| Information |
FREE! Subscribe to Recruiting Newsletter:
Recruiting tips, case studies, and resources for MLM and network marketers.
|
|
|
| Old Articles | | Thursday, December 07 | | · | Auto Insurance - Cut Costs, Not Cover! |
| Friday, November 10 | | · | Novel Ideas for Decorating With Wall Clocks |
| Wednesday, November 08 | | · | The Child Playhouse: A Door To A Wonderful World |
| Tuesday, November 07 | | · | What is Wiki and how does it work? |
| Wednesday, August 23 | | · | What to look for when selecting an MLM Opportunity to save time, money and frust |
| Tuesday, August 22 | | · | Tips for Effective Presentations |
| Monday, August 21 | | · | Your Past, Your Present or Your Future |
| Saturday, August 19 | | · | Youll See ItWhen You Believe It! |
| Thursday, August 17 | | · | The Truth About Believing |
| · | The Truth About Believing |
| Tuesday, August 15 | | · | The Gift of Listening |
| Sunday, August 13 | | · | The Elements of Greatness |
| Friday, August 11 | | · | The Art of Leapfrogging: The foolproof way to enroll any new distributor |
| · | How To Select A Multi Level Marketing Company |
| · | If It Quacks Like An Enron |
| · | Leadership The Next Great Profession |
| Friday, July 28 | | · | MLM and Blogging |
| Wednesday, July 12 | | · | Pay-per-Click (PPC) Bid Budget Management |
| · | PPC Management Starts with A Great Keyword List |
| · | Write Persuasive Copywriting Without the Word "Please" |
| · | 10 Tips for Raising Your Search Engine Rankings |
| Thursday, April 20 | | · | Vision and Goals: What to Believe? |
| · | Think bigger and act bigger: What Happens When You Think and Act Big |
| · | Life Planning: A Lesson In Proactive Life Planning |
| · | Utah Women Run Businesses From Home |
| · | Overwhelmed: Ways to Deal with Overwhelm |
| · | Today Is Yesterday's Tomorrow |
| · | Successful People |
| · | Successful business: Think & Be Successful |
| · | Work smarter not harder: The "YOU" Factor |
Older Articles
|
|
 | |
Self Employed: From Employee to Self-Employed
Posted on Wednesday, October 26 @ 14:29:37 MSD
Topic: Home Business | It's not unusual for entrepreneurs to hold down a traditional job while their companies grow, and hopefully, once you are in a position to separate from that traditional job, there will be some knowledge, experience, and relationships that you will be able to take with you into your own business. The trick is to know when to make the ultimate transition and strike out completely on your own. There are several things to consider.
The first and most obvious one is financial. If you're going to give up that part-time job, you must consider how dependent you have been on the income you derived from it. Are you in a position to sustain yourself independently for a period of time if things don't go exactly as planned for your entrepreneurial business? Before you make the separation, your business should be at a point where it is generating enough revenue to cover your living expenses. Arriving at this figure can be more difficult than you realize.
Don't forget to factor in the expense of health insurance if you do make the transition. This may be something as simple as opting to take advantage of a COBRA plan that allows you to retain your company insurance for a period of time after you leave. Of course, the full cost of the insurance will be your own responsibility; your former employer will no longer pay for it.
Another factor that is too often forgotten is the amount of money you have to pay the taxman. Before you make the leap to full-time entrepreneur, calculate the net amount you need (after taxes) to sustain yourself and your family. Then add in all your business expenses to that amount, remembering to factor in additional self-employment taxes that you did not have to bear as somebody else's employee. The final figure is the amount of revenue your business needs to take in before you can quit your part-time job.
If anybody is currently providing you with financial support, expect that they will have to continue doing so, perhaps even to a greater extent, once you make the switch. If you're getting outside investors or if your company will be venture funded, this may not have to be a consideration.
Examine your client base, and how much security that will give to your small business. If your client base is too small, even if it is bringing in adequate revenue, you may just be one client away from disaster.
Another very important factor is family and children, and how the transition will affect them, not only financially, but emotionally. Without that regular paycheck from your part-time job, you may find yourself compelled to work unreasonably long hours at your business to make up for it. In fact, although most entrepreneurs cite "being able to make my own hours" as an incentive to working for oneself, working one's own hours too often ends up being too many hours.
Make sure that everyone involved--partners, clients, spouses and children--see the move as positive, and most of all, don't forget to take care of your health and your spirit during the
transition. |
|
| |
| Login | | Don't have an account yet? You can create one. As a registered user you have some advantages like theme manager, comments configuration and post comments with your name. |
|
| Article Rating | Average Score: 0
Votes: 0
|
|
|
Associated Topics
 |
|
|
