How You Know It’s Time to Start Your Own Business

I know a lot of people who harbor aspirations of doing their own thing, becoming self-employed and launching a new enterprise. But I don’t know many who actually take the leap and follow that dream. Here are some indicators that you may be ready to dive in.

1. You have a specific idea in mind already, even if it’s not a formal plan. You don’t have to have the next step mapped out before leaving a full-time job, but it usually goes easier if you have some direction ahead of time rather than quitting and then figuring it out.
2. You’ve done enough research and poking around to be convinced that your idea is potentially feasible. For instance, a snow removal service in Phoenix may not be so successful, but one in Denver will probably rake it in regardless of how many other similar operations there are in the area.
3. You have a financial plan to bridge the gap between regular paycheck and uncertain income. Whether it’s savings, a gainfully employed spouse or partner, a loan, or a part-time job, get some kind of safety net so you don’t run your new business in total panic mode all the time.
4. Running your own business is all you can think about. Even if you love your job, you can’t stop wondering if you could make the entrepreneurship thing work — and you want to find out.