Woohoo! If you are thinking about quitting your day job to work full-time in your business, you are obviously making some money and likely seeing some growth. Congratulations!
The thought of leaving the security of your paycheck to pursue your passion is both exciting and scary. How do you know when the time is right to quit your day job, or as I like to call it, "taking the leap"?
Whenever people ask me that question, I always think of a quote from Dave Ramsey:
In other words, you want to make sure you can come as close as possible to covering your expenses with your business before "taking the leap" and leaving the security of your paycheck.
Your timing is crucial here, and I want to encourage you NOT to jump the gun.
Nothing will crush your spirit and progress in your business faster than having to worry about how you are going to pay your bills.
So how do you figure out when the timing is right?
It's all about the numbers. You've got to know them. If you don't, your first step is to get on a clear written budget for BOTH your business and personal finances. (I'm a huge fan of Dave Ramsey's online budgeting tool, I'll provide the link below).
Once you've got a clear picture of what is coming in and out, you can see how close you are to being able to cover your expenses with the money your business is bringing in.
Be sure to use your actual numbers here, NOT what you have projected.
Why? You ask.
Because your expenses and financial responsibilities are very real.
If you don't hit those projected numbers, you'll be in a situation that you've worked way to hard to be in. If you do hit those projected numbers...great! Now you've got more money to use to pay off your debt or reinvest in your business. Either way, you win, and so does your business.
Keep doing what you love.
PS - here is the link to Dave Ramsey's online budgeting tool that I promised: https://www.everydollar.com/