I need advice on when to leave full time employment and focus on my own business

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  • #84032 Reply

      Please be nice to me – I want to be vulnerable and give my details:

      • 30 years old
      • Married, 3 kids, spouse is 28
      • $100k in retirement
      • $10k in savings
      • (No other investments)
      • My full time w2 employment makes $90k
      • 6 years of slow and steady growth in my own business
      • I spend 10 hours per week on my own business (w2 is 40 hours)
      • This year my business is on track to net $200k after paying 2 part time employees and expenses.
      • Only debt is mortgage and a car
      • $40k owed on car
      • $230k owed on house ($2200 payment)

      Leaving my full time work would hurt, but I’m certain within 2 years I’d make it up in profits from my own business.

      What milestones would you recommend I reach before I focus on my company full time?

      #84033 Reply

        The big question: does your spouse have benefits you can access if you quit?

        I quit my $90k day job to run my business 4 years ago. At the time, we were engaged and would have been married within a year, so I still would have had access to health insurance etc.

        However, that did not work out and I spent 4 years with really expensive private health insurance, with an even worse deductible.

        If I could go back, I would’ve stayed on part time at whatever hours allowed me health insurance.

        Don’t miss: You’ve just got to laugh… Cause if you don’t you will cry

        #84034 Reply

          I would think if your business net 200K you would have more savings or other investments. I would evaluate your spending and get your savings to 1 year worth of expenses. Once you have the proper savings, you should go full time. The business far exceeds your W2

          #84035 Reply

            I would beef up the savings account to cover x amount of months of expenses. The “x” is based on different factors. Does you spouse have an income and or benefits? How consistant is the business revenue etc. If your business is on target to net $200k I would think you would be able to get that emergency fund pretty quickly.

            Explore these too: This seems like the best age to have taken this leap and risk

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