You’ve decided you want to replace your existing job with an online business.  But the question is when is it time to quit the job to spend all your time on your business?

This isn’t an easy question to answer.  This is obvious from the variety of advice you can find on the Internet.

Most is conservative, saying keep the job until you have some assurance of your business’s success.  These people

don’t want to be held responsible should your business fail leaving you in real financial trouble.  You can’t really blame them for that.  Some of them never got to the point where they could quit their own jobs, so they pass that fear on to you!

On the other hand, if your goal is to get your business to the point where it replaces your job, you obviously have to quit it some time.  Here are some simple guide lines to help you decide if the time is right or not.

Questions You Need to Answer to Find the Perfect Quitting Time

1. How much does your job really hurt you?  In other words, would the financial ramifications of being unemployed be worse?  If so, keep the job!  If the job is worse than the lack of money, it may be time to quit.
2. Do you have a solid vision for your business?  Have you written down your goals, both long-term and short-term?  If not, you’re not ready to quit your day job yet.
3. How much do you have to lose?  If you’re unemployed now, or just starting out after school, maybe the answer is “not much.”  You might be ready to devote all your time and efforts to your new business.  If you’re older and more settled with regular expenses, you need to evaluate how you could meet these obligations if you were without income for six months.  Would your family suffer?  Would you lose insurance?  How long would your savings last with your current monthly expenses?
4. Does your business already have some income?  Evaluate this along with the question above.  If your income + savings will be enough for at least six months, preferably more, it might be time; especially if you’re confident you can increase that income by putting in more time.  Some would argue that your business should be making at least as much as your job before you quit that job.  It might be even more, since you’d have to pay for things like insurance and retirement planning that may be currently provided by your employer.
5. How much sacrifice are you willing to bear?  What can you cut from your monthly budget?  Can you do without dinners out, hobbies or vacations for a while?
6. Do you trust your instincts about the future success of your business?  Has your gut instinct failed you in the past?

Conclusion

Yes, you want to quit your job some time.  What you need to do now is decide what criteria you need to meet in order to do so.  At some point your job will actually hold you back from making your business more profitable.  Only you can tell when that point has been reached.