Questions to Answer Before Quitting Your Job to Start a Business

Are you strongly considering quitting your job to start a business? Are you both excited and concerned about making the move? Are you unsure if now is the best time to take the leap?

There are many questions you must answer before quitting your job to start a business. By addressing these early on, you’ll better understand your situation and what you’re getting into.

While there are countless questions to address, here are five of the most important:

•    Do you have enough money to comfortably make the transition? Since you won’t be working, you must have enough money in the bank to get by until your business begins to generate revenue.
•    Do you have a business plan? Starting a business isn’t something you do on a whim. Success is based largely on the plan you have in place and your ability to follow it.
•    How much money will it take to start your business? This goes along with the first question, as you may need money to get your company off the ground. In addition to your savings, there are other places to turn for funds, such as a business loan and personal loan.
•    How long will it take before you turn a profit? While there are no guarantees in business, you should at least have a basic idea of how long it will take for your company to turn a profit. Set both short and long term financial goals to keep you on track.
•    Are you going at it alone? Some people decide to start a business without any partners, while others would rather have at least one person by their side. The choice is yours, so make sure you compare the pros and cons of both options.

Once you answer these questions, you’ll feel better about the position you’re in and what’s to come in the future.

Do you have any experience starting a business? How did you know when it was time to leave your traditional job? Would you add any other questions to the five above?