A practical guide for building your financial runway before going full-time in your business
Quitting your job to pursue your business full-time is a bold and exciting move — but it can also be a financial shock if you’re not prepared. While there’s no one-size-fits-all number, the right savings target gives you breathing room to grow without panicking over every bill.
The goal isn’t just to cover your personal expenses. It’s to build a runway that supports you through the ups and downs of early business growth.
Here’s how to figure out how much to save before giving your notice — and how to use that time to strengthen your business foundations.
Step 1: Calculate Your Personal Monthly Expenses
Start by getting clear on what it actually costs to live. This includes:
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Rent or mortgage
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Utilities
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Groceries
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Insurance (health, car, renters, etc.)
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Transportation
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Debt payments
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Subscriptions and other fixed costs
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Discretionary spending
This number is your bare minimum monthly survival number. It’s not about cutting joy — it’s about knowing what you truly need to stay afloat.
If you're using The Small Business Planner, you'll find worksheets that help you calculate this with clarity and ease.
Step 2: Multiply That by 3–6 Months
Most financial experts recommend saving at least 3–6 months’ worth of personal expenses before leaving a steady paycheck. This gives you:
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A cushion for slower sales months
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Time to build your revenue stream without desperation
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Flexibility to test, pivot, and improve your offer
If your business already earns part-time income, you may need less. If you’re starting from scratch, consider saving closer to six months at the bare minimum.
Step 3: Account for New Business Expenses
When you quit your job, you may lose benefits like health insurance or work-provided tools. You’ll also likely increase spending on:
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Marketing or sales support
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Contractors or software
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Office or coworking space
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Self-employment tax and quarterly estimates
Use this time to build a basic business budget, even if your revenue is inconsistent. The Small Business Planner teaches you how to calculate and plan for these expenses.
Step 4: Factor in Your Owner Pay Goal
Once you know how much your personal life costs and what your business expenses will be, calculate the monthly revenue your business will need to earn to replace your job.
Your formula:
Personal Expenses + Business Expenses + Tax Savings = Revenue Goal
This number gives you something concrete to aim for — and helps you reverse-engineer your pricing and marketing to get there.
Step 5: Build a Transition Plan
If saving 3–6 months of expenses feels overwhelming, consider a more gradual approach:
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Cut hours at your job before quitting completely
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Take on part-time or freelance work to supplement
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Build a pre-sale or client waitlist to generate cash before you leave
There’s no shame in taking your time. What matters is that you’re building momentum — and doing it on your terms.
Final Takeaway
Quitting your job doesn’t have to be a leap of faith. It can be a strategic step supported by savings, systems, and a solid financial foundation.
When you know how much you need, what to plan for, and how to use your runway wisely, you set yourself up for a smoother, more successful transition into full-time entrepreneurship.
The Small Business Planner is your go-to tool for mapping this out — with templates to calculate expenses, plan your salary, and forecast your revenue with clarity and confidence.
Explore The Small Business Planner now → https://smallbusinessplanner.com/products/planner