By Étienne Garbugli | August 6, 2010 | 0 Comment
Quitting your job is difficult. Taking the leap to start your own business or accepting to join a startup is even more difficult. You’ll probably earn less and work more. You have a car, a house, kids, a pension plan, etc, what to do?
Chances are, you probably need less than you think. A comfortable job inflated your cost of living.
One of the most reassuring things I did before launching my business was to calculate my minimum cost of living. Here’s the maths:
House + Food + Car + … + Buffer = Minimum Cost of Living ($)
You can even add money for Extras like trips!
House + Food + Car + … + Extras + Buffer = Minimum Cost of Living ($)
This amount is your first business objective.
Earn (borrow, save, etc) enough to cover your fixed costs. If you reduce your fixed costs you reduce your financial worries. Easy no? ;)
Etienne works at the intersection of Technology, Product Design and Marketing. He’s a two-time Startup Founder, a four-time entrepreneur and a UX research expert. Etienne published Lean B2B: Build Products Businesses Want. The Lean B2B methodology helps entrepreneurs around the world build successful businesses.