Why You SHOULDN’T Quit Your Day Job…at least not yet!
If there is one thing we’ve learned in this entrepreneur world, is that a big motivating factor behind starting a business is to be able to quit your 9-5 job.
And WE GET THAT.
Who wouldn’t want to work their own schedule, bring home what they make, and do something they love?!
But we are not here to sugar coat this journey for you.
Being an entrepreneur is FREAKIN’ HARD!
So to keep this short & sweet, here’s my 5 reasons you shouldn’t quit your “day” job just yet.
1. You Don’t Have a Back-up Plan
I realize you think your job is the worst job on the planet, you hate your boss, you work long hours yada-yada. But just up & quitting your job without ANY kind of plan is not the smartest idea.
Yea, I’m sure you’ve seen stories of people who have done it online, up & quit their job and picked some amazing business to do and instantly found customers and were making MORE than they ever made at their job….
That won’t happen to you. I hate to be a Debbie Downer, but that’s not how the world works.
The reality is, with no back-up plan, you are going to STRUGGLE. And probably more than most, because your life is literally riding on you building a successful business once you’ve quit your job.
Most people are not cut out for that.
Which brings me to my NEXT reason…
2. You Have No Idea How You are Actually Going to Make Any MONEY
I hope you have some savings, because building a profitable business (one in which you get to bring home some sort of income) can take a while.
And in case you haven’t noticed, the internet is FULL of people who promise they can help you bring home “6-figures” on your first product launch…
Sounds a little fishy to me. If you’re in this to get rich quick, PLEASE keep your day job.
There is nothing fast OR easy about being an entrepreneur!
But wait, you say. I have this FANTASTIC business idea that I just KNOW will make it big.
3. You Have Not Found REAL PEOPLE Who Want to Buy What You’re Selling (or even figured out what your product is!)
SO many people get blindsided by this one (we’re guilty of it as well, ask us about our first program we thought was AMAZING that got 0 sales).
It is beyond important that you find a market for your business idea, and real people who will spend real money to buy it.
Otherwise you will spend hours and HOURS working on something that brings in little to know cash (see reason #2)
Or worse, you will spend your hard earned savings to create something that no one wants! (it stings, but it’s true)
Ok, stay with me. I know these are hard to hear.
4. Insurance Can be CRAZY Expensive When it Doesn’t Come Through Your Employer
If you’re single, this may not bother you too much, but for those of you with spouses or families? Oomph.
Not only is it high-priced, you often have less options for types of plans you can purchase.
Hello High Deductible HSAs that only cover 50% AFTER you’ve met the insanely high deductible…I hope your business is booming, and that your kid doesn’t need braces!
And lastly, some words most entrepreneurs hate to hear:
5. TAXES/EXPENSES. Entrepreneurs Pay More Than a Normal, Working Individual.
So let’s take your paycheck from your job, and take out the normal taxes/insurance you’d have to pay. Keep in mind, your employer covers a portion of these. In this example (from a previous blog post of Tom’s), your take home paycheck would be $2,144.
Now let’s take a paycheck as an entrepreneur (eh ehm which means first you have to make enough in your business to actually TAKE a paycheck). In this case, we are acting as though you only need to make $2,144 (most entrepreneurs assume they will get to take home what they make).
See the difference? As a business owner, YOU pay the 59% in taxes and the 21% in insurance PLUS the added 20% in business expenses. YOU are technically the employer, kicking in for those extra taxes. So you need to make a lot more than your old net paycheck in order to cover your personal expenses.
Most entrepreneurs have NO IDEA about the difference in these break downs, so they don’t include these extra costs when figuring out their numbers. And that can cause BIG trouble when it comes to covering your bills.
Now hopefully this post has done it’s job, and only scared away all of those who weren’t serious about starting a business.
For those of you who are still on board, welcome! It might be a bit bumpy, with a few road blocks here and there, but as long as you keep these things in mind and create your backup plan?
You’re in for one hell of a ride.