6 QUESTIONS TO CONSIDER BEFORE YOU QUIT YOUR JOB TO BE AN ENTREPRENEUR.

6 Questions to consider before you quit your job to be an entrepreneur.

It is natural to want to do something new after a while, whether you are an industry veteran or a fresher or just started to have that itch to be an entrepreneur in this vibrant economy. Answer these 6 important questions before you bid farewell to your job. This will help you determine if you are ready to take the leap.

1.   Why do you want to be an entrepreneur? Boss is a jerk, long working hours, lack of recognition, etc. We all have faced it at some point of time in life. One of the solutions is - get a “NEW JOB”. The first and foremost reason to be an entrepreneur is because you can and will do anything to succeed. You like challenges, risks, control, freedom and many more attributes that becomes a part and parcel of entrepreneurship. Contemplate the reason, find the fire within you to rise and emerge as an entrepreneur.

2.       Do you have plan B, C, D, E and 20 remaining alphabets?  Most of us do, but inspecting it as critically as your plan A is more important than you can imagine. It should be in place just in case, to build a bridge between your cash flows and needs. Start-ups need not be hard but it cannot be that easy too.  If everything goes well your plan B could be your next start-up idea.

3.       Does your family support you? Not only will they be your core support but also the ones who’ll be directly affected with this decision. Especially if you are the sole bread winner, they would have to make life style changes for the period your business is still taking off. If you’re single don’t blindly bank on your parents; ask them and discuss with them your plans.

4.       Do you have unused employee benefits? Medical check-up, dentist appointment, the employee discounts on retail items, etc. If you still have these – USE IT! Once you have quit, the same things would seem a bit more expensive.  Why give it away when you have toiled in that company for so long?

5.       Do you know your cash burn rate? It is the average rate at which your monthly income got exhausted over the last 6 months. This will help you calculate the funds needed for the next 6 months when you would probably have no or low income. 6 months is when you are single, add 2 months for each dependent (8 months if you are married, 12 months if married with 2 kids).  This acts as a safety net, ease off the pressure from your mind so that you can concentrate on your start up.

6.       Do you have your health and life covered? You are covered by your employer only when you are an employee. With the rising cost of medicals a reliable health insurance is a must; look for the one with cashless facilities with major hospitals. A good term insurance covering your life will give you a sense of financial security. Your family will be provided for in your absence.  Health and life insurance is essential for everyone even if you are not quitting.

Additional Tip:  Some of you must have planned your dream exit sequence. A dramatic going out in blaze; if I am going down I’m taking everybody with me - kind of glorious ending. Whatever it is, how much ever you hate your boss or job or colleagues, don’t ever do this.  Keep your poise go out with grace, you never know where these people might cross your paths.  A greater satisfaction comes from showing how better your life is after taking up your new venture.