So you want to leave your comfy corporate job—give up your regular paycheck and run the risk of going months without income.
Can you handle that?
Mina G. is a DailyWorth reader with a 9-to-5 gig who thinks she can. She dreams of flying solo as a consultant for her company, which would also give her time for freelance work.
She asked for my advice, so here it is:
|Figure out how much income you need. Then double it. When you’ve been working full-time for years, you’ll need a refresher on how much work it takes to generate $X amount of|
|income. You need to cover your salary—plus taxes, health insurance, company expenses and retirement savings. Don’t shortchange yourself in the name of bootstrapping it.|
|Focus on cash flow. It’s harder than you think. You may not get paid up-front or even on time. You might think you’re making $4,000 one month, but if one client doesn’t cut a check when you’re expecting it, you could be stuck. Whatever amount you need to generate, you’ll probably need more to provide a buffer. Mina’s consulting plan is smart—so is finding a part-time job for steady income.|
|Prepare to sell—and sell some more. Do you have the connections to generate enough work? You need a lot of contacts—and you have to research potential clients, cold-call or ask for introductions, and follow up on leads. It’s 100% on you to keep the momentum going, as Deb DiSandro learned last fall in the DailyWorth Money Fix series.|
Running your own game is great, but half your job description is deal generation and cash management. It takes a strong stomach and a lot of energy.
Be enterprising. Share your advice about switching to self-employment.
photo source: philoSophie's by Joanna Alberti