Am I Ready to Go Full-Time?

Going full-time in your entrepreneurial endeavor can be a life-altering decision. Depending on what is happening in your life, this decision should be met with a clear and sober mind. Therefore, not rushed into, if possible. The choice to make the transition to full-time is completely subjective and circumstantial. Ultimately, the decision is yours to make, but you must consider the consequences that may result, whether positive or negative.

Social media has glorified the life of a small business owner. Many have opted only to share their highs or exaggerate their wins to paint a particular picture to the public. Therefore, if you are basing your potential successes on what you have seen on the internet, I will caution you against it. Make this choice because you have the support, know-how, passion, and resources to thrive and grow.

Here are some pertinent things to consider:

You can support yourself financially

Are you reliant on a steady income to make it through each week/ month? If so, the uncertainties of entrepreneurship can rock your reality in a way you may have never felt. Knowing what you have to benchmark in your business monthly or annually can help you create targets, but the reality of business ownership is unpredictable. Things happen in business that we cannot always anticipate; new regulations come along, liabilities, returns, vendor closures, economic challenges, and a host of other things are often inevitable. You must surround yourself with wise counsel to help navigate these waters.

You have a tremendous passion for what you do

You are not entering this business because of what someone else is doing because they made it look “easy.” As a business owner, you must keep yourself motivated through the ebbs and flows of running and operating this business. Customers, vendors, families, the community, etc., often pay the price of someone making poor decisions simply because they did not care about the business from the start.

You can better serve your business and reach your financial goals by going full-time

It would make sense that if you can scale your business by devoting a bit more time to it, that can be a smart choice. We often stunt our business’ growth because we neglect it due to other life responsibilities. Know the pros and cons of going full-time and the potential impacts on your financial status, tax liabilities, etc.

You have a fallback plan

You have transferable skills that can potentially lead to another job or opportunity. Having contingencies in place can help you enter risky situations with more peace of mind. If you are not bogged down with the thought of everything having to go right so you can survive, you can make the choices that may better serve you and your business in the long run.

You have been honest with yourself about what happens next

We often go into business thinking heavily on one end of the spectrum, whether things will go really well or badly. However, we often forsake the other side of the coin to only lean into what we want to believe. If things go well, do you have the capacity and resources to grow and make the appropriate choices to coincide? But what if things go badly? Have you thought about your next steps? We always suggest having a reputable and credible business mentor that you trust to keep you honest and rooted in reality.

You are mentally and emotionally ready to take on the risks

Mental health and business have recently begun to gain more exposure. We must have honest discussions regarding the health effects that running a business can have. The stress of growing, sustaining, innovating, learning, managing, monitoring, organizing, developing, and so on can be a lot for the average individual. Operating a business requires a lot and we cannot act as if it does not because turning a blind eye can have detrimental effects. Establishing boundaries is critical for long-term well-being.

You have savings or other means of generating income

We advise our clients not to leave one dire situation to only put themselves into an even worse one. Remember, as a full-timer, you will be responsible for your health insurance, taxes, benefits, cash flow, and so forth. This new reality can be a lot, especially when the first years may be more about establishing your company and brand than reaping the benefits. Multiple income streams may alleviate some of the stress of trying to budget and manage financially, so have that in mind before jumping ship (if possible).

You simply want to

For some of us, no amount of well-meaning advice and planning can deter us from the choices that we want to make. If you feel that you are ready, then take that leap of faith. Just stay as informed as possible about what is happening in your industry, economy, and other critical factors.

This list is not all-inclusive but can serve as a great starting point. It is better to ask yourself some of the more difficult questions now instead of waiting until after you have started making investments (money, time, energy, etc.). The Finance Boutique wishes you all the best in your entrepreneurial endeavors! Here's to making good choices, personally and professionally!

“Also, it is not good for a person to be without knowledge, and he who hurries his footsteps errs” -Proverbs 19:2 (NKJV)