Before you quit your day job to start your new business, consider the some important reasons to hold onto your day job until your business starts turning a profit. It takes a lot of time and money to launch a business and earn income from it. You still need to meet your financial obligations during your business’s lean startup phase. Keeping your day job means you can continue to pay your mortgage, credit card bills, utilities, and other living expenses. With a strong savings plan, you can even fund the business with a portion of your salary, which means you wont have to worry about qualifying for business credit right away. Keeping your day job means you have to step away from your business for a certain number of hours daily. Having some distance gives you time to think through your business plan and gives you clarity on other matters; you might not have this time to reflect if you’re working on your fledgling business full-time. For example, having distance might illuminate weaknesses you have that might hinder growth. Identifying weaknesses allows you address them before you start working full-time in your business and relying on it for income. Hold off quitting your day job until your business generates revenue. Use the time before you quit your job to address critical issues that might impede your success.
Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.