When to leave finance

When deciding whether to leave your finance job for a family business opportunity, here are the key factors to consider based on the most helpful WSO content:

1. Clarity on the Family Business Opportunity

• EBITDA and Pay Structure: While the business has a few hundred thousand in EBITDA, you need to clarify your exact compensation, ownership stake, and long-term growth potential. Will you have equity? How will profits be distributed?
• Risk Assessment: Understand the risks involved in running the business. Is it stable, or does it require significant effort to maintain or grow? Compare this to the stability of your current role.
• Alignment with Your Goals: Does the business align with your long-term career and personal aspirations? If it’s a passion project or offers meaningful growth, it might be worth pursuing.

2. Your Current Role in Finance

• Compensation and Work-Life Balance (WLB): At 22, earning $140k with good WLB (55 hours/week) and commission upside is a strong position. If the firm grows, your commission could become a significant income stream.
• Boredom vs. Opportunity: While you find the job boring, consider whether you’ve fully explored growth opportunities within the firm. Could you take on more responsibility, move into a more dynamic role, or leverage your experience to transition to a more exciting finance position later?

3. Timing Your Exit

• Building a Strong Foundation: Many WSO threads emphasize the importance of staying in a role for at least 1.5–2 years to avoid looking like a "job hopper" and to build a solid resume. This is especially important early in your career.
• Exit Options: If you leave finance now, it might be harder to return later. Consider whether you’d want to keep the door open for future finance roles or if you’re ready to commit fully to the family business.

4. Personal and Financial Considerations

• Financial Security: Ensure you have a financial cushion before transitioning. Your current role offers stability, while the family business may take time to generate consistent income.
• Passion and Fulfillment: If the family business excites you and aligns with your personal goals, it could be worth the leap. However, if you’re unsure, staying in finance a bit longer to gain more experience and savings might be the safer choice.

5. Next Steps

• Gather More Information: Get detailed financials and a clear understanding of your role in the family business. Speak with your family about expectations and long-term plans.
• Set a Timeline: If you decide to leave, plan your exit strategically. For example, stay in your current role until you’ve hit a milestone (e.g., 2 years) or until you’ve saved a specific amount.
• Explore Your Interests: If you’re unsure about both options, consider exploring other finance roles or industries that might excite you more.

Final Thought

At 22, you have time to experiment and take calculated risks. If the family business offers meaningful growth and aligns with your goals, it could be a great opportunity. However, if you’re uncertain, staying in finance for another year or two to build experience, savings, and a stronger resume might be the wiser move.

Sources: When would you quit?, Quitting IB in 2023 - Burnout, https://www.wallstreetoasis.com/forum/private-equity/leave-pe-early-or-stick-it-out-2-years?customgpt=1, Transitioning from tech to a serious finance job (yes, you read that right), Saying Goodbye to Finance?