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Decision guide · Starting a company

Before you quit your job to start a company

Leaving a job changes your income and your available time. It does not establish demand for a business. Work through those questions separately, then make the next commitment small enough that you can learn from it.

Founder Reality resource · Updated

Define the evidence you still need

Name one potential customer and the problem you believe they have. Record what they do today, who makes the buying decision, and what a paid first engagement would involve. Interest, a compliment and a payment are different observations.

Choose a test that fits around your current obligations: a customer conversation, a manually delivered service or a small paid pilot. Write down what would count as progress before running it. If the result is weak, preserve that result instead of changing the success criterion afterwards.

Separate household cash from company cash

List household expenses and obligations independently of business spending. Connect the two budgets through the amount you expect to pay yourself. Money reserved for taxes, debt payments or an emergency is not available twice.

Run an estimate with income you already have, then a second estimate without the uncommitted customer revenue. A forecast should expose assumptions; it cannot produce a universally safe quit date.

Choose the next commitment and its review point

Describe what full-time availability would let you do that the current arrangement prevents. Compare it with a smaller alternative, such as reducing scope or taking a short period of leave where that is available.

Set a date to review the evidence and a cash boundary you will revisit before making further commitments. Decide what you would do if demand remains unclear. A return to employment or a different experiment can be a planned option rather than a surprise.

  • A named customer problem and a bounded test
  • Two separate cash forecasts with explicit assumptions
  • A review date and an alternative if the test disappoints

Decision worksheet

Copy these prompts into your notes. Keep the answers and the date so you can revisit what changed.

Customer evidence
Who has committed to what? What remains an assumption?
Personal obligations
Which payments must continue even if the business earns nothing?
Next experiment
What will I test, by when, and what result would change my decision?
Fallback
What option will I use if the evidence or cash forecast deteriorates?

Reference material

Use your own numbers

From the field

Personal accounts behind the questions. Each essay reflects when it was written.

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