Many of us who start a home business do so while we're still working another job. Our jobs provide us with money for living expenses - and, if we're lucky, for funding at least a portion of our business startup costs. Most people in this position hope to eventually leave their jobs to work from home full-time. But when's the "right" time to quit? While there's no black-and-white answer to this question, here are a few things to consider...
=== Are you confident in your ability to earn an income?
Some 'experts' recommend that you stick with your home business for at least a year before you consider quitting your job. This will give you the opportunity to 'feel out' any possible trends that may occur during the year. For example, you may find that sales are slow during the summer, and that your strongest months are from January to April.
If your business has been profitable for at least a year, you'll probably feel reasonably secure that you can continue to turn a profit even after you leave your job.
=== How will you manage your finances?
It's easy to get comfortable with a steady pay cheque. But once you quit your job, your business earnings will likely fluctuate from month-to-month -- sometimes significantly.
How will you plan and budget to cover mortgage payments, day-to-day expenses, child care, and emergencies? Do you have a contingency plan for times when business is lean? Will you have to change your lifestyle, and how? Are you willing to make these sacrifices? Will there be enough funds left over to invest into your business? If not, who can you turn to for a loan, and will you qualify?
Ask yourself questions such as these so that you can anticipate, minimize, and even prevent potential problems.
=== Do you have a proper working area available to you?
Running a home business is still business, and you'll need a place where you can work comfortably. The old cardboard box in the corner of the family room may have been okay as a makeshift "office" when you only spent a couple of hours a day using it... but do you really want that type of setup when you're running a business full-time?
Ideally, you should have a working area where you can concentrate -- and with some basic furniture that won't give you aches and pains by the end of the day.
A separate room is best. That way you'll be able to keep your business equipment, files, and materials organized and safe from the hustle and bustle of your personal or family life.
=== Is your business continuing to grow?
Many people find that their business grows in leaps and bounds for a few exhilarating months. Then growth starts to slow, until it 'flatlines'. This could be due to any number of reasons... but a common reason is that you simply don't have the time to continue to build your business while you're still working your job. But your business isn't yet bringing in the same income as you currently make at your job. What do you do?
Unfortunately, there isn't an easy answer. Ask yourself if you're ready to take that final leap - to quit your job before your business earnings have replaced your income. How will this impact your lifestyle?
=== What does your family think?
Family support is always welcome when you're working hard to build a business. Keep in mind that it's exciting and scary for them, too: they're also affected by the changes in income and lifestyle. Sit down with them and have an open discussion on any upcoming changes.
Best of luck with your pursuit of a new career!
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Angela is the editor of Online Business Basics, a practical guide for beginners on how to build an online business on a shoestring budget. Visit her online at http://onlinebusinessbasics.com/article.html or request a series of 10 free reports to get you started. Send a blank email to: mailto:businessbasics@workyourleads.com
