Let’s be honest. The 9 to 5 is not for everyone, and that’s probably why you’re looking into starting your own ecommerce business. But a common question that comes up around this time is, do you need to quit your job to go full time on dropshipping? And if you do decide to quit, when is the right time to do it?
Quitting your job is a huge decision to make, so it’s important that you assess all your options and resources before you pull the trigger. We’ve put together this article to highlight some of the key points you should consider before making any major career change.
Why do you want to quit?
Before you even start to think of quitting, it’s important that you’re aware of the exact reasons why you even want to quit your job in the first place and start your own ecommerce business. Your reason can ultimately determine if you really need to quit your job.
- Do you hate your boring 9 to 5 job and desperately want to try something new?
- Are you looking at your ecommerce business only as a side hustle or a full-time career?
- Do you want the potential to generate large income?
- Are you looking for more flexibility with your work so you can spend time with yourself and loved ones?
- Do you want to call your own shots and live life on your own terms?
- Do you have a strong desire and will to become an entrepreneur?
Whatever your reason may be, it’s crucial that you reflect on the amount of time and effort you need to make your dream into a reality.
3 types of job quitters
There’s no easy answer to when you should quit your job to start a business. But consider the following 3 types of job quitters to see if you’re right to quit.
- The delusional
- The premature
If you’re thinking about quitting your job without a back-up plan, you would fall in this category. You need to consider your options if your dropshipping business fails or doesn’t live up to your expectations. Would you be able to go back to your old job? Or would you want to try something new again? If you want to try something new, how many chances would you give yourself before you call it quits for good and go back to your 9 to 5? These are some of the questions you need to think about, and if you’re not, then it probably means you’re not ready to quit just yet.
Delusional job quitters can also be described as someone that watches a bunch of motivational videos and trainings, but they never thought about if they have the finances to do so. They are living the big dream, but have not actually plan out the steps to achieve it. These people have not put in the work to generate enough savings to build their online business, and they are living paycheck by paycheck. If you find yourself to be one of these people, it’s important that you realize your current job is your only cash flow generating asset, and calling it quits without a back-up plan is a risky move.
If you’re already finding some success in your dropshipping business while doing your 9 to 5, you probably feel really proud of your work, and you should be. But does this mean it’s already time to say goodbye to your job? Not necessarily.
Premature job quitters feel like their current success is a solid proof for future success. But the truth is, it’s very hard to predict the future. Your dropshipping business might be doing very good right now, but what happens if your sales start to decline one day? If you quit your job right away the moment you see some success in your online business, what is your plan if that source of income is gone? The problem of this is that you could be making decisions way too fast based on limited information. Quitting your job just because you see a little bit of success is short-term thinking.
If you do find yourself in this category, here’s what you can do:
- Wait for at least 6-12 months to see if the income of your online business is consistent
- Wait until your online business is making at least the same amount of money or more than your current job
- Wait until you have enough money saved up to survive for the next 6 months without any income whatsoever
Quitting your job to pursue your online business full-time is something that you have to earn. If you have proven yourself that you can create sufficient and consistent income from dropshipping, you can go right ahead and call it quit. At this point, keeping your job would just rob your valuable time away from expanding and working on your business more. The short answer to this is, you should only quit your job after you’ve built a successful side-business for a consistent period of time. The key to this is be patient.
5 things you need to do before quitting your job
Before you say your final goodbye to your boss, it’s important that you have done the following. The future-you would really appreciate this.
- Access your finances
- Be debt free
- Set up goals and make plans
- Remember to take action
- Have a plan B
You should take some time to assess your current financial situation before you start your ecommerce business. If you quit your job right now for dropshipping, do you have enough savings for the next 6 months to support yourself? How much are you planning to invest into your dropshipping business? What about unexpected costs and emergency funds?
Have some money set aside before you start your business can relieve a lot of pressure off your shoulders. You can’t always rely on your dropshipping business that it will generate enough
Try to clear out any debts you may have prior to quitting your job to start an online business. You don’t want your debts to drag your business down. Paying off debts will give yourself more money to play with while also one less problem to worry about. But this doesn’t mean you should dump all your savings just to become debt free. You still need some sort of savings so that you won’t be in debt in the future. For example, if you’re not living at home, make sure you have enough savings to not get behind in rent. Getting yourself out of debt can also strategically train your spending habits, so when you do start a business, you would know how to plan out your finances.
Setting up goals when you start your dropshipping business is crucial. You can give yourself a timeframe to follow, like aim to earn X amount in X months from your business before you quit your job. Besides setting up goals, you should also plan out exactly what you need to do to achieve them. What are your steps to be taken in order to achieve X amount in X months? What do you need to do on a daily basis – is it watching tutorials, signing up webinars or trainings?
Starting a business sometimes takes more than just having enough money and setting up goals. It requires your determination to take action. Because at the end of the day, it doesn’t matter how much money you saved up or how big your goals are, if you don’t take the necessary action steps, you would never be able to build a successful online business. You need to keep yourself motivated to work towards your goals, especially on low-energy days when you feel like nothing is working out.
You need to ask yourself this – what is your backup plan when all else fails? If you’ve already quit your job and your dropshipping business is not working out, would you be able to go back to your old 9 to 5? Did you set aside an emergency fund if your business fails and you have no other income? Giving yourself a plan B is like buying insurance. You never know what’s going to happen, and your plan can literally save your life.
After reading this article, we hope that you’ll have a better idea of whether you need to quit your job to start an ecommerce business. Don’t give yourself too much pressure if your business doesn’t work out right away. Being an entrepreneur is not easy, but with careful planning and a strong desire to change for the better, we’re certain that you will succeed.