Choosing to leave a regular salary payment to chase a dream is rarely a decision made on a whim, and thanks to that, many have wondered about the right moment to trade a secure routine for the uncertainty of their home business idea. 

The idea can be extremely worthwhile, possibly offering you a chance to build something from scratch, and to inject more passion and creativity (not to mention ownership) into your working life. Yet it’s essential to make sure you’re not rushing headlong into this new normal without adequate planning.

Ultimately, anything you do has pros and cons, but here it’s best to spend time weighing the risks, the potential rewards, and what you’re prepared to leave behind. The decision will finally be motivated by a mix of personal ambition, financial security, and a clear vision for the future.

Before we even get started on the bulk of this post, the first insight we’d discuss is that you’re never going to feel 100% comfortable choosing this path. It’s scary to strike out on your own, no matter how much experience you have, for obvious reasons. But you can certainly be more or less prepared.

In this post, we’ll explore how and why:

Evaluate Your Financial Stability & Backup Plan

As ever, but especially now, it’s important to take a close look at your financial situation. A home business may offer flexibility and freedom, but the initial stages can potentially cause you issues if you’re not supported by a solid budget that keeps you grounded. Many find that saving enough to cover living expenses for a period of time can help them justify their approach, and we would recommend having at least three months of expenses covered. In other words, your car breaking down shouldn’t mean you can’t continue your home business plans, especially if that’s your main way of earning income.

It’s definitely wise to create a detailed budget, taking into account as much as you can. You might take a personal loan or even borrow money from those willing to finance you. Often, the early days of a home business come with lean revenue streams while you learn the ropes and you really do have to account for that. 

You also need a backup plan, which could include a robust savings account, part-time work, or a well-thought-out exit strategy that ensures you’re not left scrambling as soon as the bottom drops out of your regular income. Of course, having a partner willing to accept this and help (and keep their job) is part of this too. But that’s not to say you can’t do it single, it will just require more planning.

Understand Your Motivation & Vision

To do this well you really do need a well planned vision. Many who leave secure jobs do so because they see a chance to create a life that feels more authentic, but it’s important not to confuse those amazing feelings of excitement and potential with productivity, even if you can enjoy them. You need to be very clear about the steps you’re going to take.

 It helps to sit down and really map out what you want to achieve. For example, if you’re starting to turn your seamster skills into work for local theatre and film productions, having your contacts in place, making a date clear for the launch of your business, and taking on a first client can be essential. You can then explore this in the story of your launch, but it will also fuel you to work longer hours each day. Sometimes that’s necessary to begin.

Gauge Your Home Business Model & Market Opportunity

Because running a home business only really requires you to be at home and a laptop, it’s very, very easy to relax in vague idealism and trying not to formalize your process too much so as not to stifle your creativity. But you really need to do this. You also need to be highly objective and extremely focused on the reality of what can be done.

As such, it’s vital to assess the market and see if your idea can truly flourish. This means doing some research, such as talking to potential customers, understanding your competition, and considering the unique value your business brings. 

You may spend time on market research, which can help you understand both opportunities and obstacles. For example, you might find that the idea you’re passionate about already exists in a saturated market or, conversely, that there is a gap you can fill. The former isn’t necessarily an obstacle, but you may need to assess how you market yourself.

The insights gained from this research help refine your business plan. Then you should also ask, how do you intend to make money? Where do you source materials? What is your bookkeeping strategy, and which accountant will you contact? What software might you need? What will your delivery timeline be? It’s okay if you adjust this as you go and learn, but you need a process, start to finish, figured out before you launch.

Consider Support Systems & Risk Mitigation

This is a time of excitement but also of somewhat intensive work. You should absolutely find your balance and not burn yourself out each day. Having someone in the household who can bring you herbal tea after lunch, tell you to take a break, or just go for a walk in the morning to help you start your day right will all be healthy. That’s because while there’s excitement here, the unknown of stress can be somewhat worrying. That’s why it’s so important to have people you can talk to.

In addition to this, learning how to mitigate risk is important. If you’re remortgaging your house to pay for the essentials,  it should be agreed upon with your partner and you should be able to make the payments no matter how your business does. You should also keep your approach simple, being aware of the volume of work you can realistically keep up with. This way, you avoid overestimating your financial and productive abilities to begin.

With this advice, we hope you can feel more confident even leaving that job for an optimistic home business.