Factors to Consider before Quitting Corporate Job and Starting a Business

Factors to Consider before Quitting Corporate Job and Starting a Business

– These days entrepreneurship
is just rocking. Everybody wants to start a business. Everybody want to become a billionaire. Well there is nothing wrong
with those goals and dreams. In fact, who am I to judge you all? But the question is how realistic we are? Especially when you are planning to quit your job to start a business. Well for some people, quitting their jobs
and starting a business has become one of the best decisions they have ever made in their lives, but for others, it has become one of the worst. Anyway, there is a famous quote saying, “prevention is better than cure.” Following that old school statement, which is still applicable, today we are going to talk
about the factors which you need to consider before quitting your job to start a business. Well if you are new to this channel, hi. I’m Dinu and welcome to
Edliza and let’s get started. (gentle music) I specifically want to tell this to other young crowd and the millennials, just because you watch
several YouTube videos about the successful entrepreneurs, who have quit their jobs
to start their businesses, actually with no money on their hands, you can’t do the same. Everyone’s life and
circumstances are different. So first you need to understand whether you really want a business, based on what kind of
lifestyle you want in future, what are your goals? Also, do you think that
you will be able to achieve all those goals
by starting a business? Basically, you should know your purpose of life and the business. By the way, if you want to get
more details about your why or purpose and how to clarify that then go through this video. Next, are you happy with your career? Don’t mix up. I am not asking about your current job. I’m asking about your whole career. Whether you are in tourism
trade, whether you are in real estate, banking,
accounting or whatever. Are you happy with your career? From one to ten scale, what is the point which you are giving for your career satisfaction? Let me know in the comment section below. Here’s the thing, most of the people get confused with their current job or the
stages of their current job, with their entire career. Maybe your current working
place is terrible but that doesn’t mean your
entire career is bad. So you need to clearly understand that because some people get confused, because their current job is bad, they think they should quit their job, that means their entire career, and start a business
which is a wrong decision. That’s why you need to evaluate your past, present and future of your career life, before taking any
decision to quit your job. Next, do you have a
business idea and a plan? Before you handing over that letter, that letter means the resignation, you should have a clear
idea about what kind of business which you are going to start. At least you should have
completed a market research, evaluate your competitors
and understand that there are people who
are being profitable in the niche and the business idea which you are going to implement, or at least a similar kind of idea or similar kind of a product or service which your competitors are offering to the customers and earning profits. Next, do you have a clear plan? Do you know what you should do initially? Do you know whom you are going to contact? Do you know what kind
of resources you need? You should know all these
things before you start. I’m not telling you that you
should know one to ten steps or A to Z everything about your business, but you should at least
have a clear picture about the initial steps which you need take and what you need to start your business. If you have that kind of
idea and a initial plan only you will be able to figure out things on the way while you are doing your business because we all can’t
figure out everything. Initially, we will make mistakes
and we will learn lessons, but if you have at least
a clear picture where do you want to go, only you will be able
to successfully launch a business and continue that. Next, how long are you
going to permit yourself and for your business to bring
in revenue and profits? I haven’t seen, most of the people are talking about this, but a time frame is
something really important, especially if there are no
goals without a time frame. You all know a goal should be smart. T, final T is for time limit, so you should definitely have a time frame for your business to make revenue and profits. That’s how you are planning financial goals for your business. Don’t forget that you
are quitting your job to start your business, that means now you don’t
have any financial resource to bring money to your life every month, you are not getting any paychecks, so whatever you have saved or whatever the loan you have taken, now you are directly
investing it to your business. So because of that, very soon there really is a risk of you losing everything and you
are running out of money, so to avoid that kind
of stressful situations, you should have a specific financial goal as well as time frame
to achieve those goals. Next, the most important question, what is your financial status as of now? How are you going to
invest in your business? Do you have enough savings? These are the most important questions you should ask yourself, other than those factors
which I mentioned before. You should have a clear
idea about the amount you should invest in your business. Let’s say you need $100,000, well then you definitely save $120,000. The reason is, I mean everything is not
going as you are planning, if it’s happening, that’s great, but most of the time you need extra cash, so if you think that your business wants $100,000 investment, you should at least have $120,000. Also, you need to decide how are you going to cover up
your personal expenses after you quitting your job. Are you going to use
your personal savings? It’s okay and if you are doing so, for how many months
you are going to spend. So all these decisions you
need to make in advance. Not only that, you should have a small
emergency fund as well. The reason is, everything is not going as we planned, we need to understand that. Now you will ask me, “Dinu, do you “want me to wait until I collect “all these expenses?” Well I know this is disappointing, but my answer is yes, if you don’t want to take
any part time job at all, I mean if you just want
to do your business without doing any other things, I mean without being employed, then definitely you have
to have enough savings. The reason is, starting a business is a risk. You are taking risk and you never know whether you will
be able to make profits. So you should have a clear plan and enough savings before you start. You may find that advice for savings could be very unrealistic but trust me, if you want to become an entrepreneur, you should be a financial
planning expert as well. You should be able to first plan everything for yourself, then only you will be able to plan everything for your business. Also, most of the people who are quitting their jobs without
a proper financial planning, they are going to fail, and there are enough evidence in history that most of the people
have failed as well. The reason is, if you are not ready and if you don’t have enough money to cover up
your personal expenses, and for an emergency, how are you going to focus properly and do the work for your business? Can you think of two things at once? I mean you are getting worried
about the personal expenses, how are you going to pay the bills? And then from the other side, you are going are going to think creatively about the
business, is it practical? Well I don’t think so. If you really want to
focus on your business and work on that, you should train yourself to become a financial planning expert. However, if you are planning
to start a business, my best solution for you is to build up your business while you are working on your full time job. The reason is, you are getting lot of financial freedom when you are doing like that. The reason is, every month you don’t have to worry about your bills or from where you are going to find
investment for your business, you just need to focus on your
business and work on that. It takes time but worth spending time and building something slowly rather
than getting into trouble. Maybe you will understand it like playing in a safe way but, personally for me having
financial security is really important than just
taking unlimited risk. All right these are the factors which I wanted to share with you today, let me summarize, first you need to think about
your career satisfaction. Second one is you should have a clear business idea and a plan. Third one is you should have a time frame for your business. And the fourth one is, you need to cover up your investment and personal expenses before
you quitting your job. If you like this video, give it a thumbs up and I’m waiting for your feedback in the
comment section below. Also, if you want more business tips and inspiration for your
business and the career, then connect with me on
Instagram @edlizabydinu. I’ll see you all next week, have a nice day. Bye bye. (gentle music)

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3 Replies to “Factors to Consider before Quitting Corporate Job and Starting a Business”

  1. Hello Everyone! Do you think this video is useful? Please leave a comment. It helps me to provide you more value using my content. Also, dont forget to connect with me on Instagram for daily inspiration and business tips. www.instagram.com/edlizabydinu/

  2. This is absolutely true! you need to prepare to quit your job, That's why I so glad that I made the decision to quit my day job and work from home best decision ever! 😁

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