3 Steps To Leave Your Job To Be An Entrepreneur
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Is this you?
- Who wants to leave your job to be an entrepreneur or have a startup business….
- Who’s fed up with your job or boss….
- Who’s looking to take a break from work to pursue your dreams and hobbies, let’s say travelling or music….
Well, if this is you, I’ve got you covered.
Whatever may be the reason, I can relate to you, as I myself have passed that wobbly phase in life when I had to decide enough was enough.
I had to give my inner voice at least one chance to express itself.
Just following your heart and ignoring what your mind conveys, can lead to a dead end.
Somewhere, you have to stop and self-reflect!
And that’s what I did….
I quit my corporate job and ventured into entrepreneurship.
However, I did not take the plunge in haste.
In fact, I sensibly self-reflected and analyzed myself before calling it quits.
Hereby I am sharing with you a fool-proof formula/ technique to gather your thoughts and land on a sensible conclusion; not to regret later.
I’ve applied this formula to my life and I am glad I did it before I left my job.
This formula is a guideline on which you need to think over and take your time. Do not just rush over it as an activity.
So, let’s begin….
THE I.O.B. FORMULA – TO LEAVE YOUR JOB TO BE AN ENTREPRENEUR:
I call it the IOB Formula where –
I – refers to “INTENT”
O – refers to “OPTIONS”
B – refers to “BACKUP”
Let me throw some light on each point –
Your intent or intention should be the first priority, to clear your thought process.
Why do you want to leave your job?
Do you really want to leave your job? Or is it just a momentary feeling?
You have to be absolutely clear in your intent, as just a couple of praise words from your boss or any kind of achievement at the workplace (increment or promotion) will again motivate you to stay there and continue.
To help you clear your intent, I have drafted out 8 most important questions that you need to ask yourself. Check out these 8 questions here.
Rest assured these questions are powerful enough to clear your intent, as they did for me.
Be truthful while answering these questions; because if you are being false to these questions, you’ll prove to be false to yourself.
This is where majority of the people get it wrong.
You need to list out your available options, to consider once you leave your fulltime job.
This listing should be based on logic and fact, rather than intuition or hope.
The options you bank on the most today, may turn out to be unrealistic, obsolete or worthless in future.
Hence you must have multiple options.
You would not want to land in a situation where you are forced to rejoin the same workplace. That’ll not only cause a severe dent of your persona in the other’s eyes; but your own as well.
The truth is that the world is unpredictable. I too faced situations wherein the people or options I relied on the most, proved futile and useless.
So, please have multiple options available on your plate.
Answer the below 6 questions to assess your options. Get as detailed as possible –
- What do you want to do after you leave your job?
- What work options do you have currently?
- Do you possess the required skills for each of the options?
- What skills/ learning/ knowledge would you need to acquire for each of the options, and how much time and investment would it take?
- Who are the people who can help you pursue each of the options?
- Are the options available for long term?
Try to analyze this point precisely with reasoning.
Consider yourself a company and think of this “options” point as the “forecasting” activity.
To iterate again, take your time to analyze, as this point will make or break you. The clearer you get with your ‘options’, the better chance you will have to achieve success.
Money is the lifeblood of any business, and so it will be for you; when you leave your job and venture out to be an entrepreneur.
A financial backup will act as a solid anchor to steady your ship through the rough seas.
Your financial backup is directly proportional to your savings (or income generating investments), and is inversely proportional to your expenses.
More the savings or income generating investments you have, stronger the financial backup.
Lesser the expenses you incur weekly or monthly, better the financial backup.
What is the ideal backup amount to have?
A financial backup of 12 months is good, but a backup for a couple of years is much better.
That’s because any new entrepreneurial venture would need time to flourish; unless of course, you are lucky enough to receive revenues immediately.
How to calculate the ideal backup amount?
Study your expenditure pattern for the past few months.
List out your monthly expenses (both recurring, non-recurring, & the ones that you foresee)
Categorize these expenses into “Necessity” and “Luxury”.
The Necessity expenses would be the ones that would have to be necessarily paid whereas the Luxury expenses are the ones that you have better control on.
See where and how you can minimize your Luxury expenses.
Arrive at an average monthly expenditure value & multiply it with 12 (for the next 12 months/ 1 year)
This value i.e. MBV (Minimum Backup Value) that you arrive at, is the bare minimum financial backup that you must have.
Remember, sudden expenses such as medical expense, business expense, travel expense, leisure expense, theft, etc. may crop up for you.
Therefore, try to have 1.5 times or double the MBV; and this will be your BBV (Best Backup Value).
“Backup” doesn’t necessarily mean only financial backup.
It also includes emotional backup, happiness, and guidance.
A supportive family, good friends, an encouraging mentor or an industry expert will act as your intangible backup that’ll add serious value to your entrepreneurial life.
You might have heard numerous ‘rags to riches’ stories, wherein people started their business with just a few dollars in hand.
However, you will agree that apart from their hard work and dedication, they got lucky at some point or the other to manage that.
Don’t believe me? Study the lives of such people and you’ll know that.
In your case, you would not want to depend too much on luck, right? Luck should only be an added advantage!
After all, all can’t walk 7 miles across the town each and every Sunday to a Hare Krishna temple for a meal, like Steve Jobs did! With due respect, he was a league apart.
IMPORTANT TIPS BEFORE YOU LEAVE YOUR JOB TO BE AN ENTREPRENEUR:
Have a positive perspective. Think of your expenses as your “business investments” that you will recover once your business starts generating revenues.
Discuss your ‘intent’ with a trustworthy colleague and your family members. Have their opinion on this. This will give you a chance to see your own situation from a different viewpoint.
It’s wise to gather the building blocks for your new entrepreneurial venture even before you leave your job. This may be a question of ethics for you, but know it, there’s no 100% ethical business out there. Things such as company registration, bank accounts and formalities, tax formalities, website, business cards, data accumulation, contact list preparation, social media presence, etc. is better to initiate before you actually put your papers.
In short, it’s the preparation to test the waters before you take the actual plunge.
It takes courage to enter the battlefield as an entrepreneur or businessman, but a good strategy decides if you’ll end up on the winning or the losing side.
Strategize to win with the IOB formula.
Clear your ‘intent’ and be firm on it.
Work with available ‘options’ wisely.
Build your BBV (Best Backup Value)
Learn to manage your finances ASAP, otherwise you’ll learn it the tough way.
Business/ entrepreneurship is built on confidence and self-belief. Don’t jump into it for money, but go into it with the ‘learning attitude’. The more you learn, the more you’ll earn!
Business/ entrepreneurship is an experience ought to be taken at least once in life.
If you’ve been brave enough to read this whole blog post, I hope it created value for you.
- So when are you starting out your entrepreneurial venture?
- What level of the IOB formula are you in?
- Do you have any queries or doubts regarding the IOB formula?
I’ll appreciate your valuable comments and suggestions below.