Written by Drew Hendricks for Forbes
Many new businesses begin as a part-time job, created on nights and weekends by someone who has nine-to-five duties during the week. But often true success requires fully committing to a business, which means eventually you will be forced to make the leap from part-time entrepreneur to full-time business owner.
The key is knowing when to make that leap. Many professionals wait for years, looking for that one clear sign that it’s time. Outside of a multimillion-dollar sale, however, chances are there will never be that one clear sign. Chances are, the decision will be made after a long, careful deliberation that includes mounting pressure from investors and clients to focus full-time efforts on your business. Here are a few signs that it might be time to turn in your resignation.
Sign #1: You Can Pay Your Bills
We’ve all heard that many business owners forego a salary in the early years in order to put every earned dollar back into the business. But for many of us, this isn’t an option. Mortgages, car payments, and utility bills don’t pay themselves, after all, so unless you have a spouse who can cover all of those necessities, you may have to hold onto the day job a little longer.
If your business is earning enough of a profit for you to cover those bills while still funding operational costs, it might be possible that pouring more time into it will be a worthwhile investment. Before telling your boss you’re leaving, try to set aside several months’ savings to get you through any lean times that might happen.
Sign #2: It’s Now or Never
Whatever your business idea, chances are there is a limited window of opportunity to win your target market. Competitors may steal your customer base while you’re whittling away the hours at your day job. Or the idea may simply run its course as new technologies come along. You may seek investor dollars, only to find that they take issue with the fact that you aren’t giving 100 percent to your company.
If you have a business plan in place, take a look at that plan and ask yourself if you can accomplish your goals in the coming months without giving yourself fully to your business. If not now, when? Will you quit your job a year from now? Five years from now? Ten years from now? Will the market still support your idea at that time?
Sign #3: You Understand What It Means
Those who have had the comfort of a full-time job for at least a few years can sometimes find the loss of that stability jarring. This is especially true if that full-time position came with benefits like health insurance and vacations. As a business owner, you won’t be paid for holidays or vacation time unless your business is bringing in enough income to cover it. You’ll also find that forty-hour workweeks are a thing of the past. Many small business owners put in long hours as they try to do whatever it necessary to build a business.
For those running a business alone, however, there is another consideration. Moving from working in an office, surrounded by people, to toiling away for hours alone can be a big adjustment, especially for extroverts. It’s important that you be fully prepared to work this way before making the decision to quit. Renting a co-working space or joining a networking group can help offset some of this alone time. Eventually, you’ll be able to hire at least one part-time worker and create your own office environment.
Step #4: Your Business Has Stagnated
As a business owner, time is your most important resource, especially if you’re a one-man shop. Even if you can put in thirty to forty hours when you aren’t at your main job, you’ll likely find at some point you’re unable to grow without dedicating more time to your venture.
If quitting your day job means you can take on more clients, produce more product, or spend more time promoting your business, at some point you’ll have to take measures to do so. A part-time venture can only grow so far before it begins to stagnate. Sure, you can hire more workers, but nobody will have the same level of passion for your idea as you. The best time to quit your day job is when doing so means you’ll be able to move to the next level, bringing in more business and attracting new clients.
Step #5: You’re Tired of Making Others Rich
Sure, your full-time employer provides financial security and helps you pay the bills, but you likely won’t ever move past a certain point financially. If you’re like many Americans, you probably have only received minimal raises, if that, in recent years. Yet every day you show up for work and put effort into making your employer successful.
If you’re fortunate enough to have a great business idea, you’ll likely begin to feel restless to spend your days working on making that business a success. As time goes on, that restlessness will begin to grow until eventually, you’ll no longer be able to ignore it. That restlessness will eventually reach the point where you can’t ignore it anymore and, at that point, you’ll know it’s time.
Giving up the security of a full-time job can be a big move, but it doesn’t have to be fraught with uncertainty. Before you tell your boss you’re leaving, have a written plan in place that covers both your short-term and long-term goals. You should also set any extra money aside in the months leading up to your resignation to make sure you can cover expenses in the event your business has a few slow months. The Small Business Administration can be a valuable resource for small business owners, offering assistance with everything from healthcare information to registering your business with government entities.
Only you will know when the time is right to leave your day job to run your business full time. By preparing in advance and making a plan, you can help ensure when you do make the leap, you’re as prepared as possible for the transition.
Source: Forbes
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