Financial Mistake #5 - Going Full-Time
This is the 5th Mistake in the "13 Financial Blunders Newly Successful Internet Entrepreneurs Almost ALWAYS Make" series.
5) Going Full-Time And Quitting Your Day Job.
This has the potential to be a very controversial subject because everybody has a different opinion.
And it is also a topic that interests virtually every Internet Entrepreneur. It’s our dream to go into the bosses office, prop our feet up on his desk, lean wayyy back in the chair and say, "Sorry boss but I just can't fit you into my schedule anymore and I have to fire you!"
If you follow a proven system to start, launch and grow your online business then going full-time and quitting your day job is definitely a reality.
I'll first tell you what I did. Then provide you the 3 most common paths people take. Finally, in the end, is up to you to identify which path is the best fit for you.
And I will also give you an innovative approach.
My journey is a bit unique.
While attending college majoring in accounting I realized my sophomore year that if I did that for the rest of my life I was going to be miserable.
Luckily the Internet was just becoming popular with the release of the Netscape browser (and free high speed internet access at the college!)
However, unfortunately, there was all of ZERO training or information on doing business online. This was before pay-per-click. The main form of advertising was $100 CPM banner ads.
I plugged away at it while in college and built up a small content site that was making a few hundred dollars a month.
Then I started doing the senior year job interviews and it became even clearer that having a corporate job being an auditor for a big accounting firm was not what I wanted in life.
I ended up taking an internship with the owner of the North Texas Subway Development Office. He had the rights to find and oversee all of the Subway franchises in his territory and receive a royalty of their sales volume.
When I went full-time…
When college ended I turned down their full-time job offer and decided to go full-time as an Internet entrepreneur.
My reasoning was if I could focus all of my time and energy on my business, then it would naturally be more successful.
However that didn't change the fact that I was still making less than $1000 a month, eating ramen noodles and living off of debt.
I obviously chose the first approach, which is also the riskiest - Head First.
The other two are the "Almost There" and the "100% Sure" approach.
The 3 Approaches to Going Full-Time And Quitting Your Job:
Head First - This is the aggressive, risk taking approach. You jump right in despite the fact that every logical reason would say it’s not a good idea. You generally have a half-baked game plan of what you are going to do, you have unrealistic assumptions of what you can accomplish in what time and you have no Plan B if it doesn't work out.
Although this sounds like a stupid approach, you would be surprised how many successful entrepreneurs went this route. It is like the Conquistadors who sailed across the Atlantic Ocean to find gold in the new world. When they landed they burned their boat to the ground so none of the members thought about giving up. Us "Head First'ers" have a "its going to work no matter what" mentality.
Recently I discussed this topic with other multi-million dollar information marketers who are in the Dallas mastermind group I am part of. And every one of them used this same approach.
I'm definitely not saying it is the one I recommend. And in fact up to that time I would tell people to follow the 100% Sure approach. However, one person's comment made me think.
He said, if we didn't do what we did would we have ever been able to make it work? And by telling people to do something different, to "protect them" are we only holding them back?
Some interesting questions indeed.
100% Sure - This is the (ultra) conservative approach and the exact opposite of the first one.
You are making as much if not more than your current job income and have been at that level for at least several months (so you know it will continue). You have enough in savings to last you for 3 months in case something bad happens. And you know exactly what your 3, 6, 12 month plan is now that you are full-time in your own business.
If in doubt this is the approach I recommend following. And I know a number of very successful entrepreneurs who followed this route, including Mike Filsaime and Perry Marshall.
It is the longer approach, but also the safer approach.
Almost There - This is the middle of road approach. Going full-time is not a sure thing, but you have replaced most of your monthly job income with your monthly business income. And you also have a game plan already figured out how you will use the new found time to grow your business and get it to the level it needs to be.
Most people will fall into this category. They are not extreme risk takers that jump right in without a safety parachute, but they also do not have the patience to take the slow and steady long term approach. So you get "close enough" and then pull the trigger on quitting your job.
Some factors to consider and tips to use…
1. Determine which approach is right for you and your life situation. If you have a family than you have to take them into consideration. Also, if you are a complete "100% Sure" person than using the "Head First" approach would be suicide to follow and vice versa.
2. Have a game plan for where you are going, how you plan to replace your income, in what time frame and also what exactly will you spend your time doing with this new found time.
3. However long you think something will take, double it. Even then, it will probably take longer.
4. Explore the possibility of going from working full-time to working part-time at your job as an intermediate step. Read Tim Ferris excellent 4 Hour Work Week book for ideas in this area.
5. Use the extra money you earn from your business to give your self small rewards, reinvest into your business and build up your savings in addition to pay down debt. Don't use it to increase your lifestyle and monthly personal expenses.
This way, when you do go full-time you are in a much stronger position with your savings and debt and have developed some great habits.
Finally, a GREAT solution…
Tune in tomorrow to find out what it is!
~ Kevin
entrepreneur, home business, internet business, internet marketing, online business
Comments
January 20, 2008
Mike R said:
This is HUGE. I have long had the gut feeling or had a nagging feeling that I should quit my job and plunge head in. I feel that this is key. If I had no choice but to succeed, I feel that I would take the actions required to make it so. It is the walk into it and you will become it mentality. I firmly believe this is the true path to exceptional success. I however wish I would have learned this at a younger age. I have a family with two children now, and can't seem to muster up the courage to pull the trigger on this yet. I keep thinking that I must keep my day job for their stability. At the same time, am I cheating my family by NOT quitting my job, and continuing in the same job that I have been miserable in for the past 3+ years, and continuing, dissatisfied, and deep down knowing that this is what I need to be doing? By not being able to be the optimized, 'free' me by doing and being what I am intended to be? REALLY tough call. I feel I know the answer, but don't have the guts to act. This is why I'm in the position I am now, and will continue to be, until I do have the guts to act.