People are getting smart nowadays and it is really good to see lot of people having some income apart from their day time jobs. A part time business is really good to have that extra income. If you don’t have one, you should start one right now. I have had my online business started back in around 2003 and I really loved doing it. By the end of 2004, my business had started giving good income. This was the time when one question always made rounds in my mind. Should I quit my day job?
In 2005, there were months where the income from my online business was more than my work salary. At times, it was four times more than what I earned at my day job. I kept asking my friends & family members if I should stop working and concentrate 100% on my business. No one said ‘yes’ to this question and I continued working. In 2009, I stopped working and started working on my online business full-time. I think I was a bit late to quit my job because I did not have proper guidance or people who had faith in the online business I was doing. It was only me who had this faith and I took a call in 2009.
Like me, lot of people who have a steady part-time income might be thinking about the same thing. When should we call it quits at the day job and focus fully on the business. I have done my research and I think you should do it when you are rich. To many people ‘rich’ means having lots of money. To me, being rich means having time. We all say that ‘Time is Money’ and it really is. How? In a scenario, where you have this question of whether to quit your day job, you need to know how much time do you have where you can live your life without earning a dime. For example, if your monthly expenses is $5000 and you have $60,000 in your bank then you have one year of time. Now, depending on your business, you can think about whether this time is enough for you. I personally suggest people to have 1 year of time before they get full time in to a business. This time may vary depending on various factors like:
- Person’s age
- Number of dependents
- Kind of Business
- Business Investments
So, for a person who is unmarried and has an online business, the investments will be very low and he might not have any dependants. This person can get in to a full-time business a lot earlier than a person who has children & is looking for a business that involves heavy investments. Depending on your case, you can choose when to get full-time in your business.
Stop & Start Method. A BIG NO!
Lot of people go by the 2 years method of having 2 years of spending money as savings before quitting their jobs. This might sound correct to few people but I say that it is still dangerous to do so. I call this a Stop & Start method. Even if you have 2 years of spending as savings, what happens after that? Hence, the best thing to do is have a business while doing your day job. Don’t ‘Start’ your business after you ‘Stop’ your job. To some, it may sound unrealistic but this is how why lot of people succeed in their business after quitting their day jobs. Planning to start a business from zero right after quitting your job is very dangerous and I would not recommend doing so. Start a business while you have a job. Dedicate a few hours before and after work to this business and let it grow slowly. Yes, it will be tough. You will have to sacrifice lot of things. But, that’s how you play safe. I have seen people follow the Stop & Start method and lot of them quit too early. They are scared that the business will not do well and all their savings will be spent. The Stop & Start method also de-motivates people early in the stage and the fear of losing always keeps them tensed. The worst part is that such people don’t ever think of quitting their day jobs ever. The best thing is to start a business, grow it steadily and then decide when to quit your day job.