I Quit My 9-5 Job After Learning 3 Things | Why quitting is RATIONAL?

hey guys check this out this is my termination letter I just quit my job 5 days ago I've always want to do it but I don't want it to be a leap of face I want this to be a rational decision and over the past few years I come to realize three things that help me make this decision and I'm about to start my own business because of that there are a lot of people who make comparison between a 9 to5 job and starting a business people always think that that 925 job means a secure source of income uh usually monthly and they grow pretty stad if you don't up plus if you are in a developed country like USA or UK or Australian Etc uh you have a lot of employee benefits such as 401K your retirement for super anation health insurance you name it but starting a business on the other hand is very risky it needs you to go all inim it needs you to pull your heart and so and sweat out and you need to invest a whole lot of money and they say the chance of success is very low the return return is very unstable what if you fail right and they always say that starting a business means to give up your career development maybe you try the business idea and didn't work out and you want to go back to corporate job and hat TR will be asking you what the hell did you do for the past few years well I think what they say makes some degree of sense but they miss out on an important scale that is time all the comparison we heard is just comparing 925 is starting the business at one point of time that is not not in Long Run and in Long Run 925 is riskier than starting a business having a 925 job is like praying for a black swarm event will never occur to you it's like your turkey that is fed every day in a farm at every feeding will film up your belief that it's just the GLE rule of life that some human being will feed us every day and that feeding for turkey is like monthly salary to us and on that afternoon of Wednesday before Thanksgiving guess what something unexpected happened and game over turkey get killed just like we get layoff do you still think 925 job is secure actually it's very fragile given enough time a Black Swan event must happen a layoff will eventually happen think about it if you are at a position working for 30 or 40 years what are the chance that you won't get one layoff just one layoff the chance is pretty minimal right nowadays we have all those recessions maybe we get another Co maybe you your boss is not having a good day or maybe the company is going sou just one layoff will destroy everything you built with this rapid society change no one can stay the job forever however starting the business is exactly the opposite it's anti fragile maybe you fail a lot of times maybe the first business idea suck maybe the second one you lose on execution maybe the third one you just didn't pick the right Mark Market the fourth one is um maybe I don't know you you you lost to competition but maybe you try many times try enough times and one success hits you it all pays back just one success one home run it pays you back maybe a 100 times a thousand times to a point that all those previous failure add up don't matter if we add the variable of time and in long run all of a sudden starting the business as actually not as risky as you thought and 925 job is not as safe as you thought plus the rewards for 925 is pretty much constant every year you maybe get like a 4% I don't know 10% gross top if you do a good job every few years you get a 20% plus look at those inflations look at home loan those interest rates you think your salary will keep up but business returns are different business return in exponential scale one business 10 times 100 times a thousand times return you just need one home run remember so if starting the business is really that great why everyone is still stuck at a 925 job well I'll tell you it's because they are frightened they're frightened about uncertainty because the business can fail and most of business fail it is our human nature to go against loss we rather don't lose than having a chance of gain we are risk averse we don't think in rational turns even rationality points out that we should start our own business but you are different you click into this video and just remember underneath every uncertainty there lies a business opportunity another thing about having a n25 job is give you a full sense of secure it makes you believe that everything is in control actually nothing is under your control if you are playing the 925 game your ultimate goal is to avoid being lay off and do you think that's in your control maybe the economy is in a recession maybe your company goes s house maybe your boss doesn't like you there's really nothing you can control I guess the only thing you can control is your performance but remember your boss is in charge of your performance review and good luck with that there's just so little you can do so having a l 25 job is really passive but having your own business means you have all the control in the world while many people think that running the business is like having a thousand things going on at the same times and everything just go nuts and crazy well they think get wrong running a business means that you have all the control in the world you can do whatever it takes to improve your odds if you unhappy with your product you can iterate on this if you're not happy with the design just change it you also get to make a call about pretty much everything right do you want to run online ads do you want to post ads on newspaper I don't know uh how many sales people do you need there are actually so many things you can do to improve your odds remember in a 925 job your ultimate goal is to not being lay off there's nothing you can do to improve that odds people other than you determine your fate while running the business nobody else but you determine your own fate the last thing is probably the most important thing when it come to comparing having a 9 to5 job and starting a business remember I said that when people make comparison they forget an important element called time is important because of compounding effect what is a compounding effect well in finance it means you can earn interest on interest put into human words it's Snowball Effect for example if you put a 100 bucks into the bank it pays you interest say like $10 a year so at the end of the first year you get $110 and then you decide to leave that $110 in the bank to earn you more interest and during next year not only does the first 100 bucks you put in the back earning your interest that $10 you already earn in the first year is still earning you more interest so over the year your wealth will grow exponentially compounding effect exists in many field not only finance but also knowledge say youve trying to learn a subject that is really hard for months you get no progress but all of a sudden it just clicks say like bodybuild you don't expect yourself looking like Arnold schwas ner overnight right it take years of years of training that's company effect when you are at a corporate job a 925 job you don't get much company effect you only see very small part of how a business operates every day you're just doing okay job you you're pretty much doing the same thing over and over again there's no challenge there's no learning there's no company effect also you are traing your time for money remember you only have 24 hours a day so there's always a ceiling on how much you can earn when you try to trade your time for money but if you have stock options that's a complete different story it's like running own business anyway but when you running your own business you see everything you learn everything you get to network with more people you think at the strategic level a higher level and you own 100% of the stock at first you need to invest time to get the machine raring however eventually if things go well you can hire others you can leverage others knowledge others time and you go AO pilot that means a successful business can earn you money while you are asleep so you're no longer bounded by the 24-hour ceiling that is compounding effect also even if you fail your business along the way you learn so much you probably learn how to design a product how to pitch to investor how to sell your product to customers and all those knowledge will improve your odd of having a successful business next time say it's your first time starting a business the chance may be say like what 1% of success and you failed and you learned and you start another business now the chance is like hypothetically 3% you failed and you learned next time maybe it's 5% 5% is very high already maybe you failed again next time maybe be 10% and eventually if you try enough times and if you don't burn out God forbidden you will have a successful business you see the chance of succeeding is increasing every step of the way because of the compounding effect of knowledge skill networks and everything these are the things that a corporate job won't give you and these are the things you really need to hit that home run I hope by now you will understand that a 925 job is actually fragile which means that since can go well for a long period of time and when it breaks game over but having a business is anti fragile it can break many many times but you just need one success to make it all counts over the past 5 years I've had my fear and my concern and everything sometimes I think that if I give up my career and go all in on a business and way it fail what I'm supposed to put on my resume for that few years but rationality bought me back say if the business fell and eventually I go back to a corporate job now I have more skill more knowledge and more networks and everything and of course I will land a job and probably I will get paid more well I decide to quit my job but you don't have to you can start a side hustle just dip your toes in the water first one of the co-founders at GitHub didn't quit his job until GitHub was able to attract investment one of the co-founder at mbnb also had his stage off for a long period of time so really Nothing is Stopping You to start your own business only your own fear trust me I've been there I've even thought about starting a business needs a lot of investment but with the help of Internet there are so many low investment ideas like growing a YouTube channel doing some Consulting work online maybe building a website for others maybe start a Drop Shipping business there's so many opportunities just remember don't over stretch yourself always leave a safety margin make sure you are able to lose many times but still on the table this idea is called link startup if you're not familiar with that I highly recommend to check out this video it is the best strategy for a normal person to start a business if you like today's video please subscribe and stay tuned I'm Fati my friend

Channel: Yan Zhu

Views: 148

Keywords: quit job, quit job to start business, quit 9-5, quit your job, leaving my 9-5, great resignation, should i quit my job

Id: WExuMJ85LDc

Length: 11min 13sec (673 seconds)

Published: Sun May 12 2024