Don’t Quit Your Day Job To Start Your Small Business
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Don’t Quit Your Day Job To Start Your Small Business

Hi, today we’re talking about why you should
never ever quit your day job to start a brand new small business. By the end of the video, I’ll let you know
how I personally made a transition from my full-time day job into a brand new small business
that I started in two different companies. I’ll give you details on that. Stay tuned. Hi, my name is Mike Mancini. I’m a small business owner, entrepreneur,
and a business coach. Today, we’re talking about why you should
never quit your day job when you’re starting a brand new small business. I’m going to give you six reasons why, and
then I’m going to go into a little bit more discussion to explain how I personally did
it in two different instances. Number one reason why you don’t want to quit
your day job is a steady paycheck. I mean, do you like getting paid? Do you like making money? I think we all do and that’s why that could
be one of the reasons why you are looking at starting a small business. However, if you do like that consistent paycheck,
you should understand that that consistent paycheck, or at least the number, or the amount
of that paycheck is probably going to go down when you initially start a business. You may be able to pay yourself on a regular
basis, which you should. However, typically people do take a pay cut
when they go into that realm, because they’re thinking, “Well, you know what? If I start my own business, I’ll be making
much more money because my company now makes a lot more money by building my services out,
and I just get a percentage of that.” Well, that is true. Your company is also paying a lot of expenses. They’re paying for your benefits, they are
paying taxes, they’re paying for the office that you’re in, so on and so forth. So you need to understand that you are maybe
transitioning to a smaller paycheck. In some instances, maybe that paycheck won’t
be there for a while. So you need to be aware of that. Number two is expensive. Regardless of what you have read or what you
have heard, starting a small business can be expensive. Sure, you can get started for cheaper by doing
a lot of things by yourself. But one thing you need to realize is time
is money. I personally don’t think I ever realized just
how true that was, until I had my own business and I started spending time doing things that
I should have been farming out, or I should have definitely not been doing myself because
my time was much more valuable, or should have been spent doing other things. Now, the more time it takes you to do those
things, essentially, the more money it’s costing your business. In this situation, you may need that income
from your day job to help either farm some of these things out or to help you finance
your business. Number three, and this one is really key,
desperation. When you start your own small business, you’ll
tend to really take any business from wherever it comes from. And I’m sure a lot of you can maybe empathize
with that, or agree with me on that. I remember when I started my first business,
I would take business from absolutely anywhere because for me, it was a small win. I’m like, “Yes, new clients.” And then by the time I got done with the job
I realized, either one, I lost money. Or two, I hardly made anything at all because
I didn’t put myself out there for as much as I should have been making because I was
so excited to get new business, that I undercut myself by a huge, huge margin. And that desperation will lead you to making
really bad business decisions, and you will make much smarter decisions if you’re not
desperate for that business. But do me a favor, let me know in the comments
below if that’s happened to you. Have you ever taken a job out of, call it
desperation or call it whatever you will, at the very beginning of starting a business
and realized, “I lost money on this.” Or, “I spent twice as much time with this
client as I should have.” Or whatever it might be. Do me a favor, let us know in the comments
below. Let other people who see this know that they’re
not alone, and that you understand where they’re coming from. Number four is timing. When you finally decide to quit your full-time
job and transition to your small business, you want to have the timing be right. And what I mean by that is, perhaps it’s a
seasonal business. You don’t really want to start an ice cream
stand in July in Minnesota as you’ll almost have missed out of two months of your busiest
times. You want to work on your small business while
you’re working your day job, get it ready to go, and then launch right at the beginning
of a busy season or just before it starts. Once that happens, that could be a good time
to transition. A big mistake in regards to timing that I
see a lot of people doing is they will literally quit their day job and start their small business,
and then right away, they’re spending most of their time setting up their website or
learning how to get their bookkeeping in order, and not actually getting any business or making
any money. That is the worst way you can go about it. You can do that stuff at night on your own
time, you can get things ready to go. The worst thing you can do is quit your day
job, jump into your business, and be spending times on things that are not making you money
immediately. That is going to be the fastest way to failure,
or the fastest way for you to essentially go out and start looking for another day job. You should be spending time in your business
providing services that are actually getting you paid, and not setting up a website or
those other things that can be done early on before you make that transition. Number five, mindset. It’s much different going to work for someone
else every day than it is to run your own business. Chances are that you’re in your full-time
job, and you’re doing one job. However, when you’re in a small business,
you have to do every job, whether that’s accounting, finance, sales, providing the actual services. Everything involved, bookkeeping, whatever
it might be. It’s your job. You have every job now, not just one. So a lot of people don’t realize that and
they go on and be like, “Oh, I’m just going to be getting business and providing services.” That’s not the case. Now you have to figure out how you’re going
to get new jobs, how you go about your billing, how you go about your accounts receivable,
how you go about what kind of overhead do you need. A lot of people don’t think about that, and
their mindset is not in that place. A lot of those things fall by the wayside,
and it ends up either being very detrimental to them or costing them a lot of money down
the road. So have your mindset in the right place. Number six, commitment. Do you have the commitment to start the small
business? What I mean by that is, you must be 100% committed,
you have to be all in. And you’re not all in just by quitting your
day job. That’s not committed, that’s impulsive. When you start a small business while working
for someone else and keeping your day job, you’ll start to see what it really takes to
run a business, you’ll start to see the things that you didn’t see before, and that you’re
working towards something. You’re starting to figure it out what it’s
going to take for you to move forward. When you’ve started to figure things out and
what it’s going to take for you to move forward and push through every one of those roadblocks,
then you become committed. And then and only then should you quit your
day job once you have covered all the other things that we talked about before the stage. But I would not quit your day job before that. I’m going to give you a bonus one here, and
it’s called pressure. Starting a small business is a ton of pressure. Now that may be pressure internally, that
may be coming from family or financial obligations, whatever it might be. But it comes with a ton of pressure. If for some reason something goes wrong … and
trust me, it always will. You need to understand how to deal with that
added pressure. The biggest piece of advice I can give to
you is have a support system to help you deal with that pressure. Whether it’s speaking to a therapist, whether
it’s speaking to somebody else who’s in the similar industry, or someone else who’s running
a small business that can help you out, or just literally be an ear for you. Maybe give you some feedback, whatever it
might be. Have a support system, because the pressure
and the pressure you’re going to put on yourself is a lot. And if you don’t know how to deal with it,
or if you just fold up every time that happens, you are going to fail in your small business
and that’s the last thing that we want. Now, the way I did it was when I started my
first business, which was an online T-shirt company, I had started this, I had started
throwing some T-shirts up on a small website that I had made. And just had done it just for some extra cash,
and then realized that there was an opportunity for me to really take it full-time. Before I made that jump, I’d been thinking
about it for a couple of months. Then things started to really pick up over
about 60 day period, and then I decided, “You know what? I was in a situation at work, now’s a good
time to cut the cord.” And I did. I really came out of that much stronger because
I wasn’t basically hanging everything on just this one venture. I mean, I really was, but I knew that I had
worked, I knew that I’d already put some work in and dealt with a lot of the roadblocks. I understood that I was going to enjoy it,
and I still had a lot of growing pains to learn as I went. With that said, It ended up being a really
positive experience for me and it turned out all right. Now fast forward seven years from that point,
I was in the T-shirt business still and I wanted out. I was done, I just wanted to do something
else. But over that seven year period of time, I
had figured out I was really good at marketing it online. So I really wanted to transition to that. But if I quit the T-shirt business, all that
revenue, or all that income, I would have failed right away. I needed to have something to transition into
because I wasn’t quite sure how it was going to do it yet. So in that instance, what I did was I started
the business. Just got the business name and the website,
and some of that stuff up and running. Just an hour or two here and there. And then when it was ready to go, I decided
to farm out some of my services. Now I did that at first to a couple of friends
of mine for free and said, “Listen, I’m doing this marketing, can I come do some for you
for a certain period of time? Do it for free. If it works out, you hire me on as a guy that
takes care of that.” And they were like, “Absolutely, especially
if it starts off for free, and you show us that it works.” And that started right away. So I did that for I think about 30 days, and
then I decided I was going to make that transition so I put the business up for sale. It took a couple of months to sell the business,
so I had another 60 days or so to worry about that. But that was my transition during that time. I didn’t just walk away from the business. But in that case, I could have sold the business
and started another one right away based on the money I got from the business sale. However, it would have taken me that much
longer to get up and running. So I started about 90 days, 120 days before
I actually sold the business, and then I really transitioned very, very quickly into the new
one. In fact, I started making more money within
just a couple of months after actually selling the other business than it was previously. So that’s how it worked out for me. Do me a favor, if you liked this video, hit
the like button below and the subscribe button in the little bell icon so that you’ll be
notified of when we release new videos each and every week. And if you’d like small business videos like
this or how to market your business, do us a favor. Over on the right hand side of the screen,
we’ve got a couple more videos; Six Digital Marketing Strategies For Small Business owners,
and Top Five Social Media Marketing Tips For Your Small Business. Thanks so much for stopping by.

About Ralph Robinson

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3 thoughts on “Don’t Quit Your Day Job To Start Your Small Business

  1. Have you made the desperation mistake? Have you taken a job that you shouldn't have because you were just so excited to get the job?
    Let us know in the comments below.

  2. I am in the process of figuring out how to switch to photography full time… Having a day job all 6 reasons check! 🙁

  3. Mike this is such an important topic… I would have never started mine unless I made sure we were financially stable. Which I can say we are at this point and with my husbands job I can supplement our income very well. Great video about a hard reality owning a small business.

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