.Changing your career track from being an employee to an entrepreneur is a very big step. The rewards can be great, but so are the risks.
Here are some steps you need to take before you quit your day job to work full time on your business:
- Start by thinking and deciding what you really want to do.
- Think of the approach you intend to pursue the business — e.g. quit the job and jumpstart the business immediately, ease into the process slowly by starting a business while still employed, or reduce work hours in your day job while jumpstarting the business
- Decide what route you want to take in starting a business — start your own business, buy an existing business, or buy into a franchise.
- Decide on the exact business you want to do.
- Start researching and understanding the business that you want to start.
- Save six months to two years of living expenses to allow your business time to grow and make a profit.
- Start looking at the resources needed for your business.
- Make sure that you have health insurance coverage before leaving your full-time job.
- Establish a credit line with your bank and credit cards for possible financial sources.
- Thoroughly prepare yourself mentally and emotionally for your planned business endeavor.
- Involve your family in this big step and in your decision making
- Get the help you need
- How to Make the Jump from Employee To Business Owner: Checklist for Starting a Business
- Changing Track: Managing the Transition from Employee to Self-Employed
- Pre-Starting Your Home-Based Business: Things to Do Before You Leave Your Job
- Before You Quit Your Day Job