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 three-time Startup Founder, a five-time entrepreneur, and a UX research expert. Etienne is also the Author of Lean B2B: Build Products Businesses Want. Lean B2B is a framework used by thousands of entrepreneurs & innovators to reduce the risk of their B2B ventures.