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Leaving a stable, 9-5 job to pursue entrepreneurship is a significant decision that requires careful planning and preparation. Whether you’re looking to start your own business, transition to freelancing, or explore other career opportunities, the process of exiting your day job can be both exciting and overwhelming. Here's a comprehensive guide to help you make a smooth transition and ensure you’re ready for life after your 9-5.
Understand your intentions
Before making any moves, it’s a good idea to reflect on why you want to leave your 9-5. Is it the desire for more freedom? To pursue a passion? Perhaps it's dissatisfaction with your work environment? Understanding your motivation will guide your decisions and help you stay focused during the transition.
We recommend taking some time to journal or talk through your reasons with a friend or mentor. Ask yourself questions like:
What are my long term goals?
What’s driving me to leave my 9-5 job?
How will this change impact my personal and professional life?
This clarity will help you stay resilient during any challenging times with this transition.
Build a safety net
A hugely important aspect of preparing to exit your 9-5 is ensuring your finances are in order. Transitioning from a steady salary to an uncertain income stream can be risky - having a financial cushion is definitely something you won't regret.
Emergency Fund: Aim to have at least 3-6 months' worth of living expenses saved up. This will help you cover your costs while you work on building your new income stream. To do this gradually, we recommend
Totalling your monthly expenses, e.g. £1k per month
Multiplying this by 3-6 months, e.g. £3k-£6k in total
Splitting the total amount required across the number of months it'll take before you take the leap - e.g. if there are six months between now and when you intend to quit your 9-5, that would be between £500-£1,000 per month of savings using the above examples
Debt Management: If you have significant debt, it's worth creating a strategy to pay it down as much as you can whilst you have a steady income. There are some fantastic charities that can help with this, such as StepChange. Reducing your financial obligations will reduce stress and give you more freedom to focus on your new career.
Income Projections: We recommend putting together detailed income projections. Having estimates for how much money you expect to earn in the first 6-12 months will allow you to plan your expenses accordingly.
Build your network and support system
Transitioning from a 9-5 to an entrepreneurship can feel isolating. Having a support system in place is critical for success. Tap into your support system by surrounding yourself with individuals who can offer advice, mentorship, and encouragement as you navigate the transition - whether that's friends, family, a coach or other entrepreneurs.
Prepare for the emotional shift
Leaving a structured job can trigger a range of emotions, from imposter syndrome to fear of failure. It's important to prepare yourself mentally for when these feelings arise.
We recommend writing an encouraging letter that your future self can read during tough times.
Develop a transition plan
Exiting your 9-5 isn’t an overnight process. We recommend creating a clear transition plan that allows you to move gradually from your job to your new career. For example:
Start side hustling: If possible, start your new business or freelancing work as a side hustle before quitting your job. This will allow you to test the waters, gain experience, and build a client base while still having the security of your full-time income. (psst - we recommend checking your employment contract to make sure you aren't breaching any terms by doing this).
Timeline: Set a timeline for your exit. Consider how much time you need to prepare for your exit. Don't forget to show yourself compassion - some people may feel ready after 1 year, while others may only need a few months.
Exit Strategy: Plan for a smooth exit from your current job - you can do this by giving proper notice, tying up any loose ends, and make sure you leave on good terms. A professional exit ensures that you can leverage your network in the future if needed.
Plan for legal considerations
There are a variety of things to consider here, for example:
Business structure - we wrote an article on this here
Insurance policies
Licences
Professional subsriptions
Hiring an accountant
Tax planning
Conclusion
Even though there are lots of things we recommend considering before exiting your 9-5, don't be thrown off. Take that leap, trust in yourself, stay flexible and, most importantly, have fun!
Need support? You can contact us here.
*The information as per this article is not to be taken as specific advice. If you require any advice that is specific to your own situation, contact our experts today.