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If you plan on quitting your job, don't just follow what people comment here. The actual amount you need should be calculated yourself, based on your plans. 1)
by dutchbrit 13y ago
If you plan on quitting your job, don't just follow what people comment here. The actual amount you need should be calculated yourself, based on your plans.
1) How much money do you need to get round per month.
2) Add a chunk ontop of that for unforseen expenses, broken fridge for example...
3) How long do you estimate you'll be working on your project?
4) Add a large percentage to that estimate for unexpected issues
5) Will you need to make investments? Hardware? Designers? Calculate these figures.
6) Add a month (or 2) to the above, if your project fails to start making revenue, you'll need to find yourself a job - well, depending on how easy it is for you to find a good job...
It's an amount you need to calculate. Don't underestimate.
Then you're ready to roll.
- basicallydan 13y agoThis! Everyone's situation is different :)
- jsvaughan 13y agoYou should also factor in time to get paid. If in your new venture you are going to be invoicing people directly then you should allow at least a couple of months to be paid. i.e. you say 30 day payment terms on your invoice, but nobody will pay until that 30 days has elapsed, some people will pay you in the 4 weeks after that, and sometimes even with aggressively chasing you will have invoices which are 2 months overdue (i.e. no money for 3 months after they received the invoice)
- dutchbrit 13y agoAlso - good one!
- guerrilla 13y agoInclude potential health issues in your unexpected issues if that's possibly calculable for you.
- dutchbrit 13y agoGood one!
- singold 13y agoThis is the way to go (adapted to your circumstances of course) I did this calculation for myself, and concluded that the only way I have is being fully profitable before quitting my job