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!!!