Knowing when you’re ready to strike out on your own as an entrepreneur is a challenge in and of itself. So many new business ventures fail due to a lack of proper planning and foresight – and you certainly don’t want to be part of that statistic!
So how do you know you’re ready to take the next big step in your career? How do you overcome the natural sense of fear that comes with a bold new direction in life? Being ready is, in part, a mindset. But there are also signs and goals you’ll want to meet before you say sayonara to your day job.
Here are seven of the most important:
7 Signs You’re Ready to Quit Your Job and Be Your Own Boss
Sign #1 – You’ve saved up a cushy emergency fund.
The rule of thumb for an emergency fund demands you save up at least six months’ income. The idea is that you’d have enough money tucked away to get by if you suddenly lost your job or were unable to work. When you’re setting out to be an entrepreneur, though, err on the side of more significant savings. Starting a new business can be costly. Be sure you have what it takes to cover your income in the interim (which could well outlast six months) and adequately fund your new venture.
Sign #2 – You’re feeling unhappy and unfulfilled.
Listen: feelings aren’t everything. If we allowed ourselves to be steered solely on emotion, we’d all be in a world of trouble. It’s normal to experience discontent and malaise during your 9-to-5. You’re ready to leave when this is a chronic problem and, more importantly, when you have your sights set on something extraordinary.
Sign #3 – You’ve developed a strong sense of self-discipline.
Being your own boss may mean you answer to no one, but it also means there’s no structure for accountability. If you don’t do it, it won’t get done. If you’re not prepared to buckle down and do the tough stuff, you’re not ready to leave the employment nest. Self-discipline takes time and practice, but you can build in other areas of your life to strengthen that muscle.
Sign #4 – You’ve tested your idea and done the research.
You’ve got to be ready to jump right into your entrepreneurial vision. That means you have an idea that works. You’ve done market research, identified the gap in the market, and crunched the numbers. You might even already have something going as a side hustle. Regardless, don’t step out until you know you have an idea that is feasible, scalable, and sustainable.
Sign #5 – You’re prepared to upskill.
Entrepreneurship will test everything you thought you were. You will quickly find out where you fall short and need to be prepared to take on the challenge of rapidly adapting and learning new skills. You can’t allow failure and gaps in your knowledge to hold you back. Entrepreneurship demands an insatiable desire to reach the heights of your potential.
Sign #6 – You already have your entrepreneurial foot in the door.
Starting a business from scratch is hard. It’s even harder when you don’t have an established network or clientele. Before you jump into this new venture, you need connections. I think most of us recognize the power in who we know! Start building relationships with potential investors, like-minded entrepreneurs, and mentors. You’re going to need the support.
It also helps to have built up a public presence and identity. This takes time, but it helps if you already have some level of name and brand recognition.
Sign #7 – You’re prepared to make necessary sacrifices.
Entrepreneurship is rewarding, yet it can be highly challenging…and lonely. You will face long nights, frustrating problems, and strain on finances and relationships. You must be prepared to make those sacrifices. They won’t be forever. You’ll come out on the other side one day. But getting your hands dirty, getting down in those trenches, is an entrepreneurial trial we must all face.
Don’t be afraid to tackle it head-on.
When did you know it was time to start the next chapter in your professional life? Share your story in the comments.