1.
Money Coming in Versus Money Going Out

Only you know what you need to survive on
in terms of income. Many new business owners often forgo a salary until their
new venture is on stable footing. Can you survive without a steady paycheck?
Don’t imagine what you’ll be making; be realistic about what you’re making now
and what you can anticipate making two weeks after you’ve quit. The harsh
reality is you’re probably going to take a salary hit in terms of reduced
weekly take home pay. Can you survive with that?
2.
Business Plan Projections
What does your business plan say about
generating income? If you don’t have a business plan, then you’re really not
ready to quit your job! A properly prepared business plan will become your road
map for success. If you have used realistic projections then you should be able
to gauge when revenue will start rolling in. More importantly you should have a
contingency plan ready to activate if those projections don’t hold up.
3.
Emergency Capital
Your contingency plan should include a kind
of “rainy day fund.” This should be
additional operating expenses you might require to keep your business running
should you experience a downturn in the first couple of weeks or months. Quick
example: You’re starting a business selling beach umbrellas but on opening day it
begins to rain for two weeks straight. Will you have the money to pay your
bills while you wait for the sun to shine?
4.
Family Support
You can never underestimate the need for
family support when you open up a new business. You’re going to be asking for a
lot of sacrifices from your family as you devote long hours to make sure your
business is running properly. If they’re not as committed as you are to this
start up then you’re going to have added stress which isn’t going to do anybody
any good. This kind of support is critical when you are making the transition
from one job to another. They last thing you want to ever say is, “Surprise: I
quit my job!” Major decisions like that should be made in partnership with your
family.