Saturday, March 26, 2011

Options to Consider Before You Quit Your Day Job

Options to Consider Before You Quit Your Day Job
     You may have dreamed of starting a home business for various reasons, but before you tell your boss off and quit your day job, consider these tips:
1. While at Your Present Job:
*If there are company benefit plans, see when they will increase in value and if and when you might receive money from them.
*Schedule routine physical, dental, or eye examinations covered by your company’s health insurance.  Determine the cost of the health coverage if you had to pay for it.
*Update your references.  If your boss commended you for doing a good job, ask if she would put in writing and placed into your file.
*Take courses, training sessions, etc., paid by your employer that could be used in a future business.
2. Develop a Financial Plan:
*Make sure you have good credit.  If not, take the time to establish it—preferably while you are still employed.
*Save money.  Try living on the bare minimum to see if you can get by on less money when you start your business. Put the savings toward your venture.  Moonlight at a part-time job.  Experts recommend you save two years’ living expenses—the average time for a business to become profitable—before quitting to start a full-time venture.
*See if you will be getting a severance or retirement package that could help finance a business or pay living expenses. 
3. Self-Evaluation:
*Ask yourself and the honest opinion of others if you have what it takes to be a business owner.  Setting goals, flexibility, self-discipline, confidence to take calculated risks, being willing to market yourself and your business, and others are all important characteristics of an entrepreneur.
*Evaluate your skills and/or education to decide if you need additional training for your venture.
4. Business Start-Up Preparation:
*Write a business plan you could take to a banker.
*Do thorough market research for your business idea.  Use both primary research—asking persons directly for feedback—and secondary research—collecting data and demographic information from business organizations, legislators and government agencies to develop a customer profile and to discover if a market exists.
*Start your business part-time—2/3  of new business owners do.
*Develop a business network of experts and contacts in your industry and in the community in which you will be doing business.  These will be invaluable in getting referrals and clients.
*Set goals—long range and short-term—to establish a plan of action.
5. Family Preparation
*Discuss with your partner and family the impact a business start-up could have on their lives.  Their backing will be important to your business’ success.
     You will need some sort of support until your business can sustain itself.  By heeding practical tips like these, your business will be more likely to succeed when you do go out on your own.

Further Discussion:

When to go Solo
     You can go full-time with your business if... have set a commitment of time to dedicate to launching this business. have the savings (six months to two years), a life partner’s income, or  the financial backing you need to sustain your cost of  living expenses until the business becomes profitable. have the funds and/or financial backing of friends, acquaintances, bank loans to  start and sustain your business until it makes a profit. have written a business plan to guide your business. have the customers who want or need your business service or product. have a support team of mentors, business experts, and networking friend
Timing your Business’ Launch date

From Part-Time to Full-Time does not happen overnight—it is a process.

     When Joanne was divorced twelve years ago, she realized she needed to get a job to help support herself and her children. Joanne was skilled in quilting, but it was too labor intensive and she needed to bring in cash to meet expenses. She took a job selling wallpaper in a home decorating store where she became familiar with wallpapers and paints.
     When one of the customers asked Joann to paper her walls, she decided to give it a try. This first customer was a dean of a women’s college and encouraged Joann to go into business for herself and advised her to attend the business seminars held at a nearby Small Business Development Center. “They gave invaluable advice about beginning a business,” says Kaiser. In the meantime others began to ask Joann if she would paper and paint their houses.
     For six months Joann worked at one job and her papering and painting business until it became just too much. “Working two jobs, and being a mother was more than I could handle,” she says. “I liked my business, so I stepped out in faith, and went full-time.”
Overcome Your Apprehension with Adequate Preparation
     The better-prepared you are, the more you will know the risks of your undertaking. Take the time to research and prepare for going full-time. Phyllis Gillis, one of the first to write about this home business movement (Entrepreneurial Mothers), said at a talk I attended, “If you are going to sell apple pies to restaurants, try baking 100 pies in a week, to see if this is something you really want to do, full-time.”
Be Self-Confident
     You will have “nay-sayers” who may try to discourage you, but if you believe in yourself, you will be more likely than someone who is overwhelmed by self-doubts.

For Further Information:
"This Is Your Life, Not A Dress Rehersal: Proven Pinciples for Creating The Life of Your
Dreams" by Jim Donovan -


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