5 signs you're financially ready to quit your job

Do you feel as if you're not meant to be an employee, but the boss? If you think you're ready to let go of your job and start up your own business, here are five signs that will help you know for sure.

You have a plan

To move on, you need a proper plan. You don't want to be stranded once you've quit your job. Make sure you have the office ready before you quit; if you are planning to work from home, this will not take long. If you require employees, make sure that they're ready to start.

You can stay afloat for 6 months

Before you leave your day job, ask yourself this question: Will you be able to pay your debts and cover your living expenses with a fresh business? Analyze your expenses and make you sure you've saved up enough.

You've met all legal requirements

Apply for the license while you're still working. Buy office equipment or supplies, hire employees, renovate, etc. Know the self-employment tax laws. If your business doesn't make any money for a certain tax period, you'll still have to set aside some money to pay the IRS.

To start a self-owned business, you need enough resources to launch yourself and the business independently. Make sure you have the right connections in place; this includes social media, friends, family, colleagues, and more.

You are clear on your responsibilities

Your business is like your baby: You have to feed it, take care of it, baby-sit it. Once you understand your responsibilities and know you'll be able to take care of all expenses, you'll have enough to invest, launch and expand.