Regardless of how much you plan, quitting your day job to freelance will always be a leap of faith.
However, you have the power to make that leap a calculated one instead of jumping blindly.
Taking a calculated leap will greatly help set yourself and your freelance business up for success from the start.
If you want to do as much as you can to ensure the future success of your freelance business and make sure you don’t quit your day job to only be left with nothing, then you definitely need to ask yourself these 5 questions.
“1. How Much Money am I Making from My Freelance Business?
And frankly, how predictable is it?
I started my own freelance business as a side hustle, and I’d recommend you do the same. Start building while you’re working full-time if at all possible. This will enable you to make sure it’s viable, use the income to pay down debt (or save it) and make sure it’s something you enjoy.
And you need to know your numbers! If you don’t know how much you made last month (gross income), how much you spent (expenses) and the difference between the two (net income or profit), you’re not ready to quit your day job.
Accounting for your business is important – even if math isn’t your strong suit. You need to be profitable and ideally well on your way to replacing your day job’s income before putting in your notice.
If you don’t know your numbers, start tracking them. Log income as it is received (and expenses as you pay them), and keep track of your net profit as the month goes on. At the end of the month, compile your gross income, expenses and net profit into a profit and loss statement, adding the results of each month that goes by.”
See the entire article at Leaving Work Behind.