Posted by Phil (CO) on March 07, 2002 at 10:42:40:
I don’t have a checklist for you, but be aware that the cost to work for yourself can be significantly higher than just health coverage. It’s difficult to pinpoint all of the costs, but plan on grossing around 50% more working for yourself to make the same amount that you are now. For example, if your salary is $80k per year, you better have gross revenue of at least $120k per year to “take home” the same amount of money. Most of the “extra money” goes to increased taxes and insurance, but there are a lot of other “little” things that eat you alive when you own your own business. If you don’t think these numbers are real, talk to anyone who owns their own business.
Don’t forget about cash flow, either. I would recommend six months reserves in the bank before you quit your job. I know that sounds like a lot, but most of the headaches and ulcers that come with owning your own business come from cash flow. If you have six months reserves, you don’t sweat the next deal so much.
That said, there’s nothing better than working for yourself! Congratulations!!!
Well, I have made the decision to go full time starting April 1 and I can hardly wait!
My question: I work for a large company with decent benefits, etc., and have researched/lined up health coverage for when I quit. Does anyone have any kind of “checklist” for issues to cover before giving your resignation? IE: 401k rollover, health insurance, dental, etc.??
"In a free society, every opportunity comes with three obligations. First, you must seize it. You must mold it into a work that brings value to others. Second, you must live it. Opportunity is nurtured only by action. Third, you must defend the freedom to pursue opportunities. You must embrace these three obligations as if the future of the United States depended on it. In fact, it does. "
Robert C. Goizueta
My advice is to remain open to considering an offer to stay on board. This may have no applicability to your situation or position and you may have no interest in this at all, but keep in mind that some companies may be willing to make quite a few concessions to keep their good people on board (especially if there are client contacts which may be lost by your departure). It’s also much more expensive to hire and train a replacement than it is to offer you some kind of retention bonus or significant raise to change your mind. Be open to this opportunity.
Also, if more free time to pursue REI is what you need, then perhaps you could explore some kind of reduced and/or flex time arrangement with your company–or maybe work on a per project or consulting basis. My point is that you have likely invested a lot of time (perhaps years) in this company and you should make sure you’re getting as much return on that investment as you possibly can (just like a RE deal). Milk it!
Real life example, a friend of mine was once offered $25,000 to stay at his job for 9 extra months! For personal reasons, he declined, but you see my point. That would make some great start-up capital.
Like I said, this may have no applicability to your situation. Just something to think about.
Re: IT’S TIME TO GO FULL TIME!!! - Posted by Lisa (NE)
Posted by Lisa (NE) on March 07, 2002 at 12:47:09:
Also check with your accountant to be sure you are getting your quarterly taxes filed. My accountant said that they are going to be checking this closer in the future. Late fines can bite.