Should I go full time?

[dailypress]

It has been over a month that I have been thinking about quitting my job. I have just had it, however, I need some time to analyze and think it through and maybe plan for it the next 3 months.

I was wondering if anyone has had the same feeling and has actually gone through the process of fully depending on their website revenue?

How can I estimate the future revenue if I were to go full time?

As of now, I could say I earn less than $1K/month spending 8 hours/week. Could I assume to earn roughly about $5K/month working 60 hours/week [including the weekends]?

Any inspirational stories?

[StoutFiles]

Could I assume to earn roughly about $5K/month working 60 hours/week [including the weekends]?

That would be an awful thing to assume, website profits are not a linear scale of money made / hours worked.

In the beginning, I put in 60 hours of work/week for X. Now I put in 3 hours of work/week for 50X. There's so many factors to include that there's no scale you can go by. Either way, don't put all your eggs in one basket...if websites were fun for you before they won't be if they're your only source of income and you're expecting to make more money.

[edited by: StoutFiles at 7:39 pm (utc) on Feb. 6, 2009]

[LifeinAsia]

It all depends. Revenue is rarely a linear progression based on hours worked. It all depends on where that revenue comes from.

The better question you should be asking yourself is "How long will my money last if my web site revenue suddenly drops to $0/month?" The biggest mistake people make when they quit a job to freelance is underestimating cash flow and not planning for the unexpected.

As for inspirational stories, I quit the corporate world just under 9 years ago to start a business around a web site. It operated at a loss for close to 4 years of 60-70+ hour weeks.

Today is different- positive cash flow does wonders. :)

[dailypress]

if websites were fun for you before they won't be if they're your only source of income and you're expecting to make more money.

Very good point!

It all depends on where that revenue comes from.

You are also absolutely right; unfortunately most of the revenue does not come from direct traffic!

I have/was planning to save up for 8 months. I have the extra cash in case my site earns $0.

[leadegroot]

General rule of thumb is 'don't quit your day job until you just don't have time for it'
Particularly in this climate!

IMHO

(In my case, I just never went back from my last maternity leave)

[dailypress]

I just rather do something I like. I rather put time into something that's mine rather than working for someone who gets promoted and gets all the credit while I do the job.

In regards to money:
I guess 3 months planning is too soon but once I hit $3K/month off my site I think Ill go full time. As a single guy who has built over $10,000 hotel points traveling constantly for almost 3 years and has saved decent amount of money I think I can afford up to 1 year living.

I do agree with all your points. I think I will have to wait longer.

[buckworks]

Having a year's worth of cash reserves is a good starting point. You might be ready sooner than you think.

Another aspect to work on in your preparations: pay off debts and do everything you can to reduce your monthly bills to a minimum.

Pay off loans, pay off credit cards, resist the temptations of installment plans, and get in the habit of paying cash for things. You don't have to live like a monk, it's okay to treat yourself to a luxury now and then, but pay as you go. Avoid incurring obligations on future income which might be variable. It's a lot easier to ride out ups and downs in your income if your fixed costs are lower.

Something else to look at: are you enough of a self-starter to put in the work that's required, consistently and persistently, without someone supervising you? Being your own boss can be a mixed blessing sometimes, especially if you're the type who gets easily pulled off course by every shiny new idea that comes along.

Be ruthless about assessing your own work habits and learn to work smart as well as work hard.

Prepare yourself and don't let go of this dream. There's enormous satisfaction to be had in creating something profitable that is truly your own.

[dailypress]

Another aspect to work on in your preparations: pay off debts and do everything you can to reduce your monthly bills to a minimum.

Fortunately enough I have paid all my student loans and all debts! :) Coming from a third world country where credit cards make no sense, I learned not to buy unless I can afford in cash! :)

especially if you're the type who gets easily pulled off course by every shiny new idea that comes along.

very interesting!

There's enormous satisfaction to be had in creating something profitable that is truly your own.

Thats 90% of the reason why I want to do it full time.

I am thinking of taking 8 months leave of absence in case I want to go back. And yes my company allows that. At least my boss has given me a month to visit family back home.

So hopefully in less than a year I hope and am looking forward to posting a thread with the title "I quit my job to expand my websites"