I quit banking, looking for advice.

I'll just give a quick background: I went to a target school, got lured into banking after graduation, and hated my life. I worked hard, learned a lot, but got out after a year, because I just couldn't take it anymore.. I couldn't afford to live in my current apartment, and I couldn't find a job right away, so I started a business and moved to my friend's place. The business failed, and I started another one to make up for the initial loss, and ended up having some success. This is a simplification of events, but that's the gist of it.

To provide a bit more detail about my current situation, my good friend that I've known forever has a five-bedroom, three-bathroom house in the suburbs of Chicago. His parents own the place, but his parents don't live there, and he's completely fine with me living there for free. I do buy groceries here and there, though. I've been making a lot less money, but I'm incredibly happy that I've been able to start an e-commerce business that has had some success, as I've been able to put about $40,000 into my savings account over the last year.

This is where I'm somewhat conflicted. On the surface, some aspects of my life are better: I've had more free time, and the amount of freedom is amazing. My friend doesn't like to be alone, and seems to always have several people hanging out at his house, which makes for a pretty social environment. I go to bed when I want to, and get up when I want to. I almost feel like I'm back in my college days, with clubbing every weekend and boating everyday during the summer. Plus, I've been able to save much more than I did in banking. When I first started my business, I was putting in essentially banker hours, although it was a lot more doable to me, but my business has since been automated to the point where I mainly just work on marketing and answering customers' emails, which means I work a lot less. Although, I do a ton of research in my niche, but that doesn't even feel like work to me.

However, on the other hand, I feel like a bit of a loser, or like I need to grow up because my old peers in finance are developing their careers and passing me by. I used to care a lot more about prestige, and now I've just been devoting most of my time to my business, and thinking about money a lot more, ironically since I'm not making as much. As far as how my business is going to go next year, I can't see profits falling, but I'm not sure about growth potential. A part of me feels like I could definitely have a six figure business if I just scale appropriately, but it takes time, especially because of the cost of my inventory. I also provide a much better customer experience than anyone else in my niche, and I think people are starting to realize. All I can say with confidence, though, is that I'm probably going to be able to put another $40,000 into my savings account over the next year, if I keep doing what I've been doing.

Any advice on what to do would be welcome. I'm not sure what my question is, but I guess it's whether or not you think going back into finance for a few years would set me up better than what I'm currently doing? Does it sound like I made a mistake quitting banking?

 

Money in the bank > Prestige

If you can live a comfortable life and sock away 40K a year annually (potentially more) why wouldn't you go all in on your business? You really want to go back to having a boss and no control over your hours? Tread lightly, my friend.

 

Take 6 months, live in 12 random places around the world, ideally in all 6 inhabitable continents. Use AirBnBs for 2-week stays.

I did something similar for a year, and I'm doing fine. You'll thank me on your deathbed.

 

If you can scale and reach a rent-less tax equivalent salary of 130k W-2 by next year, stick it out (approximately +60k/yr in savings). Your upside should be higher than most analysts for the next 4/5 years and you've got a compelling story to tell grad school if it doesn't work. Yeah, you shoulda done two years, but going back as analyst wouldn't be worthwhile.

Take advantage of your awesome situation for a bit. Moments like this are rare. GL.

 

Congratulations on saving a precious year of your life and doing something worthwhile. What you're describing is also know as the "beauty" of life. Setting your own hours, not being told what to do, etc., are all invaluable lifestyles changes you can't put a price to. 99% of the time in banking of finance, you'll just live another upper middle class life. I am sure you will be successful in your business endeavors. You will be laughing when your business takes off and your friends are bragging about their 200k post tax salaries with terrible job security.

Array
 
Best Response

I say get out of limbo, go for scale, move onto the next idea, or go back to work/school. I think you know yourself best, and you need to sit down and figure it out. Here are some thoughts tho.

A professional finance job will pay peanuts compared to a successful business, so I don't really understand the premise. Also, with an ivy or target school w/e education that made it into banking, I assume if you completely burn out on your business, you can just reset in MBA school or just re-enter the work force.

Seriously, what will it take to scale? You say 'time' but only mention high COGS. If you had $1M tomorrow, does your business go 15x overnight or are there other things holding you back? Seriously, if you have proof of concept, what is stopping you from getting an equity partner to fulfill your dream of $$$?

If the real reason for your doubt is you are in a perfectly competitive industry, then you might have a problem. Is this actually just a cottage industry? Are you drop-shipping a few ubiquitous products from china, and are now faced with competing with real players, and you have no real value-add or competitive edge? Have you done the strategic and financial analysis? What happens when you scale? Why not ask some VC / small business guys here?

I dunno, it sounds like you are sorta trying to be a tim ferris, but without the travel and personal endeavors. You could probably start in any cottage industry, and recreate this lifestyle IMO. Why not just start a professional house painting company... you could still live rent free, write off business expenses, not have health insurance, mooch food, and go to the club or troll around lake Michigan. Most jobs basically allow you the time to do other shit besides work, what do you think the rest of middle class america does- same shit. It's just that trading your time in certain jobs like banking pay more, especially at a younger age.

 

If you have a business that is working I would pursue it. Qs many others have pointed out, plenty of people would rather be in your shoes. Everyday I think about starting my own business and am at a spot where it is currently not in the cards. Make wise decisions and make sure you take very calculated risks. Living rent free with a social life is huge. Work at growing it, don't fail, but keep a strong network in case you do.

Only two sources I trust, Glenn Beck and singing woodland creatures.
 

Dude, sounds like you are crushing life in all its glory, and all you have to do is be more prudent going into the future. Focus on scaling your business, and since you have a lot of free time don't just "waste" it by boating and drinking, but try to truly develop another skill by going back to school part-time (MBA or JD), learning to code on your own, studying another language, etc. Whatever interests you.

Always work to better yourself and have a fall-back option, but in the meantime milk this opportunity for what it's worth.

 

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[quote=mbavsmfin]I don't wear watches bro. Because it's always MBA BALLER time! [/quote]

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