Quitting your job can be a very big decision. Before you take the plunge, there are some things you should do to ensure a smooth transition. You should have a solid plan in place for what you will do next, whether it's finding another job or starting your own business. If you are here, you must be planning to start your own business and that's fantastic! Make sure you have enough saved up to cover your living expenses for at least six months. If you don't, start saving NOW. Give yourself enough time to make the decision-don't quit impulsively without giving it some serious thought! Ready? Here's 5 important things to do before taking the big leap.
1. Master Time Management
2. Improve Your Personal Credit
3. Reduce Monthly Expenses
4. Create a Budget
5. Get Your Mind Right
Master Time Management
Time management is an important skill for everyone, but it's especially important for entrepreneurs. Without good time management skills, it can be difficult to get anything done. Scheduling and time blocking will become your best friends.
Scheduling is when you create a plan for your day, week, or month. This plan should include specific times for each task, and you should try to stick to it as closely as possible. Time blocking is when you break down each task into specific blocks of time. This ensures that you're not spending too much time on one task and not enough time on others.
Both techniques are essential for entrepreneurs, because we often have a lot of things going on at once.
For example, if you're a stay-at-home mom or dad and you want to start your own business, you need to be able to devote enough time to both your business and your children. Time blocking will help ensure that neither is neglected and that you have enough time in the day to manage all your priorities.
Improve Your Personal Credit
Personal credit can be a valuable asset when it comes time to seek out business funding opportunities. A high personal credit score can make you a more appealing candidate for a loan, and it can also help you secure a lower interest rate. Additionally, a strong credit history can show potential investors that you are reliable and have a good track record when it comes to paying back debts. If you are looking for business funding, make sure to focus on building up your personal credit score and history.
One strategy to use in building up your credit is applying for multiple cards. Applying for multiple cards at once can have a positive effect on your score since both new lines of credit and high open limits are looked upon favorably by lenders. However, make sure that you are also able to keep the balance on these accounts down so that you are not tying up too much of your available credit.
One way that you can keep your balances low is by making sure that your cards have the features that will help you to minimize interest payments. This could include a 0% introductory rate, or an annual fee waived for the first year. These types of features allow you to take advantage of a low interest rate and keep your balance from quickly accruing too much of a high interest rate. By using this strategy, you can increase the total amount that you are able to borrow from your cards, making it easier to cover business expenses or investment opportunities.
Reduce Monthly Expenses
When it comes to reducing your monthly expenses, there are two main strategies you can use: separating your needs from your wants and cutting back on non-essential expenses.
Separating your needs from your wants is a great way to reduce your expenses without having to make too many sacrifices. Needs are things like food, shelter, and clothing, while wants are things like cable TV, internet, and expensive dinners out. By separating your needs from your wants, you can easily see how much money you could save by eliminating some of your unnecessary expenses.
Cutting back on non-essential expenses is another great way to reduce your monthly expenses. This strategy involves evaluating all of the things you spend money on each month and deciding which expenses you can eliminate, reduce, or consolidate.
Talking to your spouse and family is a great place to start. If your significant other is on board with the decision, it will make things a lot easier down the road. Other family members might not be so supportive of your big leap into entrepreneurship but try to keep them in mind and keep them updated on your business progress, so they don't worry too much.
Create a Budget
You don't want to start your own business if you're only going to be bringing home pennies for the effort. Make sure your income will be sufficient. A good rule of thumb when it comes to gauging whether or not you can make a living is to take your household income and divide it by 2,000. If you are earning $50,000 per year, then that means that you could potentially start a business that brings in more than $25,000 per year.
Don't forget to account for taxes when considering whether you can make enough money with your own business.
Creating a budget is one of the best ways to get a handle on your finances. When you create a budget, you are able to see where your money is going and how much you have left over each month. This can help you to make informed decisions about what expenses are essential and which ones you can do without.
Money management is another important aspect of financial health. When you manage your money well, you are able to save for important things like retirement or a rainy-day fund. A rainy-day fund is an important part of financial stability, as it can help you cover unexpected costs in the event that something unexpected happens.
Saving for retirement is another important goal to have. When you save for retirement, you are able to accumulate wealth for yourself, instead of depending on your employer or the government to plan for your financial future.
Take some time now to think about the things you will need to make money with your own business. Once you know what is required, you can better manage your finances and start saving towards those goals so that it may be easier when you get your business up and running.
Get Your Mind Right
This should actually be number one. Without the right mindset everything else falls apart. Your mindset is your most powerful asset. It's what will help you to push through when things get tough. In order to maintain a positive mindset, you must continue to invest in yourself and educate yourself. This means reading books, listening to podcasts, and attending seminars and workshops. When you put in the work, you will start to see results. However, don't forget to celebrate your successes along the way. Acknowledge your progress and allow yourself to feel good about it. Hardship will come, but if you have a strong mindset, you will be able to overcome it.
Having the right mindset also means being realistic about your goals. Avoid setting goals that are not attainable, as you will only set yourself up for failure. If you fail to achieve a goal, take some time away from it and then come back with a fresh perspective on how to approach it.
Don't forget to also be open-minded. Keeping an open mind can help you embrace change and make the change seem less intimidating. Be flexible, relentless, and persistent and you will accomplish your goals.
There are several things you should do before quitting your job. First, master the art of time management. Schedule a time to do each task you need to accomplish and make sure you stick with the schedule. This way, you can get everything done in an efficient manner. Second, improve your personal credit so that you are in the best position possible to receive business funding. Third, reduce your monthly expenses by to cut back your living expenses by 20-30% and trimming unnecessary fat. Next, create a budget and stick to it. This will help you to see where your money is going and how much you have left over each month. This will also allow you to make sure you are saving for important things like retirement or a rainy-day fund. Finally, invest in yourself by reading books, listening to podcasts, and attending seminars and workshops.
Lastly, be sure to research online resources for small business owners, such as the small business association. These sites will be helpful when you are ready to go out on your own.
YOU are your greatest asset so do not forget to invest in yourself!