Many are taking the entrepreneurial leap in 2025, and if you have that burning desire to join them but aren’t quite sure if it’s the right move for you, you are in good company. Transitioning from steady employment to start a business is a big decision, and one that shouldn’t be taken lightly.
When it comes to entrepreneurship, you prefer to know why you prefer to start a business. Is it because you are passionate about an idea, dissatisfied with your current job, or have a strong preference for independence? Whatever your “why” is, you prefer to be aware of it.
It is important to understand your goals before starting a business. Are you seeking monetary freedom, greater work-life balance, or intending to build generational wealth? Your goals play a role in your “why” and you want to focus on your why to stay motivated during difficult times. This deserves to be strong enough that you are willing to give up a stable source of income to continue your business.
Starting a new business can be an expensive endeavor, and you want to be financially prepared while growing your business. Do you have savings that will help you financially while you wait for profits to come to your business?
Entrepreneurship comes with monetary dangers that you’ll need to be aware of. Unlike a project with solid revenue, starting a business means going through an era of uncertainty with no guaranteed income, especially in the beginning. You’ll want to factor in upfront costs, such as equipment, marketing, and operating expenses, which can add up quickly.
Additionally, cash flow might be inconsistent, requiring a solid financial cushion to cover personal and business expenses during slow periods. Without adequate savings or access to funding, you risk jeopardizing both your business and personal financial stability. It’s crucial to create a detailed budget, establish an emergency fund, and have a clear understanding of your break-even point to mitigate these risks effectively.
To compare lifestyle impacts, it is necessary to understand the key differences between the balance of job security and the uncertainty of entrepreneurship. A job with a steady income offers a predictable schedule, regular paychecks, and benefits like physical care and retirement plans, creating a sense of stability and monetary security.
On the other hand, entrepreneurship offers prospects for greater flexibility and independence, but comes with abnormal incomes, longer hours, and higher levels of stress, especially in the beginning. Entrepreneurs have to juggle their responsibilities, from managing clients to managing operations, which can upset the balance between work and personal life.
Weighing those differences is imperative to making sure the entrepreneurial lifestyle fits your personal goals, financial situation, and ability to manage risk.
One option to go all out from the start is to test the waters through a side hustle. This means that you strive to build your business part-time while keeping your job. This gives you time to verify your business concept and start generating a source of income before committing to the business full-time.
There are clear signs that you are in a position to take the plunge and quit your full-time job. Symptoms include:
Here are some signs that you may need to stay in your full-time job:
The bottom line is that deciding whether to start a new business requires an honest assessment of your passion, dedication, and readiness for the journey ahead. Entrepreneurship demands more than a great idea; it requires the drive to continuously learn, adapt, and overcome challenges. If you’re ready to commit to lifelong growth, embrace uncertainty, and put in the hard work necessary to build something from the ground up, you may be prepared to take the leap.
Melissa Houston, CPA is the founder of the Fractional CFO Agency, the author of Cash Confident: An Entrepreneur’s Guide to Creating a Profitable Business and the founder of She Means Profit. As a Business Strategist for small business owners, Melissa helps women making mid-career shifts, to launch their dream businesses, and also guides established business owners to grow their businesses to more profitably.
The reviews expressed in this article are intended to update any professional recommendations or experience in accounting and/or taxation.
Melissa Houston, CPA covers private business and finance that impacts entrepreneurs.
With her CPA designation and over 20 years of practical experience, Houston is widely regarded by her expertise in financial management. Houston shares her knowledge and experience with Forbes.com readers and has done so since August 2020.
Houston works with female founders as the fractional financial director of the Fractional Agency CFO, which she founded.
Houston is the international selling author of Cash Confident: An Entrepreneur’s Guide to Creating a Profitable Business, founder of She Means Profit, international speaker, and covers small business finances. Houston has worked with hundreds of small business owners to help them increase profit and make more money in their businesses.
Follow Houston for all the money issues affecting small business owners today.
One Community. Many Voices. Create a free account to share your thoughts.
Our network aims to connect others through open and thoughtful conversations. We need our readers to share their perspectives and exchange ideas and facts in one space.
In order to do so, please follow the posting rules in our site’s Terms of Service. We’ve summarized some of those key rules below. Simply put, keep it civil.
Your message will be rejected if we realize that it seems to contain:
User accounts will be locked if we become aware that users are engaging in:
So, how can you be a user?
Thank you for reading our Community Standards. Read the full list of posting regulations discovered in our site’s Terms of Use.