[southamerica]

I've been grinding at a typical corporate job at a local bank for almost a year and I'm completely fed up with it due to the stifling bureaucracy of the organization. In the meantime, I've entertaining the idea of starting my own business as an escape route. I plan to quit by the end of May.

My strongest skills are programming and foreign languages. I can build a medium-sized web application on my own (given enough time) and larger applications with the help of other programmers. On the language department, I can speak Spanish, English, Mandarin well enough to interpret for some people.

After quitting, I could do some social media advertising and visit several small and medium-sized businesses to offer them web development services. Import/Export (Mandarin) doesn't seem like a bad idea either but that would require a bigger initial investment and connections, wouldn't it?

I'm working on a side project (web application) that will launch in May, which will add to my portfolio. I should be able to make some money from this since I got my first client and he needs it. Later on, this very same application could be sold to other organizations but may require a sales person or team.

If SHTF, I have enough money saved to survive for six months and could find a remote programming job to make ends meet.

What would you do if you were in my situation? Thanks.

[AntiTrace]

I would lock a down a few clients or get remote programming gigs establishes prior to quitting your job.

[jamaicabound]

I left my job a little over a month ago, had been talking about it for a while and kept pushing back the date, literally for about a year it was I'm quitting next month, no next month, no next month.

For 3 years I hustled my fulltime job as well as my business which was another fulltime job in iteself. I literally lived my business staying up til all hours, waking up hours before work to work on my biz before I went off to my real job.

I guess we all have our own tolerance for risk, I'm fairly conservative even though I'd like to think of myself as more adventurious than I am. I think there's something to be said for having a successful business before quitting or at the very least be on the track to success and have a few clients. I was making 3x what my day job paid me before I left and even then I wans't feeling super comfortable leaving.

I'd hang on to the job for as long as you can take it while at the same time diving into your business and getting things started so you leave to hopefully an equal if not better income than you currently have.

[southamerica]

Thank you guys. I will try landing a freelance programming gig and continue to invest time into my side projects.

[JayJuanGee]

(03-23-2015 11:21 AM)jamaicabound Wrote:  

I left my job a little over a month ago, had been talking about it for a while and kept pushing back the date, literally for about a year it was I'm quitting next month, no next month, no next month.

For 3 years I hustled my fulltime job as well as my business which was another fulltime job in iteself. I literally lived my business staying up til all hours, waking up hours before work to work on my biz before I went off to my real job.

I guess we all have our own tolerance for risk, I'm fairly conservative even though I'd like to think of myself as more adventurious than I am. I think there's something to be said for having a successful business before quitting or at the very least be on the track to success and have a few clients. I was making 3x what my day job paid me before I left and even then I wans't feeling super comfortable leaving.

I'd hang on to the job for as long as you can take it while at the same time diving into your business and getting things started so you leave to hopefully an equal if not better income than you currently have.

Yes. I agree with this, exactly. It is probably best to have some cashflow coming into your new business before quitting your current job or almost an assurances that you are going to be able to achieve additional cashflow to meet your basic living needs.

As you indicated about your having a cash reserve in place, I think that it is good to have some cash reserves; however, you should NOT plan on quitting your job and using those cash reserves, but instead the new business should at least cover all of your anticipated expenses and possibly even a small cushion (such as 10% beyond your basic living expenses).

Further, there are always going to be a certain number of unexpected expenses or needs for emergency funds; however, those should be budgeted into your basic concept of a minimum cash flow needed to quit your job. The extra money that you have would only be tapped into if your expenses and/or emergencies go way beyond reasonable expectations.

Of course, you are likely going to be able to generate more cash flow once your time and energy is freed up from your current job; however, you cannot be overly optimistic about your ability to generate such cash flow from that freed-up time and energies.... and instead base any projection on realistic terms concerning actual clients that are likely to employ your services and/or buy your goods.

[jamaicabound]

(03-24-2015 11:03 AM)JayJuanGee Wrote:  

(03-23-2015 11:21 AM)jamaicabound Wrote:  

I left my job a little over a month ago, had been talking about it for a while and kept pushing back the date, literally for about a year it was I'm quitting next month, no next month, no next month.

For 3 years I hustled my fulltime job as well as my business which was another fulltime job in iteself. I literally lived my business staying up til all hours, waking up hours before work to work on my biz before I went off to my real job.

I guess we all have our own tolerance for risk, I'm fairly conservative even though I'd like to think of myself as more adventurious than I am. I think there's something to be said for having a successful business before quitting or at the very least be on the track to success and have a few clients. I was making 3x what my day job paid me before I left and even then I wans't feeling super comfortable leaving.

I'd hang on to the job for as long as you can take it while at the same time diving into your business and getting things started so you leave to hopefully an equal if not better income than you currently have.

Yes. I agree with this, exactly. It is probably best to have some cashflow coming into your new business before quitting your current job or almost an assurances that you are going to be able to achieve additional cashflow to meet your basic living needs.

As you indicated about your having a cash reserve in place, I think that it is good to have some cash reserves; however, you should NOT plan on quitting your job and using those cash reserves, but instead the new business should at least cover all of your anticipated expenses and possibly even a small cushion (such as 10% beyond your basic living expenses).

Further, there are always going to be a certain number of unexpected expenses or needs for emergency funds; however, those should be budgeted into your basic concept of a minimum cash flow needed to quit your job. The extra money that you have would only be tapped into if your expenses and/or emergencies go way beyond reasonable expectations.

Of course, you are likely going to be able to generate more cash flow once your time and energy is freed up from your current job; however, you cannot be overly optimistic about your ability to generate such cash flow from that freed-up time and energies.... and instead base any projection on realistic terms concerning actual clients that are likely to employ your services and/or buy your goods.

All good points. I was very conservative about leaving my day job and honestly in the end I probably would have stayed on even a little longer if my partner hadn't quit and pressured me to jump in 100% as well.

I did have a few things I wanted done before I quit so before I quit we had insurance through our company and also a IRA setup so even though I was leaving a day job I still had benefits of insurance and retirement, something my dad has always pounded into my head that I needed to have.

Something wierd about working for yourself and making money. Sometimes it seems stupid easy. My business has been a lot of hard work but at the same time I'm sometimes shocked how money just pours in while I sleep, ecommerce so website is working 24/7.

That said in my head I was like now that I quit my day job and only have one full-time job instead of two (job and businss) I'm going to have all this time to get into other ventures and get other money comming in whether comming up with informational programs, writing ebooks, etc.

It's amazing to me at the same time how difficult it can be to start a new hustle and get money comming in. That was one big shock to me. The other big thing is I thought no longer having a fulltime job would leave me with tons of freetime but in reality I still just as busy throughout the day, its kind of made me realize how many hours I was putting in doing both as well as how much stuff I was putting off until after 6pm when I got home from my day job.

[JayJuanGee]

(03-24-2015 01:04 PM)jamaicabound Wrote:  

All good points. I was very conservative about leaving my day job and honestly in the end I probably would have stayed on even a little longer if my partner hadn't quit and pressured me to jump in 100% as well.

I did have a few things I wanted done before I quit so before I quit we had insurance through our company and also a IRA setup so even though I was leaving a day job I still had benefits of insurance and retirement, something my dad has always pounded into my head that I needed to have.

Something wierd about working for yourself and making money. Sometimes it seems stupid easy. My business has been a lot of hard work but at the same time I'm sometimes shocked how money just pours in while I sleep, ecommerce so website is working 24/7.

That said in my head I was like now that I quit my day job and only have one full-time job instead of two (job and businss) I'm going to have all this time to get into other ventures and get other money comming in whether comming up with informational programs, writing ebooks, etc.

It's amazing to me at the same time how difficult it can be to start a new hustle and get money comming in. That was one big shock to me. The other big thing is I thought no longer having a fulltime job would leave me with tons of freetime but in reality I still just as busy throughout the day, its kind of made me realize how many hours I was putting in doing both as well as how much stuff I was putting off until after 6pm when I got home from my day job.

Agreed.

Regarding your surprise with the partner.

Having a partner brings a lot of dynamics and unknowns, and some partners are better for pulling their fair share than others. They can really screw you up, or they could end up causing you to have additional passive or quasi-passive income.

Surely, if you can do the business on your own, then it is good to have the control and the entitlement to all of the profits; however, sometimes partners can compliment skills in such a way that the profits (or the losses for that matter) are exponentially greater than you could ever achieve on your own.


I suppose that anyone who has worked with partners have experienced some of the ups and downs of such arrangements.

[Ternarydemonite]

Many people recommend starting your side-business while still working your full-time job. This is prudent if you have a family, mortgage or a medical condition requiring expenses.

However, not all people are wired like this. I tried it once, and returning to your place to begin work on your side-business at 9 pm in weekdays is crushing. Unless your work offers hourly flexibility or remote work, starting a side-business on a 9-5 cubicle job may not be for everyone.

There is, however, another route. Start saving like crazy: enough for a year or more of reasonable living in your city. Downsize your lifestyle: terminate car or condo leases, pay off all debt, sell all non-essential appliances, furniture and electronics. Don't eat out: learn to cook nutritious, cheap food. If possible, return living with your family, a relative or a very cheap place. Endorse a minimalist lifestyle.

Eight months before announcing my resignation, I did all that, and I have saved 50% of my net income each month. Once I finally quit, commute expenses will be out, and theoretically I will be able to live the same lifestyle with 40% of my previous net income.

This route will give you tremendous flexibility, since you will be able to begin full-time work on your side-business, with minimum expenses and savings for a year or more.

[General Mayhem]

(03-23-2015 06:32 AM)southamerica Wrote:  

I've been grinding at a typical corporate job at a local bank for almost a year and I'm completely fed up with it due to the stifling bureaucracy of the organization. In the meantime, I've entertaining the idea of starting my own business as an escape route. I plan to quit by the end of May.

My strongest skills are programming and foreign languages. I can build a medium-sized web application on my own (given enough time) and larger applications with the help of other programmers. On the language department, I can speak Spanish, English, Mandarin well enough to interpret for some people.

After quitting, I could do some social media advertising and visit several small and medium-sized businesses to offer them web development services. Import/Export (Mandarin) doesn't seem like a bad idea either but that would require a bigger initial investment and connections, wouldn't it?

I'm working on a side project (web application) that will launch in May, which will add to my portfolio. I should be able to make some money from this since I got my first client and he needs it. Later on, this very same application could be sold to other organizations but may require a sales person or team.

If SHTF, I have enough money saved to survive for six months and could find a remote programming job to make ends meet.

What would you do if you were in my situation? Thanks.

If you are truly serious about this I would recommend starting your own website now if you don't already have one so you have time to tinker with it and familiarize yourself before you quit your actual job.

With all of your different skills I would start building a brand around your name now rather than later. This way you can start inbound marketing. You can throw up a portfolio and showcase your skills on there. You can also advertise your app there when it launches.

This gives potential clients a glimpse into what you are all about.

[JayJuanGee]

(03-24-2015 06:21 PM)Ternarydemonite Wrote:  

Many people recommend starting your side-business while still working your full-time job. This is prudent if you have a family, mortgage or a medical condition requiring expenses.

However, not all people are wired like this. I tried it once, and returning to your place to begin work on your side-business at 9 pm in weekdays is crushing. Unless your work offers hourly flexibility or remote work, starting a side-business on a 9-5 cubicle job may not be for everyone.

There is, however, another route. Start saving like crazy: enough for a year or more of reasonable living in your city. Downsize your lifestyle: terminate car or condo leases, pay off all debt, sell all non-essential appliances, furniture and electronics. Don't eat out: learn to cook nutritious, cheap food. If possible, return living with your family, a relative or a very cheap place. Endorse a minimalist lifestyle.

Eight months before announcing my resignation, I did all that, and I have saved 50% of my net income each month. Once I finally quit, commute expenses will be out, and theoretically I will be able to live the same lifestyle with 40% of my previous net income.

This route will give you tremendous flexibility, since you will be able to begin full-time work on your side-business, with minimum expenses and savings for a year or more.

Great to hear another perspective, and I would say your suggestion can apply in a lot of situation, and even some hybrid versions of such ways of figuring out how to NOT only live within your means, but to live way within your means in order to be able to acquire and/or maintain higher degrees of independance.

[Alche]

Keep your job while you use your free time to build something on the side. Unless you don't have any bills to pay (living with parents), you don't want to be quitting work only to have to find a job a few months later.

[buja]

Ramit Sethi

[Cyclone]

Go to lots of entrepreneurial seminars. I'm on a campus right now that been to one last night, tonight, then this weekend is a whole business bootcamp. While admittedly they aren't a golden ticket to success, they do get you in the right mindframe of an "entrepreneur" and get to know the terminology (for example, I didn't know what an "angel investor" was till last night). Obviously you may not be on a campus so use sites like Internations, Meetup - Entrepreneurs, maybe even LinkedIn to grab lunch with these folks. It really helps to have support, and they can pitch in ideas for you along the way.

I know you just want to build your own web application and all, which is not terribly lofty, but it's good to be surrounded by these people. Overall i'm pretty jealous of you digital / e-commerce folks haha.
.

[southamerica]

Thanks to everyone for the solid advice.

I need to bite the bullet. I will cut down on expenses and put some serious time into my side business.

(03-24-2015 07:14 PM)General Mayhem Wrote:  

If you are truly serious about this I would recommend starting your own website now if you don't already have one so you have time to tinker with it and familiarize yourself before you quit your actual job.

With all of your different skills I would start building a brand around your name now rather than later. This way you can start inbound marketing. You can throw up a portfolio and showcase your skills on there. You can also advertise your app there when it launches.

This gives potential clients a glimpse into what you are all about.

I am really clueless about marketing. What do you mean about building a brand around my name? How is that different from running a business? What are the ups and downs? Could you please explain?