Ever heard someone try to sing who isn?t a very good singer? Or someone try to tell
jokes who isn?t really very good at being a comedian? That?s when you?ll often hear
the saying, ?don?t quit your day job!?
This article is about something different. We are assuming that you ARE qualified to
do whatever it is that you are currently doing, though you may not be as happy in
your current occupation as you would like to be.
Among the top 5 questions that I am asked, or issues that are raised by people I talk
to, is whether or not someone should quit their job to work a home based business.
Or, if they are currently out of work, whether they should try to make a go of
working their business fulltime as opposed to looking for employment and/or going
back to work.
In most cases the answer is, categorically, no! But, not always? Let?s take a look.
Though many people get themselves into trouble by placing too much confidence in
their ability to earn income from their newfound home business too soon,
fortunately there are some very simple guidelines that you can use when
considering such decisions.
1. Are you earning at least as much, if not more, in your home based business as
you are in your current occupation?
If not, then you should really think twice before trying to venture out and quitting
your job.
2. How long have you been working your business, and how long has the company
been around?
Both are important factors. According to readily available statistics, such as from the
SBA (Small Business Administration), most businesses fail within the first 5 years.
Further, especially in network marketing, most new companies are out of business
within a year or two. If you are pinning your future on a brand new company, that?s
probably not a very wise approach, especially if you don?t have money saved up, as
we?ll discuss below. Similar factors apply to you. The more business experience you
have and the longer you?ve been at it, the greater the likelihood that you too will be
able to pass the test of time. If you are brand new to working your own business
then you should probably allow some time before deciding to quit your current job.
3. How much do you have in liquid or readily accessible savings that you can use for
living expenses?
Most financial planners and experts agree that you should have enough liquid
savings to cover, at minimum, 3 months of living expenses and overhead. And 6
months to a year, or more, is even better.
In addition to the above, by all means always remember NOT to plan your future
without a job on what you ?hope? your home business will do, as opposed to already
having a proven track record that demonstrates how much money you can reliably
expect your business to put into your bank account.
Especially if you are new to being involved in a home business then it can be
difficult really visualize what lay ahead. But, if you consider things from a standpoint
with which you are already familiar, such as a job, it will be easier to understand.
For instance, let?s say that you currently work as a Senior Administrative Assistant
and you decide that you would like a career change and you want to become a
surgical nurse. Would you realistically expect to be earning money from that new
occupation any time in the near future? Probably not. You would need to go to
school, or back to school, perhaps for years, to be trained and prepared for entry
into your new chosen profession.
This analogy seems obvious when applied to a job, but for some reason many
people feel that they can simply jump into a new home business, with no prior
experience, no training, etc., and make an immediate go of it. However, doesn?t it
only make sense that if you are going to become involved in starting a new business
that, likewise, you will need to undergo the proper training, and that there will be a
learning curve, etc.?
True, a certain small percentage of people do manage to create instant success, and
a fulltime income, even starting a new business with no prior experience. But, those
are the exceptions rather than the rule.
Most people working toward success in a home business will at the very least
undergo a learning curve, will very likely experience some struggles along the way,
and may very well end up spending or losing sizeable amounts of time and money
before becoming profitable and creating a sustainable income. The more
information and training you gather along the way the more likely you are to be
successful, fasters, and with fewer headaches. But, even if you do well, it is still
unrealistic to expect to create a fulltime income immediately starting from scratch.
Near the beginning of this article I cited a commonly known statistic about business
failure rates. Another equally well known fact that you can likewise easily confirm
via many sources, including the SBA (Small Business Administration), is that near the
top of the list as reasons for business failure are a lack of capital and cash flow. In
other words, not enough money. Knowing this, you would be especially wise to
include your current employment, or some kind of regular employment that
produces a steady paycheck, into your business planning.
Once you actually start making a profit in your home business, and you have a track
record, then you can start planning your budget and your future according to what
you realistically expect to earn each month in your business. However, until you get
to that point you ?business? operating budget realistically has to come either from
the money that you earn in your current occupation, or from savings, or both.
Quitting your job prematurely, or choosing not to seek employment when you have
no other source of regular income, in the hopes that you will earn enough from your
home business is, in most cases, a recipe for disaster unless you?ve followed
guidelines similar to those discussed here.
GRPMAX, L.L.C. was founded by CEO Phil Covington in 1979 and is the parent
company of ABCIncome.Com
GRPMAX specializes in developing Uniquely Innovative Technologies & Solutions
and has worked with clients ranging from small business, to government, to the
Fortune 500. Specifically, GRPMAX creates solutions that automate processes that
previously required human staffing and interaction. Mr. Covington's interest in the
home business field started in the 1980s and developed out of relationships with
some of the industry's most talented and highest earning individuals, during which
time he has actively pursued the creation of the ultimate home business passive
income solution.
