It may sound like a good idea to quit your day job in order to spend more time toward starting a home based business. There are some things to take into consideration before you quit your day job. You need to be prepared to money wise before you start a home based business. Here are ten things parents need to consider before you quit your day job.
1. Do you have enough 6 months worth of household expenses saved in a savings account? You want to have money in a savings account that you will cover all the household bills for at least six months. This helps you be prepared money wise while starting a home based business.
2. Do you have enough money saved in another savings account for your home based business? You need to have enough money so your home based business can survive enough to get through the first year. You want to put money in there for business license, advertising, business insurance, and any other expenses for other items that you may need.
3. Can you afford expensive health insurance without your job? If you can’t afford health insurance without your job then you need to keep your job. Think about how if you are going to pay expensive insurance each month. Your home based business might be able to get a small group health insurance plan if you have enough employee’s.
4. Can you make enough money with your home based business in the first few months than you do with your job? If you don’t make as much money with your home based business in the few first months as you would with your regular job then you need to keep a job. A home based business is only worth it to quit a full time when you are making more with the home based business each month.
5. Is your home based business going to make any profit? You want to take this into consideration before you quit your day job. You want to make sure that it is worth it to quit your day job. Make sure that the home based business that you start is going to generate enough sales to support you full time.
6. Do you have a back up plan after six months? After six months then you probably would of spent all the money in the savings account. You need to have a back up plan just in case the home based business isn’t as successful as you thought it was going to be. You want to have a back up plan just in the case the business doesn’t make enough profit the first six months.
7. Are you going to be able to advertise your business enough? In order to have a successful home based business then you need to be able to advertise frequently on a regular basis all year long. Advertising is the most important since it educates people about your business.
8. Are you willing to risk losing the money that you put into your business just in case it doesn’t succeed? Think about this since every new start up business has a risk involved in the process. If you aren’t willing to risk losing the money then don’t start a business since you don’t want to take the risk.
9. Are you able to afford to start a home based business? If you can’t save six months worth of living expenses and plus extra money to start the home based business then you aren’t prepared to start a business. If you can’t afford it then you don’t want to go into debt in order to start a small start up business.
10. Don’t use credit cards as a way to survive paying all the bills during the process of starting a business. If the business isn’t as successful as you think it is going to be then you will end up with a large amount of credit card debt. Don’t go into debt when starting a business unless you know for sure that it is going to be extremely successful.