Anyone ever quit stable employment to start a company?

[mx711yam]

So I'm leaving law enforcement to start a private security company.  I'm on FMLA, week 6 of 9, and then when it's over I'm going to quit.  I was extremely excited at the beginning of the leave, but as the time frame closes in on actually leaving, I'm getting nervous, scared, anxious, and having second thoughts.  I have been a cop for over 8 years, and haven't really liked it since year 2.  I have been looking for a way out, but the money is really good and the job security is excellent.  My heart isn't in it, and my wife doesn't want me in it, but it is so hard to walk away from something when it's the only thing you have ever known (first real job out of college).

Anyone else ever go through this?  I mean I know I would be making the right move to get out of law enforcement due to the poor conditions surrounding it, which have been deteriorating for years, poor work hours, danger of the job, morons in charge, personal liability, etc.

If I had millions of dollars I would just start a business anyways to see if I could make it since both my parents are entrepreneurs that's all I knew growing up.  And that idea tells me that getting out and starting a business is what I should do.  I have never felt accomplished being a cop, there is no way to measure true success in the career.  In a business, your success is visible.  I can tell you this, if I was already rich I wouldn't go be a cop!

I guess it boils down to something I have a desire to do vs easy money which provides a comfortable living for my family.

[FIREby35]

Good luck. I turned down salaried stable jobs out of law school to start my own firm. I've never regretted it.

[tallen]

Just last month I came super close but chickened out after spending a whole weekend stressing about if I was making the right decision. So I'm trying to build the business up on the side enough to pay my bills first and to also get a rental property while I am still employed and eligible for a loan. I did tell my boss I was considering quiting to work on my side gig full time and asked how much notice he needs to get a new person trained (not burning the bridge so I could return if I need to) and he's gone out of his way to keep me happy ever since, even after I told him I decided to stay on longer. So that was a plus :)

[Giro]

I would do it on the side and when you have enough contract work to sustain you/replace your income, pull the trigger on the full time job.

That's what I am doing.  I will pull the trigger on my full time job Oct 1.  :)

[Fishindude]

Assume you have some potential clients & business lined up?   If so, take the plunge and do it if you have adequate savings or other income to supplement you through the first year or so while getting your business going.   You will never max your earning potential working for the other guy, or working in the public sector.  The change in leadership every election and politics associated with police work has to suck.

A few pointers:
* The accounting and paperwork side of the business is equally if not more important than the hands on work.  You need to know where your business sits financially at all times.
* Pay a decent accountant to help you with taxes, etc.
* Don't try to do everything yourself.  Hire help to do the hands on day to day work, and focus your efforts on clients and managing the business.
* Self employment is not a license to goof off, leave mid day to golf, take extra vacation time, etc.  You should actually put in a lot more hours in the initial years to reap rewards in later years.
* You business is not your personal check book.  Keep business expenses and personal expenses separate.  The business should only pay you a wage appropriate for the work you do.   If there are profits leftover at year end, that is when you take another dip.
* Share your success with employees to keep them long term and reward them for extra effort.
* Don't overlook things like maintaining health insurance coverage, maintaining a retirement savings plan, etc. and factor that into your billing rates.   Know what your cost of doing business is.

Good luck !
We need more entrepreneurs like this.

[Vilgan]

I quit a great job with a great company to start my own business. Its working great thus far, but I also took some time to line up clients while working part time on my own time before pulling the trigger.

[JLee]

I left LE and went into IT - didn't start my own business, though.  Best of luck to you!

[EAL]

I recently left my dependable, steady job with great retirement and benefits as a probation agent to work as a real estate agent.  It isn't my "own" business as I am working under a broker but it is all commission based and I am considered an independent contractor.  I was terrified and still am a little nervous but I know and feel it was the right decision. I think the most important factor is being prepared.  If you have no money set aside and/or no other streams of income, this would not be a wise decision.  Calculated risk with preparation is fine but don't jump off a cliff. :)

[snogirl]

Good luck to you.  I retired military and took a State job because I was told that is what you do.
I hate it so after 5 years am leaving in December to pursue my dream of freelance photojournalist.
For the last two years, I set it up by cutting everything to the bone, networking, and practicing doing work for little money or even free.
It really was empowering.
Yes, I can fall back on my military retirement but have no spouse or other income so it is still nervous.
You can do it! Keep it moving forward sir.

[mx711yam]

Thanks for the replies!

I guess I should have went into a little more detail.  My new business partner and I are going to be starting the company and we have been running these gigs on a part time basis for a few years now.  He is also leaving LE to start the company as they won't let us actually have a company doing this full time while being Police Officers.  Anyways, we have our feet wet in it already, so the transition isn't going to be like a real start up where we have no contacts and what not.  We already have a decent business model, and have grossed over 100k a year the last 2 years doing it as a side gig to our real jobs.

It's insanely lucrative relative to the amount of time we spent on it, but it's very hot and cold as to when you will get jobs and how long they will be.  It's just the fear of the not knowing what I will make vs knowing exactly what I would make as a government employee.

You guys are very encouraging, thanks for the ideas, examples, and advice so far.

[FIREby35]

The big trick for most people is the lack of a steady income. When it comes, it comes in chunks - like you described. One aspect of MMM that doesn't get a lot of play because most people are employees, not business owners, is this: if you combine MMM saving and conservative money strategies with a business you have a powerful combination.


First, you become immune from the worry about when you get paid, because you have savings and you know that eventually you will get paid.

Also, running a business with zero/little debt puts you in a strong competitive position relative to many. I've seen a lot of business owners who are "betting on the come." They open the business using a business loan rather than cash. The have all kinds of personal liabilities, etc. If you are relatively debt free and in strong cash position (i.e. MMM philosophy) then you are sitting pretty to own a business. Business owners with liabilities will chase a bad contract (a problem client that is not worth the headache), cut corners  (taxes, less service than promised to up profit), fail to own up to a mistake (and offer a refund of some sort) and eventually it comes back to bite them. When you have cash, you just don't have to travel down those roads.

BTW, with the little extra you wrote about your business and how you have already proven a significant revenue opportunity, I feel confident for you. Go for it.

[KarefulKactus15]

I have nothing to provide.  I one day want to have a small business but the timing isnt right for me yet.


However I wish everyone the best of luck pursuing their dreams.

I hope this works out for you!

[thedayisbrave]

The big trick for most people is the lack of a steady income. When it comes, it comes in chunks - like you described. One aspect of MMM that doesn't get a lot of play because most people are employees, not business owners, is this: if you combine MMM saving and conservative money strategies with a business you have a powerful combination.

First, you become immune from the worry about when you get paid, because you have savings and you know that eventually you will get paid.

Also, running a business with zero/little debt puts you in a strong competitive position relative to many. I've seen a lot of business owners who are "betting on the come." They open the business using a business loan rather than cash. The have all kinds of personal liabilities, etc. If you are relatively debt free and in strong cash position (i.e. MMM philosophy) then you are sitting pretty to own a business. Business owners with liabilities will chase a bad contract (a problem client that is not worth the headache), cut corners  (taxes, less service than promised to up profit), fail to own up to a mistake (and offer a refund of some sort) and eventually it comes back to bite them. When you have cash, you just don't have to travel down those roads.

BTW, with the little extra you wrote about your business and how you have already proven a significant revenue opportunity, I feel confident for you. Go for it.

All of this.  I tried stable employment a few times but it wasn't for me.  Being a mustachian already helped enormously, as my living costs were so low (and rental income helps).  I left my last job about 4 months after I started-- loved it, great people, great culture but I just cannot. work. for. someone. else.  That was almost a year ago.  This month I will make 1.5x more than the highest month I had with the company, working for myself... and it's only going to keep growing from here.  It'll take a while to get started but keep plugging and you'll be fine.  I'm able now to increase my expenses some and move out of my rental yet still save more than half my income. 

Jump in, and don't look back. :)

[Vilgan]

The big trick for most people is the lack of a steady income. When it comes, it comes in chunks - like you described. One aspect of MMM that doesn't get a lot of play because most people are employees, not business owners, is this: if you combine MMM saving and conservative money strategies with a business you have a powerful combination.

I agree with this 100%. Sometimes I make 3x in a month what I used to as an employee. Other months will differ with various contracts just wrapped up and others haven't started and we'll make nothing or maybe even lose a little. Being able to enjoy the downtime and go hiking, read, etc instead of stressing about money makes it MUCH easier to deal with and we don't have to chase unappealing jobs in order to pay for expenses. I really enjoy owning my own business but it would be a lot harder if I was in the habit of spending everything I earned.

[oneyear]

yes and today is my business birthday. 7 years and 20 current employees.

It's the toughest and most rewarding thing I've ever done. Good luck