quitting day job to run business?

[cash_is_king]

at what point would be a good time to quit the day job to run your business?

I've heard people say when your business is earning twice as much as your day job,

but what if you can't build the business up that high as you are struggling to manage both?

would you take the risk and just leave the day job so you can fully commit to the business?

gimme some success stories guys!!!

 

[jucbad]

It's right, you should leave your job at least "when your business is earning twice as much as your day job", but if you can't wait you can take the risk, because after all being a business man, implies being a risky man. A business that generates residual income is a good one to start off and build part time.

 

[Colin Smith CBP]

It's right, you should leave your job at least "when your business is earning twice as much as your day job", but if you can't wait you can take the risk, because after all being a business man, implies being a risky man. A business that generates residual income is a good one to start off and build part time.

If you are passionate about and committed to a business idea, I don't think you would be able to wait until you have built it to twice the earnings of your day job. You would get onto it full time literally as soon as you could.

Also, for many business ideas, it is simply impractical to split your time in this way. My first business for example was an indoor and outdoor five a side football centre. Obviously, I couldn't effectively launch that business whilst still in the day job.

The reason why you would delay is because you perceive significant risk. If you believe that starting a particular business is very risky, my advice would be not to do it. I believe that any real business man takes only calculated risks in areas where his skills and connections greatly mitigate any risk inherent in what they are doing. The idea that entrepreneur's are huge risk takers has not been my experience in a decade of small business ownership and is not what I have observed in the other small business owners that I've rubbed shoulders with in that time.

 

[Talay]

If you had a fairly decent job there wouldn't be much time to build up a business which produced quite serious 6 figure profits in your spare time.

On the other hand, if you were on minimum wage, you could double that in a few hours.

 

[JEREMY HAWKE]

I find it very difficult to understand how you could properly develop a business and do a full time job . What happens when a customer phones and needs an answer straight away That's going to look good for a new business.

I have in the past found it very difficult dealing with part time businesses when the only time you can deal with them is at 10 o clock at night.

 

[Paul_Rosser]

Personally I would quit if the business was making enough for me to live on, or I had enough in savings to cover me until it did.

If you really believe in the business and think that by going full time you will make more than your current day job, then take the risk.

However that said it depends on your personal circumstances, if you have a wife, kids, mortgage etc. then you have to take all that into account, and also be realistic give yourself a deadline and if the business isn't making what it should by then be prepared to stop and go back to being an employee.

Your other option of course is to get someone else on board who maybe isn't working at the moment, get them to build the company up to a level when you can quit without taking so much risk.

 

[tony84]

Its difficult to answer...

I left my job and im earning an ok wage now. When i first left however i was earning next to nothing. I had my gf's wage to fall back on though so it was fine.

If you dont have that and are reliant on your income, then i would say when your business is earning you enough for you to keep your head above the water and has done for a few months.

 

[Alan]

I've heard people say when your business is earning twice as much as your day job

That would be the relative safe risk free option, but in reality I can't see the practicalities of creating a business that earns twice a reasonable day job whilst working full time.

Create a business plan that you believe in, make sure you have enough cash (and more) to cover you for the period where you are not earning enough. Then commit 100%.

 

[toastking]

Surely once your business is earning more than the day job its certainly time to go full time. Even if you don't make any more money, the additional time you free up to either go for new projects or spend time doing the things you want is invaluable. I kind of think if my business made 3/4 of what my job does I'd go for broke!

 

[tallblonde]

I'd reduce my fixed costs as much as possible in my household budget.....build up some savings to act as a contingency....and I was very fotunate because I managed to gradually reduce my hours at work which enabled me to make a gradual switch rather than a big leap.
If answering the phone while your in your job is a problem..........consider using an answer message handling service. They work well, will read whatever script you'd like...will take names, numbers and messages, given website info and can even text the messages to you.
Its a cost....but if it means you can continue working for a while longer, it may be worth considering.

 

[beasty]

Just as soon as you grow a pair


I love to read the posts by people who have part time businesses that do ok and they would like to have commission only sales work full time for them!

I know this is not you but, if you cannot commit to your business, why would those that you deal with?

If I buy from someone, retail wholesale or service i want them to be FOCUSED on whatever they are providing me, I do not want someone who has a FULL TIME job!

I can imagine a slow delivery of product or service being blamed on the fact your boss gave you a hard time at work!

Right now you are playing at business, if you believe in it, then commit.

If you do not follow your dreams you will spend your life working for someone who followed theirs! Soon to become my signature

 

[Peter Bowen]

I've done this once. My day job was as a consulting civil and structural engineer and it was pretty well paid.

I started my side business in a field I enjoyed that wasn't competing with my employer. I initially took on only the jobs I could handle in the evenings and weekends and slowly built the business. With 4 kids and a mortgage there was no real choice.

Over about 2 years I employed people to do the work and changed my employment basis from full-time to contract where I got paid only for the hours I actually worked. That meant I could handle the occasional business emergency and catch up the engineering work. It also meant that when it was time to consider leaving full-time employment I could do so gently without dropping my employer.

I had 3 full time employees by the time I left. I could have kept the day job going for longer but my heart wasn't into it.

 

[cash_is_king]

great range of replies, thank you, I have taken a lot on board.

 

[TheRestaurantMarketer]

It comes down to when you feel the time is right. To be honest, these days I think it's actually a higher risk to be in a j.o.b (just over broke) than run your own business.

Cheers
Phil

 

[ctrlaura]

I am just about to leave my full time job to concentrate on my own business. I have been building it for a few years so working my day job, coming home and working for the business and working weekends on the business.

The time has come that in order for the business to grow I need to concentrate 100% on it so I have decided to take the plunge.

Fingers crossed I will have a success story to tell in years to come.

At least if it doesn't work out, I'll know I gave it my best shot.

 

[3sixty]

at what point would be a good time to quit the day job to run your business?

I've heard people say when your business is earning twice as much as your day job,

but what if you can't build the business up that high as you are struggling to manage both?

would you take the risk and just leave the day job so you can fully commit to the business?

gimme some success stories guys!!!

Hey, I'm in a similar situation. I work full time (9-5) from home, which gives me a little flexibility to manage other projects. So I'm currently spinning as many ideas as possible, trying to make something stick.

I've a few other income streams but nothing I would say is worth quitting my job for. It's a greed thing in one sense, but also the worry that if I go full-time and stand on my own two feet, am I going to be able to fill the gap that my full-time job provides.

Not sure if this helps answer your question, but for me, taking that chance is all a bit too much of a risk - it's not as if I have a family to support, but I do have bills, and if it didn't work out I don't think I would be lucky enough to get another job working from home.

 

[Talay]

I once sat at a table with the CEO of a major manufacturer across Europe and Asia with a couple more on his side and two more on mine, to discuss Asian rights to a new range of their products.

This could have been a life changing deal and one of the opposing team, an investor not an employee, came out with a statement say that if I believed in the product I had to commit 100% and if I didn't believe in the product 100%, then whatever the deal, it would be the wrong deal.

He was completely right. I wanted the deal so badly and had worked for so long to engineer myself into a position to get it, that backing out was going to be incredibly difficult. Yet that is what I did, I walked away.

The numbers didn't stack up for most of Asia and the technology was moving too fast for their new idea to be market leader for long enough to recoup a large investment.

A different scenario I know but at some point you have to go live, you have to commit and it will never be at an ideal point.

 

[beasty]

I once sat at a table with the CEO of a major manufacturer across Europe and Asia with a couple more on his side and two more on mine, to discuss Asian rights to a new range of their products.

This could have been a life changing deal and one of the opposing team, an investor not an employee, came out with a statement say that if I believed in the product I had to commit 100% and if I didn't believe in the product 100%, then whatever the deal, it would be the wrong deal.

He was completely right. I wanted the deal so badly and had worked for so long to engineer myself into a position to get it, that backing out was going to be incredibly difficult. Yet that is what I did, I walked away.

The numbers didn't stack up for most of Asia and the technology was moving too fast for their new idea to be market leader for long enough to recoup a large investment.

A different scenario I know but at some point you have to go live, you have to commit and it will never be at an ideal point.

Sounds smart

 

[andyjt]

I would stay working my 9-5 job until until I was earning the same amount from my own Business consistently for a few months, as long as I still could manage to do both each day.

However, If this was the case I would Work both ways and use the Extra Wages from my own Business to pay off any Debts and Pay things like Gas and Electric at home way in advance. So then if I anything did happen to my own Business after I quit my job, at least I would only have the bare essentials left to pay (Mortgage/Rent and Food) until I found another Income source.

 

[vividbusiness]

I used to work full time then in 2005 took my big step to quit my job and go into business, I firstly did this gradually and went part time.

I now run a business full time and am a business consultant too only you truly know how your finances are and your financial commitments at the time before you make the leap. Businesses initially need a little financial commitment to get them started with marketing, website design, premises etc so it is an idea to keep a steady income before you take the leap.

When your business has some income that is the time to start reducing your hours further then hopefully going it alone! - I hope that this has helped you?

Sean Paul
Senior Business consultant (South East & Wales)
Vivid Business Solutions

We are holding New Business seminars for people looking at taking the plunge into business, they are minimal cost to cover the cost of the location ask me for more details

 

[cash_is_king]

thanks for the replies guys, I like the many different stories. I've got a plan to work my a** off in both 9-5 and business and also cut down expenses. I'll take the plunge end of Q3 this year. By then when I hit my targets I'll be making enough to cover my expenses (mortgage/bills) and a good savings buffer for 3-5 months while I push the sales through...I'm so excited I can't sleep! I've have had enough of working for someone else, can't believe my dream of having my own business and operating outside of the ratrace is coming true....nearly!

 

[vividbusiness]

Cash is king,

It sounds very exciting for you and I am glad you are fired up and not sleeping that is a good businesses persons indication that what they are doing is right!
We all get excited and fired up when we have anew project, business development etc - Well done and I wish you all the best!

If you want any advice please do not hesitate to contact me, although it sounds like you have a plan!

We are running new Business seminars for people thinking about going into business if you are around in Cardiff or London area why not attend?

Details can be found on our website under seminars at vivid-business dot com

All the best and keep us informed of your progress!

 

[degadar]

Stepping across the line can be a scary thing to do. Unfortunately failing to step means your new business will suffer and you'll become more and more unhappy about work.

If I were in your shoes I'd be finding it very difficult to go to work and would probably just give my notice in straight away.

In your own business you're going to face plenty of times when you are quiet and can't afford to pay yourself as much as you'd like - that's going to happen anyway whether you start now or at the end of the year.

 

[cash_is_king]

Cash is king,

It sounds very exciting for you and I am glad you are fired up and not sleeping that is a good businesses persons indication that what they are doing is right!
We all get excited and fired up when we have anew project, business development etc - Well done and I wish you all the best!

If you want any advice please do not hesitate to contact me, although it sounds like you have a plan!

We are running new Business seminars for people thinking about going into business if you are around in Cardiff or London area why not attend?

Details can be found on our website under seminars at vivid-business dot com

All the best and keep us informed of your progress!

thanks will look into it

 

[cash_is_king]

Stepping across the line can be a scary thing to do. Unfortunately failing to step means your new business will suffer and you'll become more and more unhappy about work.

If I were in your shoes I'd be finding it very difficult to go to work and would probably just give my notice in straight away.

In your own business you're going to face plenty of times when you are quiet and can't afford to pay yourself as much as you'd like - that's going to happen anyway whether you start now or at the end of the year.

cheers! I'm really holding myself back not giving my notice in now, if I was an emotional type of guy I'd do it today! But the logical side of me says wait until I hit my business targets and bring in a bit more income (wife/mortgage/bills to take care off). It's hard going now juggling sales calls/meetings and working 9-5...well I say 9-5 but its really 7-7 (travel time and getting ready) but at least now I can see the light at the end of the tunnel! It's charged me up more! I'm outta here regardless!

 

[cash_is_king]

Stepping across the line can be a scary thing to do. Unfortunately failing to step means your new business will suffer and you'll become more and more unhappy about work.

If I were in your shoes I'd be finding it very difficult to go to work and would probably just give my notice in straight away.

In your own business you're going to face plenty of times when you are quiet and can't afford to pay yourself as much as you'd like - that's going to happen anyway whether you start now or at the end of the year.

cheers! I'm really holding myself back not giving my notice in now, if I was an emotional type of guy I'd do it today! But the logical side of me says wait until I hit my business targets and bring in a bit more income (wife/mortgage/bills to take care off). It's hard going now juggling sales calls/meetings and working 9-5...well I say 9-5 but its really 7-7 (travel time and getting ready) but at least now I can see the light at the end of the tunnel! It's charged me up more!