When Should You Quit Your Day Job?
Many people think that when starting a business they need to spend endless and I mean endless hours just to make it go!! At some level that is true. I do believe that sweat equity is critical in the start-up of a business, but it doesn’t mean you should quit your day job.
When should you quit your day job? Well, I really don’t know, but you need to know. Only you can really answer that question. What seems right to me, may not seem right to you and vice versa.
Prior to quitting your day job, I would recommend that you know that you know that your business is generating revenue. In other words, you must be profitable and have sustainable profitability. Not just a flash in the pan. Are you making money? How much money do you have in the bank?
By definition small businesses are small. Remaining small is not a bad thing. Sometimes, less is truly better. I do believe that incremental growth is important, but if you grow too fast too soon, just like a teenager with a growth spurt, it could be painful.
San Andres Fault Line
Lastly, where are the “fault lines” in your business? “By definition a fault line is a crack in the earth’s crust resulting from the displacement of one side with respect to the other. A fault line in your business can result in your business going under and you going out of business before you truly get started. By my definition a fault line in your business is a weakness. It is very important to know where the weak spots are in your business prior to leaving a guaranteed income. If you have cash flow problems, employee problems, pricing problems, technology problems, conceptual problems, etc. It is VERY important that you work to strengthen those areas before you consider leaving your day job.
3 Comments
[...] reading one of Des Walsh’s latest posts at Thinking Home Business and he was referring to a blog post he had read by Darlene McDaniel (blogging seems to do that – lead you from one to another!) and the [...]
Thanks for linking back. I did attempt to read your blog and got a blank page. I will check back with you later.
I actually think you should quit your day job if you have the right idea. The way I was able to quit my day job was this e-book you can find at dayjobkiller.tk