If you have always wanted to work at home but were afraid to take the plunge, try testing the waters before going all the way and quitting your job. Start a home business on a part time basis first, to see if it’s a good fit for you, to see if it is profitable, and to see if it is something you will enjoy. The best way to do this is to find a business that doesn’t have a high start up cost or high overhead, and then transition from outside employment to working at home.
Consider this transitional method:
Phase I
Start small and work your way up. Keep your day job and work on your home business for a couple of hours each evening and on the weekends until you see how things look. If after a few months it appears that you can make something of the venture, continue for another month before quitting your job.
Put back every bit of profit you make during your trial period and re-invest it in your business. Also, save as much money as possible from your regular job and put it in an emergency account. Keep this money to fall back on in case of rough spots, which are the rule rather than the exception when it comes to small businesses.
Phase II
If your home business seems to be taking off, change from a full time position to a part time position while your home business is in the start up phase. This gives you a chance to continue making money from another source while you expand your home business, but it will also allow you more time to concentrate on your new venture.
Phase III
When you have enough saved to cover both your home business expenses and your living expenses for at least two months then consider taking a leave of absence or quitting your job. You may want to save even more (some experts recommend saving enough to support the home and the business for six months). Leaving your job is a big step and should be considered carefully, but starting your own business can be very rewarding both personally and financially if you take your time and do it right.