This is a question I hear quite often. If you’re starting a new business, is it best to build it up in your spare time or to quit your day job and dive straight in?
I’ve wrestled with this issue quite a lot recently with regards to improving my own business mindset. After doing a little research I found that there is no definitive answer for everyone. No surprise there then.
However, there are some factors that you should consider which will enable you to decide what’s the best option for you… and of course those who depend on your income, who will be affected by your decision too.
Here they are, so have a read and consider them one by one:
Your Business
Firstly, the type of business you intend to start might demand that you dive straight in.
There’s a lot of businesses, especially nowadays, which you can build up slowly in your spare time.
However, some more traditional businesses will require your full time commitment right from the start.
So before considering building up a business during evenings and weekends while continuing your day job, make sure your New Business Idea actually allows it.
Your Commitments
As I briefly mentioned earlier, you may not be the only person affected by your decision. Your spouse and/or children might be affected to.
You need to consider whether it’s too risky to give up your day job and dive straight in.
As well as personal commitments you may have financial commitments too which make immediately giving up your main source of income impractical.
If your business allows an immediate jump and your commitments are minimal, you’re ready for the next question.
Your Savings
Do you have enough savings to keep you going while you build up your new business to a point where u can support you and your dependants?
At this point I usually get asked how long it takes to arrive at this critical point where your business is able to replace your current income.
As much as I’d love to answer that question I’m afraid it’s not possible. There are so many factors to consider which are specific to your situation, it could take months, it could take years.
Not knowing how long it’ll take to reach your income goals makes it difficult to know how much in savings you’ll need to support you while you build your business.
When it comes to savings, you’ll have to stay on the safe side or risk running out of money before your business is well established.
Your Personality
What I found during my research is that some business advisors would strongly advise diving straight in and giving your business 100% commitment from the outset.
Others would say that this was foolish and you should build up your business in your spare time until it’s able (or at least nearly able) to replace your current income.
I believe the reason for this Conflicting Information is partly due to the personal circumstances of the advisor when they were in this position themselves and what they decided to do, based on the factors I describe above.
I also believe that it’s largely down to personality type and to some degree your business mindset.
Are you the sort of person who takes risks and is willing to risk it all to pursue your dreams?
Or maybe you usually play things a little safer and to use an old analogy, make sure you have a firm grip of a new branch before letting go of the old one.
Now I admit, that I’ve raised a lot of questions here and given very few answers.
This is simply because it really does depend on you, your business, your commitments, your financial position and your personality.
I do hope though that I’ve helped by giving you some things to consider if you’re battling with this question yourself.
To build your business in Small Baby Steps or dive straight in is not an easy decision to make, but the important thing is not to let this put you off pursuing your dreams.
Consider the above factors and make your decision. Regardless of which path you take, give it your best shot and whatever the outcome have no regrets.
What are your experiences of this and what would/did you do yourself?
