For many entrepreneurs, the question of "WHEN," goes through their mind on a regular basis. "When do I need to have my business plan done? When will I start seeing a profit? When do I need to pay employees? When is it time to expand?" These are just a few of the questions that are hard to answer.
However, one of the hardest questions that nearly every entrepreneur has to face is the question of, "When should I quit my job and pursue my business full-time?"
For many, this question may seem obvious! Especially when each day the clock seems to move slower and slower... Your heart shouts, "QUIT NOW! You're stuck in a dead-end J.O.B. (Just Over Broke) and need to live your dreams! Just quit!" In this case, you should listen to your mind, not your heart. I am not talking about never pursuing your dreams, but just being patient.
You should only quit your job when YOUR side-business income can successfully replace your occupational income for two years and consistently. Another reason to be patient is to distinguish whether or not this interest of yours is meant to be a business or a hobby.
Many people often get these two concepts confused! Why? Well, many people believe that a hobby is just something done in free time while no money is involved. On the other hand, a business is anything that provides income. This is not necessarily the case. A hobby is simply defined by dictionary.com as, "an activity or interest pursued for pleasure or relaxation and not as a main occupation. While a business is described as, "A person's regular occupation, profession, or trade."
A hobby, as described above, is very capable of providing income, just not providing an income substitute to your occupation. Once a hobby comes to the point of being capable of replacing your occupational income, then your hobby can transform into an occupation. However, only if interest and income persists.
So, to answer an age-old question, you should only quit your job when your side-business' income can replace your current income consistently!