Should I Quit My Day Job? Critical Questions to Ask before Resigning.

I stood with my arms crossed, 7 months pregnant, outside of my principal’s office. I knew the conversation I was about to have would be difficult, but it had to be done. 

My business had grown to a place where I didn’t have to continue teaching and being pregnant and all… well, home was where I wanted to be.

I wasn’t going to sign my contract for the following year, but unfortunately, I had to tell my school district 2 months before the year ended. Not only would I be leaving, but the normal 2 week notice was extended to a 2 month notice.

Awesome. 

It wouldn’t be fun having to tell everyone on campus this was my last year, but I knew the decision to work my business full time was the right one.

Quitting a full time career might not be the best solution for everyone.

Our situation had lined up so perfectly in timing and finances, that leaving my teaching career was the natural next step.

Realistically, I know that is not everyone’s situation.

A year earlier I started a network marketing skincare company and by my second year it had grown to be a multiple 6 figure a year business with a few dozen team members and a couple hundred loyal customers. Since it was supplementing what we were using of my teaching income, it was clear I'd continue working my business full time from home. 

If you’re looking at starting or growing or scaling a business, here are some factors to consider before you quit your full-time gig. 

Have you prayed?

Sis, what are you doing here?! As much as I want you reading this, it's time to stop making plans and P R A Y.

The spirit working in you means that you have all the wisdom and power of heaven!  You just have to ask.

Key into that power and pray. Ask for direction and then the courage to be obedient. The answer might be “no," which will be hard to hear if you’ve been making plans to leave your job and burning bridges in the process. (Been there.)

The creator we serve is also all knowing. No matter what you believe is waiting around the corner of full-time entrepreneurship, if you disregard obedience to follow a path you believe is better,
it will end bitter every time. 

Whatever is coming down the pipe for your business, He already knows. Pray that you walk in a direction that is glorifying to God, leads your family well, and doesn’t run ahead in God’s plans for your life. 

What do you need to live? 

An easy answer is when your business can pay you what your current income is, you can use wisdom and quit your job. 

Wouldn't it be lovely if business ownership was that black and white? Realistically though, your answer may not be that seamless. Businesses ebb and flow, take an investment to start, and sometimes don't profit for years.

If you’re wanting to start a business, it's assumed you're taking risks and living outside of your comfort zone. In turn, some conveniences or pleasures will have to be given up, but bottom line,

the well being of your family comes first.

Now notice, I didn’t say the interests and hobbies of your family come first. If hundreds of dollars are flying out of your bank account on activities that aren’t necessities to livelihood, those might be great places to start cutting the fat.

Investigate. Dig into your bank statements. Can money anywhere be freed up? 

Once your monthly expenses are in front of you, you have a road map for what your business needs to produce. You should know to the dollar or very close to the dollar how much it takes to live.

Have you signed any contracts or made commitments in your current job?

This is a big one that I often see budding entrepreneurs ignore. Your word and “yes” are the clearest foreshadows for how well your business will do. Can you commit?

If you’ve signed a contract, like in my teaching situation, you need to fulfill your commitment to that contract. It’s definitely not the fun answer, but you’ll be thankful you stuck to your word.

Being a reliable person deepens your own self discipline,
furthers relationships and builds other’s trust in you. 

Plus, this will also give you a runway for growing your business into profitability even more.

If you have a few months left in your contract, you know the next few weeks will be your time to strengthen your business.

Spend those months before leaving your career getting your family, schedules, and finances in order so nothing falls through the cracks once you do move from full time employment to entrepreneurship. 

Once it’s time to reevaluate that contract, have an honest conversation with your superior about your next steps. Thank them for the experience and education they provided and graciously let them know you will not be signing another contract. 

Is your business income reliable and consistent?

Typically, a business is dependent on sales. Sales can come in the format of a physical product or consulting services. 

Have an honest look at your numbers. Your business revenues may be inconsistent. In my own business I track the gain and loss of each day. Then, as the year goes on, I can begin to see patterns in the profitability of certain seasons.

If you start this practice early enough, even if your business produces more in a certain season, you can strategically plan to make adjustments for when sales take a dip. 

Do you foresee any unexpected expenses in your business?

Are there yearly subscriptions in which you should be enrolled?

Is a season coming up that you need to produce more inventory for the demand? For example, Christmastime for a business that sells a physical product.

Are you almost to a place where hiring your next employee is necessary? 

All of these questions may delay the quitting-your-day-job process, but you’ll be thankful you looked ahead before making a quick decision. Certain seasons require more cash flow and even if your business needs the cash, you still gotta eat. 

Having your day job will help cushion any unexpected expenses coming down the pipeline. 

Have you set aside for taxes?

I wish I could count the number of times this one has bitten me.

If you’re not organized in this area (I’m raising my hand, too), I’d suggest hiring your bookkeeping out to a third party.

Not only will they help you stay organized through the entire year, but they'll help file when April rolls around. If it's not in the budget to hire a bookkeeper just yet, a quick tip for keeping my taxes organized through the year is to use an app. It calculates income and expenses, separates into types of deductions, and it's free.

Stride uploads all of the information to my taxes for me, so the CPA can review everything in a neat format. You can check out more details about it in my article about my favorite business apps.

A new season is never easy, but if you take these points into consideration, your transition will be smoother.

So tell me, have you quit a previous job in order to grow a business? What piece of wisdom would you add to this list?