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10 Things to Do Before Quitting Your Job to Start a Business

Dream Big, But Plan Smart

 

Leaving your job to launch a business Quitting your job to start a business is one of the boldest moves you’ll ever make. But passion alone won’t pay your bills or sustain your business in its early stages.

Before you quit, make sure you’ve laid the right groundwork so you can transition confidently and sustainably into full-time entrepreneurship.

 

Here are 10 essential things to do before quitting your job to start a business.

Quitting Your Job to Start A Business

1. Validate Your Business Idea

Before investing a dollar, make sure your product or service solves a real problem. Talk to potential customers, research competitors, and run small tests to confirm that there’s real demand.

Tip: Create a survey, run small social ads, or offer free trials to gauge genuine interest before launching full-scale.

 

2. Set a Realistic Financial Cushion

Cash flow is the #1 reason new businesses fail. Ideally, save 3–6 months of living expenses (plus startup costs). This cushion will give you time to build revenue without financial panic.

Tip: Use a calculator such as the Axos Saving to Start a Business Calculator to help you estimate your startup costs and build a realistic budget.

 

3. Write a One-Page Business Plan

You don’t need a 40-page document — but you do need clarity. Outline your mission, audience, revenue model, and first-year goals.

Your plan should answer the following questions:

  • Who is my target customer?
  • How will I reach them?
  • How will I make money?
  • What are my first 3 milestones?

 

4. Test Your Business While You’re Still Employed

Your current job is your best investor. Use your off-hours to test your concept, build your audience, and generate small revenue streams before you quit.

Tip: Start with freelancing, pre-selling your product or having local pop-up events to confirm market fit.

 

5. Separate Your Personal and Business Finances

Open a dedicated business bank account and get a business credit card. Mixing personal and business funds is a recipe for tax and accounting headaches later.

Tip: Use a small business banking checklist and a budget tracking tool like Wave or QuickBooks to help you separate personal and business finances from day one.

 

6. Build a Legal Foundation

Register your business, obtain your EIN, and check local licensing requirements. Protect your brand early by reserving your domain name and securing your business name with your state.

Tip: Need help? National Business Association members gain access to discounted legal templates via Rocket Lawyer.

 

7. Create a Basic Marketing Presence

Before launch day, have these essentials ready:

  • A simple website (WordPress or Squarespace is fine)
  • A branded email address
  • Social media profiles where your customers hang out

Build your pre-launch audience and collect early interest through a simple lead form or newsletter signup.

 

8. Build Your Network and Support System

You’ll need guidance, referrals, and encouragement. Join local small business associations, attend networking events, and connect with mentors who’ve been there.

Tip: Tap into free national resources like the ASBDC (America’s Small Business Development Centers) for one-on-one business counseling, or explore SCORE for expert mentorship from experienced entrepreneurs.

 

9. Plan for the Unexpected

Create contingency plans for slow months or delayed payments. Review your insurance options and look into affordable health care alternatives like Teladoc (included in every National Business Association membership).

Smart move: Consider a part-time transition instead of a hard stop, giving your business time to grow safely.

 

10. Prepare Yourself Mentally

Entrepreneurship tests patience and persistence. Set realistic expectations and remind yourself that success takes time. Develop routines for stress management, self-care, and staying focused on long-term goals.

Remember: It’s not about perfection — it’s about progress and consistency.

 

Plan Now, Quit Confidently

The leap into business ownership doesn’t have to feel like a free fall. By preparing strategically, you’ll reduce risk, build momentum, and set yourself up for lasting success.

The National Business Association has authored and curated resources on various topics and in multiple formats that will help you achieve your goals. Whether you are considering starting your first business or if you are a seasoned entrepreneur, there is something in this Resource section of the NBA website that will be helpful. We hope you find this article useful.

Providing relevant resources in an easy-to-navigate format is one of the many ways that the NBA accomplishes its mission of helping small businesses succeed. It fulfills our vision of being an indispensable resource for the self-employed, small business owners, and entrepreneurs.

If you are interested learning more about the benefits you can get by becoming a member of the National Business Association “CLICK HERE” to learn more. Our memberships start at just $20 per month and include access to Teladoc and a wide variety of other benefits that will save you time and money.