Exit Strategy: 5 things every aspiring entrepreneur should consider before firing their boss!

Exit Strategy: 5 things every aspiring entrepreneur should consider before firing their boss!

Article By RANDY GOMEZ, CEO & Founder of The Academy of Young Leaders

By now you’ve probably heard about  “The Great Resignation” and you’re starting to relate to the massive movement of employees quitting their jobs to launch their own business. I know I’ve been there…You have been thinking about it, talking about it and now you feel it in your bones every Sunday night as you prepare for another week in the office. Knowing when you are ready to take the leap from employee to entrepreneur is personal. The transition between these two worlds takes time, planning and knowledge. If you feel you are ready to take that next step, here are 5 things every aspiring entrepreneur should consider before firing their boss…

1. Baby steps: A Gallup survey found that 66% of employees aren’t engaged with their jobs, so it’s understandable that you might want to quit your 9 to 5. However, this does not necessarily mean you want to start a business. 

Making the decision that you are ready to leave your job does not mean  that you QUIT the next day. This is often the misconception that many aspiring entrepreneurs have and some follow through prematurely. Once you decide that you are ready to start your business and have a burning desire to solve a problem in the world with your business idea, you can start planning your exit and map out your strategy. Be confident about your decision by asking yourself follow up questions to ensure its not purely emotional. You should ask yourself if you want your own business or want to change career/job. 

• Recruit your tribe: You don’t have to go on this journey alone! There are many ways for you to get others involved in your new venture without relinquishing ownership. As a new business owner, having a group of purposeful connections that you regularly meet with can help keep you on track and help elevate your idea. A few things to consider : 

• Conduct a Focus group to test your business idea and iron out details. 

• Start an advisor Board to bounce ideas off other industry experts. 

1. 1. Join business communities for support and networking 

Identifying a group of supportive , inspiring, and energetic individuals can accelerate your success and provide that peer support/accountability needed. 

• Level Up: Now is a great time to strategically plan your professional development. Most organizations have budgeted professional development funds for their employees. Strategically planning what seminars, workshops and over all events you attend can kickstart your entrepreneurial bootcamp. As a business owner, you must become the “Jack of all trades” until your business is able to hire employees. Things are going to come up in the day-to-day operations that will be both new and challenging. These hands-on experiences can help you grow and improve as a professional. You also may want to check out other entrepreneurs in your industry and read what they have to say about the skills that are required to success in the industry. 

• Mind Your Money:

It can take months, in some cases years for a new company to gain traction and start generating a profit. Before you make the leap, I recommend you put aside enough money to pay personal expenses for a while – at least six months to a full year. You can shorten the time it takes for your company to reach profitability by developing a business plan with reasonable expectations and projections for the months ahead. It’s a good idea to develop a business plan before you quit your day job. A few items to consider to have  a solid financial exit strategy:

• Start minimizing your expenses NOW. By adjusting to the new lifestyle while you still have a paycheck, it alleviates the lifestyle shock when your income drastically changes. 
• Create your “Budget to Zero”  strategy to allow you to account for every penny in your cash flow. Where are you spending too much and what can you live without?
• Pay Yourself First, always. Start an aggressive savings and investing plan that you feel comfortable maintaining when you leave your job. Its important to pay yourself first in order to create a financial cushion that will alleviate financial stressors in the future. 
• Formalize a Business Budget. You have to spend money to make money. Having clarity around the cost associated to launch and run your business early on will help you incorporate those figures in your savings plans. 

Set S.M.A.R.T Goals: During your transition to an entrepreneur, set a number of short- and long-term goals. Starting and keeping  that goal-setting mindset once you get your business up and running is crucial for your success. Take the time to create a daily checklist that’s realistic and at the same time challenging. Your goals should be S.M.A.R.T, Specific, Measurable, Attainable, Relevant and Time bound. Position yourself and your business in one month, one year and five years. Keep regular notes in a business and marketing calendar on the goals you hope to accomplish, when you hope to complete them and what steps you’ve taken to get follow-through. This can keep you motivated  as you check off items from your list and help you stay focused on your goals for the week, month and year.

Following your dream to own a successful business can be one of the most rewarding experiences for yourself and your community. Take your time to prepare yourself mentally and financially for the transition. Setting up a solid foundation is the first step to maximizing your chances of succeeding in this new phase of your journey. Trust yourself, push yourself, and always remember—you can do this.

Article By RANDY GOMEZ, CEO & Founder of The Academy of Young Leaders

At The Business of WE community, we host events on a weekly basis, EVERY WEDNESDAY at 7:00pm (est), via Zoom to connect our sisterhood of supportive women.  What we have noticed is that the ones who “Show Up”, are the ones that are actually experiencing results in their business. Consequently, they are also a group of women whom we engage with the most.  To learn more about how you can be a part of this unique group of phenomenal women, check out an upcoming event HERE!  If have any questions and to learn more about being part of the sisterhood, head on over to the Business of WE community page.