When you ask a successful entrepreneur the story of their success, typically somewherin that story they quit their job in order to pursue their business idea. It’s often a part of the story that gets glazed over, but as many aspiring entrepreneur would know it really is a pivotal move. It’s not so easy to quit a job especially if you are dependent on the income from said job. As someone who is more conservative with money (as most accountants are), I would advise on taking some preparation steps before making the jump to be a full-time entrepreneur.
Consider pursuing the business idea as a side gig
Some business ideas can be pursued as a side gig until it grows large enough to pursue full-time. This is a good way to test the waters and see if the business idea is a viable one that can also support you financially. And let’s be honest, some business ideas are just not going to work out so this is a good way to get a little taste of entrepreneurship with less risk.
Being a bit of a serial entrepreneur myself, I had several side gigs including selling soaps on Etsy, starting a tutoring business while in University and starting a Shopify store based on the basic drop-shipping model. These were all fun and each experience has shaped me as the entrepreneur that I am today.
Freelancing or contracting while starting a business
Freelancing and contracting offers an excellent way of making some side income while the business is growing. When I first quit my job, I was lucky to be contacted by an agency who wanted to hire me on a short-term basis to contract for a bank. Freelancing nowadays can be entirely done virtually and from home. I used upwork.com and freelancer.com to look for contracts. If you’re lucky, you can even convince your old employer to keep you on an as-needed basis.
As my friend and mentor, Yanky Li from Openhouse.ai believes, a truly good business idea deserves 100% dedication. So if you’ve decided to dedicate yourself to your business idea congratulations, now you need to keep close watch on how long you can survive while making little to no income. And if you cannot survive with little to no income, then I recommend seriously reconsidering this option.
Personally, when I started to realize the lifestyle change I had to undergo I had to make some quick and fast decisions. It wasn’t an easy task to go from a senior software consultant salary to no salary. I first considered what was important to me (my business, my family), and cut out some unnecessary costs.
- I cooked more at home and started going to Chinatown for some really cheap meats and fresh fruits. I can cook dinner for a whole week for under $30. I also froze meals for later consumption. I also cut back significantly on ordering food deliveries.
- I picked events to go to that offered free food, which saves me from paying for an extra meal. The events doubled as a means to grow my network. With very little exceptions, I declined to go to paid events.
- I stopped buying clothes and make-up almost entirely, which wasn’t so difficult since I often worked from home. Surprisingly, for the first time in my life, I felt content with my existing wardrobe.
- Getting coffee and meeting for coffee was purposeful, but I actually stopped going for a routine drink at coffee shops.
- I wasn’t willing to go to a cheaper hair salon, but instead I grew my hair long and reduced the frequency of needing a haircut. I stopped getting routine procedures like getting my nails and eyelashes done. I learned how to wax at home.
- I’ve not gone on a vacation since I started my business.