How to Quit Your Day Job and Work For Yourself

How to Quit Your Day Job and Work For Yourself

Many entrepreneurs start their businesses as a "side hustle" while still working part-time or full-time jobs. It’s a smart way to test the waters before pursuing entrepreneurship full-time.

If you’re one of these people, the time will come when your side business grows enough to consider quitting your day job. How you make this leap is as important as the steps you take to get there. Without proper planning, you may find yourself returning to a day job because you weren’t ready.

To ensure a smooth transition and set yourself up for success, follow these steps:

1. Build up savings

The standard advice is to save up six months’ worth of living expenses before quitting. Entrepreneurship is a feast-and-famine cycle, as projects or orders fluctuate from month to month.

Saving money allows you to navigate leaner months and build your business on your own terms. It gives you freedom to decline projects that aren’t worth your time.

2. Determine your income needs

In addition to building your cash reserve, know how much income you’ll need per month to cover expenses as an entrepreneur. This will help you determine when you can afford to quit.

Consider how your expenses may change when no longer working for an employer. Deduct commuting expenses like gas, parking, and tolls. Anticipate other expenses like heating, cooling, or an upgraded Internet package for increased efficiency.

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Create a budget for your projected monthly expenses to understand your income requirements.

3. Assess scalability

Once you know the income needed to quit, compare it to what you currently earn from your side hustle and what you expect to earn full-time. Decide if you should wait until you’re bringing in the exact amount or if having more time to focus on your business will enable quick scaling.

Contact existing clients and contacts to assess additional business opportunities when you go full-time. This can help make up any income gaps.

In Conclusion

Transitioning from a side hustler to a full-time entrepreneur is a calculated risk, but proper planning increases your chances of success.

Here’s to a smooth transition!

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