How do I know when I can quit my day job?

[Former_Member]

I've been stuggling with this question for about a year now. When can I be confident that the time is right to quit my day job and plunge into painting and selling full time?

This year I've been able to do several art festivals and have made more sales doing those shows and here on Etsy than ever before (granted I'm just getting my feet wet). Even though my business is growing, it feels too slow to just quite my 9-5 job. But if I did quit, I'd be able to paint so much more and update all the time. Wouldn't that increase my chances for selling here on Etsy?

Are there certain goals I can set for my business that, when met, can signal me into a full time art career?

[VelvetTeacup]

Of coursre it is up to you to decide but before you do it would be wise to consider some facts about the global economy. The world media paints a lot of doom and gloom for the next 12 months with more poverty than ever in many countries (including USA) and the threaat of Europe's financial situation falling over. Etsy buyers live in these areas too. Many families are not spending as much on luxuries now as they were this time last year and you may have to ask yourself if you are spending the same now as a year ago.

I guess when you feel that you have enough income to live on from your art would be a good time to start considering quitting your day job. Keep on with what you are doing and I think you will know when the time is right. Possibly you will reach a point where you are running yourself ragged trying to do both.

Good luck with whatever you decide to do and best wishes from here in Australia.

[Stellasews]

As i am nowhere near quitting my 9-5 job (mostly cause I don't have one..) If I were you, I'd read like, all of the posts from people taking the step, I have found a lot of great tips in there.

I think setting a budget, on what's your goal for every month, and what you have to make every month, and when I had hit over what i have to, i'd save the difference every month for at least 6 months so that you have savings that in worst case could tie you over for at least 1 month, and then think about making the move.

but of course, with more time - you can produce more, but how are your sales and views now? around enough for you to live on or far from it? In these times, I would think long and hard before quitting a job...

[KriyaDesign]

I heard a lot of formula on this. My sister, she owns a business part time, said she will quit when her incomes from business double her 9-5 salary. I think she is kidding herself. She is taking in 5 grand per month from her work, and who in her first year of business would make 10 grand consistently per month! The way I see it, this kind of thing could be a double-edge sword.

If you don't get to the your goal incomes, you either crazily committed to make more sales. Or you feel so disheartened that you will loss steam to ever get to your goal at all :-). Year after year, you'll keep saying, when I get there I'll quit my jobs. And that was 3 years ago. It happened to me :-). You said it yourself,

"But if I did quit, I'd be able to paint so much more and update all the time. Wouldn't that increase my chances for selling here on Etsy?" This is a tough question. You can set the goal incomes for business, then see what happens. If it helps to keep you more focus, then go for it. If it makes you feel pressure then, goal will not help.

I put aside funds for one year of living expenses. Then quit my job, and go about giving all my heart into my crafts. But I lost my job last June actually. Long story though. Some people said, one year is not enough to know the direction of your business. Will it grow or just go down flop. Oh well in a year you could see a bit of where you'll go business wise. And can make adjustment from there. Even if things don't work out as you plan it to be, you are wiser than a year ago :-)

All the very best

[Former_Member]

I think this decision depends on many different factors. How much your expenses are, what your living situation is (whether you pay a mortgage, rent, have roommates, etc.), what your family responsibilities are, how much value you place on materialistic things, all of these factor into your decision....

What alot of people forget is that you can make a living doing just about anything if your expenses are low enough....Less money coming in and less money going out, it's a wash in my opinion....

Basically it depends on how bad you want it, what do you want your life to be, and if you are willing to sacrifice to get there; only you know that....Good luck to you!

[Former_Member]

There's never going to be a good time to say goodbye to a sure thing. Get some money saved up for a rainy day, all your other bills payed down and take a good hard look at what you are bringing in with your paintings, what "extra's" you can cut back on and where does that leave you at the end of the month.

Good luck! There is nothing more liberating than doing something you love to do - full time.

[Former_Member]

Normally a brick n mortar store will experience a flex time of 1-3 years before any profits are seen, after any capital expenses are recouped. Even tho, here at Etsy you are a virtual store front and walk in traffic is different. Etsy gives all the tools available to make a success at your new online business but it is really hard to say if certain benchmarks are good indicators that you should quit you day job. You really need to weigh the Pro and Cons before making any serious decision that could effect you or your family in the long run. Doing what you love, being your own boss, no stress from former job and meeting new people can be great ideals but the downside of that is having all that and not enough money, no medical benefits, start up costs, finding sufficient clients and marketing expenses. My advise would be to start slow, save money, get a good business plan and build your client base now. There are too many starving artist out there and even less day jobs that are rehiring. Your gift of art is wonderful...that will not change.

[Former_Member]

I would not recommend quitting your day job any time soon.

From what I can see, you only have 17 sales so far and only 43 items in your shop. Will one or two sales a week earn you the same money that you make at your current job?

Etsy has made major changes that have affected sellers both positively and negatively. Etsy will continue to make such changes in the future as the site develops. Unless your sales remain steady throughout such changes, I would not recommend diving head-first when there is so much uncertainty.

Jobs are really hard to come by these days, and from the looks of it, the unemployment rate is not going to improve any time soon. Hold on to a job if you have one!

[TheSapphireTheory]

Thats a huge decision to make! I say, dont quit your day job!
There is an article in the Etsy Sellers Beginners guide that i read the other week as i am wanting to make this a full time business as well (though im a stay at home mum of only 2 years & we have my husbands income to help) there is a tool in that article which shows you how many sales you have to have to make in a week/pricing your pieces etc to be able to live off what you sell. It is a bit of a shock when you actually work it out in reality! Though i have been applying this to my business & slowly it is getting there, though im no where near what i would like to be making monthly, you just have to keep up with it. I studied Marketing in college & it is expected to make a loss in the first year or so, so give yourself some more time :) & Good Luck!

[Former_Member]

The best way to tell if your ready or not is keeping track of how much money is coming in and how many orders your getting. If your getting a good amount of revenue, enough to support you for a month and then some and you don't need your day job, I'd say it's time.

I'm working on a Business Administration degree and have taken classes on Entrepreneurship and it's really important to have that financial cushion before jumping in. Some people jump in anyway, but they're the lucky ones and their success rarely happens to those who follow the same path.

Just be patient and keep inspired. Remember to think to yourself what you want out of this and then try to think of how you can get there.

[Former_Member]

This is great advice! I'd like to just address a few things I'm hearing people say:

1. Save money. First year sellers don't make a profit, so the extra income is a cushion. That, I think, is exactly what I needed to hear. Saving has always been difficult for me, and I'm always reading seller interviews that seem to have the attitude of quitting your day job without a penny in your pocket. I don't think that needs to be my route though.

2. Calculate the cost. My husband has been after me to get my expenses to sales figures calculated. Since I'm not a math or money person and he has a business degree, I think consulting him on this issue would be a wise decision.

3. Keep my job. This one I'm torn on. My husband and I have zero debt except for a mortgage. He has a great job, and we have a small savings. But, since I'm feeling uneasy about the transition, I think it's probably a good sign that I'm not ready to make the leap just yet. Would you agree?

4. Make a business plan. Again, I'll have to have my husband's help on this one. I need to figure out some pretty clear goals for next year. Does anyone know of any Etsy resources for making a business plan that I could consult?

Thanks everyone for the feedback! Keep it coming, and I'll keep reading.

-Michelle

[Former_Member]

You might keep it and consider that the shop and the art is your parttime work. Then if you really get going you might consider going to working parttime and concentrating on your shop full time. Like reverse the focus. I haven't made a lot of sales since I opened. (15) and my inventory is almost at 50 so I'm working at first goals of increasing sales and stock by the middle of November and focus on Christmas. Since I'm out of work _ I decided to open an etsy shop since I had the time. It's slow and you do spend a lot of time working on things. I hadn't realised how much work you have to put into a shop - I'm spending this first year, getting a handle on making - refining what I sell- changing what I sell - andnetworking. And I spend alot of time teaching myself photo stuff.
The biggest thing I miss is my health insurance so look at that as well when considering giving up your day job.

[PrairiePrimitives]

There's already been a ton of awesome advice given here, but please don't make any quick decisions just because it would give you time to paint more. Painting more isn't going to pay your bills! You need to be able to SELL more, and sell enough to pay your bills on a regular basis.

Unless you already have the financial means to not have to work and are doing so perhaps only for health insurance or the like, this really isn't an optimal time to be giving up a secure income. The national/international economic climate is a MESS right now and it's not projected to get better anytime soon. Sigh.

Calculate your monthly expenses. I'm sure it's MUCH cheaper to live in Minier, Illinois than in Sacramento, California (I did look up your town to be sure it wasn't a Chicago 'burb!). I've felt for many years that I would only have to make $50/day to keep my bills paid and have a little extra, even here in California, so it's likely much less than that for you. Read some of Suze Orman's books! She tells it like it is! Someone posted here that you should have enough savings to keep you going for 1 month. I hope that person never loses their job! 6 months reserve is really the LEAST you should have and 8 to 10 months reserve is much better. If you owe on any credit cards (in a big way), get them paid off before you quit your job. Is your job one where you can go to part-time, even on a temporary basis? This would be a safe(r) way to test the water about trying to make it on your own without a day job.

Your work is lovely and I think it might lend itself to greeting cards and other licensing options, if you're inclined to go in that direction. Google for "licensing reps" or go to the Chicago Gift Market (http://www.shopchicagomarket.com) and look at the wares and see if you think your designs would work in a similar context.

Do you show your work in any galleries? Again a big city would probably be a better option ... there might be galleries in Bloomington or Champaign-Urbana, and definitely Chicago, St. Louis, Indianapolis, or Des Moines! What I'm trying to say here is don't put all your eggs in one basket (i.e., don't count on Etsy to provide enough income). Get some of these other things set up first and then Etsy can be the icing on the cake!

Good luck with whatever you decide to do!

[kidsstore]

One thing that wasn't mentioned but is very important is how your husband feels about it. Unless his job area is one of the few where he can always get a new one at about the same pay rate, have you considered what would happen if he lost his or was demoted? Being the sole quaranteed provider for a family in these crazy economical times can put a lot of stress on a person. It can also affect a marriage. Before you make your final decision, be sure to have that possibility figured out.

Also, when I worked in the accounting field and had to figure out budgets for the next 1 1/2 years, no matter how I tried to pinch pennies I always ended up figuring an increase of about 15% in expenses. It seems a lot, but it usually turned out to be pretty accurate. Some things stayed the same, some only increased a small percentage, but there were others that really went up. On top of that the remaining amount left always seemed to be eaten up by unexpected expenses.

[HiveHouseJewelry]

I had been struggling with myself about this same thing. I had done my business full time before Etsy 8 years ago, wholesaling and and doing art shows. I then stumbled into a pretty cool job with a jeweler and in time ended up being full time. I learned a lot and loved working for them, but their business wasn't my dream. Just this last September I asked to go off the regular schedule and agreed to fill in where needed if I could, so I still have my toe in but am free to pursue my own business and my love to create. I do have to say here that I have a supportive spouse who encourages me to do this and that is huge even though his work is not stable either.
Something you may want to think about (if you haven't already) is making a line of printed cards from your artwork or teaching. I can see you have a lot of talent and others would love to pick your brain on your technique. Have you sot out any places to hang your art? Coffee shops, library's etc. Look for call to artists....oh and what about a local artist guild? Sometimes doing a piece and donating it to a cause can get you work too. Have you ever painted murals? I see your art as also being illustrations in children's books. The list could go on and on with the kind of art that you do.
So I'm a believer in taking the jump....but it's up to you! Your art is beautiful and I think your future is there. I hope the best for you!

[Former_Member]

So good to hear the different viewpoints. And yes! I definately have considered licensing....or at least pritning my work on cards, bags, journals, etc. Does anyone know of a few great online resources for print jobs like the ones I mentioned?

I've looked into vistaprint, moo, zazzle, pinball, and scoutbooks. Right now I'm just weighing my options.

[PrairiePrimitives]

Hi Michelle, glad to hear you've considered licensing. I would encourage you to try and find licensing companies based in the U.S. I shudder at the thought of another artist sending their beautiful designs overseas to be reproduced (my apologies to those Etsy sellers living in other countries, but "Made in China" or "Made in Taiwan" isn't terribly popular in the U.S. these days).

I don't believe you'd mentioned your marital situation in your original post, so yes, take into account the *security* of your spouse's job, not just that he has one. What would the family's economic situation be if he became unemployed and wasn't able to find work for a prolonged period of time?

Another thing you haven't mentioned is whether there are kids (young, still-at-home kids) ... or are you a young(er) couple contemplating starting a family? That's another expense which can be a fairly large one over the years!

Back to licensing for a moment, the general idea there is to sell the designs and let the company who buys the designs figure out how to get them printed and what to print them on. Of course you may be wanting to print them on t-shirts, onesies, etc. to sell here on Etsy, and I totally understand that angle too (just don't know anything about doing it!).

I've used Vistaprint for business cards for many years. I love the Moo cards, but omg, they're expensive! I've heard of Zazzle, but don't know anything about their prices or quality. Haven't even heard of Pinball or Scoutbooks, sorry. A friend and Etsy teammate has a shop on Spreadshirt and I've ordered a t-shirt from them with the team's logo; it seems to be good quality, and they offer dozens (if not hundreds) of items on which to have your designs printed!

Best of luck getting this all sorted out and pursuing your dream!

[TYFineFurniture]

I was exactly where you were several years back. I promised myself I would quit when incomes evened out. It was a steep goal as I made very good money and I was working over 100 hrs/week running the business and working. At the time I had a full time employee, I had him do all the things that was not an effective use of my time and I focused on mission critical things. Anyhow, having an employee is not always ideal or recommended.

I saved up about a year of income as a safety net.

When I quit I left for mostly personal reasons, but the business was making close to what I was making at my job. The big issue I found was that I was already working to my max capability, doing over 100hrs a week was exhausting and squeezing any more profit out of it meant that I needed to spend more time on it(somehow) or raise prices. When I finally did quit, I found that the extra time, focus and energy allowed me to more than double my sales for the year. Most of my sales however were coming from my own website, not etsy.

Long story short, I do think that added time will give you the time you need to potentially double your sales. Also, you should think about other sales options, think of Etsy as just one sales pipeline, how many more can you come up with? How much do you think you can conservatively make from these sources? Also, give yourself a distinct timeline for success after you leave the job. I said I would take 1 year, in that time, my goal was simply to make a decent profit, and not touch any of those savings. If things got too difficult, I promised I would look for work again.

[Former_Member]

I definately appreciate all the feedback. This whole quitting my day job thing is something that my husband and I have decided NOT to do right now, but to shoot for as an eventual goal for my art business. I appreciate your input Tarik Yousef and am happy to hear that your business doubled when you could devote more time to it! That gives me hope.

No, we do not have children right now.
And yes, my husband's job is pretty secure as he works for a company that is truly one of a kind and booming in a down economy. Not to say ANY job right now is truly secure though...

I think from this point forward I need to save money first and foremost. Then, consider all possible outcomes. I also need to start thinking more about licensing and other outlets for my work in order to have multiple streams of income. Does anyone have any advice in that area? What are some other options for artists like me who want different ways to print and sell my work besides the few things previously mentioned? Does anyone have any creative approaches to this?

[Former_Member]

You are amazing. You should be illustrating children's books!!!!

[MellowMoonSupply]

Chiming in late here....
I would not recommend quitting your day job any time soon.
On another online selling venue I was doing very well... then the bottom fell out. I was hoping to just do this and quit. Even Shows crashed.
My husband and I also has our own Print shop and Home Daycare. The ecomomy crashed, he has a outside job that 'looks' stable and I clean houses.. which I enjoy (weird right).

Maybe you might try putting your job money in a savings and living only on what you and your husbands job brings home. If you can't live on your art and craft money and his, it's not time.
If you are dead set on quiting, go part time first.

[Former_Member]

Well, I am deadset on quitting...but I realize now is not the right time. I don't think I should quit a perfectly good job for an unpredictable one until I can start making more with my art. Thanks for all the advice! It has been super helpful!