As an entrepreneur it’s important to know what your risk profile is. Why? Because the more you know yourself, the easier decision making will be.
Maybe you’re at the start of your journey – still working a 9-5pm job, while planning or building your business on the side.
Perhaps you’ve been asking yourself. . .
“Should I leave my job before my business earns enough to support me?”
Knowing your risk profile will help you answer this question.
If you’re a risk taker then burning all of your bridges and making a leap to work on your business full-time, with little to no money behind you, may be the best approach for you.
If you thrive on pressure and deadlines (left study until the last moment, and then crammed until 4am) you are likely to be a risk taker.
If you’re risk adverse (this is me) then a more planned approach may suit you better.
I went from full-time corporate lawyer to contracting. As I was based in New Zealand’s capital city, most of my contracts were with Government organization that only required me to work 37.5 to 40 hours per week.
I say “only” because at law firms my hours were a minimum of 40 hours. In fact if you left at 5pm you’d sometimes be called a part timer (how is that for work culture?!).
As I was contracting I was taking a serious looks at my expenses and building up a buffer fund for when I made the leap.
My last contract was the highest paying and made me the most miserable. It was time to make the leap. I travelled to S.E. Asia – working, travelling and volunteering for 5 months. Freedom, frustration, success, failure – such a fantastic experience.
If you’re at that point when you’re sick of your job and can’t see how to continue, do stop for a moment. There are other options aside from quitting and fleeing the office with no plan.
- Investigate if you could work from home (this could give you a break from office politics)
- Consider if part time work is available
- Use your leave to work on a business project
- Get a different job that will give you more energy to work on your business
- Do contract work.
Because nothing kills creativity quicker than worrying about how to pay the rent.
There are so many different ways to begin your business journey. You might find that after working full-time on your business for 3 months you realise that’s it will take much longer than you thought to replace your old work income. This is far more common than people think!
As a business owner you need to constantly review and assess your plan and what changes you need to make for your business and to keep your sanity. I don’t think there should be no shame attached to getting a part-time job, for example, if that’s what will make you the happiest and allow you to have the right energy for your business.
Let’s say that after those 3 months working full-time you know you need to make some changes. You could:
- Get a part-time job that leaves you mental space for your business
- Reduce your expenses. I went housesitting for over a year and this significantly reduced my expenses
- Take a short term contract to boost your savings, and then go back to working on your business full time
- Move to a different country where the cost of living is much less (so far I’ve tested out Thailand and Bali. I’ll be in Mexico in June).
The important thing to remember. . .
There is no one way to run your business. Do what works for you.
I want to encourage you to open your mind to the many options that are available. Instead of instantly dismissing options, instead ask “What if…”. You might be surprised by the results.
What has your business journey looked like? I’d love to hear about the options you’ve chosen.