When I decided to change careers, I did not have a clue what I wanted to do. The only thing I knew was it was time to try something completely different. I imagine I am no different than most people. I just lost the passion for my job/occupation that I was in. So the following are the top 5 tips I learned as I started my search for a new career.

Research, Research, Research

If you know what new career path you want to follow, then the toughest part is done. For example about 10 years ago my spouse wanted to get out of graphic design and continue in the field of Human Resources. For him, a post graduate degree was the key to job interviews  But for most, you probably still ask yourself, “what do I want to do when I grow up?“ I fell in the latter group as well.

So I went to Google. That’s right Google. I did a search for professions that (1) did not require a degree, (2) was low stress and (3) could be operated on a freelance basis. Occupations that met my criteria included yoga instructor, statistician and graphic designer. I chose graphic designer as the best fit for me. Ironically, I chose the same profession my spouse decided to quit.  The point is the Internet has a wealth of knowledge and a few keyword search terms that describe your ideal job may be your path to change careers.

Educate Yourself

You will need to ask yourself, “do I currently have the skills to start in your new field?” Most of us probably do not.  Figure out if you need trade school, continuing education classes, or online distance learning.  Research the best schools in your area. What are the costs? How long will it take to complete a certificate program or apprenticeship? Do I have to apply to an accredited university? Can I acquire the necessary skill set while I am in my current job?

You will need to get answers to all these questions to adequately plan your transition to the new occupation. I determined that I didn’t want to learn online or teach myself and researched continuing education programs offered by schools near my work.  My education also included visits semester open houses where I reviewed student portfolios.  I determined that Hunter College in NYC offered a program that fit my work schedule and was an easy walk to after work.

Review Your Finances

Understanding how much money you will need to spend on eduction/training in the time leading up to your transition is important. It should be part of your overall financial plan. Consider these expenses pre-operating costs that impact your “Day 1” operating funds. Next consider what the impact will be to your financial status for the first three years of your transition.

Has your 401K or profit sharing plan at your current employer vested? Can you rely on your last bonus to get you through the first year?  If you plan to change careers and work for another employer, will you be able to survive on a lower salary? If you are a freelancer, do you have enough money saved to weather a bad revenue start to your business? What about healthcare? The answers to these questions may determine when and if you can change careers.

Change Careers: Create a Business Plan

Establish your business plan and write it down on paper. Having it in your head is a recipe for failure. It takes some time and a worksheet program like Excel. Believe it or not, it is pretty simple. If the plan is to work for someone else, come up with all your expenses for the year (you can download it from your banks’ online bank account in most cases). Your expenses are your breakeven point. Now you have to decide the lowest salary you are willing to take to cover those costs. This could mean you have nothing going to savings. That is why it’s important to Review Your Finances.

If you decide to freelance, the same exercise applies. However, you will need to take it one step further. You need to figure out the rate per hour and service hours a year you have to work to cover your costs. If you are a retailer/wholesaler, then you have to figure out how many widgets you need to sell. And then look hard at the plan to see if the plan is reasonable. The Office Depot’s website has some business plan templates to get you going.

Family Support

Sitting down with a spouse, partner or other member of your family will probably be the toughest thing you do. It should be a disussion and not a directive. They will be scared especially if they depend on your current salary to keep the household income stable. Go over the financials and the plan you have to make money in your new career. Explain just how unhappy you are or exactly how your current job makes you feel. Be confident in the belief it will work. But also explain there may be bumps in the first few years.

Don’t be surprised if they are still against it. In that case it becomes a really difficult decision to make. I have one friend whose wife was adamantly against him leaving the security of a salaried IT job. When she saw how much he loved starting his own business, she finally came around. She later admitted she was wrong to be against it, and she fully supports the change now.