Quitting a high paying job to start a business.

[Last Night]

This is along the mustachian way of life, but with a twist.  Would love input from anyone that has gone down this path.

I plan on walking away from my 180k job in order to focus on a business that’s 2 years in the making.  I plan to leave my job in March 2018 after bonuses are paid out so I can focus 100% on the business.  Due to the licensing/capex involved in my business venture, it will not turn any sort of profit until mid 2019.  Between mid 2018 and mid 2019 I will need to dedicate myself to this 100% or it has no chance of taking off the way it’s going now working a full time job and working on the business in the evenings and weekends.

In addition to that, I have a 5 month old child, my wife is on maternity leave and she goes back Jan 2018.  Her government job is stable and she makes enough to carry the mortgage and our day to day living expenses without any trouble.  We have no debt, and I am saving what I can from now until march 2018 to have a bit of cushion.  Aside from that I’ve reached out to a few friends that would be interested in hiring me part time for various work once I am no longer working.  There is also potential to work a day or two for my existing employer, depending on the exit I negotiate.

With that said, my wife’s income is enough for us to live, I do have options for income from other sources that are flexible if need be, and worst case I can get a job in my field in the 120k-140k range without much trouble, the 180k+ would be a lot more difficult simply because these jobs are not as common as the 120k-140k range.

The above is driven by a few things: 

I’ve spent the last 10 years working in accounting/finance knowing I wasn’t passionate about it, I did it because I knew it’s lucrative and because it was a safe career choice.  It has served me well, I’ve learned a lot about running profitable businesses especially from a point of view that I would never have had I picked a different career.  With all that said, I don’t fit the ‘accountant’ mould, I am energetic, extroverted, a good salesman, etc.

I need flexibility in my life, I am no stranger to long hours and hard work, but being away and chained to an office 50+ hours a week makes it very difficult to use the remaining available time you have well, especially when it comes to family.  We are also in a difficult part with our kid (less than 6 months), but I know that I want flexibility and I will never get it in my field/role.

I need a challenge, at 34, I think the timing right now is pretty much as good as it will get.  I have my ducks in a row financially, I have savings, no debt, and aside from giving up a high paying job I only see huge upside here.


Anything else to take into consideration?

[meatface]

I am in a REALLY similar situation to you and plan to do almost the same thing in the near-ish future (once current job ends).

No advice for you, but you have my full support! :)

[toganet]

I made a similar move about 4 years ago with similar goals in mind.  It has not gone according to my original "script" but I am persisting on this path and I'm seeing it start to pay off in ways I did not expect.

Here are some things I did wrong that I hope you can learn from:

• Not enough $$ in reserve.  My wife's income is not enough to support us 100% at current burn rate (see#4).  I should have waited another 6-12 months to build up a deeper cash reserve before making the jump -- and/or paid off additional debt.
• Chose business partners poorly.  Never go into business with friends & family.  At least not if you are me and/or have my friends.
• Lack of focus. Pick one business to focus on at a time.  I still struggle with this.
• Lifestyle inflation.  Two years in I mistook a temporary business win for the beginning of a trend, and gave in to long-deferred plans to upgrade our location and size of our home.  Thanks to that, a cascade of future events became the undoing of my FIRE progress, instead of mere roadbumps.

It sounds like you are starting off better prepared and with an ample supply of financial wisdom, so I expect you to fare better than I have.  That being said, I don't regret the major choices I've made, and I will continue down this path getting better little by little.  I do have a set of conditions under which I will change my strategy, but until those are met I am on the right path.

Good luck!

[undercover]

As long as you know that devoting way more time to your business will significantly improve its chance of success/profitability then I would say go for it.

That said, you've already outlined the worst-case scenario. You know you'll pretty much always be able to make $120k/yr down the "safe" path, so you really have nothing to lose either way regardless of your motivations/opportunities.

[mustache you a question]

I don't have anything really to add, but would like to wish you the best of luck.  I'm looking into starting a business of my own, however our circumstances are much different.  Good luck to you in your new venture.

[contra80]

I read your post, and it's shocking how similar we are.. same salary,age, same field (for 10 years) and same family situation (I have a 9 month old).  It does sound like you are further along in developing a business idea than I am. Like you, I'm growing tired of the "desk" job and looking for something I can start on my own.  I don't have any advice for you, but would love to follow your journey and compare notes as we both progress through this.

[valsecito]

I have a few questions:
* How fare in the future is FIRE along the current 180k path?
* You put it as if it's either full time job+ side gig or full time entrepreneur plus some consulting gigs. Do you see any alternatives?
 * a different kind of business that can be combined with your current job more easily?
 * cutting back to 4 or 3 days a week?
* Any reasonable financial prognosis for your future business?

[Last Night]

I have a few questions:
* How fare in the future is FIRE along the current 180k path?
* You put it as if it's either full time job+ side gig or full time entrepreneur plus some consulting gigs. Do you see any alternatives?
 * a different kind of business that can be combined with your current job more easily?
 * cutting back to 4 or 3 days a week?
* Any reasonable financial prognosis for your future business?

When I originally found this forum 4 years ago, I could never answer the FIRE question....when/what amount, it changes daily.  One thing was certain, if I had financial independence today, I would go out there start a business for self fulfilment.  Starting my own business has been on my mind forever, maybe because I am blindly arrogant and think I can do it better than the C level I report to, who knows, but I want to put it to the test.  Maybe I am completely oblivious and I will have no idea what I am doing, but unless I actually do it I will never know so there is a burning desire to go out and execute - it's on my mind 24/7.

FIRE at 180k is tough, this type of income has spoiled me and it's hard to stick to the old spending habits of when I made 45k.  The hedonic treadmill is real, I fight it as much as I can, but it's there and I will admit to being caught a tiny bit.  Nowhere near the extent of my peers at work, but for my own liking I've become fancy.

Alternatives to full time gig is doing what I plan to do, I don't see any other alternatives.  I suppose I can find a job I like at a paycut, but I won't be happy because I am still bound by someone else's rules, lack flexibility most likely, and make less even though the work may be more meaningful.

Cutting back hours is not possible here, think director level.  My days are just  meetings and conference calls day in and day out.

Financial prognosis, the business I am starting at the current valuation/stage is worth low 7 figures, it will be worth mid 8 once (sorry, IF) it's operational and takes off.  It's lucrative so money won't be an issue, but it's still a risk and it could be worth nothing at all. I am not driven by current or future valuation, I am driven by the process and challenge.  Every vacation day I've taken to make meetings and travel for this business have been like a breath of fresh air.  I'd say 90% of my vacation time/personal days have been taken to accommodate the business, not for actual time off.  In those days I feel I've accomplished more than I do in a month at my full time work.

[Last Night]

I made a similar move about 4 years ago with similar goals in mind.  It has not gone according to my original "script" but I am persisting on this path and I'm seeing it start to pay off in ways I did not expect.

Here are some things I did wrong that I hope you can learn from:

• Not enough $$ in reserve.  My wife's income is not enough to support us 100% at current burn rate (see#4).  I should have waited another 6-12 months to build up a deeper cash reserve before making the jump -- and/or paid off additional debt.
• Chose business partners poorly.  Never go into business with friends & family.  At least not if you are me and/or have my friends.
• Lack of focus. Pick one business to focus on at a time.  I still struggle with this.
• Lifestyle inflation.  Two years in I mistook a temporary business win for the beginning of a trend, and gave in to long-deferred plans to upgrade our location and size of our home.  Thanks to that, a cascade of future events became the undoing of my FIRE progress, instead of mere roadbumps.

It sounds like you are starting off better prepared and with an ample supply of financial wisdom, so I expect you to fare better than I have.  That being said, I don't regret the major choices I've made, and I will continue down this path getting better little by little.  I do have a set of conditions under which I will change my strategy, but until those are met I am on the right path.

Good luck!

Great advice here, thanks for that.  I've done my best to mitigate most of the above to the best of my ability.  I am certain of one thing, the way I think this thing will unfold is most likely wrong and I am prepared to adjust once that happens, but I realize that a lot of my assumptions will probably go out the window once I hit the ground running.  I am already feeling it on a day to day basis as a part timer.

[Last Night]

I'll be honest and say I probably wouldn't leave a $180k yearly salary, specially with my wife's income able to carry the household finances.  I would work till 40yo and bank all of my income. At 40yo, you'll probably have an extra $600k over whatever you have now and probably be in a position to FIRE. 

Not knowing your finances I can't say for sure, but $180k job is a super nice cushion. Just my two cents.

This line of thinking has crossed my mind, it's a lot of money to leave on the table for sure.  On the flipside I think I've spent the better part of my life doing all the "right" things at the expense of my own desires.  So quitting and going on my own is a bit selfish, but if the alternative is to do the same thing for another 6 years it makes my head hurt.  I've basically done what I hate for 10 years, so another 6 is like adding to my jail sentence. 

[SC93]

I wouldn't be in any type of partnership for sure. The only time you can PLAY with a partnership is when you are doing just that... PLAYING. I had a base business for many years that made my money while my buddy & I PLAYED at other businesses. Most were a success but a few failed for one reason or the other (sometimes self inflicted). Usually partnerships are GREAT at first until important decisions need to be made down the road and 1 or more of the partners doesn't want to take a left like the rest of the bunch.... maybe that partner wants to stop off awhile and rest or make a hard right turn... what then? Ask lots of people in the poor house, they can explain what happens then.

[MustachioedPistachio]

LastNight, I did this. Not quite at your salary level, but damned good for a 25yo, with nearly the same line of reasoning.

I second what toganet said. Further...

If you don't like being chained to the cube for 50+ hours a week, I hope you don't mind being chained to the business 80+ (100+...) hours a week. Yea, you may not "physically" be at work, but work will always be on your mind.

The real question, however: does what you/your business do positively impact fellow humans, and are you truly passionate about it? Not the excitement of starting (or expanding) a new venture. Not the allure of profit. None of that matters, as you have only your one life. Is the business and what it stands for more important than spending time with your child and wife? What other sacrifices will you need to make, and is it worth it? When is enough, enough? Perhaps you will have employees handling most/all of it for you, freeing up more time, but again...why?

Finally, it is simple to quit as an employee. Winding down a business is quite the contrary.

This is my experience. I elected to bow out because I was busying myself with business and not living life. Something to consider.

The Wealthy Accountant rocks out owning his own business, but 100% on his terms. That's the best way to go, imho.

*Edit for clarity.

[frugalmom]

Do you and wife wish to have more children?  I think that is something to consider before you go forward.  This is a deeply personal question, but one where things outside of our control can change the scope of the plan immensely. 

My cousin, had a husband who had an incredibly lucrative career--he went on his own with a good business model.  It did not work out.  The business burned through nearly a million dollars in assets.  When he left his Silicon Valley job, they had one infant.  Fast forward 13 years--they have 3 kids--VERY expensive kids.  Don't ask me why, but my cousin started buying selling stuff on line to pay for incidentals when the baby was little; that is how they survive today.  It is her "business" that keeps the family afloat--she does ok.  It has been a strange reversal of fortune kind of thing. 

[monstermonster]

I am mainly commenting to follow, but I did my version of this (quit a 47K job to start a business) in November. Quite the roller coaster! Looking forward to hearing more

[Goldielocks]

ok,  I have sort of done this just very recently.

At the age of 44/45, I quit my job to start a new profession.  I have spent the last 3 years getting my license studying in my spare time, while saving a lot of money, as much as I could.   BUT.  after I quit, I ran into a road block, where I failed to get my website up and running, and then was not really keen on getting it started as I should, and am now on an extended vacation, etc. etc.   

I have two kids, grades 10 and first year college next year.   i presaved the college expenses, and I have passed most of the kid medical / therapy / etc surprise pain points.   DH also had a serious illness for about 2  years thrown in there too.

I have a husband who has now worked about 2 years at a job that pays for 60 percent of our expenses, after being a SAHD  (it happened unexpectedly when our second was a year old).


Take aways:
If you need the business income to make bank as planned in 2 years, you better have a steady but small and growing active income stream from it now.   Too easy to put off too many of the start up details after you quit the day job, even if you have a lot more time.

There are many, many money and other surprises coming up for you with your kids / wife / her ability to work, etc.  Pre-save enough for reducing stress later.

I missed a lot of my kids while they were growing up due to work work work, and I truly hated several years of it and my health proves that now.. hard to get it back after they go to college.

We spent a lot more money, foolishly, when the kids were up to age 8, because of that good money coming in.  If only I could unspend some of my waste on those things.   If you don't have the big income,because of a start up, you wont spend like that.

I am still able to spend the next 20 years working / not working as I like.  I do have a lot of energy to travel and do what I want, even now.  I have even started backpacking and gasp - exercising.   I have enough saved to fire, if we downsize which is a great stress relief.   No teslas for DH, however, in the near future.


So - mixed bag.  It's life, not a guarantee.

[skip207]

I did it.  10 years ago, its getting late now so will post a full reply tomorrow.

[Last Night]

Do you and wife wish to have more children?  I think that is something to consider before you go forward.  This is a deeply personal question, but one where things outside of our control can change the scope of the plan immensely. 

My cousin, had a husband who had an incredibly lucrative career--he went on his own with a good business model.  It did not work out.  The business burned through nearly a million dollars in assets.  When he left his Silicon Valley job, they had one infant.  Fast forward 13 years--they have 3 kids--VERY expensive kids.  Don't ask me why, but my cousin started buying selling stuff on line to pay for incidentals when the baby was little; that is how they survive today.  It is her "business" that keeps the family afloat--she does ok.  It has been a strange reversal of fortune kind of thing.

We hope to have another kid in a couple of years, i think from a timing perspective this is as good as it will get.

As far as your cousin's husband, i can't help but ask what he did for the last 13 years after the business failed? 

[Last Night]

Thanks for all the feedback, a bit surprised at a lot of the pessimistic responses, although many of them are warranted.

[Altons Bobs]

I started my businesses when I was a little younger than you. I was laid off from a low 6-figure income similar to yours. I was burnt out working for other people, I really didn't want to work for other people ever again. We were FI'd then, I thought I had nothing to lose, so I started a business. Then I started another business by chance. Business #1 didn't do well, business #2 had to supplement business #1, so I eventually dissolved business #1. I failed quite a bit I have to admit, lots of rejections, lost quite a bit of money, but along the way, I got lucky and did not give up. Fast forward 13 years later, I'm still running business #2. DH quit his job 7 years ago to help me with my business. As long as you're not afraid of failure, and don't mind hard work, a lot of hours, and persevere, you will succeed.  Good luck!

[skip207]

So I quit my job when I was in my late 20s to run my own business with my wife.
Our joint income was probably around $150Kusd.

The first year was great, massive challenge and seemed like "fun".  The second year it was time to get my head down and really work hard, it was not play time now it was serious.  The investment was quite substantial and if I wanted to make it work long term I needed to get my hands dirty.  Then the third year came... the recession!  After the highs and long hours and what seemed like rewards for my hard work came the massive kick in the stones in 09.  The industry stopped.  Phone stopped, orders stopped.  It was bad.  To make matters worse we were working with family and they were very, very hard to work with.  Lots of arguments, lots of stress.  NEVER work with family or friends.

We then spent the next 2-3 years recovering.  It was a hard time and we were not exactly rolling in money.

On top of that there was all the fluff with employees. In the UK you cant just sack people.  They have more rights than me.  Then there are the customers, again in the UK they have a lot of rights.  On top of that we have to operate under a licence from the govt so we have even more legislation we have to work with.

The admin involved was something I was not ready for from the start and even now 10 years later its a big effort.  Tax, VAT, corporation tax, pensions for the employees, managing the fleet, dealing with the govt, dealing with insurance issues etc etc the list is almost endless.

The business operates 50 weeks of the year so I have to be here full time for that full 50 weeks.  At this point in the year, just over half way I start to feel the stress and physical strain.  It seemed like another life time since I had 6 weeks paid leave!  Of course all my employees are legally entitled to 6 weeks....

I work around 60-70 hours per week as standard now, longer than I have ever worked even at the start I was working less hours.  BREXIT and the general election are causing us more issues again, not quite as bad as 09 but getting there.  You can never relax the world always has something to throw at you!! 

Would I do it again?  No.  When we call it a day I will look back on a few things with fond memories but 98% of the time its just been stressful and a massive headache.   Financially I don't think we are any better off once you take into consideration the hours I have to work.

You read stories of some dude making $40k a month making jam in his basement or some vlogger making $250k a year travelling the world and just making youtube videos.  However if your business involves dealing with the public and employees I would think very, very long and hard before you do anything.

Next time you are in work and you leave to go home and just switch off remember you are very unlikely to be able to do that again!

[skip207]

Oh, oh I forgot.

Don't forget the scammers, criminals and dishonest businesses you will have to deal with.

The first time someone goes bust on you will bring it home like a slap to the face.

Fun eh!

[2Cent]

I would say, plan for no income for more than 2 years and reduce your expenses accordingly. Treat all the income from your business as money that is in the business, not your personal income. Only once you have a good regular inflow and some savings should you start paying yourself a salary. Having financial pressure can change following the dream into a stressful family destroying nightmare.

Also, make sure your wife is fully on board with it before taking the decision to quit. Else in possible harder times there may be a lot of resentment. It would be bad if you chasing your dream ends up spoiling hers.

[Stubblestache]

I'm in my second year of my own business and I gotta say, it's been a lot easier than I thought it would be.

I did a lot of things to take the strain off - I relocated somewhere substantially cheaper, I got the business up and running while I was still employed so I could get some idea of the ebb and flow and build some solid client relationships that can grow organically rather than me panic contacting people because I haven't made a sale in a month, and I have kept a large cash float (1 year of personal expenses) to stop me panicking when I go through the inevitable dry periods.

I know 2 years isn't long, but so far so good and I think a lot of it is down to making sure I had a big buffer to ride out storms and set my life up in a way that compliments the change in income. I put some time and effort into lifestyle deflation before making the move (saving up a year's expenses does that automatically!) so now it is altogether less stressful if I miss a weekly sales target.

One of the weirdest things for me was going from a salaried wage to paying myself from bumpy income - it's just something you never have to think of when you're employed.

Best of luck!

[bunchbikes]

Thanks for all the feedback, a bit surprised at a lot of the pessimistic responses, although many of them are warranted.

I was going to say the opposite actually.

This forum likes to jump on anyone trying to start a business instead of sticking with the "sure thing".

You've had a pretty supportive thread thus far.

[bunchbikes]

I did a lot of things to take the strain off - I relocated somewhere substantially cheaper, I got the business up and running while I was still employed so I could get some idea of the ebb and flow and build some solid client relationships that can grow organically rather than me panic contacting people because I haven't made a sale in a month, and I have kept a large cash float (1 year of personal expenses) to stop me panicking when I go through the inevitable dry periods.

You went about it the smart way.

I wouldn't want to quit a job to run a business that wasn't making any money.

For me, I ran my first business on the side until going to work each day was costing me more money (in lost business profits) than I was earning. At that time, business profits were about twice my salary, so I had enough to pay the bills, and still continue to grow.

[Khaetra]

Thanks for all the feedback, a bit surprised at a lot of the pessimistic responses, although many of them are warranted.

They may seem pessimistic but quite a few are food for thought.  Here's some more:

More than half of all new businesses fail within the first year.  That's a pretty big number.  Many folks don't realize how much time and energy it takes to run a business.  You just can't turn-off when the clock strikes five and if you are complaining about time now while making really good scratch imagine how many hours you'll be spending while maybe making none. 

Sure, your wife could carry you while you start up, but what happens if a huge 'oh shit' happens.  I'm talking catastrophic to the point that one of you can't work for a very long time (or maybe never).  If it were just the two of you it would be manageable, but with a kid in the picture it makes things much more complicated.  Add in expenses for a business that's not making close to what your take-home is now and you could be in major trouble.

I do have to ask, is your wife 100% on board with this and have you two talked about every scenario possible?  Even though it's something you want to do it will affect her.  If she were to have any doubts at all I wouldn't do it.

[Last Night]

More than half of all new businesses fail within the first year.  That's a pretty big number.  Many folks don't realize how much time and energy it takes to run a business.  You just can't turn-off when the clock strikes five and if you are complaining about time now while making really good scratch imagine how many hours you'll be spending while maybe making none. 

I wasn't going to reply to your post because it really doesn't add any value here and is written by someone who hasn't started/ran their own business, at least it's very obvious to me.  However I feel for anyone following and that's in the same boat, it's worth the response.

If you read the thread, I did not complain about working long hours once, I mentioned that the lack of flexibility is what my issue is.  When my kid's bed time routine starts at 7 and I get home at 6:30 there is literally no time for me to do anything because I don't have the flexibility and I can't leave earlier and resume my work later as I am constantly bogged down in meetings that are out of my control a lot of the time. 

Sure, your wife could carry you while you start up, but what happens if a huge 'oh shit' happens.  I'm talking catastrophic to the point that one of you can't work for a very long time (or maybe never). 

This is idiotic, if something catastrophic happens where I can't work for the rest of my life whether I am employed or self employed I would be fucked either way.

I do have to ask, is your wife 100% on board with this and have you two talked about every scenario possible?  Even though it's something you want to do it will affect her.  If she were to have any doubts at all I wouldn't do it.

The only thing worth talking about in detail from your post is this, and it's probably the most important thing to be honest.

I've discussed it, obviously my wife who is risk averse is worried, but supportive.  We've discussed different arrangements and I've explained the different options we will have, she will need time for it to sink in, but she saw this coming as she knows how I feel about working. 

Yes it's something that I will do that will affect her, but also keep in mind not many can say they've had the success I've had early in their career, so she has been the recipient of many positives that I've delivered on throughout our life together over the last 13 years - which also came at big sacrifices earlier on (we've had our share of rollercoasters).  So if I want to try something for 12-24 months as long as we don't lose our home and deplete our life savings it's not the end of the world.

[Last Night]

I'm in my second year of my own business and I gotta say, it's been a lot easier than I thought it would be.

I did a lot of things to take the strain off - I relocated somewhere substantially cheaper, I got the business up and running while I was still employed so I could get some idea of the ebb and flow and build some solid client relationships that can grow organically rather than me panic contacting people because I haven't made a sale in a month, and I have kept a large cash float (1 year of personal expenses) to stop me panicking when I go through the inevitable dry periods.

I know 2 years isn't long, but so far so good and I think a lot of it is down to making sure I had a big buffer to ride out storms and set my life up in a way that compliments the change in income. I put some time and effort into lifestyle deflation before making the move (saving up a year's expenses does that automatically!) so now it is altogether less stressful if I miss a weekly sales target.

One of the weirdest things for me was going from a salaried wage to paying myself from bumpy income - it's just something you never have to think of when you're employed.

Best of luck!

Unfortunately my business will not produce a single dollar until some set milestones that require heavy investment from outside sources are met.  As mentioned earlier I've been at it for 2 years, while the business doesn't produce money as it stands right now it does have monetary value so there is an exit option that I can monetize if it came to that.  As I progress through the milestones the valuation increases, so while I am not getting paid, my equity stake will get bigger so I do have some safety net.

[Last Night]

Oh, oh I forgot.

Don't forget the scammers, criminals and dishonest businesses you will have to deal with.

The first time someone goes bust on you will bring it home like a slap to the face.

Fun eh!

As an accountant in a similar industry that I am entering I've dealt with my fair share of A/R write offs, inventory obsolescence, receivership issues with suppliers, dealing with their trustees, commercial issues and losses, etc. Biz ops especially from the finance side are nothing new to me, if anything I feel this is where I have a leg up on a lot of my competition that doesn't have the finance background.  I obviously lack in many other areas and that's what I am focusing on right now.

[loyalreader]

I’ve spent the last 10 years working in accounting/finance knowing I wasn’t passionate about it, I did it because I knew it’s lucrative and because it was a safe career choice.

I just want to comment on this because I've read similar sentiments in many other forum posts.

If you are looking for your job to be your passion, I think you are being sold the wrong bill of goods.

OP you are clearly a smart guy but I'm not sure you realize how well off you are now. You make $180/year, your wife makes an additional $60 (and she gets 6 months of maternity leave?... nice!) which puts you in the 98% for income in the US according to some random income percentile calculator I found on the Internet (which makes it 100% true). That's something to be passionate about.

The sentiment about passion and your job is similar to one you hear about passion and relationships. I don't want to go too far down that road, but as a husband and a father I'm sure you are realizing the work involved in those relationships. The payoff can be huge, but it's not all about passion - it's mostly day to day work. And the only thing you can control is yourself. You have to constantly reevaluate 'am I being the best person I can be in this relationship'.

Same with your job. You are making a ridiculously good salary. Find the elements of your job that you can be passionate about. Are you helping customers? Other employees? Are you the best at what you do? Or forget about that and focus on the elements in your life that are going to enable you to retire early, and your job becomes background noise. At your income, early retirement should come waaay sooner than it would for most.

Don't get me wrong, I think starting your own business is exciting. It's the American dream. But at 34 years old you have no idea what the future brings. At 47 I don't either. I just know if I was starting my own business I'd have it as a side job until it came close to matching my current salary before I would quit working, which is what the successful business owners I know have done. And that means you'll be working more hours in the near future, not less.

Or I'd pursue starting my own business after FIRE and bake that into my plans.

 

[Last Night]

I’ve spent the last 10 years working in accounting/finance knowing I wasn’t passionate about it, I did it because I knew it’s lucrative and because it was a safe career choice.

I just want to comment on this because I've read similar sentiments in many other forum posts.

If you are looking for your job to be your passion, I think you are being sold the wrong bill of goods.

OP you are clearly a smart guy but I'm not sure you realize how well off you are now. You make $180/year, your wife makes an additional $60 (and she gets 6 months of maternity leave?... nice!) which puts you in the 98% for income in the US according to some random income percentile calculator I found on the Internet (which makes it 100% true). That's something to be passionate about.

The sentiment about passion and your job is similar to one you hear about passion and relationships. I don't want to go too far down that road, but as a husband and a father I'm sure you are realizing the work involved in those relationships. The payoff can be huge, but it's not all about passion - it's mostly day to day work. And the only thing you can control is yourself. You have to constantly reevaluate 'am I being the best person I can be in this relationship'.

Same with your job. You are making a ridiculously good salary. Find the elements of your job that you can be passionate about. Are you helping customers? Other employees? Are you the best at what you do? Or forget about that and focus on the elements in your life that are going to enable you to retire early, and your job becomes background noise. At your income, early retirement should come waaay sooner than it would for most.

Don't get me wrong, I think starting your own business is exciting. It's the American dream. But at 34 years old you have no idea what the future brings. At 47 I don't either. I just know if I was starting my own business I'd have it as a side job until it came close to matching my current salary before I would quit working, which is what the successful business owners I know have done. And that means you'll be working more hours in the near future, not less.

Or I'd pursue starting my own business after FIRE and bake that into my plans.

Great post, appreciate it.

To touch on the 'passion' bit, I agree with everything you said.  One thing I didn't emphasize on is that while I am good at what I do, it's not my strength (accounting), starting a business will tap into all the things I feel I am good at: building/managing relationships, selling, resourcefulness, creative, etc.

I also want to keep reminding everyone that I don't plan to spend any of my own money on it while I am unemployed (that's what I've negotiated with my partner), my time invested into the business is far more valuable.  Also, if it doesn't work out, as I said earlier I can go back to a decent salaried position without too much trouble.

[Stubblestache]

I'm in my second year of my own business and I gotta say, it's been a lot easier than I thought it would be.

I did a lot of things to take the strain off - I relocated somewhere substantially cheaper, I got the business up and running while I was still employed so I could get some idea of the ebb and flow and build some solid client relationships that can grow organically rather than me panic contacting people because I haven't made a sale in a month, and I have kept a large cash float (1 year of personal expenses) to stop me panicking when I go through the inevitable dry periods.

I know 2 years isn't long, but so far so good and I think a lot of it is down to making sure I had a big buffer to ride out storms and set my life up in a way that compliments the change in income. I put some time and effort into lifestyle deflation before making the move (saving up a year's expenses does that automatically!) so now it is altogether less stressful if I miss a weekly sales target.

One of the weirdest things for me was going from a salaried wage to paying myself from bumpy income - it's just something you never have to think of when you're employed.

Best of luck!

Unfortunately my business will not produce a single dollar until some set milestones that require heavy investment from outside sources are met.  As mentioned earlier I've been at it for 2 years, while the business doesn't produce money as it stands right now it does have monetary value so there is an exit option that I can monetize if it came to that.  As I progress through the milestones the valuation increases, so while I am not getting paid, my equity stake will get bigger so I do have some safety net.

Aye that is a very different step to the ones I took. I'm a service business so thankfully it was minimal investment on the outset, which is obvs a huge help, though the room for growth is far smaller than what you've got going on by the sounds of it.

[Khaetra]

Actually, I did run my own business for many years.  I got lucky along the way and was able to be totally FIRE by 40.  My comments about time are just that.  I worked my ass off to be successful, many long hours and dealt with periods (holidays especially) with no time off and no time to even switch off before having to think of the next big event.  I don't know what kind of business you are starting (it's not important at the moment) but contrary to what you might think, I've BTDT starting from the ground up, and it ain't easy.

And while you may think some of my points are asinine, running a business and working for someone are two totally different things when talking about subjects that aren't pleasant to talk about in the first place.  I would advise, however, speaking to a local small business group to find out just what you need as far as business license, insurance, taxes, whether you need to incorporate, etc.

[Last Night]

Actually, I did run my own business for many years.  I got lucky along the way and was able to be totally FIRE by 40.  My comments about time are just that.  I worked my ass off to be successful, many long hours and dealt with periods (holidays especially) with no time off and no time to even switch off before having to think of the next big event.  I don't know what kind of business you are starting (it's not important at the moment) but contrary to what you might think, I've BTDT starting from the ground up, and it ain't easy.

And while you may think some of my points are asinine, running a business and working for someone are two totally different things when talking about subjects that aren't pleasant to talk about in the first place.  I would advise, however, speaking to a local small business group to find out just what you need as far as business license, insurance, taxes, whether you need to incorporate, etc.

You are not wrong, my issue is the preconceived assumptions you are making about me being unaware, etc (I took those personally).  I do understand though, it's an anonymous board and no one really knows much about the other person so I get it.  I am currently doing my series B funding so I am long past business licensing and taxes, etc.

I have no problem talking about long hours or the difficulty, in a way I am already living it, I'd argue that if we ignore income, my life is worse off now because I am stretched thin and can't do either my full time job, my side business, or my family life any favours. Something has to give, family is non negotiable, so it's between full time job or business. I've had to take 4 hour flights to take meetings while sleeping in my car when hotels weren't available on short notice and then be back in my office the next morning for my full time job.  All of it is irrelevant, everyone has their story, mine isn't special by any stretch, but I am not oblivious to the difficulty ahead.

[bunchbikes]

If you read the thread, I did not complain about working long hours once, I mentioned that the lack of flexibility is what my issue is.  When my kid's bed time routine starts at 7 and I get home at 6:30 there is literally no time for me to do anything because I don't have the flexibility and I can't leave earlier and resume my work later as I am constantly bogged down in meetings that are out of my control a lot of the time. 

Flexibility is huge.

My typical work day on the businesses (I have kids too):

5:30am - 7:30am

9:30am - (between 2 and 4pm)

8:30pm - 11:30pm


Rare is the job that can completely fit into your schedule how you want it.