Thursday, November 28, 2013

Risks VS Rewards - Quitting Your Day Job to Become an Entrepreneur

Do you dread going to work? Feel like you were made to something else with your life other than working for "the man?" Or is your hobby starting to pay you more than your day job? If you answered "yes" to any of these questions, then it's time to move on and follow your purpose. But first, we must identify the risks and rewards of quitting your day job and becoming an entrepreneur. Finally, we will learn 10 key strategies for implementing your purpose because although entrepreneurship may be calling you, are you really ready for it?

Okay! Let's be real, here. There are risks to quitting one's job, but many are just plain myths that need debunking because they are preventing you from following your purpose. Here are the top five myths to reasons why not to quit your day job:

o I will have no Health Insurance

o I will lose or not have Retirement Funds

o I will be homeless

o I need thousands of dollars to start my business and to survive

o There is no security in entrepreneurship

Now here is reality. First, you can purchase private health insurance that may cost more, but it's better to be safe than sorry. Google health insurance options online such as or call your local insurance agency such as Nationwide Insurance. Second, you can rollover your 401(k) plans or others into a ROTH IRA. Talk to your financial advisor/planner for more information as they are a resource that everyone should use to help make sound financial decisions like quitting one's job. Third, your home can be protected through insurance and other special programs. Again, speak with your financial advisor/planner to learn about your options. Fourth and most pivotal to your success, is plan, plan, plan, budget, budget and here, again, is where your financial advisor/planner will come in handy. Are you beginning to see a pattern here? Visit your local Small Business Administration technology center or go to their website at They can provide you with a plethora of information on funding options and more. Finally, tomorrow is not promised to anyone. If you plan smartly and be clear about your objectives, quitting your job will not lead you to the unemployment line.

Now, as previously stated, you must plan smartly and be clear about your objectives. Quitting your day job is a big step, and one must not become caught up in the myths about the rewards of being your own boss. So, here are some myths about the rewards of quitting your day job.

o I don't have to answer to anyone

o I can set my own hours and work when I want

o I have an idea that is going to make millions

o I can go on vacation when I want to

Stop right there! If these are the reasons you want to quit your day job, you and your family are in trouble. The reality to entrepreneurship is that you do have to answer to someone - YOUR CUSTOMERS/CLIENTS. Entrepreneurship is not an 8 hour job, but a 24 hour job. Most businesses, depending on the industry, do not see a profit for the first 2-5 years. And can you say TAXES, EMPLOYEES, MARKETING and RENT/LEASE FEES? Finally, who's going to cover the shop when you are on vacation? Many entrepreneurs have not made that leap to business owner where the company can now function without the owner/founder's presence. You are the sales clerk, janitor, cashier, secretary and CEO until the business has "arrived."

The bottom line is that the decision to quit one's job is very personal and subjective. It is not something that can necessarily be predicted as being the right thing or the wrong thing to do at the time of the decision-making process. But is something that can work to you and your family's advantage if it fits in line with your purpose and with careful planning.
So, are you ready to turn in your resignation? Wait! I want to leave you with 10 key strategies for implementing your purpose before you take that leap of faith into entrepreneurship.

10 Key Strategies to Implementing Your Purpose

1. Create a list of the things you are good at and enjoy doing: What is your calling? Write down your vision

2. Create a list of pros and cons about your current job: Be real and not just make up excuses here. Perhaps you will find that you might not need to leave the job just yet, but can leverage a raise or a newly created position tailor-made for you.

3. Plan a long-term and short-term list of goals that relate to 1 & 2: Speak with a counselor at a local women's business center to help with this.

4. Tell your Crying Angel Network or your business consultant/coach your ideas and goals: Get a fresh perspective from someone who is not your family or circle.

5. Before quit job, see if you can negotiate a part-time deal: Don't leave until all avenues have been exhausted - keep a part-time job until income from purpose super cedes or matches income from job.

6. Research access to capital: Capital can come in many different forms such as friends, family, loans, and savings. Bottom line: you must have a money plan.

7. Live within your means: You should start a budget and have been living by it at least 3 months before quit your job, if possible. If not, call your financial advisor/planner immediately.

8. Network, Network, Network: You can use the traditional (i.e., BNI groups, workshops & seminars) and/or non-traditional (i.e., post office, birthday parties, grocery store), but you must learn how to network and use your net to work for you.

9. Talk to your spouse before you jump into the water: Get their support or understanding, if not both, because this decision will impact them for a long time to come. They need to know where they stand in all of this because they will be making sacrifices with you. This is not about just you.

10. Keep a sense of humor because you are going to need it: That's right! Laughter is the remedy for insanity and depression, so keep laughing and enjoy the journey.

One of my favorite inspirational quotes says, "Ambition knows no obstacles" (Chinese Proverb). I want to add to that that ambition is a curse without careful planning. That is not to say that you will be able to plan everything out, but when the bumps come up - and they will - you, your company and your family will be better equipped to handle them.

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