How to Know When It's Time to Quit Your Day Job

Image source: Getty Images

OK, so you have been doing this side-hustle thing for a while (along with an amazing 39% of other Americans) and you're ready to ditch your regular job and benefits and give it a go full time. The question is, should you? There is a lot to consider.

Here are the main factors that should go into your thoughtful analysis. (And yes, one of the first moves to make is to get a separate business checking account .)

Can you afford to quit?

This is the first question for a reason. Leaving that nice, steady, regular paycheck, along with a sweet benefits program, is no easy thing. Not only will you not be getting a paycheck every two weeks, but you will also have to start paying for your own healthcare and funding your own retirement. Not easy.

But when the entrepreneurial bug strikes, it strikes. You just need to be financially ready. Most experts agree that an entrepreneur needs at least six months of income saved by the time they quit a regular job. That gives you enough time to get started, find a few clients, do some work, and get paid.

Also, you need to be able to outfit the business, however that will look, as well as get insurance, speak with a lawyer and accountant, get ready for the Grand Opening party, and beyond.

The key is, if you have been side hustling, that hustle is bringing in enough income on a part-time basis that you can see yourself doing even better if you go full time. If that's true, you're probably ready to quit your day job.

You believe in yourself

Entrepreneurs are a confident lot; sometimes even too confident. But you have to have that chutzpah if you're going to venture out on your own. You will be the boss, CEO, CFO, CMO, and maybe even the shipping clerk for a while.

Can you juggle it all and make it work? Can you prove the naysayers wrong? If you're at all unsure of that, being in business for yourself may not be right for you.

Your willingness to take a big risk

Are you a risk taker or are you risk-averse? It better be the former because quitting your job is a risk, pure and simple. When you quit your job to start a new business, there is no guarantee it will succeed, let alone succeed wildly.

So take a cold, hard look at the venture and the numbers and the competition. Yes, an intelligent, calculated gamble has the chance to hit big, but there are no guarantees. It can also backfire.

Are you willing to see which it will be for you?

Can you persevere?

In 1975, the year it began, Microsoft revenues were $16,000 and it had three employees. In 1976, revenues were $22,000 with seven employees. Many companies would have quit after two years, but most companies are not Microsoft and most entrepreneurs are not Bill Gates.

You too will need to be willing to persevere. Starting a business is fun and exciting, yes, but it's not easy. There will be tough times. Times when you'll want to quit. Steve Jobs said, "I'm convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance."

Will you bring in help?

Franchisors like to say that while a franchisee might be in business for themselves, they are not in business by themselves. But in reality, that is true for anyone starting a business. There are many people and tools (such as expense management software ) that can help you grow your business, and you just need to be willing to tap into them.

Going it alone, especially your first time, is ill-advised. So where can you find affordable help? Many places:

• The Small Business Administration: The U.S. Small Business Administration helps Americans start, run, and grow their businesses. It can be your best friend.
• SCORE : This organization is dedicated to entrepreneur education, mentoring, as well as assisting in the formation, growth, and success of businesses nationwide. The group consists of executives and business owners who donate their time and expertise as volunteer counselors. Best of all, mentoring is free of charge.

So, are you ready to quit your day job? If your side hustle is bustling, if your money is honey, if your middle name is "risk," and if getting help doesn't faze you, then yes, the time is probably right.

Good luck!

We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy .