Many businesses do not survive beyond their first year because the owner did not have sufficient startup funds. Be sure that you have at least 9 months (preferably 12 months) of your living and business expenses saved before you give up your "day job".
One path to starting your own business is to remain being an employee for another organization while you build your new business. Sometimes you can move to part-time employment while you develop your new business. This usually works for a while, until you reach the point where you need to focus the majority of your energy on your business.
When you decide to completely move to your new business, make sure you have enough startup funding so that you do not feel anxious about finances. The amount of money you need as a safety net will be different for each person, but having enough money to cover 9 to 12 months of living and business expenses is wise. Ask for help, if necessary, to do this type of planning. See the Business Resources page [insert link] for help.
Tip: Take on as little overhead as you can for as long as you can. It is best to have the growth of the business push you into the next level of expansion rather than have an expanded operation from the beginning and hope to grow into it.
One way to save on your monthly overhead expense is to work from home. Of course, this depends on your services, and working from home has its pluses and minuses. The obvious plus is that it may save money and time. Consult your tax advisor for specific advice on this. The disadvantages are that you might bring people into your home who you do not know and it might be a disruption to any people who live with you.
If a home office is not practical or appealing, you can compare sharing office space with having a space dedicated to you. Shared office space is usually less expensive and it can boost your clients if your office mates refer clients to you.