Do you to know how to quit your job without ending up on the
street? In a nutshell, you need to avoid the self-employment
trap, think like a business, and create multiple passive revenue
streams.
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. They get really busy doing the work and
stop marketing and then their prospective client pool dries up.
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 don't 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 don't 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!
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