How to Start a Company: Quitting Your Day Job
David Travers is a partner at Rustic Canyon (http://www.rusticcanyon.com/). In this video he discusses how and when to quit your day job.
- Create a personal financial plan
- Create milestones to time your exit
- Leave your day job in a clean, professional manner
One of the most common places where entrepreneurial new companies get stuck is the point at which founders need to leave their day job and jump in with both feet. It’s a real challenge because of the financial stress that can put on a founder. The key things to really remember are the following.
One, set a personal financial plan upfront and understand how long and enforce on yourself for how long you can go with little or no salary at all after you leave your day job.
Two, create milestones upfront before you get started as to what you’re going to require of yourself before you allow yourself to give up the financial stability of your day job paycheck. In other words, I got to need three customers before it’s really a viable business and I’m going to make the leap or do I need $10,000 a month in revenue? What is it that’s going to allow you to do that manage your risks as your jump in to your new entrepreneurial activity with both feet.
And finally, set yourself up to make a clean exit from your day job. You want to leave with your integrity and your reputation intact. It’s critical that you have that reference-able and high reputation with you as an entrepreneur. You’ll need that and it will keep you from having any legal entanglements from not having done right by your day job before you left.
If you follow those guidelines, you’ll be in much better shape.