Is it a good idea to quit my job to start up a business?

Starting a business is a life changing event and should not be take casually. So before quitting your job to start a business the following considerations should be made.

  1.  Why do you want to leave your job? You need to do a deep evaluation why you want to quit. Do you hate your job? Do you want to be your own boss? Are you searching for financial independence? Is the salary too little? Make sure your reasons are solid before jumping ship. Don’t leave a potentially good job for flimsy reasons.
  2. Why do you want to start a business? Be sure to have a very good reason to start a business. Looking for money should be the last reason to start a business. The reality is that most businesses fail within a few years. You may believe that you’re the exception but it is unlikely. 
  3. Are you ready for the challenge? Starting a business is probably the hardest thing you will ever do. Dreaming of bliss in the business world is just day dreaming. You are going to work harder than you have ever worked before. You will fail numerous times. You will run out of money. Every day there will be a new challenge to deal with.
  4. Does the world need your business? Be careful here. A good idea is not a business. Just because you have a good idea does not mean you should start a business. The world must want your idea. And you must be convinced that the world needs you specifically to start this business. If you don’t answer this question honestly there might be tears down the road.
  5. Is it possible to start small? Is it possible to start the business over the weekends and after work while you are still employed? Starting this way gives you a chance to test the business idea with the safety of your job. Many successful business were started as side hustles.
  6. Can you achieve what you want at your current job? Sometimes the things you are looking for outside employment can be found in your job. Some jobs can give you flexibility, autonomy, independence and financial security. A mid level manager in a corporate organisation can make way more money than a small business owner.
  7. Are there other options? Are there other options to achieve what you want without quitting. If you’re looking for financial security there are other less risky things than starting a business. You can invest in unit trusts, real estate, treasury bills, investment clubs, etc. Business may not be the best option for everyone.
  8. How old are you? If you are younger you have time to recover from a business failure. If you are much older with a family and a mortgage you can’t just quit. If you have too many responsibilities it can be disaster if your business collapses.
  9. Have you saved enough cash? Make sure you have saved enough cash to last you for at least two years before you quit. Your business is unlikely to make money in the first few years. So you need a back up plan in the form of savings.
  10. How strong is your conviction? If however you strongly believe that you must start this business now, then by all means give it a go. The world has been changed by people with strong convictions who went against the grain of society. These people endured endless hardships to bring us the comforts we enjoy today. You might just be one of them!

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