Should You Keep Your Day Job When Starting A New Business?
If you already have a family(Wife/Husband/Children), It will be best to keep your “Day Job” when starting a new “Business“. You will need a guaranteed monthly income until your business can sustain your current lifestyle.
Most businesses will not make a profit until years after it opened, if ever. So until then, you will need to keep up your current lifestyle with your “Job” income. It will be best not to put unnecessary stress on yourself, and your family trying to keep a business open.
Most marriages in “America” ends in divorce due to “Financial Problems”.
Now, if you are currently enrolled in college with no wife, and children, or you are single with no children. You will be able to take a greater “Risk” when starting a new business. It will be best to take these types of risk when you are young, and single. You have a lot more options to survive when you are young and single.
Options such as moving back with your parents, moving in with friends, finding a roommate, working a part-time job, etc. You can put more time into your new business when you are young and single.
If you want to quit your “Day Job”, you must secure enough “Capital”
No matter what the motivators say, you will still need major hustle, a great support team, and secure enough start-up capital to start/operate a successful business.
To realistically fund a successful business these days, you will need start-up capital, and at least 6 months or more operating capital. So say it will cost $30k to start your business, and your monthly operating expenses will be 5k per month. You will need a total of $60,000.00 or more to start your business.
To be real safe you will need at least 12 months of operating capital including your start-up cost to start a new business. Which will be at least $90,000.00 plus based on the example above. I would round it off to 100k.
There are a lot of different options you have to secure funding for your business. You can use your own money from your savings to start a business, or you can refinance your home.
You can also secure funding from commercial business funding companies, banks, credit unions, angel investors, venture capitalist, family and friends.
If you decide to use a commercial funding company make sure you choose a company with the Lowest cost of capital outside of a bank
Do not commingle your business with your personal life
Now if it cost $90,000.00 or more to start your business. You will need another $50,000.00 to $100,000.00 in your personal bank account to maintain your current personal lifestyle monthly expenses.
Your personal lifestyle expenses will most likely include rent/mortgage, monthly bills, food(Groceries), clothing, transportation cost, day care(If you have children), entertainment, etc
Do not commingle your business expenses with your personal expenses. You must keep them totally separate…
Most businesses fail within the first 2 years due to lack of funding and lack of competent money management.
It’s major competition in business these days since the rise of the “Internet”, so you must be completely prepared for constant change. You’ll never be able to completely relax. Starting and operating a profitable business can still be done, but it will not be easy at all.
It will take hard work, supreme creativity, street/book smarts, and patients to run a successful business. Also you must be prepared to go through major sacrifice to make it as a “Business Owner” long-term.
Now, Most Millionaires, and Billionaires are successful “Business Owners”, but if it was that easy to start and operate a profitable business, everyone will be doing it.