Quitting your job to start a business sounds like the ultimate dream, right? But what if I told you that this might be the worst advice you could ever follow? Let’s dig into why rushing into entrepreneurship could set you up for failure.
In this post, we’ll explore four key takeaways that could make or break your transition from employee to entrepreneur:
- The Danger of Misleading Success Stories: Why those flashy success stories you see online are often misleading.
- The Importance of Building Up Your Skills First: Before making any drastic career moves, we’ll explore why having a strong skill set is essential.
- Why a Slow and Steady Approach Wins the Race: Why taking your time might actually be your best strategy.
- How to Know When You’re Truly Ready to Quit Your Job: Specific measures and numbers that will help you determine if you’re ready to take the plunge.
Here is the video version of this blog if you are interested.
The Danger of Misleading Success Stories
Ever feel inspired by those online entrepreneurs who’ve made millions? The truth is, their success stories might be setting you up for failure.
When we see successful entrepreneurs like Ali Abdaal, Vanessa Lau, or Iman Gadzhi, it’s easy to think that quitting your job is the key to success. But this mindset falls into what’s known as survivorship bias. We only see the winners, not the countless others who tried the same thing and failed.
In So Good They Can’t Ignore You, Cal Newport argues that success doesn’t come from just quitting your job and diving into a new venture; it comes from having a solid foundation.
I’ve experienced this firsthand. Early on, I thought I could simply follow the path laid out by online gurus who claimed it was easy to make money in e-commerce. They made it seem like all you needed to do was post a few UGCs, and the money would roll in. But after six months of trying, I realized it wasn’t as simple as they made it seem. Fortunately, the skills I developed while working in a major education group in China helped my wife and me establish our English learning studio quickly after our e-commerce project failed.
The Importance of Building Up Your Skills First
Think quitting your job is the hard part? Here’s why building your skills first is what truly matters.
One of the most crucial lessons from Newport’s book is the concept of “career capital”—the valuable skills and experience you accumulate over time. For example, Ali Abdaal didn’t just quit his medical job overnight. He spent years honing his skills in content creation, online marketing, and business management while still working as a doctor. These skills became his career capital, allowing him to build a sustainable business.
Newport states in So Good They Can’t Ignore You, “The more career capital you have, the more control you’ll have over your career and the more likely you are to love what you do.” So, before you take the leap, do your homework, study your target industry, and gain a solid understanding of how it works.
In my journey, I noticed that many teachers who quit their jobs to start tutoring centers failed because they lacked essential skills like marketing and sales. They didn’t realize that being a good teacher wasn’t enough—you also need to know how to run a business. That’s why I believe it’s okay—and important—to go slow and steady before quitting your job.
Why a Slow and Steady Approach Wins the Race
Everyone loves the idea of overnight success, but here’s why slow and steady often wins the race.
Many successful entrepreneurs advise not quitting your job until your side hustle can sustain you. By keeping your day job, you maintain financial stability, allowing you to take calculated risks and experiment without the pressure of needing immediate success.
I took the slow path myself. While I was teaching, I volunteered to take on extra work from the operations department. This allowed me to see the bigger picture and understand the business side of things. Staying longer in my job gave me the experience I needed to succeed in my own business. But how do you know when you’re ready to take the leap?
How to Know When You’re Truly Ready to Quit Your Job
Ready to take the plunge? Here’s how to know if and when you’re truly prepared to quit your job and go all-in on your business.
One of the biggest questions aspiring entrepreneurs face is when to make the leap. The key is to have clear, measurable goals. For example, I recommend not quitting your job until your side hustle income consistently matches or exceeds your day job income for at least three months. Additionally, ensure you have at least 3-6 months of living expenses saved up to cover unexpected downturns.
My first few jobs after moving to Canada involved working in different hotels. After getting my real estate license, I worked part-time as a realtor’s assistant. I didn’t quit my hotel job until I was receiving enough inquiries and was confident I could close at least one deal in the next month. Plus, I had enough savings to survive for at least three months, just in case. That’s when I knew I was ready to make the move.
Conclusion
So, before you take that big leap, make sure you’re fully prepared. Build your skills, take your time, and set clear, measurable goals. The road to success might be slower, but it’s more likely to be sustainable.