The 9 to 5 isn’t for everyone. If you’ve been itching to quit your job and start your own business there’s no better time than now. With dropshipping, you can start your own business at almost no cost. In this article, you’ll learn how to quit your job and start your own business. You’ll also learn what you need to do before your big exit from the 9 to 5 lifestyle. You’ll also be free to use our email resignation template so that you can quit your job without burning any bridges.
- 10 Things You Need Before You Quit Your Job and Start Your Own Business
- The Wrong Way to Quit Your Job
- The Right Way to Quit Your Job
- Email Resignation Template
10 Things You Need Before You Quit Your Job and Start Your Own Business
A sizeable amount of savings
Before you quit your job and start your own business, you need to make sure you have some savings for emergencies. This savings account isn’t meant to be used to pay your bills. It’s only for emergencies. According to Money Under 30, you’ll need to save at least six months’ expenses before making your grand exit. Keep in mind, that since this is your emergency fund, you shouldn’t use the money from this for things that are not emergencies. If you’re caught off guard by an expense such as your income tax bill, that’s not an emergency. An emergency would be if your partner loses his job and you get into a car accident that the insurance won’t cover. Another example of an emergency would be an unexpected surgery that isn’t covered by your health care plan.
Steady stream of income
When you quit your job and start a business, you need to make sure you have a stream of income coming in. A stream of income can include a paid part-time job, freelancing gig or even money from a business that’s already making money before your big exit. Your stream of income will be used to pay your bills and invest in your early stage business. Look through your credit card statements. Are there any recurring payments you can cancel? Can you cut out non-essential expenses. For example, if you eat at restaurants often, you can save a lot of money by cooking meals at home instead. Focus on cutting out as many expenses as possible. Your stream of income will likely be less than working a stable 9 to 5. Be clear about the exact amount of money your stream of income needs to bring in each month to keep your finances stable while also having enough left over to invest in advertising for your store.
Must be debt free
Clear out any debts you have prior to quitting your job to start a business. My first entrepreneurial experience was in 2014. At the time I had over $20,000 in student loans. Within 6 months, I didn’t have enough money to pay my debt and my business had also acquired debt. As I was paying off my student loan, I read financial books like Rich Dad, Poor Dad that helped me better understand money and how it works. In early 2016, my student loan was finally paid off. If you have a student or car loan, focus on paying off your debt. During that time, build your financial acumen through podcasts, youtube videos or books. It’ll make you more strategic with your spending habits so that when you do start a business, you won’t have to close shop within a few months like I did in 2014. By paying off debts like student loans, you give yourself more money to play with while also having one less bill to worry about. But don’t dump all your savings into your debt – you still need savings.
Financial plan in order
Having a financial plan in place can be beneficial when starting a business. If you have a mortgage, you need to ensure that you’re still making payments on it. If your first business fails financially, have you taken the steps necessary to ensure you can pick up a 9 to 5 job to recover? Going back to the 9 to 5 after a failed business isn’t giving up. It’s sometimes necessary in order to better prepare for the second business. Another thing to consider is whether or not you’ll be taking out a business loan. While not necessary for a dropshipping business, some may choose to take out a loan or a line of credit in case of an emergency. If you plan on doing this, how much can you afford to pay back with your stream of income in case you burn through the loan with little return. Next, you’ll want to make sure you create a budget with all of your expenses. You’ll also want to make sure you stick to that budget to avoid incurring any additional debts.
Are you really motivated?
If you’re seriously thinking about whether or not to quit your job and start your own business, you need to be very motivated. Obsession level motivation. One of the best motivators is anger. Do you passionately hate working a dead-end job? Are you furious about getting laid off once a year due to seasonal work? Are you desperate for a change? Do you hate a lack of freedom and flexibility? Are you obsessed with a certain cause? If you’re not to the extreme end of needing to escape and make a change, it’ll be hard to maintain energy over the long haul. The day you quit your job write down on a piece of paper all the reasons why you quit. Hold onto it. There will be times when you feel like giving up or forget why you started your business. When that happens, read that piece of paper. Your motivation will get you through the lows and bring you closer to the highs.
Experience in the industry you want to work in
Having some sort of background in ecommerce, marketing or your niche will go a long way. If you have marketing experience, you’re more likely to succeed as a dropshipper. The most important part of running a store is getting sales and marketers know how to get them with ease. If you have a background in ecommerce, you’ll have an understanding in how to run a store which reduces time spent learning. If you’re an expert in the niche of your store, it’ll be easy for you to understand the needs of your customers. Also, it’ll make producing content on social media or your blog easier for you. If you don’t have experience with ecommerce, marketing or your niche, it’s best to take some time to learn some more before quitting. When you quit your job to start your own business you want to make sure you have a strong chance of succeeding. This will help prevent you from ever having to return to the 9 to 5.
Proof that what your business will succeed
If you’re planning to quit your job to start a business, you need to make sure you have proof of concept. Is your business idea viable? The only way to answer this question is to start a store while working a 9 to 5 job. It might mean you spend an entire weekend building your store, importing products and creating ads. Once you’ve created a successful ad and are seeing sustainable results from it, you have proof. You’ll know that your niche is profitable. In addition, you’ll have proof that you’ve got what it takes to succeed. You’ll never have to worry about second guessing yourself. Set a milestone you want to achieve on your store. Once your store hits that milestone, get ready for your next career chapter.
Find a place to work
Are you introverted or extroverted? Where do you work best? What kind of atmosphere are you most productive in? These are all questions to consider before quitting your job. For some people, working at home is comfortable. For others, working at home makes them feel trapped. Or maybe you’re not legally allowed to work from home due to zoning laws. You might choose to work in a public library if you’re on a tight budget. You could also choose to work in a coworking space for a couple hundred dollars a month. Coworking spaces are great for extroverted entrepreneurs who need social interaction and want to network with similar minded people.
Get a health checkup
Once you quit your job, you’ll no longer have access to health insurance. Before quitting your job, go get a health checkup. Get a blood test to make sure you’re in great health. If you take prescribed medicine, now’s the time to get a refill before your insurance coverage ends. Do you exercise regularly? Once you start running your own business you should make sure you keep positive habits. You should still cook your own meals and exercise regularly. Making sure your health is in top notch shape is important. Your business needs you to be in top form.
Make sure you have thick skin
When you first tell people you want to quit your job and start your own business, you’re going to have people question you. Some people will tell you it’s a bad idea. Others will tell you how lucky you are to have the job you have. Many will tell you that you’re going to fail. You’re going to get a lot of negativity from most of the people in your inner circle unless they’re just as entrepreneurial as you. The people closest to you are often the ones who will try to hold you back the most. You need to be firm in your decision. You need to know with absolute certainty that entrepreneurship is your path. You need to be able to tell the people you love the most that you’re going to do it anyway. When you don’t get immediate results, people will tell you I told you so. Spend less time with the skeptics – it’s essential for your sanity.
The Wrong Way to Quit Your Job
I’ve quit my job to pursue entrepreneurial endeavours twice. The first time I did it, I did everything wrong. I didn’t have a plan of how I was going to make money. I had thousands of dollars worth of debt. I didn’t have any money saved up.
I wanted to escape the monotony of the 9 to 5. I thought I’d figure it all out along the way. I didn’t. Instead, I tried everything. I went through a phase where I wrote and published several mediocre Kindle books. I took them all down eventually because they were really bad, even though they had positive reviews. I launched four Amazon affiliate ecommerce stores. At the same time. I wanted variety. But I’ve learned since then that laser focus is best in the beginning. Stick to one niche store at a time. I also did freelancing on Fiverr. Let’s just say $5 gigs don’t pay the bills.
There are other things you want to make sure you avoid doing. First, make sure you don’t work on your business while at your current job. During your last few weeks at your job you should actually be putting in your best effort, this is going to be their last impression of you. You’ll have all the time in the world to work on your business when you quit. Second, don’t try to get other people to quit too. Entrepreneurship is your path. It’s bad enough that the company is losing a rockstar like you. Don’t burn bridges by trying to get everyone else to quit too. Third, don’t steal company property. No staplers, post-it notes, notebooks or other products you didn’t purchase should leave company property. Stealing is still illegal.
The Right Way to Quit Your Job
When you quit your job and start your own business there are a few key things you should do as you transition. First, make sure you have money saved up. I overemphasized money, debt and finance in the beginning of this article because I know from first hand experience that the lack of it is the biggest business killer.
Second, before you quit your job talk to your family about your decision. Having an ‘it’s my life’ attitude can destroy your relationship with your partner or relatives. Cook a delicious meal and talk about why you need to make this transition. Explain to your family why you’d like them to support your decision. Let them know what your plan is in terms of finances. Give them a couple days to sit on it if they need to. Try to get their blessing before making any big decisions. Listen to everyone’s perspective. Try to resolve any objections before they become problems.
Lastly, when it comes to quitting your job your last couple weeks need to end on good terms. Give at least two weeks notice. If your employer asks for three or more, graciously agree. Besides, you could use the extra money towards your savings. Your final weeks at your job should be spent training the new hire. Give them all of your secrets. Make it impossible for the next hire to fail in the role. Consider it good karma for your transition. The very last thing you should do before you quit is get a reference from someone at the company. You can ask them to leave a positive reference on LinkedIn as well if you plan on being active on it in the future.