To quit my job?

[Smailand]

I’ve inherited 30k and I feel like it’s my only opportunity to escape from a job I hate and be self employed. Would you do it?

I have a steady 50k job with a company car and fuel paid for. I hate it. I’m constantly depressed and grumpy. Sometimes I cry in the car on the way to work. But my son is 8 and I need to support him.

I can’t switch to another employer because jobs in my field are rare in this region. There won’t be another job that pays the same amount. I also can’t start a business on the side and build it up because there’s a no compete clause in my contract. I’m trapped.

The 30k inheritance would let me buy a cheap car and cover my living costs for six months while I try to get a business going. Whatever money I make initially will extend that period.

My son has already noticed that Mum seems happier. Because I feel like I might finally have a way out. But I also feel like I’m mad to give up a steady job with benefits, loads of people would love to have that, and I feel greedy and selfish for being depressed about it. I also feel like I could take my son on holiday and put money aside to buy him a car when he grows up, and I’m wasting it on a fantasy.

On the other hand, I could earn a lot more being self employed, and if it fails I’m sure I’d get some sort of job, even if it was lower paid. I could give my son a job when he grows up too (which he’s otherwise unlikely to get because he has asperger’s). I could make extra money to fund my retirement too (I have very little pension).

Would you do it? Am I mad?

Do you have a business plan?

I wouldn't unless I had other savings too. You couid burn through £30k quite quickly and it's not a given the business will work out.

I wouldn’t either. But you could use this as a catalyst for future change. What is the business plan? Related to your current role? If so the non-compete clause will probably be for 12 months following you leaving so it wouldn’t be viable.

Can you switch career entirely? It seems odd you think you can make a business viable yet there are no other employers in your region. What is it about your job you hate? Can you move to a different area? Can you transition to a related role, then transition again to get something you’d enjoy?

Rather than live purely on the money, could you take a more part time job, possibly in a different area like hospitality, and use that to support you both while you use the headspace from leaving work at work to lay the grounds for your new enterprise? That way you could start small and work out your no-compete time by doing all your planning and prep ready to launch as soon as that clause has expired.

I would work towards self-employment (am self employed myself and earn similar to you) but i would try and mitigate the risks of failure including reducing the risk of running out of money. You’ll need a couple years after the non compete runs out to have a good run at self employment.

I’d recommend working with a free or affordable business advisor or coach from
a business support organisation (british library does some good courses). Can you get a part-time job alongside launching your business to reduce the burn rate of your 30k, so you have a good chance of success?

I think you should do it. Take some time to get everything ready before you give notice then go for it.

life really is too short to be sitting in your car crying about your job. That’s a horrible place to be (I’ve been there). Move on. You could always get a low paid part time job to help fund things in the early stages.

The non compete clause restricts what I can do on the side while I work there. It doesn’t restrict what I can do after I leave.

I don’t want to switch career entirely. My skills and degrees have value, and so does my profile in the industry. I could get another job in my field, it just wouldn’t pay as much, because I’m overpaid. Golden handcuffs. Of course if I was self employed I could pay myself whatever I want.

Can you go part time instead

No I can’t go part time in my current job. They won’t let me. They’re very petty so if I say I’m leaving they’ll get annoyed and won’t even consider me for freelance work.

I understand the feeling, it's a mind thing isn't it, in the sense that so many emotions come into play, guilt about how you feel about your current job, the fears of leaving the job, feeling trapped, I often thought in life that if I could only change my perspective on so many things I could cope with a miserable job etc and then a change would materialise, an inner happiness type of thing, getting me through, I often listen to Eckhart tolle for example.

So what to do, start planning for what you want and a future away from a workplace that makes you miserable, can you make contact with others in the same type of work in other parts of the country who are self employed? Just contact some people and ask if they would be willing to discuss how you could start to plan. I think you would need support, you don't mention a partner, it also depends on your personality, are you a motivated type of person? Speak to others that may be able to advise. Would you want to leave your current job immediately or would you be able to plan to go in a years time. Maybe you won't decide to leave but you can make that decision once you have more information. I totally understand all the conflicting feelings and emotions, it's not much fun but you are clearly capable to be doing the job you are.

Nope. It doesn't work like that. If you are self employed you can pay yourself ONLY WHAT THE BUSINESS CAN AFFORD.

Crying going into work isn’t right, you sound burnt out, could you take some time off sick leave?

I don't think it's enough. General advice is to have a least a years worth of salary in savings (and be aware that it can take a lot longer than a year to earn enough income in your own business to pay you anywhere near what you want).

Sounds lovely... in theory.

But realistically, setting up a successful business may well need more than £30k, and it's probably going to be at least 2-3 years before it's turning a profit.

I know a couple who got an inheritance (more than that) and decided that they would quit their jobs and work freelance. Both of them were highly prized in their industry. Within three years they went back to work in employment because although when they were working they were bringing in far more per hour than they had been, the stress of finding the next job, marketing themselves, periods of quiet etc was just so much more.

I'd say either use it to go part time (4 days a week maybe) or swap jobs to a lower paid one.
If you go part time, you have the security of the pay coming in, but a day a week to start trying your own business and see if there's any chance it becomes viable.

30k is sod all to give up a well paid career for.
Can you use it to re train?
I wouldn't be starting a business now, unless you know what you are doing

Are you a lone parent OP? I am and I don’t think that leaving is a reasonable risk. You need a really clear business plan as you will not be able to afford it to fail.

It really depends what the self employed business is. You need to have a proper business plan. And try and talk to someone who has done it if you can.

I'm envisioning some kind of service type role with little in the way of start up costs. But you've got to get out there and win business and then complete whatever it is before you get paid. 6 months wages might not be enough.

And I guess you should also think about what you will do if it doesn't work. You've already said you wouldn't get another job like your current one. So what then?

If jobs in your field are so rare locally how are you planning to make more money by being self employed??
£30k sounds like a lot of money but it’s only what you take home in a year and many new businesses don’t turn a profit in their first year, so potentially it’s got to last you a while, and you already need to buy a run a car from that pot.

Do not spend your inheritance starting a business, most first attempt businesses fail, so - unless you really do have a fail safe business plan - you will lose the money and your job.

Do however spend some of the money on changing where you live and getting a different job. If you feel really stuck get a life coach. By all means try starting a business but do it when you have a job that has some flex to do that.

I quit my 30k job over 10 years ago, with 3k to spare and a car. (Granted had not many outgoings at the time).

Best decision I made, but do consider that one month you may make far more than you earn now.. on another you could earn a fraction…

Remember 10% of business's fail in the first year, 77% don’t make it to year 3. As long as you’re driven not to become one of the above statistics, I’d say go for it!

£30K won't last long. Probably not more than 6 months. And if your business idea doesn't take off, how fast can you get another job? Even if you wanted a low paid job, they might think you're too over qualified. There's no guarantee you'll find a job quickly. Other than the £30k, do you have any other financial backing? Say, a DH who can support you if your venture goes tits up.

Do you have a mortgage to pay? If you do want to leave your job, maybe give it 4 months (but that's hardly much time) to see how it takes off and if you're not getting anywhere, maybe look for a new job.

Or, do your sideline whilst you are still employed and see if it takes off.
Either way, good luck whatever you choose.n

The fact you’ve said you can “pay yourself what you want” shows that this is a pipedream and it’s doomed. It’ll fail like most start ups.

Why would anyone come to you when they can go to an established firm they’ve used and been recommended? It’s very hard to just set up alone.

I have done this (I was also a lone parent). Ten years ago I left my “good” job that I had become very unhappy in. In the last year of being there I retrained to do what I wanted to do as self-emloyed. I saved a bit of money and estimated that I had the equivalent of around 6-9 months expenses as a buffer.. I can’t remember exactly how much I had but it was a lot less than £30k. My business didn’t require any buying stock or renting premises - I provide a service and can work from home.

After an initial “what have I done” panic in the first couple of weeks I started treating it like a project and put a review date in my calendar for 3 months hence to review whether I needed to look for another job. I really went for it in those first few months and by the time the review date came around it was a no brainer - the business was working. Ten years on it still is and I am so much happier. My son told me once he was a bit older that he’d been inspired by me taking this step. By the way I didn’t have a formal business plan just a rough plan with actions and milestones. I didn’t need anything formal because I wasn’t taking out loans etc. A book I read which was super-helpful during the process was “Be a Free Range Human” by Marianne Cantwell. I can’t say what’s right for you but you certainly sound like you want to do this! Good Luck.