Word Count: 1186 Date: Fri, 4 Apr 2008 10:46 PM
How to quit your job gracefully.
The mere idea of spending your life without a regular paycheck coming in on the seventh of the month in enough to make anybody break out in the cold sweat. However, here are some tips you need to avoid the self-employment trap, think like a business, and create multiple passive revenue streams, when you finally decide to take the plunge and quit your job.
Avoid the Self-Employment Trap
If you quit your job and hang up your own shingle, you might work harder for less money. You may enjoy working from home or choosing your own clients, but you might end up living from client to client without building any real wealth.
Many self-employed people I know suffer from feast or famine. They spend lots of time and money marketing their services and get lots of clients. Then they get busy doing the work and stop marketing; so, the prospective client pool dwindles away slowly into nothingness in a couple of years.
If you set up your business so that you do everything - marketing, sales, bookkeeping, operations, and fulfillment, then you are limiting your success potential from day one. You will spend lots of time on non-income generating activities and may get frustrated and burned-out in a short time.
The real key to successfully creating wealth outside of a job is to avoid the mistake of trading one boss for another boss. You need to stop trading your time for dollars. Stop thinking like a wage slave. Look beyond earned income.
Think Like a Business
There are many problems with earned income. The biggest one is that you are trading your time for money. If you stop trading your time, the dollars stop coming. This is a huge problem if you decide to have a baby, get sick, want to take an extended vacation, or are ready to retire.
The IRS penalizes self-employed people who operate as a sole proprietorship with a hefty self-employment tax. How can you avoid this? Well, I am not an accountant or CPA, so I am not giving legal or accounting advice, but I have learned to think like a business. Before you quit your job, interview local tax advisors to educate yourself on different business entities and tax strategies. Start thinking big.
Build a Company with Multiple Passive Income Streams
You need to build a company that works for you. My best advice on how to quit your job is to build a business that offers multiple streams of passive income in addition to your earned income. There are so many exciting ways to design your income portfolio. It requires imagination, courage and planning.
Structure your business so that your daily activities are fun and challenging. Identify the things that you do not enjoy or are not good at and find other people to do these activities â?? outside partners, independent contractors, or employees.
How to Quit Your Job
My advice for how to quit your job is to avoid thinking that you have to do everything yourself to make your new enterprise run. Think big! Set up systems and structures that work for you so you do not have to work so hard. Incorporate and make the tax system work for you. Design your work around multiple passive income streams to support your active work. The mere idea of spending your life without a regular paycheck coming in on the seventh of the month in enough to make anybody break out in the cold sweat. However, here are some tips you need to avoid the self-employment trap, think like a business, and create multiple passive revenue streams, when you finally decide to take the plunge and quit your job.
Avoid the Self-Employment Trap
If you quit your job and hang up your own shingle, you might work harder for less money. You may enjoy working from home or choosing your own clients, but you might end up living from client to client without building any real wealth.
Many self-employed people I know suffer from feast or famine. They spend lots of time and money marketing their services and get lots of clients. Then they get busy doing the work and stop marketing; so, the prospective client pool dwindles away slowly into nothingness in a couple of years.
If you set up your business so that you do everything - marketing, sales, bookkeeping, operations, and fulfillment, then you are limiting your success potential from day one. You will spend lots of time on non-income generating activities and may get frustrated and burned-out in a short time.
The real key to successfully creating wealth outside of a job is to avoid the mistake of trading one boss for another boss. You need to stop trading your time for dollars. Stop thinking like a wage slave. Look beyond earned income.
Think Like a Business
There are many problems with earned income. The biggest one is that you are trading your time for money. If you stop trading your time, the dollars stop coming. This is a huge problem if you decide to have a baby, get sick, want to take an extended vacation, or are ready to retire.
The IRS penalizes self-employed people who operate as a sole proprietorship with a hefty self-employment tax. How can you avoid this? Well, I am not an accountant or CPA, so I am not giving legal or accounting advice, but I have learned to think like a business. Before you quit your job, interview local tax advisors to educate yourself on different business entities and tax strategies. Start thinking big.
Build a Company with Multiple Passive Income Streams
You need to build a company that works for you. My best advice on how to quit your job is to build a business that offers multiple streams of passive income in addition to your earned income. There are so many exciting ways to design your income portfolio. It requires imagination, courage and planning.
Structure your business so that your daily activities are fun and challenging. Identify the things that you do not enjoy or are not good at and find other people to do these activities – outside partners, independent contractors, or employees.
How to Quit Your Job
My advice for how to quit your job is to avoid thinking that you have to do everything yourself to make your new enterprise run. Think big! Set up systems and structures that work for you so you do not have to work so hard. Incorporate and make the tax system work for you. Design your work around multiple passive income streams to support your active work.
And, finally, have fun!
Please check out these web sites for more free information and more knowledge about small businesses and accounting, free of charge!
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