There are many ways to make the transition from being an employee to a business owner. And one of the most obvious ways is to quit your job whether there’s a thought-out plan or not.
But the best thing to do is chose a slower and more thought-out approach because it’s better to maximize your chances of success. Not only that, but you also want to minimize the amount of stress you could potentially face—specifically financial stress.
If becoming a full-time small business owner is one of your goals, definitely you can do it and do it successfully too. Are you willing to plan accordingly, put in some effort, and then be patient with yourself so that the transition happens in a way that will make the most sense for you to succeed?
How to Quit Your Job to Own a Small Business
1. Create Your Business Plan
One of the first things you need to did when an idea comes up is to put it down on paper. Layout your thoughts and ideas for your business, those things that would be very easy to accomplish to the things that will be out of scope (and budget) that you plan to pursue later will be included.
2. Set Up Your Business Entity, Trademark, and Bank Account
Once you have your business plan laid out and you’re comfortable with what you want to begin working on over the short term (your brand, website, etc.). Next, is to set up your business entity and business bank account.
3. Build Up Your Emergency Fund
Knowing that you intend to become a full-time business owner, make it a goal to build your emergency savings up to cover more than 3 months of your basic living expenses.
4. Create Your Business Budget
Creating a business budget will help you layout what your startup costs would be as well as your estimated monthly expenses that you need to pay to keep your business up and running
5. Wait Until You Start Generating Some Income In Your Business
Before quitting your job, make sure my business is generating a consistent amount of income that you know you could scale if you go full time
6. Start Saving Money For Your Business
Once your business starts making money, the next thing on your agenda is to put some money in your business savings account and business emergency account. Your goal should be to get your business to a point where it is 100% self-sustaining before you quit your job
7. Prepare Mentally For the Lifestyle & Emotions that Come With Entrepreneurship
This is a very big one. From being a small business owner and full-time employee together, you should understand that a lot of work, time, and energy is required to make your business successful. So, prepare mentally for it and make up your mind, fully.