Whether you want more flexibility to be a better parent or more time to pursue passions that are meaningful to you, many people long to escape the rat race but few successfully execute the switch. Research and surveys show that people are likely to regret their decision and are more likely to work longer hours to make ends meet. But that doesn’t mean you should resign yourself to a life sentence at the cube farm.
For a successful transition to entrepreneurship, one must prepare the right habits, plan and safety nets. Consider these strategies to prepare for a successful exit from your employment.
Acquire Frugal Habits
Consider drastically reducing your living expenses first. Leaving your employment that consistently provides your bread and butter has its risks and acquiring frugal living skills will help control those risks. Consider every item you spend for and categorize them between wants, needs and like. Use these categories to let go of some expenses. If you require less to live on, you can stretch your savings longer giving you more time to launch a start-up. It also frees up more capital required by a start-up. If things don’t go as planned with your start-up, a reduced living expense buys you more time to plan your next move.
Draft A Business Plan
Even before waving goodbye to your current job, you should have a solid business plan in place. Don’t say you don’t have the time because of your current job. Find the time and make time. Working on a business plan helps you weigh out if leaving your job is the right move. Don’t wait till you quit before creating a business plan. Doing this will eat up on your savings even if you’ve downsized your living expenses.
Consider business ideas related to your passions so that work towards it becomes purposeful and enjoyable for you. If you like working with pets, open a grooming service. Look inside yourself and consider what you prefer to be doing for the rest of your life and start a business plan to evaluate its feasibility.
If you already run a small bed and breakfast out of your home with your stay at home spouse as a side hustle, take it to the next level by expanding and operate it full time. Hospitality loans are available for such ventures.
Invest and Create Alternative Income Streams
Accept that leaving your job may not be all rosy. There is a real possibility of your decision backfiring and leaving you scrambling to make ends meet. Before leaving your job, invest and create alternative income streams or passive income sources so you can minimize the risk of foregoing a regular salary.
Even if your work does not fulfill your idea of purpose, do not idealize transitioning from employee to entrepreneur and failing to prepare. Execute these strategies to condition you and make your switch from employee to entrepreneur successful and rewarding.