainties
Have you have been under pressure before?
If yes, how bad was it and how did you pull through?
Are you the type that can stay positive under uncertainty?
How is your ability to think and come up with a solution when there are challenges ahead?
How is your composure under pressure?
Do you lose it or keep your calm?
These are the questions you need to answer and do so honestly.
When it comes to running a business, what is certain is that challenges tend to pop up once in a while.
This is one fact you can’t take away as an entrepreneur.
Uncertainties are part of the business world whether it’s a new business or an old one.
The question remains, how are you able to handle these challenges and uncertainties when they arise.
You want to make sure you are up to the task before thinking or turning in your resignation letter.
If you find yourself weak in these areas it doesn’t mean you still can’t run a business.
What you need to do is find ways to train yourself in these areas.
Funny enough there is no pressure-withstanding training I can refer you to as of now.
One sure tip that works if you want to train your mentality in handling pressure is to take up leadership roles in your place of work.
It’s not only at work but anywhere that requires leadership, task completion and team work.
It can be in your community, church, mosque, volunteer organizations, etc. I believe you get the idea.
It doesn’t matter how minor the role is just take up responsibilities that demand you proffer solutions and results.
Start with minor roles and work your way up the difficulty ladder.
Don’t be afraid to fail because it is all part of the learning process.
As a matter of fact, I don’t see you becoming really good at handling pressure and uncertainties when you haven’t failed at it a couple of times.
With time you see yourself getting better and stronger emotionally, mentally and psychologically.
Then you can start looking at the direction of branching out to start a part time business before going full time.
- Setup Your Place Of Business
Not all great business started off with a furnished office space in a big city.
Some started off in a garage while others from the comfort of their founder’s home.
It doesn’t matter where you want to kick off your business from, what is important that you ensure it is organized.
Make sure there is plenty of room for tax and records documentation purposes.
You want to kick it off on a professional level no matter how small.
Let the foundation of your business be professional, and then you can build from there.
You should know that office settings can indeed affect the productivity and efficiency of a business in ways you can’t imagine.
So ensure you have the office settings that boost productivity, encourage effectiveness and promote efficiency.
You need them to build a successful business.
- Be Ready To Build An Online Presence
This is by far one of the most important aspects of setting up a business.
In fact, I don’t see how you can build a business without making plans to get yourself online and reach out to potential clients.
One of such ways is building up social media profiles and starting a blog.
In the nearest future from the date of publishing this post, I will be up writing a well detailed guide on how to start a business blog.
When it is done I will come back here to leave a link to it.
Don’t worry it is going to be epic, well detailed and easy to understand.
You should be able to go from a novice to at least an intermediate in knowledge on how to setup and run a blog.
You can also hire me for consultancy on how to go about it and I will help
It doesn’t matter the size of market you intend to satisfy, a blog is the fastest and easiest way to reach out to potential clients.
We talked about marketing tactics as one of the steps in the post.
Starting a business blog is just one effective means to make that happen.
So if you have not been thinking about it, you should consider taking a step right now.
Reach out to me and we can talk me.
- Notify Your Employers Of Your Intention To Quit
Quitting your job to start a business should be done on a professional level.
It doesn’t matter how much you hate your job or your boss – you want to ensure that you path ways with them peacefully and professionally.
Ensure that you notify them of your intention to resign based on the agreed time as stipulated in your appointment letter.
Some firms might require you give them a 2 week notice with some will demand a month or two depending on how sensitive or skilled your role in the company is.
For the sake of professional courtesy, do inform them on time to enable them take necessary action to have you role replaced.
I believe this notification means you can still refer to them for reference and recommendations.
Leaving cordially with you relationship in place means you can still get good reviews from them based on your performance.
If your intended business is somehow related to them, your history as an effective staff while with them can speak for you in many ways.
So no matter how tempting it is for you to suddenly turn in your resignation letter, please don’t give in to the urge.
Bid them goodbye the professional way.
You never can tell, they might become your business partners in the coming future if your business grows to that extent.
A Round Off
I want to believe that this guide has educated you the right way.
Quitting your job to become self employed is step in the right direction when done the right way.
The transition from accepting a paycheck to controlling your income is a major step both in life and your career.
You don’t have to be scared of taking action because this post should have pointed you in the right direction.
The aim of this post is to provide our readers successful self-employment ideas and I believe we have done so.
You now have the idea of how much money you need to save before quitting to start a business.
You now know what to do before you resign to focus on your personal business.
It is my hope that you succeed in your quest to take charge of your life and freedom.
Whether you are starting a business in a different sector or as a competition with your former employers, you don’t need to make mistakes so many startups make and end up ruining your life in the process.
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