By Sahil Kandwal, Co-Founder of Squardtech
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Many founders are fed up with their permanent employers and would rather be their own boss. But when is the right time to quit? We interviewed experts.
Inflexible working hours, little self-determination? Always implementing other people’s ideas and not your own? Eventually, that was no longer enough for Kati Ernst. After twelve years at the consulting firm McKinsey, she wanted to take control of her working life. “If there aren’t any good part-time jobs, then I’ll just create my own.” So she quit and founded her own company with Kristine Zeller: a startup for period underwear called Ooia.
It’s a path many founders have taken: for more flexibility and independence than their former employer could offer. So, simply quit and become self-employed. As tempting as that may sound, this step must be carefully considered. After all, you’re giving up a relatively secure and therefore comfortable job. And you’re taking many risks. But when and how do you know it’s time to quit your job and start your own business?
Everything depends on the idea — and getting started
There’s no perfect moment, says Kati Ernst. But she believes, “If you have an idea, you should go for it.” Because it’s much harder to find a strong idea than anything else. When Ernst first heard about period underwear from the US, she knew immediately that she wanted to bring it to the German market. So she decided to start her business overnight. “If you’re convinced of your idea, you should go for it.”
Founder Jaclyn Schnau agrees. “When people are passionate enough about a project, that’s a clear sign to me that they’re ready to start a business,” she says. Schnau started her own company, Pumpkin Organics, after being diagnosed with Hashimoto’s, an autoimmune disease of the thyroid, in 2014. She was determined to promote healthier, organic food, especially for children.
A good idea isn’t enough on its own
As nice as it sounds, just having a good idea isn’t enough to start a business. Everyone should consider whether it really makes sense to go it alone. Jaclyn Schnau agrees: “Being my own boss is great, but also very stressful.” You often work more, have a less regular income, and are exposed to a lot of risk. “Founders should always be ready for 24-hour power and responsibility,” says Schnau. They need to be mature enough to handle difficult situations. They should also be good at bringing people together, selling their product, and motivating their team.
Keep risks as low as possible at the beginning, also privately
According to startup coach Florian Bahm, you should definitely consider whether you’re the right person for the job. Once you’ve done that, planning is everything. Startup coach Heike Sohna advises her clients to first do a reality check and be honest with themselves. Is the idea well-developed? Do you have enough financial reserves, ideally already potential customers or investors? Only when you can answer yes to both of these questions does she recommend quitting your job: “I advise my clients not to take any risks, or at least to reduce them as much as possible,” says Sohna.
Startup coach Florian Bahm also recommends that founders only quit when they can realistically assess their success and have the necessary resources. Financing should be in place, especially private financing. Kati Ernst agrees. Before resigning, the Ooia founder calculated whether it would be possible to support her family without her salary. “I drew up a private business plan at the time and calculated how much money we needed,” says Ernst.
But financial matters aren’t the only things you should consider before starting a business. Heike Sohna also recommends resolving personal issues. “For example, it’s not a good idea to be going through a separation or in an unstable situation when you’re starting a business,” she says. After all, you need to be fully focused on building the company first.
A good network of support
In this case, the support of friends and acquaintances is especially important. “You need a good network that supports you. One that believes in your idea and, ideally, invests in you,” says Jaclyn Schnau. The founder of Pumpkin Organics worked for large corporations for years and was previously CEO of Windelbar. Over the course of her career, she was able to build up a good network that supported her with advice and support during the founding of her company.
Kati Ernst also repeatedly involved her network. “I met up with colleagues or acquaintances for coffee and asked if they could help me,” she says. Heike Sohna recommends presenting your idea to other people as often as possible. It helps to see whether it has already been fully developed.
Whether and when the right time is depends largely on your individual situation. However, experts advise founders to at least have a concrete idea and well-structured financing before they quit. Only then will they be ready to start their own business.
Top comments (1)
Yes it’s not easy. Also started my own business (studio) and went solo. Somedays it’s confusing, from finding prospects to balancing creative and business stuff.
Like you can’t be a dev, code and hope someone just finds you.
Having a really good financial runway is something I would always advise.