5 ways to quit a job & start a new biz

By Steve Strauss

Q: Steve - I'm sick of working for someone else and am ready to venture off on my own. But I can't really afford to quit my job and start a dream business. What do I do? -- Dave

A: I would never advise anyone to quit a job and start a business. That's a recipe for disaster. Starting a business is a big deal. Do it right and your life changes dramatically. Do it wrong, and your life is in turmoil.

So plot your escape carefully. Once I was an unhappy junior associate at a big law firm who dreamed of starting his own practice. I didn't have the money to make the jump, but that didn't stop me from strategizing my exit. I drafted a business plan, met with other lawyers who had successfully crossed the bridge, and planned for the day I would be free.

The key is to do your homework. Surf over to the Microsoft Startup Center and learn more about getting started on your own. Plus, there are several ways to go from being an unhappy employee to a much happier entrepreneur. Here are five of my favorites.

1. Starting part time

When people think of starting a new business, they envision the dramatic quitting of the old job and the triumphant beginning of the new venture. But that may not be doable or even smart.

Consider keeping your job and starting the new business on the side-at night and on the weekends. There are all sorts of advantages to this plan, including:

Starting small: It's always best, especially when trying anything new in business, to start small. See what works and go from there. As a part-time entrepreneur, you risk losing less money and making smaller mistakes. This invaluable experience will enable you to go full-time with a solid learning curve.

Retaining your steady income: One of the scariest things about going off on your own is losing a paycheck, health insurance and other benefits. Part-time self-employment allows you to keep all that.

Proving your mettle: A part-time business allows your financial backers to see that you are capable of a full-time venture.

The only downside is you will be working a lot. Big deal.

2. Getting a loan

This is how most people get started. Draft a business plan and shop it around to friends, family members and business associates. The guys who started Trivial Pursuit borrowed $1,000 from 70 different people to fund their dream.

While asking friends and family to finance a business is common, loans can also be had through banks, especially those who offer Small Business Administration (SBA) guaranteed loans. You can, of course, tap credit cards or home equity, but these ideas are not my favorites.

3. Starting a home-based business

When starting a business on a shoestring, you have to be willing to work harder, be more creative, and do things you may not want to do if you are going to get the thing off the ground. You also have to keep your overhead low. One great way to do that is to start your new business out of your home. You will save on rent, commuting and other associated costs.

And you will be in good company. Jeff Bezos started Amazon.com in his garage. The Walt Disney Company began as a home-based business.

4. Starting an online business

How easy and inexpensive is this? Selling on eBay is a fine way to begin your entrepreneurial journey. You could also create your own site, stock it with products, market it, and go from there. Don't know how? Office Live will show you how to create a site easily. The Microsoft adCenter will help you promote it.

5. Starting a service business

Businesses that sell products are usually pretty expensive to start because you need to buy inventory, have a place to store and sell those products, etc. But a service business is different. There is little to buy. Simply hang your shingle, market yourself and go. Start a business for pool cleaning, window washing or accounting. Of course, the list seems endless.

So it's OK to have your cake and it too. I mean, have your job and a new business, too. Over at my site, MrAllBiz.com, I'll help you learn more.