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The

 Quitter’s    
Checklist  
 
The  Step-­‐by-­‐Step  Guide  to  Prepare  for  Leaving  Your  Job  
 
 
 
Written  by  Robert  Farrington  
 
   

 
The  Quitters  Checklist  
 
Publication  Date:  March  2013  
 
Published  by:  Robert  Farrington  
www.beatthe9to5.com  
 
©Copyright  2013  Robert  Farrington  
 
NOTICE  OF  RIGHTS  
All  rights  reserved.    No  part  of  this  book  may  be  reproduced,  
stored  in  a  retrieval  system,  or  transmitted  in  any  form  or  
by  any  means,  without  prior  written  permission  of  the    
publisher,  except  in  the  case  of  brief  quotations  embodied  in  
critical  articles  or  reviews.  
 
NOTICE  OF  LIABILITY  
The  author  and  publisher  have  made  every  effort  to  ensure  the  
accuracy  of  the  information  herein.    However,  the  information  
contained  in  this  book  is  sold  without  warranty,  either  express  
or  implied.  
 
Neither  the  authors  and  The  College  Investor,  LLC,  nor  its    
dealers  or  distributors,  will  be  held  liable  for  any  damages  
caused  either  directly  or  indirectly  by  the  instructions  contained  
in  this  book,  or  by  the  software  or  hardware  products  described  
herein.      
   

 
Contents  
 
  STEP  14:  MAXIMIZING  YOUR  EXIT  ............  49  
PREFACE  .....................................................  4   STAGE  4:  BASIC  STRUCTURES  FOR  
ONGOING  SUCCESS  ................................  51  
HOW  TO  USE  THIS  BOOK  ......................  5  
STEP  15:  NETWORKING  AS  AN  
STAGE  1:  MASTER  YOUR  PERSONAL   ENTREPRENEUR  ............................................  52  
FINANCE  ......................................................  6   STEP  16:  PREVENTING  ISOLATION  ...........  55  
STEP  1:  EMERGENCY  FUNDS  ........................  7   STEP  17:  WORK/LIFE  BALANCE  ...............  57  
STEP  2:  BUDGETING  .....................................  10  
WHAT  NOW?  ...........................................  61  
STEP  3:  DEALING  WITH  TAXES  .................  15  
RESOURCES  MENTIONED  ............................  62  
STEP  4:  INSURANCE  .....................................  19  
PRINTABLE  QUITTERS  CHECKLIST  ............  63  
STEP  5:  RETIREMENT  PLANNING  ..............  24  
 
STAGE  1  RECAP:  PUTTING  ALL  THE  
FINANCIAL  COSTS  TOGETHER  ....................  27    
STAGE  2:  DEVELOPING  YOUR    
BUSINESS  ..................................................  28  
STEP  6:  STARTING  TO  SIDE  HUSTLE  .........  29      
STEP  7:  UNDERSTANDING  YOUR  MARKET
 .........................................................................  33  
STEP  8:  FREELANCER  OR  ENTREPRENEUR
 .........................................................................  36  
STEP  9:  BUSINESS  STRUCTURES  ................  38  
STEP  10:  BE  AWARE  OF  YOUR  EMPLOYER
 .........................................................................  41  
STEP  11:  SUSTAINABILITY  AND  
CONSISTENCY  ................................................  43  
STAGE  3:  PLANNING  YOUR  EXIT  .......  44  
STEP  12:  QUIT  OR  GET  LAID  OFF  ..............  45  
STEP  13:  OTHER  OPTIONS  FOR  ESCAPE  ..  48  

 
Preface      
 
So,  you  want  to  quit  your  job,  but  don’t  really  know  where  to  start?    Maybe  you  have  some  ideas  about  where  to  begin,  but  
worry  you  may  missing  something  important.    In  either  case,  you’re  not  alone.  
 
You’re  also  in  the  right  place.  
 
A  few  years  ago  I  started  my  first  real  side  hustle  and  got  my  first  taste  of  entrepreneurship.    And  it  tasted  good!    As  I’ve  been  
developing  my  multiple  incomes,  I  had  a  realization  –  entrepreneurship  is  more  of  a  calling  that  continuing  to  work  at  my  9  to  
5  day  job.      
 
These  days,  little  has  changed,  except  I’m  making  a  full  effort  to  beat  my  nine  to  five  day  job  so  that  I  can  become  a  
solopreneur.    And  I’ve  realized  I’m  not  the  only  one.    And  many  of  my  concerns  about  making  the  jump  to  self-­‐employment  are  
shared  by  many.      
 
I  learned  a  lot  of  people  want  to  quit  their  jobs  and  work  for  themselves.    Not  retire  early  –  this  isn’t  about  that.    Rather,  this  is  
about  creating  a  venture  that  can  support  you  and  your  family.      
 
That  is  what  this  book  and  website  is  about.  
 
The  idea  is  simple.    By  the  end  of  this  checklist,  you’ll  have  a  full  understanding  of  what  you  need  to  quit  your  job  and  become  
an  entrepreneur  that  can  support  your  family.    This  book  is  designed  as  a  checklist.    There  is  a  lot  you  need  to  do  before  you  
can  move  forward,  but  answering  honestly  will  help  you  understand  your  gaps  and  give  you  the  ability  to  focus  your  attention  
on  certain  aspects.      
 
The  goal  is  to  remove  the  mystique  of  entrepreneurship,  and  give  you  some  concrete  ways  to  actually  do  something  to  move  
towards  it.  
 
   

 
How  To  Use  This  Book  
 
This  book  is  designed  to  be  a   that  you  can  mark  on  tweets,  status    
checklist  that  people  looking  to  jump   updates,  or  other  social  media    
to  entrepreneurship  should  go   messages  you  want  to  post  about    
through  before  actually  quitting.       your  progress  so  far.         Before  You  Begin  
       
Teaching   Examples     While  many  examples  in  this  
Every  section  is  going  to  start  with  a   Where  it  makes  sense,  I’ve  included     book  are  from  Internet  
teaching  about  why  this  is  especially   examples  of  people  who’ve  done  a     entrepreneurs  and  
important  for  entrepreneurs  and   section  exceptionally  well.    Hopefully     solopreneurs,  it  is  completely  
solopreneurs.       these  examples  will  inspire  you  to     possible  to  make  the  jump  to  
  put  in  that  little  bit  extra  to  be     self-­‐employment  offline.      
Tasks/Worksheets   successful!      
This  section  will  explain  the  tasks  to       However,  the  risks  are  a  bit  
help  you  make  sure  that  you  are  set       different  in  that  regard,  so  
in  a  given  step  of  the  checklist.   While  this  book  has  been  designed  to     think  about  it  critically  at  the  
  be  used  as  a  checklist,  completion  of     appropriate  steps  of  the  
Notes   it  doesn’t  guarantee  entrepreneurial     checklist.      
In  this  section,  I’ll  give  you  a  few  tips   success.    The  goal  is  to  make  sure  you      
and  thoughts  from  my  own   have  the  fundamentals  in  place  so     The  goal  is  preparation  –  
experience  and  my  interactions  with   that  you  can  focus  on  ensuring  the     hopefully  this  book  will  help  
others  to  help  you  get  the  most  out  of   success  of  your  future  business.         you  prepare  for  your  goal  of  
the  tasks  or  worksheets.       being  a  self-­‐employed  
  If  you’re  working  full  time,     entrepreneur.      
Interact   entrepreneurship  is  difficult  to  jump    
An  important  part  of  becoming  an   right  into  without  adequate    
entrepreneur  is  interacting  with   preparation.    I  hope  this  checklist    
others  on  the  same  journey  as  you.     helps  you  prepare.        
Each  section  has  special  hashtags    

 
Stage  1:  Master  Your  Personal  Finance  
 
Before  you  embark  on  your  journey  of  entrepreneurship,  you  need  to  make  sure  that  your  personal  finances  are  in  order.    
While  this  step  isn’t  mandatory,  jumping  to  entrepreneurship  without  a  plan  with  significantly  diminish  your  chances  of  
success.    Mastering  your  personal  finances  means  having  a  balanced  budget,  fully  understanding  how  much  income  you  will  
need  to  support  you  and  your  family,  planning  for  taxes,  insurance,  and  retirement,  and  more.  
 
There  are  significantly  more  personal  finance  challenges  for  self-­‐employed  individuals  than  those  working  a  nine  to  five  job.    
Working  in  the  corporate  world,  your  company  will  provide  a  lot  of  resources  for  you  so  that  you  can  focus  on  your  job.    When  
you  become  self-­‐employed,  not  only  do  you  have  to  create  your  product  and  run  your  business,  but  you  also  have  to  become  an  
accountant,  human  resources  professional,  and  more.      
 
Furthermore,  being  self-­‐employed  can  mean  unreliable  income.    Some  months  may  be  amazing,  while  other  months  may  be  
challenging.    Budgeting  for  this  can  make  the  difference  between  being  self-­‐employed  for  life,  or  having  to  go  back  to  a  nine  to  
five  job  after  a  few  months.        
 
Let’s  get  started  with  several  personal  finance  areas  you  need  to  master  before  thinking  about  leaving  your  job.      
 
 
   

 
Step  1:  Emergency  Funds  
 
The  very  first  thing  you  need  to   impact  your  cash  flow:  late  payments   How  about  this:  how  long  can  you  
develop  is  an  emergency  fund  that   on  invoices,  you  getting  sick  and  not   live  off  your  savings  until  you  need  to  
can  sustain  you  should  you  need  it.   being  able  to  work,  etc.       go  back  and  get  a  job?    That’s  the  
    amount  you  need  to  save.      
What  is  an  Emergency  Fund?   In  all  of  these  situations,  people  with    
  an  emergency  fund  are  going  to  be  in   If  you’ve  develop  a  solid  business  
An  emergency  fund  is  a  stash  of  cash   better  financial  shape.   before  quitting  your  job,  you  
that  should  be  used  in  case  of     emergency  fund  will  be  substantially  
emergency.    It’s  not  there  to  be  your   The  bottom  line  is  that  an  emergency   lower  than  someone  who  is  starting  a  
savings  account,  and  you  shouldn’t   fund  is  essential.       venture  backed  business  that  isn’t  
use  it  for  monthly  expenses.    It’s  for     cash  flow  positive.      
emergency  use  only.       How  much  is  Enough?    
    Remember  the  Future  
Why  Self-­‐Employed  Individuals   This  is  one  of  the  most  controversial    
are  Different  When  It  Comes  to   questions  in  personal  finance,  and   Also,  make  sure  you’re  thinking  
Emergency  Funds…   there’s  really  no  consensus  on  how   about  the  future.    If  you  plan  on  
  much  is  enough.    The  reason  is  that   having  children  in  a  year,  your  costs  
If  you’re  self-­‐employed,  you  have  a   every  situation  is  different,  especially   are  going  to  rise,  so  ensure  that  you  
different  set  of  potential  emergencies   when  you’re  self-­‐employed.       include  this  as  part  of  your  equation  
you  need  to  consider  when  saving.         in  figuring  out  how  much  you  need.      
  For  entrepreneurs,  I  suggest  you    
First,  there  are  the  traditional   have  enough  in  your  emergency  fund    
emergencies:  injuries,  plumbing   to  be  able  to  get  your  project  off  the      
problems,  car  wrecks,  etc.   ground  and  sustain  it  until  it  can  
  sustain  you.    That’s  pretty  vague  
But  if  you’re  self-­‐employed,  you  also   though.      
have  to  deal  with  business    
emergencies  that  could  seriously  

 
Emergency  Fund  Worksheet    
 
While  we’re  going  to  talk  about  budgets  in  the  next  task,  it  is  important  to  simply  calculate  out  how  much  you  need  in  your  
emergency  fund  first.    The  reason  is  that  if  you’re  short  (which  is  fine,  since  this  is  a  checklist),  you  need  to  budget  in  additional  
savings  in  the  next  step.  
 
Here’s  a  basic  form  to  help  you  figure  out  your  emergency  fund  requirements.  
 
Emergency.Fund.Requirement
Expense Months
Monthly(Mortgage/Rent x 3/6/9/12
Monthly(Utilities x 3/6/9/12
Monthly(Car(Payment x 3/6/9/12
Other(Debt/Student(Loan(Payment
x 3/6/9/12
Utilities x 3/6/9/12
Transportation/Gas x 3/6/9/12
Groceries x 3/6/9/12
Entertainment x 3/6/9/12
Other(Expenses x 3/6/9/12
Total.Amount.Required =  
 
 
   

 
Notes  
  • Dave  Ramsey,  author  of  The    
A  lot  of  “experts”  have  said  a  lot  of   Total  Money  Makeover,  says      
things  when  it  comes  to  emergency   that  the  very  first  financial  
funds.       step  you  should  take  is  to  save  
  $1,000  in  an  emergency  fund.  
My  take  is  that  you  need  enough   • David  Bach,  author  of  The  
money  so  that  you  can  be  successful   Automatic  Millionaire,  
and  feel  comfortable.    You  don’t  want   recommends  three  months  of  
to  have  to  go  back  to  your  nine  to  five   living  expenses,  though  he  
job  after  six  months  simply  because   believes  more  is  better.  
you  didn’t  plan  ahead.        
  So  there  you  have  it.    The  choice  is  
Don’t  just  take  my  word  for  it.    Here   yours,  but  make  sure  that  you  feel  
are  some  of  the  various  opinions   comfortable  with  whatever  amount  
“experts”  have:     you  choose.      
   
• David  Chilton,  The  Wealthy   Interact  
Barber,  writes  “I  feel  that    
$2,000  to  $3,000  is  much   Figuring  the  right  amount  for  your  
more  realistic  than  $10,000.     emergency  fund  is  tough,  but  
If  you’re  afraid  that  and   countless  others  have  had  to  figure  it  
expensive  emergency  looms   out  as  well.    Gain  feedback  on  your  
in  your  future,  establish  a   thoughts  on  an  emergency  fund,  and  
credit  line  at  your  bank.”   see  what  others  are  doing  by  
• Jean  Chatzky,  author  of  You   updating  your  social  network  status  
Don’t  Have  to  be  Rich,   with  the  hashtag:  #QuitterStep1  
recommends  six  months  of    
living  expenses.       Don’t  be  shy  –  we’re  interested  to  
hear  what  you’re  thinking!    

 
Step  2:  Budgeting     can  plan  a  lot).    And  a  budget  is  only   That’s  one  example.    If  you’re  single,  
  as  good  as  the  inputs  into  it.       it  could  look  like  this:  
Budgeting  should  not  be  a  chore.    It     1. Me  
should  be  a  powerful  tool  to  help  you   If  you’re  not  open  and  honest  with   2. Business  
achieve  your  financial  goals.       yourself,  your  budget  will  fail  and   3. Friends  
  you  will  fail  financially.       4. Fun  
If  you’ve  never  made  a  budget  before,     5. Other  Stuff  
planning  for  self-­‐employment  is  a   A  Budget  is  About  Priorities    
great  time  to  start.    If  you  already     Regardless  of  your  priorities,  a  
keep  a  budget,  hopefully  you’ll  find   Every  budget  is  about  priorities  and   budget  can  help  you  make  sure  you  
some  things  useful  when  it  comes  to   trade-­‐offs.    Unless  you’re  making   balance  what  you  need.      
the  unique  financial  aspect  of  self-­‐ millions,  you’re  going  to  be    
employment.       perpetually  constrained  by  how    
  much  money  you  bring  in  versus     Important  Reminder  
What  is  a  Budget?   what  you  want  to  do  with  that      
  money.         As  much  as  you  want  to  think  
First,  let’s  not  skip  the  basics.    This  is       that  your  business  is  always  #1,  
important!    A  budget  is  a  financial   It’s  not  a  bad  thing  to  be  constrained,     it  can’t  be.    Even  if  you’re  single,  
plan  and  a  list  of  all  planned   but  you  should  clearly  identify  your     you  have  to  take  care  of  
expenses  and  revenues.    It’s  a  plan   priorities.         yourself  to  live.    Maybe  your  
for  saving,  spending,  and  borrowing.           business  is  #2,  but  for  many  
  Think  about  making  a  structure  like     I’ve  found  that  it  is  #3  or  #4  at  
Think  of  a  budget  as  a  plan  stated  in   this:     best.        
monetary  terms.       1. Wife    
  2. Kids   Remember,  work  to  live,  don’t  
It’s  purpose  is  really  only  to  provide   3. Me   live  to  work.  
a  forecast,  and  help  identify  costs.       4. Family  
  5. Friends  
A  budget  is  not  perfect.    It  cannot   6. Business  
predict  the  unplanned  (although  you   7. Fun  

 
Tracking  Income  and  Expenses   Then,  go  through  all  your  expenses     Go  Electronic!  
  from  the  last  three  months,  give  it  a      
Now  that  you  have  a  priorities  list,  it   name,  and  put  it  in  a  category.        Don’t  think  that  you  have  to  do  all  of  this  
is  important  that  you  start  tracking      budgeting  stuff  by  hand.    That  can  be  a  
your  income  and  expenses.    This  is   On  the  next  page  I  have  put  together    little  tedious.    While  a  lot  of  people  find  
probably  the  most  difficult  task  of   a  basic  tracker  that  you  can  use  that    it  valuable  to  use  a  spreadsheet,  it  can  
putting  a  budget  together,  but  also   includes  common  categories,  but  feel    also  be  helpful  to  use  an  automated  
the  most  helpful.       free  to  add  or  delete  from  the  list  if    program  to  help  you  setup  a  budget.      
  needed.      
I  suggest  that  you  start  by  getting  at      There  are  two  I  recommend:      
least  three  months  of  statements   For  your  convenience,  in  the  notes  I’ll      
from  all  your  accounts  –  checking,   highlight  where  you  can  find  some    1.  Mint  –  This  is  an  online  program  that  
saving,  credit  cards,  investing,  401k,   great  budget  spreadsheets  that  can    is  free!    You  simply  enter  all  your  bank  
etc.    Three  months  will  allow  you  to   match  your  needs.        accounts  and  it  downloads  your  
get  a  better  average  of  your  spending      transactions  and  categorizes  them  for  
over  time.          you.    You  may  have  to  make    some  
    adjustments,  but  it  is  quick  and  easy.  
When  making  a  budget,  it’s      
important  to  start  with  income.    This     2.  Quicken  –  This  is  desktop  software,  
may  sound  odd;  especially     and  ranges  in  price  from  $29.99  to  
considering  the  premise  of  this  book     $79.99.    However,  it  is  much  more  
is  quitting  your  job  (i.e.  giving  up  that     powerful  and  allows  much  more  
income),  bare  with  me.         accurate  tracking  of  investments  and  
    other  specialty-­‐type  accounts.    This  is  
I  suggest  that  you  start  by  writing     what  I’ve  used  for  years  and  would  find  
down  all  of  your  sources  of  income.       it  hard  to  budget  otherwise.      
Include  salaries,  side  hustles,  interest    
and  dividends,  and  whatever  else    
you  may  have.        
   

 
Budget  Worksheet    
 
Simple.Budget
Month&1 Month&2 Month&3
Income
Salary
Side&Hustle
Investment
Interest

Expenses
Mortgage
Electric
Gas
Water
Trash
Phone
Cable
Internet

Student&Loan
Car&Loan
Credit&Card

Car&Insurance
Gas

Food
Child&Care
Pets
Insurance
Spending&Money    

 
Engineering  Your  Goals
 
Now  that  you’ve  put  down  on  paper   That’s  why  I’m  telling  you  now  that   should  consider  finding  another,  less  
your  income  and  expenses,  it’s  time   you’re  going  to  have  to  remake  your   expensive,  vehicle  and  selling  the  one  
to  setup  your  goals  to  make  them   budget  –  probably  several  times.       you  currently  own.      
attainable.          
  The  best  way  to  work  a  budget  with  a   Once  you’ve  balanced  your  budget,  
There  are  a  few  things  you  should   goal  is  to  set  the  goal  and  work   you  can  start  going  after  real  goals.    
know  before  you  get  started:   backwards.   Your  first  real  goal  should  be  topping  
• You  will  overspend  in  a  few     off  the  emergency  fund  we  talked  
categories,  it’s  natural   Your  first  goal  should  always  be  to   about  in  Step  1.      
• You  could  get  de-­‐motivated   spend  less  than  you  earn.    If  you’ve    
• You  will  have  to  remake  your   put  all  your  income  and  expenses   Let’s  say  you  need  an  extra  $5,000  to  
budget   down,  and  it’s  not  adding  up,  you   make  sure  your  emergency  fund  is  
  need  to  look  at  where  you  can  cut.       really  where  you  need  it.    Let’s  also  
Just  because  you’ve  written  down     say  you’re  looking  to  jump  to  self-­‐
your  expenses  doesn’t  mean  you’re   Most  people  overspend  in  dining  and   employment  in  the  next  12  months.    
changing  habits.    You  just  have  a   food  categories,  which  also  happens   That  means  you  need  to  find  an  
better  sense  of  where  you  spend.    If   to  be  one  of  the  easier  ones  to  cut   additional  $417  per  month  to  save.  
you’ve  averaged  $500  in  food,  which   down  on.        
means  that  some  months  you  spend     Now,  you  have  two  choices.    You  can  
$400  while  other  months  you  spend   Another  common  expense  that   earn  an  extra  $417,  or  you  can  
$600.       people  have  relates  to  their  cars.     prioritize  your  spending  to  save  that  
  This  one  is  harder  to  cut,  but  if  you’re   additional  amount.    That’s  where  a  
Overspending  could  demotivate  you,   finding  yourself  in  the  red,  you   budget  comes  in  handy.      
but  don’t  get  discouraged!    I  will  
show  you  how  to  engineer  your  goals   Engineer  your  spending  goals  by  starting  backwards  
to  make  it  work.      
  and  following  your  priorities.  

 
     
Special  Considerations  For   Leveraging  Your  Budget   There  are  a  lot  of  budgeting  
Entrepreneurs     resources  out  there,  but  realize  that  
  Now  that  you’ve  setup  your  budget,   your  budget  will  be  unique  to  your  
If  you’re  planning  to  quit  your  job   you’re  going  to  need  to  leverage  it  for   needs.    Some  of  my  favorite  
and  become  self-­‐employed,  there  are   the  next  sections.       budgeting  tools  are  located  here:  10  
several  special  considerations  you     Free  Budget  Spreadsheets.  
need  to  take  when  building  your  next   Once  you’ve  really  grasped  your    
budget  and  setting  your  goals  for   income  and  expenses,  you’re  going  to   Interact  
self-­‐employment.       have  to  figure  out  how  you’re  going    
  to  replace  your  income  via  your   Share  your  progress  on  making  a  
First,  your  expenses  are  going  to  rise.     entrepreneurship  goals.       budget!    Use  the  hashtag  
We’re  going  to  cover  these  changes     #QuitterStep2  to  share  your  
next,  but  you  need  to  realize  that   For  some  of  you  this  can  be  easily   progress  or  ask  questions  if  you’ve  
when  you’re  working,  your  employer   done,  but  for  many  entrepreneurs   hit  a  stumbling  block.      
provides  a  lot  for  you.   and  small  business  owners,  it  can  be    
  challenging  because  of  irregular    
Some  things  to  consider  include:   income.    This  is  also  where  a  buffer      
• Taxes   can  come  in  handy  in  your  budget.      
• Insurance    
• Retirement     Notes  
   
By  becoming  self-­‐employed,  you’re   Putting  together  an  accurate  budget  
suddenly  going  to  have  to  provide  for   is  one  of  the  toughest  things  to  do  in  
all  these  things  yourself.       financial  planning.      
   
When  you  remake  your  budget   It  is  essential  that  you’re  honest  with  
before  you  become  self-­‐employed,   yourself  so  that  you  can  set  yourself  
get  estimates  for  what  these   up  for  success.      
expenses  are  going  to  be  for  you.    

 
Step  3:  Dealing  With  Taxes   What  Taxes  You’ll  Have  to  Pay    
     
Taxes  for  small  businesses  can  be   The  first  thing  to  understand  is  what    
very  complicated.    Entire  books  have   taxes  you’ll  have  to  pay  that  are     Professional  Advice  
been  written  about  the  best  tax   different  than  a  salaried  individual.          
structures  for  businesses,  and  it  is       Taxes  are  a  really  tough  subject.    
probably  one  of  the  biggest  questions   When  you  work  in  a  nine  to  five  job,     This  guide  is  meant  to  education,  
that  CPAs  deal  with.       you  probably  noticed  that  you  get  a     but  not  to  be  a  recommendation  
  bunch  of  taxes  withheld  from  your     on  any  particular  business  tax  
This  isn’t  designed  to  be  a  full  course   paycheck  every  two  weeks.         structure.  
on  small  business  taxation.    Rather,  I          
want  to  highlight  some  of  the  key   These  taxes  could  include:   If  you’re  wondering  which  
aspects  that  you’re  going  to  have  to   • Federal  Tax  Withholding   structure  is  best  for  your  
deal  with  as  a  self-­‐employed   • Social  Security  Withholding   business,  you  should  consult  an  
individual  versus  working  a  nine  to   • Medicare  Withholding     account  for  tax  implications  and  a  
five  job.       • State  Tax  Withholding   lawyer  for  legal  implications.  
  • Local  Tax  Withholding    
If  you’re  drawing  a  salary  from  your     Many  business  structures  have  
business  (because  you’re  setup  as  a   However,  you  may  not  have  realized   not  only  different  tax  costs  and  
corporation),  you  can  pretty  much   that  your  employer  actually  pays   benefits,  but  there  are  also  
ignore  this  section  since  the  nine  to   50%  of  your  Social  Security  and   various  legal  implications  to  
five  rules  apply.   Medicare  taxes.    When  you  become   certain  business  setups.      
  self-­‐employed,  you  are  now  subject    
The  big  thing  to  remember  is  that   to  paying  these  taxes  in  full  (since   Only  a  professional  can  help  you  
you’re  only  taxed  on  your  net   you’re  technically  the  employer  and   decide  which  is  best  for  you.      
income.    This  is  what  you’d  like  to   employee).      
take  home,  but  can’t  because  you    
need  to  budget  for  taxes.    You  may    
even  need  to  pay  taxes  quarterly,    
depending  on  your  situation.        

 
   
What  Does  This  Look  Like   Individual  Taxpayer  Chart  
   
Now  that  you  have  a  basic  understanding  of  what  the  self-­‐
employment  tax  structure  is,  here  is  what  it  looks  like  in  
practice  for  an  individual.      
 
 
Federal  Withholding  (see  charts  at  right):  
-­‐ 10%  
-­‐ 15%  
-­‐ 25%  
-­‐ 28%    
-­‐ 33%    
-­‐ 35%   Married  Taxpayer  Chart  
-­‐ 39.6%    
 
Social  Security  Withholding:  12.4%  
 
Medicare  Withholding:  2.9%  
 
State  Taxes  (see  chart  on  next  page):  4%  (average)  
 
 
**  It  is  noteworthy  that  you  currently  can  deduct  50%  of  
your  self-­‐employment  tax  (15.3%),  which  can  give  you  a  
little  break  on  your  total  taxes.    
 
 
   
 
 

 
State3Average3Income3Tax3Rates
Alabama 4% Hawaii 7% Massachusetts3 5.25% New3Mexico 3.60% South3Dakota 0%
Alaska 0% Idaho 5% Michigan 4.35% New3York 6% Tennessee 6%
Arizona 3.52% Illinois 5% Minnesota 6.75% North3Carolina 7% Texas 0%
Arkansas 4% Indiana 3.40% Mississippi 4% North3Dakota 3.02% Utah 5%
California 5.80% Iowa 4.92% Missouri 3.80% Ohio 3.42% Vermont 7.18%
Colorado3 4.63% Kansas 5.40% Montana 4% Oklahoma 2.60% Virginia 4%
Conneticut 5.45% Kentucky 4% Nebraska 4.52% Oregon 8% Washington 0%
Delaware 4.70% Louisiana 4% Nevada 0% Pennsylvania 3.07% West3Virginia 5%
Florida 0% Maine 5.50% New3Hampshire 5% Rhode3Island 4.83% Wisconsin 6.40%
Georgia 4% Maryland 4% New3Jersey 4.60% South3Carolina 4% Wyoming 0%  
• For  states  with  multiple  tax  rates,  the  average  tax  rate  of  all  brackets  was  used.      **  These  rates  current  as  of  2012  
 
 
So  now  that  you  have  some   In  the  $30,000  business,  you’d  pay   In  the  $50,000  business,  you’d  pay  
understanding  of  what  tax  rates  look   the  following:   the  following:  
like,  let’s  run  through  some  common      
scenarios.       Federal  Taxes:  $4,053.75   Federal  Taxes:  $8,428.75  
  Social  Security:  $3,720   Social  Security:  $6,200  
Let’s  say  run  4  different  businesses,   Medicare:  $870   Medicare:  $1,450  
each  that  net:   State  Taxes:  $1,200   State  Taxes:  $2,000  
• $30,000      
• $50,000   Total  Taxes  Paid:  $9,843.75   Total  Taxes  Paid:  $18,078.75  
• $75,000      
• $100,000   That  is  a  total  effective  tax  rate  of   That  is  a  total  effective  tax  rate  of  
  32.81%.       36.16%.      
     
     

 
In  the  $75,000  business,  you’d  pay   I  hope  you’re  starting  to  see  the   Taxes  and  Your  Budget  
the  following:   trend  emerging  here.    As  you    
  continue  to  earn  more  in  your  self-­‐ Now  that  you  have  a  basic  
Federal  Taxes:  $14,678.75   employment,  you’ll  have  to  pay  more   understanding  of  the  taxes  you’ll  
Social  Security:  $9,300   to  the  government  as  a  percentage  of   have  to  pay  while  self-­‐employed,  it’s  
Medicare:  $2,175   your  income.   time  to  look  back  at  your  budget.  
State  Taxes:  $3,000      
  That’s  why  many  tax  experts   If  you  want  to  take  home  the  same  
Total  Taxes  Paid:  $29,153.75   recommend  self-­‐employed   income  that  you’re  currently  
  individuals  save  50%  of  their  net   bringing  in  via  a  salary,  you’re  going  
This  is  a  total  effective  tax  rate  of   income  in  a  “tax  account”  so  that  they   to  have  to  earn  roughly  10%  more  
38.9%.     will  always  have  enough  money   than  you’re  currently  making.  
  available  to  be  able  to  pay  their  tax    
Finally,  in  the  $100,000  business,   bills.       This  is  because  you’re  going  to  have  
you’d  pay  the  following:     to  pay  7.65%  more  taxes  than  you’re  
  Just  for  comparison,  if  you  were   currently  paying,  PLUS  you’re  going  
Federal  Taxes:  $21,293.25   working  and  had  a  salary  of   to  have  to  pay  regular  taxes  on  the  
Social  Security:  $12,400   $100,000,  your  total  taxes  paid   additional  income  you’re  working  on  
Medicare:  $2,900   would  only  be  $32,943.25,  which  is  a   to  make  up  the  difference!      
State  Taxes:  $4,000   savings  of  $7,650.        
    Interact  
Total  Taxes  Paid:  $40,593.25   Just  one  of  the  many  joys  of  being    
  self-­‐employed!       Join  the  discussion  on  small  business  
This  is  a  total  effective  tax  rate  of     taxation.    Share  your  thoughts  on  
40.59%.         social  media  using  the  hashtag  
    #QuitterStep3  
  You  have  to  earn  10%  more     being  self-­‐employed  to    
       
  earn  the  same  amount    you  would  on  salary.  
   

 
Step  4:  Insurance   Look  For  Options  First   Health  Insurance  
     
Another  area  where  self-­‐employed   Before  I  get  into  the  details  of  finding   There  are  three  main  ways  to  go  
individuals  have  to  go  out  on  their   insurance  when  self-­‐employed,  I   about  getting  health  insurance  when  
own  is  with  insurance.       want  to  remind  you  that  you  may   you’re  self-­‐employed:  
  have  options  when  making  the   1. Join  a  Professional  Group  
When  you  work  for  a  company,  you   transition.       2. Buy  Your  Own  Policy  
typically  get  a  cafeteria  plan  where     3. Start  Your  Own  Group  Plan  
you  can  choose  a  variety  of  different   I’ll  cover  this  more  in  Section  3  –    
insurance  options.       Planning  Your  Exit,  but  I  want  to   First,  many  professional  groups  put  
  highlight  that  you  may  be  able  to  get   together  group  insurance  policies  
Depending  on  your  needs,  this  can   continuing  benefits  from  your   that  they  offer  their  members.    For  
include:   current  employer.   example,  The  National  Association  
• Health     for  the  Self-­‐Employed  and  The  
• Dental   You  may  also  be  able  to  get  on   Freelancers  Union  are  two  
• Vision   someone  else’s  insurance.    If  you’re   organizations  that  offer  insurance  to  
• Short-­‐Term  Disability   married  and  your  spouse  works,  you   their  members.  
• Long-­‐Term  Disability   could  be  on  that  plan.    If  you’re  under    
• Life  Insurance   26,  you  can  join  your  parent’s  plan.       If  you’re  over  50,  the  AARP  also  
    offers  insurance  to  its  members.    
What  may  surprise  you,  as  you   If  you  don’t  have  any  options,  that’s   Also,  if  you’re  a  member  of  Costco,  
transition  towards  self-­‐employment,   okay.    We’ll  cover  what  you  need  to   they  offer  health  insurance  in  several  
is  that  employers  typically  cover   know.    Realize,  that  even  if  you  have   states.      
about  70%  of  the  cost  of  insurance.     options,  it’s  good  to  budget  for  the    
That  means  that  your  payroll   true  cost  of  insurance  anyway.       The  next  option  is  to  just  buy  your  
deductions  are  really  only  about  30%     own  insurance  policy  on  the  open  
of  the  true  cost  of  insurance.         market.    If  you  are  in  good  health,  
    you’d  be  surprised  that  many  policies  
    offer  good  coverage  at  competitive  
    prices.      

 
You  can  compare  a  variety  of   amount  in  your  emergency  fund  that   Dental  
insurance  options  at  healthcare.gov   you  setup  in  Step  1.        
or  at  healthcompare.org.         Dental  is  much  more  affordable,  so  
  Finally,  depending  on  your  business   even  if  you’re  self-­‐employed,  you’re  
When  looking  at  health  insurance,   setup,  you  could  setup  a  small   not  going  to  pay  much  more  than  you  
you  need  to  look  at  three  key  aspects:   business  group  plan.    If  you  hire  an   would  at  your  old  employer.  
1. Monthly  Premiums   employee,  you  could  become  eligible.      
2. Deductibles   Many  self-­‐employed  small  business   You  can  buy  dental  plans  directly,  or  
3. Out  of  Pocket  Maximum   owners  hire  their  spouses,  and  by   through  professional  groups  as  
  doing  so,  can  get  a  group  health   mentioned  earlier.    Costco  also  does  
The  variation  on  these  three  metrics   insurance  policy.   offer  dental  to  its  members  as  well.      
is  what  decides  your  overall  cost.          
  Hiring  an  employee  requires  a  lot  of   You  can  expect  to  pay  about  $20  for  
If  you’re  in  excellent  health  and  use   other  structures  in  place,  including   an  individual  and  $40  for  a  family  per  
little  healthcare,  you  may  want  to  get   specific  business  types,  so  make  sure   month.      
a  plan  with  low  monthly  payments.       that  you  consult  with  a  tax  and  legal    
However,  the  lower  the  monthly   professional  before  going  this  route.   Vision  
payments,  the  higher  the  deductibles,      
so  if  you  do  need  care,  you’ll  pay   While  it  could  save  you  money,  it   Vision  coverage  is  very  similar  to  
more.       could  also  cost  you  a  lot  more  money   dental.    You’re  going  to  pay  about  
  if  you  don’t  do  it  correctly!       $15  per  month  for  an  individual,  or  
Always  look  for  plans  with  an  out  of     about  $30  per  month  for  a  family.  
pocket  maximum  of  no  more  than   The  bottom  line  is  that  if  you’re  in    
$5,500.    You  can  get  a  lot  of  great   good  health,  you’re  probably  going  to   Vision  care  isn’t  that  expensive,  so  
plans  in  this  range.   pay  about  $400  per  month  in   you  may  not  even  want  to  get  
  insurance  premiums,  not  counting   insurance  coverage  if  you  don’t  
Remember,  that  is  also  the  most   any  office  visits  you  may  have.    Make   typically  buy  glasses  or  contacts  
you’ll  pay  each  year  for  healthcare,   sure  you  add  that  into  your  budget.       regularly.      
so  make  sure  you  have  at  least  that      
   

 
Disability  Insurance     once  per  second.    In  fact,  nearly   have  a  policy  premium  of  around  
  18.5%  of  Americans  are  currently   $125  per  month.      
Disability  insurance  is  a  tough  one   living  with  a  disability.    
for  many  self-­‐employed      
entrepreneurs…    It  is  probably  the   That  should  be  a  real  wake-­‐up  call  to    
most  overlooked  insurance  product,   entrepreneurs  and  solopreneurs.      
but  also  probably  one  of  the  most   Given  that,  when  you’re  self-­‐   Short  vs.  Long  Term  Policies  
important.       employed,  you  personally  are  your      
  sole  source  for  income  (and  possibly    -­‐  Short  Term  policies  are  typically  for  
Disability  insurance  is  designed  to   for  your  family),  ensuring  that  you    period  of  less  than  90  days  
provide  a  certain  level  of  income   protect  that  income  source  is      
should  some  type  of  disability   essential.    -­‐  Long  Term  policies  are  typically  for  
prevent  you  from  working.      periods  of  2  to  5  years    
  Since  accidents  can  happen  at  any    
Typically,  the  policies  will  replace   time,  you  don’t  want  something   -­‐  Both  types  of  policies  have  waiting  
anywhere  from  40-­‐80%  of  your   outside  of  your  control  impairing   periods  before  the  insurance  
income,  depending  on  how  much  of  a   your  ability  to  earn  money  and   company  will  pay  the  monthly  
premium  you’re  willing  to  pay.       provide  for  your  family.       payment  to  replace  your  income.    A  
    short-­‐term  policy  is  typically  7  days,  
Examples  of  disabilities  that  this  type   However,  disability  insurance  isn’t   while  a  long-­‐term  policy  is  typically  
of  insurance  covers  includes:   cheap,  and  that  is  why  it  slips  by  a  lot   90  days.    This  is  where  an  emergency  
physical  illness  or  condition  and   of  self-­‐employed  individuals.   fund  can  very  useful.  
mental  illness  or  disorders.    This  can    
be  as  basic  as  a  bad  illness,  like   On  average,  you  can  expect  to  pay  1-­‐
pneumonia,  to  something  more   3%  of  your  annual  salary  towards  
permanent,  like  a  car  accident  that   your  disability  insurance  premiums.      
causes  paralysis.        
  If  you  want  to  replace  80%  of  your  
Statistics  show  that,  in  the  United   $50,000  income,  you  would  probably  
States,  a  disabling  accident  occurs  

 
Life  Insurance   types  of  insurance  we’ve  already   nest  egg.    That  means  if  you  die,  your  
  discussed.       passing  won’t  financially  impact  your  
Life  insurance  is  another  one  of  those     family.      
insurance  policies  that  nobody  likes   When  considering  life  insurance,    
to  talk  about  but  is  vitally  important.     there  is  only  one  type  of  policy  you   So,  how  much  life  insurance  do  you  
Death  happens…  Let’s  face  facts.       should  look  at:  term  life  insurance.       need?    It  really  depends  on  your  
    expenses  and  the  income  you’re  
Now,  how  can  you  protect  your   Term  insurance  is  the  most  pure   trying  to  replace.      
family  if  you’re  a  self-­‐employed   form  of  insurance,  and  works  best  for    
entrepreneur  and  die?    That  is  why   most  situations.    Just  like  it  sounds,  it   I  prefer  to  look  at  life  insurance  from  
life  insurance  is  so  important.       provides  a  set  amount  of  death   the  expense  side.    I  would  take  all  of  
  benefit  over  a  certain  term.       your  debts,  and  then  add  it  to  10  
If  you’re  single  and  have  nobody  that     years  of  expenses.    This  is  probably  a  
relies  on  your  income,  you  can   For  example,  you  can  purchase  a   good  estimate  of  how  much  
probably  skip  over  this  part.    You   $1,000,000  policy  for  30  years.    That   insurance  you  need.      
don’t  really  need  life  insurance  at   means  if  you  die  within  30  years,    
this  stage,  but  you  may  want  to  read   your  beneficiaries  will  receive   For  example,  if  you  have  a  $200,000  
on  because  things  do  change.       $1,000,000.       mortgage,  and  your  annual  expenses  
    are  about  $30,000,  you  should  
If  you  do  support  a  wife  and  kids   The  premise  of  “the  term”  is  that  it   probably  get  a  $500,000  life  
with  your  self-­‐employed  income,  or   lasts  long  enough  to  get  you  through   insurance  policy.      
plan  to,  it  is  important  that  you  have   to  the  point  where  your  family  won’t    
a  life  insurance  policy  as  a  back-­‐up   rely  on  your  income.    30  years  works   Why  10  years?    Well,  grieving  takes  
plan  in  case  something  happens  to   well  for  many,  because  if  you  get  it  in   time.    Do  you  want  to  force  your  
you.       your  late  20s,  early  30s,  it  will  last   family  to  have  to  make  major  life  
  into  your  late  50s  or  early  60s.       changes  in  a  year?    Two  years?    You  
The  great  thing  about  life  insurance     just  don’t  know…  
is  that  it  is  relatively  cheap,   By  that  point  in  your  life,  your  kids    
especially  compared  to  the  other   will  have  grown  up,  and  you’ll   This  is  a  good  time  to  err  on  the  side  
hopefully  already  amassed  a  nice   of  caution.      

 
The  other  approach  to  life  insurance   Notes   Interact  
is  to  look  at  the  income  you’re  trying      
to  replace.    If  you  make  $50,000  per   Figuring  out  your  individual   Once  you’ve  looked  at  the  insurance  
year,  take  that  salary  and  multiple  it   insurance  needs  can  be  tough.    And   options  that  best  suit  your  needs,  
by  10  years.    It  also  gets  you  to  a   you  may  not  think  that  getting   share  them.    Start  a  conversation  
$500,000  life  insurance  policy.       insurance  is  necessary.   with  us  and  other  future  self-­‐
    employed  individuals  by  using  the  
I’m  not  as  much  of  a  fan  of  this   Well,  the  point  of  insurance  is  to   hashtag  #QuitterStep4.    
approach  since  income  is  variable,   prepare  for  the  unexpected.    So,  cross    
while  many  expenses  are  fixed.    If   your  fingers  you  never  need  to  use  it.      
you  can  eliminate  debt  with  the  life   But,  should  you  ever  find  yourself  in      
insurance  payout,  you  can  also  lower   a  situation  when  you  do,  you’re  going  
expenses  in  the  future.       to  be  unbelievably  thankful  that  you  
  put  the  time  in  upfront  to  plan  for  it.  
So,  how  much  can  you  expect  to  pay    
for  life  insurance?    Well,  for  a  healthy   Speaking  of  time,  insurance  only  
male,  you  will  probably  pay  about   takes  a  little  bit  of  time  to  setup.    
$100  per  month  for  a  $1,000,000   Once  you  have  your  policies  in  place,  
term  life  insurance  policy.   you  never  have  to  think  about  them  
  again.  
This  is  more  than  you  would  have    
paid  with  a  group  policy  with  your   This  is  a  great  step  to  take  before  
employer,  but  it’s  relatively  a  small   even  making  the  jump  to  self-­‐
price  to  pay  to  protect  your  family.       employment.    You  can  easily  get  life  
  insurance  and  disability  insurance  
If  you  want  to  know  more  about  life   before  becoming  self-­‐employed.    You  
insurance,  check  out  the  Life   can  also  do  your  research  on  the  best  
Insurance  Movement.     health  insurance  plans  for  you  and  
  your  family.      
   

 
Step  5:  Retirement  Planning   These  are  all  questions  you  have  to   any  retirement  plans  for  your  
  ask  yourself…   business.      
Finally,  the  last  thing  you  need  to      
consider  when  thinking  about  self-­‐ But,  for  now,  let’s  stick  to  the   SEP-­‐IRA  
employment  is  retirement  planning.   financial  side  of  retirement  planning.        
    The  SEP-­‐IRA  is  the  go-­‐to  retirement  
For  some,  this  will  be  decades  away.     The  bottom  line  is  that  you  have  to   savings  account  for  one-­‐man  
For  others,  it  could  be  close  –  within   save  for  your  own  retirement  when   businesses.    If  you’re  a  self-­‐employed  
a  few  years.       you’re  self-­‐employed.    There  is  no   entrepreneur,  this  can  be  a  good  
  company  that  can  help  you.    So  you   choice  for  you.  
Retirement  is  a  tough  one  for  the   need  to  setup  systems  early  to  help    
self-­‐employed  for  several  reasons.       you  save  for  retirement.       You  can  contribute  up  to  as  much  as  
    25%  of  your  net  income,  up  to  a  
First,  it’s  another  area  that  an   Options  for  Saving  for  Retirement   maximum  of  $49,000.      
employer  typically  took  care  of  the      
bulk  of  the  work  for  you.      An   The  great  thing  about  being  self-­‐ The  great  thing  about  this  is  that,  like  
employer  would  have  a  401k  plan,  or   employed  is  that  you  actually  have  a   any  other  IRA,  you  have  until  April  
maybe  a  pension,  and  would   lot  of  options  when  it  comes  to   15  to  fund  your  account.    That  means  
automate  the  process  of  saving  for   vehicles  for  saving  for  retirement.       you  can  file  your  taxes,  and  make  a  
retirement.         larger  contribution  to  trim  your  tax  
  The  main  options  are:   bill.      
Second,  there  is  a  business  aspect  to   • SEP-­‐IRA    
retirement  –  if  you  are  your  business,   • Solo  401k   Another  huge  plus  is  that  
what  happens  when  you  retire?     • SIMPLE  IRA   contributing  to  a  SEP-­‐IRA  won’t  
Does  your  business  die?    Are  you     interfere  with  your  contributions  to  a  
going  to  sell  it?    Is  your  business   Once  again,  this  isn’t  tax  advice,  and   401k  plan.    That  means  if  you’re  
setup  so  it’s  on  autopilot  and  you  just   some  of  these  options  require  special   starting  your  business  on  the  side  
have  to  check  in  from  time  to  time?       business  structures,  so  make  sure   while  working  full  time,  you  can  still  
  that  you  consult  with  both  a  lawyer   take  advantage  of  your  employer’s  
and  an  accountant  before  setting  up  

 
plan  while  building  your  own   Because  of  the  high  contribution   SIMPLE-­‐IRA  
business.       limits,  this  plan  is  best  for    
  entrepreneurs  who  make  a  lot  and   Finally,  the  third  option  is  the  
The  only  drawback  to  the  SEP-­‐IRA  is   are  able  to  save  it.       SIMPLE-­‐IRA.    This  is  also  known  as  
if  you  ever  hire  employees.    The  IRS     the  Savings  Incentive  Match  Plan  for  
views  the  money  you  put  into  the   There  will  typically  be  fees   Employees.      
SEP-­‐IRA  as  an  employer   associated  with  setup  and  annual    
contribution,  so  if  you  hire  workers,   maintenance,  but  they’ll  be  low  for  a   This  is  the  ideal  plan  for  businesses  
you  have  to  contribute  the  same   small  business  or  self-­‐employed   that  have  employees  and  want  to  
amount  to  their  SEP-­‐IRAs  too.     business.       offer  them  a  plan  as  a  perk  (that  you  
However,  for  the  solopreneur,  this     can  also  possibly  take  advantage  of).      
doesn’t  really  matter       Also,  just  like  a  regular  401k,  you  can    
  always  borrow  from  your  Solo  401k,   This  is  designed  for  small  businesses,  
Solo  401k   although  it’s  not  recommended.       mandatory  less  than  100,  but  ideally  
    less  than  10.      
The  Solo  401k  can  be  a  good  choice   The  biggest  drawbacks  of  the  Solo    
for  business  owners  who  have   401k  are  that  only  the  self-­‐employed   You  can  make  contributions  of  up  to  
significant  earnings  they  want  to   business  owner  and  a  spouse  can   $11,500  pretax,  or  $14,000  if  you’re  
save.       participate.       50  or  older.    There  aren’t  any  income  
    restrictions,  and  your  contributions  
With  a  solo  401k,  as  an  employee,   Also,  if  you  have  a  401k  at  your  nine   are  tax  deductible.  
you  can  save  $16,500.    Then,  as  the   to  five  job,  you  may  already  be    
employer,  you  can  contribute   contributing  the  max.    The  IRS  limits   Inside  the  account,  your  investments  
another  25%  of  compensation,  up  to   apply  to  all  401k  contributions,  so  if   grow  tax  deferred,  just  like  any  other  
a  maximum  of  $49,000.    Then  there’s   you’re  depositing  $16,500  at  work,   IRA.      
the  catch-­‐up  contribution  if  you’re  50   you  can’t  deposit  any  more  being    
or  older,  which  is  another  $5,500.     self-­‐employed.       As  the  employer,  you’re  generally  
That  means  you  can  save  a  total  of     required  to  match  the  employee  
$54,500  in  a  Solo  401k  per  year.         contribution  up  to  3%  of  the  
    employee’s  salary  dollar-­‐for-­‐dollar.    

 
This  can  make  it  burdensome  for   that  steady  income  and  make  sure    
small  firms.       that  you  save  for  the  future.        
     
You  should  also  note  that  this  plan   Yes,  you  have  Social  Security,  but    
isn’t  for  side  jobs.    You  can’t   each  year  the  benefits  are  less  and    
contribute  to  the  plan  if  you’ve   less,  and  the  age  to  start  gets  higher    
already  maxed  out  employee   and  higher.          
contributions  to  a  401k  at  your  day    
job.       If  you’re  young  now,  the  best  thing  
  you  can  do  is  start  saving  for  
Notes   retirement.    And  there  is  no  better  
  way  to  do  it  than  with  these  
Many  entrepreneurs  and  small   retirement  account  options.      
business  owners  dismiss  saving  for    
retirement.       Not  only  do  you  save,  but  also  you  
  can  lower  the  taxes  that  you  would  
In  fact,  when  I  interviewed  several   pay  for  your  business.    It  is  win-­‐win.    
high-­‐profile  self-­‐employed  bloggers,    
several  of  them  said  they  were   Interact  
postponing  saving  for  retirement.        
  Have  you  started  saving  for  
I’m  a  firm  believer  that  it  isn’t  a   retirement  with  your  side  hustle?    If  
smart  move  to  NOT  save  for   so,  share  your  story  with  us  using  the  
retirement.    You  can  work  your   hashtag  #QuitterStep5.      
hustle,  and  you  may  never  make  it    
huge.        
   
There  is  nothing  wrong  with  being    
self-­‐employed  and  making  steady    
income.    You  just  have  to  budget  with    

 
Stage  1  Recap:  Putting  All  The   The  Numbers:  Added  Costs  of   Other  Expenses  To  Keep  In  Mind  
Financial  Costs  Together   Being  Self-­‐Employed    
  Another  thing  to  keep  in  mind  is  that  
  When  you  quit  your  day  job,  you  can   amount  you  need  is  net  expenses.    As  
Wow,  that  was  a  lot  of  personal   reasonably  expect  to  pay  the   such,  you  may  need  to  gross  much  
finance  for  an  “entrepreneurial”   following:   more,  depending  on  how  many  
checklist…but  I  hope  you  see  the   • Taxes:  Add  7.65%   expenses  your  business  will  have.  
value  in  really  assessing  your  own   • Health  Insurance:  $400-­‐  
finances  before  moving  to  self-­‐ $1,000  per  month   One  of  the  perks  of  running  a  web-­‐
employment.       • Dental  Insurance:  $20  per   based  business  is  that  expenses  are  
  month   very,  very  low,  relatively.    The  
If  your  dream  is  to  beat  the  nine  to   • Life  Insurance:  $100  per   biggest  expense  is  typically  your  own  
five  and  be  a  solopreneur,  you  can   month   time.      
shatter  your  own  dream  very  quickly   • Disability  Insurance:  $125  per    
if  you  don’t  master  these  basic   month   Keep  this  in  mind  as  we  move  
personal  finance  skills.       • Saving  For  Retirement:  Add   through  the  next  stages.  
  5%  
But  it’s  even  more  important  to  look    
at  how  your  expenses  change  when   If  you  bring  home  $100,000  with  
you  become  an  entrepreneur  and   benefits  at  your  nine  to  five  job,  you  
work  for  yourself.       will  realistically  need  to  earn  about  
  $120,000  in  self-­‐employment  to  
bring  home  roughly  the  same  
amount.      
 

 
 

Stage  2:  Developing  Your  Business  


 
Congratulations  on  making  it  through  Stage  1.    Making  sure  that  you  have  the  fundamentals  in  place  is  the  best  way  to  make  
sure  you’re  able  to  succeed  in  developing  your  business.      
 
Stage  2  is  all  about  having  the  basic  tools  in  place  to  develop  your  business.    I  should  also  note  that  this  is  about  developing  
your  business  on  the  side  of  a  main  nine  to  five  job.    Remember,  the  goal  is  to  eventually  beat  your  nine  to  five  job  and  become  
a  self-­‐employed  entrepreneur.  
 
To  do  that,  you  need  to  develop  your  business  while  working.    In  this  section,  I  want  to  cover  some  key  skills,  like  starting  your  
side  hustles,  understanding  the  bigger  market  for  your  audience,  looking  at  the  difference  between  a  freelancer  and  an  
entrepreneur,  and  finally  getting  into  some  nitty  gritty  legal  stuff.  
 
The  goal  after  this  stage  is  that  you’ll  understand  where  you  are  in  developing  a  business  so  you  can  get  to  Stage  3  –  Planning  
Your  Exit.      
 
Hopefully  you’ll  see  that  this  stage  is  critical.    But  it’s  also  the  vaguest.    There  is  no  right  or  wrong  way  to  develop  your  
business.    I  can’t  tell  you  want  will  and  won’t  be  successful.    I  can  only  help  you  develop  strategies  to  help  you  grow  your  
business  while  you’re  working  full  time.      
 
Let’s  dive  in!  
 
 
   

 
 
Pretty  soon,  you’ve  got  40  clients  and    
Step  6:  Starting  to  Side  Hustle   months  worth  of  work.          
      Note:  There  are  2  Kinds  of  
Beating  the  nine  to  five  workweek   This  is  the  time  when  you  have  to     Entrepreneurs  
and  becoming  an  entrepreneur   make  a  decision…do  I  make  the  jump      
typically  means  you’re  going  to  side   to  self-­‐employment  or  continue  to     I   j ust   wanted   t o   chime   in  h  ere  to  
hustle  to  make  things  happen.       side  hustle?       note  that  there  are  two  different  
    kinds  of  entrepreneurs:  
What  is  a  Side  Hustle?   Only  you  can  make  that  decision,  but   1. Those  who  build  businesses  
  hopefully  continuing  through  this   while  working  
A  side  hustle  can  be  anything  –   checklist  will  build  you  some   2. Those  whose  only  job  is  
anything  that  makes  money  on  the   confidence.   building  businesses  and  
side  of  your  normal  job.    This  is  how     engaging  in  start-­‐ups  
99%  of  workers  turned   How  Do  I  Get  Started  Side   The  Quitters  Checklist  is  targets  
entrepreneurs  start.    They  create   Hustling?   towards  #1  –  people  who  have  jobs  
something  outside  of  work,  build  it,     and  are  looking  to  quit.  
grow  it,  and  then  make  the  leap  to   For  some  readers,  maybe  the  leap  to    
doing  it  full  time.       self-­‐employment  is  appealing,  but   #2  may  find  some  of  this  useful,  
  you  don’t  have  a  side  hustle  yet.   but  they  usually  already  have  a  
Many  side  hustles  are  passions     smorgasbord  of  ideas  and  are  
turned  businesses.    For  example,   That’s  okay  as  well!    We’re  here  to   looking  for  ways  to  make  them  big.      
maybe  you  enjoy  fiddling  with   help  you  find  your  passion,  see  if  you    
websites  in  your  spare  time.    Then,   can  build  a  business  out  of  it,  and   Don’t  fret  –  I’m  a  believer  that  
your  friend  finds  out,  wants  you  to   make  a  side  hustle  turn  into   more  #1’s  build  long-­‐term  success  
help  them,  and  you  build  them  a   entrepreneurship!       than  #2’s,  simply  because  of  
gorgeous  website.    Soon,  your  friend     patience  and  planning.      
tells  two  other  business      
acquaintances,  and  through  word  of    
mouth,  your  service  starts  to  grow.      

 
Task:  Figuring  Out  a  Side  Hustle   Here’s  a  simple  list  I  put  together:   4. I  like  teaching  others  about  
  1. Money/Finance   money  and  finance  
This  is  a  task  a  lot  of  beginners   2. Entrepreneurship   5. By  helping  others,  I  can  help  
struggle  with.    If  you’re  already  side   3. Leadership   them  experience  what  I  get  
hustling  and  looking  for  more,  skip  to   4. Integrity   from  money  
Step  7.    Otherwise,  here  is  a  nice   5. Sex    
framework  to  start  figuring  out  a  side   6. Action  Movies   That  may  sound  pretty  generic,  but  it  
hustle  for  you.       7. Building  Things   can  give  you  some  great  insight.      
  8. Food    
If  you  don’t  have  a  side  hustle  and     If  I  were  to  do  the  same  thing  for  #6  
want  to  start  something,  I  highly   I  hope  you  can  see  that  the  list  can  be   Action  Movies,  it  could  be  something  
suggest  finding  something  you’re   anything.    It  can  be  things,  it  can  be   like  this:  
passionate  about.       ideas.    The  goal  isn’t  to  come  up  with   1. They  keep  me  entertained  
  a  definitive  idea,  but  rather,  to  see   2. My  favorite  movies  of  all  time  
There  has  always  been  a  perpetual   what  you’re  passionate  about.       are  action  movies  
debate  between  passion  and  profit  –     3. I  like  talking  to  others  about  
can  you  have  both?    I  believe  you  can,   After  you  have  your  list  of  7-­‐10   the  movies    
with  some  exceptions  and   things  you’re  passionate  about,   4. …  
limitations.       choose  the  first  one  and  break  down   5. …  
  5  more  things  that  emotionally  call    
To  start,  on  a  piece  of  paper,  or  using   you  to  it.    (Notice  I  didn’t  choose  #5   When  doing  this  for  action  movies,  I  
some  mind  mapping  software  (see   for  this  exercise).       could  really  think  of  anything  else  for  
Notes),  write  down  7-­‐10  things  that     4  or  5.    That’s  okay  too!  You  learn  
you’re  passionate  about.    They  can  be   Money/Finance:   something  from  that  as  well.      
anything  –  seriously.       1. I  like  it    
  2. Other  people  like  it   If  you’re  finding  you  can’t  fill  in  five  
Don’t  be  shy,  be  honest  with  yourself   3. A  lot  of  people  don’t  know  a   sub-­‐topics  for  your  main  passions,  
about  things  you  love  and  are   lot  about  how  money  and   you  might  want  to  go  back  and  look  
passionate  about.       finance  things  work   at  your  passions  again,  and  re-­‐
  evaluate.  

 
Now  that  you  have  a  good  idea  of   Anyone  can  do  anything,  but  how   I’m  not  going  to  re-­‐invent  the  wheel  
your  passions,  and  have  elaborated   will  you  profit?   on  finding  your  unique  selling  
on  them,  can  you  think  of  businesses     proposition,  so  instead,  check  out  
around  those  ideas  that  you  would   This  is  the  exception  to  follow  your   this  link  to  Think  Traffic’s  Guide  To  
enjoy  doing?   passion.    Passions  are  great,  but  what   Finding  Your  Unique  Selling  
  are  you  going  to  do  to  convert  your   Proposition.      
Going  back  to  mine  around   love  of  something  into  profit.        
Money/Finance:     Finally,  I  would  note  that  even  if  you  
1. Build  a  blog  around  what  I’m   If  you’ve  never  watched  the   follow  your  passion,  build  a  side  
doing  in  personal  finance  and   Underwear  Gnome  video,  I  highly   hustle,  and  have  something  amazing,  
sell  advertising,  or  eventually   recommend  it,  as  it  illustrates  this   it  still  might  not  be  enough  to  get  you  
my  own  product   point  perfectly  (link  is  in  the  notes).       to  your  end  goal  of  beating  the  nine  
2. Write  a  book  about  personal     to  five.      
finance  and  sell  it   The  premise  is  that  you  lose  your    
3. Trade  stock  and  make  a  living   underwear  in  the  wash,  and  never   Up  next  we’ll  talk  about  
from  the  income   find  it  again.    The  reason  is  the   understanding  your  market  so  that  
4. Freelance  write  about  finance   underwear  gnomes  are  stealing   you  can  realize  your  goals.      
topics   them.    Why  are  they  stealing  them?      
5. Become  a  CFA  or  similar  and   To  make  a  profit.      Finally,  after      
help  others  with  their   accumulating  millions  of  pairs  of  
personal  finances  for  a  fee   underwear,  someone  finally  asks,  
  how  are  we  actually  going  to  make  
This  one  can  be  a  bit  more  biased   the  profit?    Silence….  
than  you  last  answers,  because  now    
we’re  getting  into  the  business  side   There  are  some  passions  that  may  
of  side  hustling.   not  make  a  profit  unless  you  can  
  provide  a  unique  selling  proposition  
Anyone  can  start  a  blog,  but  HOW  are   for  your  passion.      
you  going  to  make  money  from  it?      

 
Notes   Hang  in  there.    It  takes  love,  patience,  
  time,  and  effort,  but  it  can  be  done.      
THIS  IS  THE  HARDEST  STEP  OF  THE    
QUITTER’S  CHECKLIST.   I  wanted  to  highlight  a  resource  for  
  ideas  and  stories  you  may  find  
I  can’t  stress  that  enough.    It’s  also   useful:  Budgets  are  Sexy  –  Side  
the  step  that  I  can  help  you  the  least   Hustle  Series.    That’s  a  great  
in.    Everyone  is  unique.    Every  idea  is   collection  of  stories  about  people  all  
unique.    Even  already  done  ideas  can   over  doing  random  side  hustles  to  
have  unique  spins  that  make  them   make  money.    Some  won’t  be  
wildly  successful.       anything  more  than  side  gigs,  while  
  others  have  already  become  full-­‐
Just  look  at  how  many  hamburger   fledged  businesses.      
restaurants  there  are  across  the    
country,  or  even  in  your  own  city.    A   Here’s  the  underwear  gnome  video:  
hamburger  is  pretty  simple  –  buns,   Solid  Profit  Plans.    
ground  beef,  some  toppings…But  so    
many  places  have  their  own  unique   Interact  
spin  that  make  them  successful.        
  Welcome  to  the  first  step  in  Stage  2.    
Developing  your  side  hustle  also   If  you  have  a  side  hustle,  we’d  love  to  
takes  time.    This  is  also  the  probably   hear  about  it.    If  you’re  still  
the  longest  part  of  the  quitters   developing  one,  share  your  progress.    
checklist.    If  you  already  feel  like   Share  your  story  using  the  hashtag  
you’ve  mastered  this  step,  the  rest  is   #QuitterStep6.      
pretty  easy.    It  may  require  some    
fine-­‐tuning.    If  you’re  just  starting,      
you  may  feel  like  it’s  daunting.      
 

 
Step  7:  Understanding  Your  Market   Finding  Your  Market   questions.    Ask  them  to  point  you  
    towards  similar  sites  or  people.    Ask  
Too  many  entrepreneurial  guides   So,  going  back  to  your  side  hustle   them  who  they  read,  follow,  engage  
miss  the  mark  on  talking  about  your   idea,  you  need  to  understand  how  to   with,  etc.      
target  audience,  or  market.    Maybe   find  your  market.    You  could  have  an    
it’s  because  they’ve  already  nailed  it,   amazing  idea,  and  people  could  want   Get  as  big  a  picture  of  the  market  as  
or  it’s  innate,  but  regardless,  I   your  idea,  but  if  you  can’t  connect,   possible.      
wanted  to  quickly  discuss  the   you  fail.        
importance  of  understanding  your     For  example,  if  your  market  is  digital  
market,  and  how  it  can  make  the   So,  you  need  to  search  your  market   landscape  photography,  look  for  the  
difference  between  success  of  your   out.    This  can  be  done  online  and   following:  
side  hustle  or  failure  to  make  it  as  an   offline,  and  it’s  something  that  I   • Photography  Websites  
entrepreneur.       failed  to  do  early  on,  so  I  really  want   • Photography  Tutorial  Sites  
  to  stress  this  point.       (see  who  made  the  tutorial  
This  is  something  that’s  taken  me  a     and  connect)  
very,  very  long  time  to  understand,   Online,  find  your  target  audience  in  a   • Photography  Forums  
and  I’m  still  no  expert.    I  blogged  for   few  ways:   • Photography  Social  Media  
2  years  at  The  College  Investor  and   • Find  similar  websites   Groups  
had  little  success.    Finally,  I  found   • Find  forums   • Photography  Questions  on  
some  help  through  a  blog  network,   • Find  Q&A  from  people  (i.e.   Quora  
and  that  got  me  going  in  the  right   Quora)   Once  you’ve  found  some  related  
direction.    However,  it  still  took   • Utilize  Social  Media   sites,  connect  with  site  owners.    
another  year  and  a  half  before  I   (Facebook  Groups,  LinkedIn   Participate  in  the  forums,  build  your  
really  figured  out  my  market  AND   Groups)   reputation  in  your  target  market.    
how  to  connect  with  them.         Really  and  truly  understand  their  
  The  bottom  line  is  you  need  to  search   needs,  wants,  desires,  etc.      
  for  your  audience.    Once  you  think    
  you’ve  found  people  with  similar   This  will  help  you  tremendously  with  
  interests,  take  it  to  the  next  level,  and   the  next  part.      
  connect  with  them.    Ask  them    

 
Connecting  With  Your  Target   product  that  sells  that  knowledge,    
Market   share  it.       Now,  this  doesn’t  apply  to  everyone,  
    but  it  applies  to  many  people.      A  lot  
Now  that  you’ve  found  them,  you   In  the  end,  people  will  flock  to  your   of  side  hustles  and  entrepreneurs  
need  to  connect  with  them  in  a  way   site  and  still  buy  your  product,  even   emerge  in  the  same  field  as  their  nine  
that  they  can’t  live  without  you!       though  you’ve  shared  so  much  for   to  five  job.  
  free.        
You  want  them  wondering  what’s     Why?    Because  they  like  it.    AND  
next.    You  want  them  to  have  you  be   Think  about  financial  pundits  like   because  they  usually  have  an  idea  to  
their  go-­‐to  place  for  whatever  you   Dave  Ramsey  or  Suze  Orman.     make  things  better.        
have.       They’re  both  on  the  TV  all  the  time    
  sharing  their  knowledge  and  helping   Jack  Bogle,  the  founder  of  Vanguard,  
This  will  make  your  side  hustle  turn   others.    If  you  watch  their  shows,  you   didn’t  invent  the  mutual  fund.    He  
into  a  business.    This  will  provide   can  know  their  strategy  within  one   didn’t  do  anything  special  in  the  
sustainability  (which  we  will  talk   or  two  episodes.    Yet,  people  still  go   stock  market.  He  liked  investing  and  
about  later).    This  will  let  you  profit!     and  buy  their  books  just  to  read  the   he  liked  helping  people.    He  was  
  same  stuff.    Why?    Because  they  want   frustrated  in  seeing  customers  being  
You  can  build  this  relationship  with   more!    They  want  it  on  their  terms.     charged  outrageous  fees  for  things  he  
your  target  market  by  building  a   They  want  to  own  it.       didn’t  think  they  needed.    So  he  
solid  connection  with  them.     started  Vanguard,  and  created  a  
  Building  a  solid  connection  with  your   better  product.    And  guess  what,  
This  connection  comes  through  trust   target  market  enables  this.         since  he  knew  his  market  so  well,  he  
and  integrity.    It  comes  by  selflessly     was  very  successful  -­‐  even  in  the  face  
helping  others.       Remember,  You’re  Working  Still!   of  adversity  from  power  and  rich  
    Wall  Street  folk.      
Going  back  to  the  photography   That  may  sound  scary  or  difficult  to    
example  –  be  the  champion  of  the   do,  but  I  want  to  share  a  secret  with   You  can  apply  that  same  mantra  
photography  forum.    Answer   you.    You’re  still  working,  so  you  may   today.    If  you’re  passionate  about  
questions,  post  ideas,  share   have  one  of  the  best  target  markets   what  you  do,  you  may  have  an  idea  to  
knowledge.    Even  if  you  have  a   that  you’re  already  connected  with.       do  something  better.    You  have  

 
industry  connections,  so  leverage   to  pursue  it,  make  sure  you  read  Step  
them.    You  have  intimate  customer   10.      
knowledge,  so  use  it!    This  can  be  the    
way  to  build  a  solid  connection  with   Interact  
your  target  market  that  keeps  them    
coming  back.       Hopefully  your  side  hustle  is  really  
  coming  together  at  this  point  and  
Notes   you’ve  gained  some  great  insights.    If  
  you’ve  already  had  a  side  hustle,  
Market  research  is  extremely   hopefully  you’ve  looked  at  market  
important.    There  are  so  many   sustainability.    Either  way,  share  
strategies  and  schools  of  thought,  but   with  us  your  progress  using  the  
the  bottom  line  is  to  just  find  your   hashtag  #QuitterStep7.      
market  and  solve  their  problem.        
     
An  easy  way  to  do  this  is  ask  “why”  
until  you  can’t  ask  “why”  anymore.    
That’s  your  problem.    Easier  said  
than  done,  but  it  illustrates  the  point.      
 
I  also  want  to  remind  you  to  be  
careful  about  your  employer.    We’re  
going  to  discuss  it  more  in  Step  10,  
but  you  should  realize  that  there  are  
things  you  can  and  can’t  do  when  it  
comes  to  your  job.      
 
Market  research  and  thinking  of  a  
better  solution  in  your  mind  is  great.    
But  before  you  quit  your  nine  to  five  

 
Step  8:  Freelancer  or  Entrepreneur   The  key  difference  between  a   if  I  didn’t  create  new  content,  the  old  
  freelancer  and  an  entrepreneur  is   content  would  still  get  readers  and  
Freelancing  can  be  a  great  side   that  the  entrepreneur  is  building  a   hopefully  earn  revenue.      
hustle.    You  can  make  a  lot  of  money   business  that  will  hopefully  become    
from  it.    You  could  even  make  enough   self-­‐sustaining;  meaning  the   So,  if  you’re  looking  to  beat  the  nine  
money  to  quit  your  nine  to  five  in   entrepreneur  can  live  off  the   to  five  in  the  long  run,  build  a  
some  cases.       business,  rather  than  having  to   business.    Build  something  
  continually  commit  labor  to  it.   sustainable  that  will  generate  income  
However,  you  should  note  that  being     for  you  in  the  future.      
a  freelancer  is  inherently  different   On  the  other  hand,  the  only  way  a    
than  being  an  entrepreneur.    This  is   freelancer  gets  paid  is  by  utilizing  his   Task  
not  to  diminish  the  work  freelancers   own  labor  to  create  or  do  work.    If    
do,  but  rather,  to  highlight  an   the  freelancer  doesn’t  work,  there   Discover  if  you’re  a  freelancer  or  an  
important  key  difference  that  you   are  no  residual  profits  coming  in  to   entrepreneur  checklist:  
should  consider,  especially  if  you’re   support  the  individual.        
thinking  about  leaving  your  nine  to     1. Do  you  get  paid  for  your  
five  job.   That’s  why  I’m  a  firm  believer  that   work?  
  everyone  should  strive  to  be  an   2. Does  your  business  scale?  
Freelancer:  Is  somebody  who  is  self-­‐ entrepreneur.    Being  a  freelancer  is  a   3. Does  your  business  earn  
employed  rather  than  being   great  way  to  get  started.    I  did  it  –  I   money  while  you  are  asleep  
committed  to  an  employer  long-­‐term.     did  freelance  writing  for  several   or  away?  
The  freelancer  does  work  for  a  client   years.    However,  I  soon  discovered   4. Are  you  finding  your  time  to  
when  required,  and  is  paid  usually  on   that  freelancing  wasn’t  for  me   be  finite?  
a  per  contract  basis.   because  if  I  didn’t  write,  I  didn’t  get   5. Could  you  hire  someone  else  
  paid.   to  do  the  work  for  you?  
Entrepreneur:  A  person  who      
organizes  and  operates  a  business,   I  soon  discovered  that  blogging  and   All  of  these  questions  should  guide  
taking  on  financial  risk  to  do  so.   online  publishing  was  more  for  me  –   you  to  whether  you  are  a  freelancer  
  once  I  wrote,  I  continued  to  get  paid   or  entrepreneur.    In  some  cases,  
for  the  content  for  a  long  time.    Even  

 
freelancing  is  the  stepping-­‐stone  to   He  has  a  podcast  called  Start  Up  
entrepreneurship.       School  where  he  talks  about  the  
  difference  between  freelancing  and  
The  important  thing  to  remember   entrepreneurship  in  an  early  
with  both  is  time.    With  freelancing,   episode.  
you  are  dependent  on  your  time.    If    
you  don’t  work,  you  don’t  earn.    With   If  you  want  to  find  out  more,  I  highly  
entrepreneurship,  your  time  is  still   recommend  you  check  out  Start  Up  
your  biggest  challenge,  but  you  focus   School.    
on  different  work  –  work  to  grow    
your  business  or  perpetuate  your   Interact  
income.        
  Are  you  a  freelancer  or  
If  your  goal  is  to  be  free  –  free   entrepreneur?    Share  your  thoughts  
requires  you  to  be  an  entrepreneur.     on  the  topic  using  the  hashtag  
If  your  goal  is  a  steady  income  with   #QuitterStep8.    
no  boss,  freelancing  may  be  your    
calling.          
 
Notes  
 
One  of  the  best  people  to  hear  from  
on  the  difference  between  
Freelancing  and  Entrepreneurship  is  
Seth  Godin.      
 
If  you  haven’t  heard  of  Seth,  he  is  an  
entrepreneur  and  writer  who  shares  
his  knowledge  with  others.  
 

 
Step  9:  Business  Structures   repair  business  and  break  someone’s   provides  the  owner  with  a  layer  of  
  computer,  you  personally  are  liable   legal  protection.  
This  is  another  area  that  you  should   for  the  damages.    However,  if  you    
consider  getting  expert  advice,  as  it   have  a  business,  the  business  would   The  first  step  in  registering  as  an  LLC  
can  get  very  complicated.    Business   be  liable.   is  to  visit  your  secretary  of  state  
structures  are  still  argued  about  in     website  for  your  state.  Read  through  
the  corporate  world,  so  it  is   With  something  small  like  a   your  state’s  rules  and  requirements  
important  that  you  do  your  own   computer,  it  doesn’t  make  much  of  a   for  registering  as  an  LLC  and  
homework  and  decide  what  business   difference,  because  you  could   operating  the  business.  In  most  
structure  is  right  for  your  individual   probably  afford  to  repair  or  replace   states,  the  income  and  expenses  for  a  
situation.       it.    But  what  about  something  bigger?   single  member  LLC  will  flow  through  
    to  your  own  personal  tax  return,  but  
Once  you  choose  one,  you  may  be   What  happens  if  your  business  is   there  are  other  implications  as  well.  
able  to  change,  but  it  does  depend  on   sued  for  $100,000?    Can  you    
your  business.       personally  afford  to  fight  it  and  pay  if   If  you  are  unsure  of  anything,  speak  
  you  lose?    This  is  where  a  business   to  your  accountant  and  a  lawyer  
Sole  Proprietor     structure  is  helpful.    In  this  scenario,   before  filing.    If  you  are  confident  to  
  the  business  is  on  the  line.    If  you   fill  out  the  paperwork  yourself,  head  
For  many  people  just  starting  out,  a   can’t  pay,  only  the  business  assets   to  the  secretary  of  state  website  and  
sole  proprietorship  is  the  way  to  go.     can  be  touched,  so  all  of  your   find  the  form  to  register  as  an  LLC.  
This  is  pretty  much  an  informal   personal  savings  are  safe.        
business  structure  –  you  just  conduct     S  Corp  or  C  Corp  
business  using  your  own  name  and   Limited  Liability  Company      
report  it  on  your  taxes.     The  last  business  structure  I  want  to  
  The  most  common  business   touch  on  is  the  S  Corp  or  C  Corp.    
However,  this  can  also  be  the  riskiest   structure  for  entrepreneurs  and   Both  of  these  are  corporations,  
type  of  business  structure,  since  you   solopreneurs  is  the  LLC,  due  to  its   where  the  business  also  files  it’s  own  
are  personally  responsible  for   flexibility.    An  LLC  is  a  popular  way   tax  return.  
everything  that  the  business  does.     to  register  a  business,  as  it  is    
For  example,  if  you  run  a  computer   inexpensive,  easy  to  maintain,  and  

 
These  structures  are  different   company.    This  can  make  things   Task  
because  you,  as  the  entrepreneur,   more  complicated.        
would  be  an  employee  of  your     For  this  step,  it  is  important  to  do  
company.    You  would  need  to  have  a   If  you  have  an  LLC,  you  can  elect  to   your  research  on  the  business  
payroll  processor  to  pay  yourself,   be  taxed  as  an  S  Corp  if  you  desire.     structure  you’ll  need  to  run  your  
and  you  would  need  to  file  a  tax   This  is  one  of  the  many  flexibilities   business  successfully.      
return  for  the  company.   that  an  LLC  offers.    Once  again,  it    
  depends  on  your  personal  situation.       You  may  be  able  to  start  as  a  sole  
For  many  people  making  the  jump  to     proprietor,  but  it  may  make  sense  to  
entrepreneurship,  this  added   Accounting   choose  an  organizational  structure  as  
complication  doesn’t  make  sense.       well.      
However,  always  consult  a   As  a  small  business  owner,  you’re    
professional  (either  a  lawyer,   also  going  to  need  to  maintain   So,  this  time:  
accountant,  or  both)  when  deciding   accurate  records  of  your  business.     1. Choose  a  Business  Structure  
which  business  structure  is  right  for   This  is  accounting  (that  class  you   2. Select  an  Accounting  Program    
you.       slept  through  in  college).        
    Notes  
Tax  Considerations     There  are  many  programs  that  can    
  help  with  this,  and  we  provide  a  solid   Both  setting  up  a  business  and  
With  a  sole  proprietorship  and  an   reference  guide  in  the  notes.       selecting  an  accounting  program  can  
LLC,  the  tax  considerations  are  pretty     be  hard.    However,  there  are  some  
easy.    If  you  maintain  basic   The  important  thing  to  remember  is   great  resources  available.  
accounting  software,  you  simply   document  everything.    The  more  you    
enter  your  profits  and  expenses  on   keep  track  of  during  the  year,  the   For  setting  up  a  business,  you  may  
your  tax  return,  Schedule  C.    Nothing   easier  your  taxes  will  be  at  the  end  of   want  to  consider  using  a  service  like  
special  or  extra  is  required.   the  year.       Rocket  Lawyer  to  help  you  get  
    started.  
However,  as  I  mentioned  with  the  S    
Corp  and  C  Corp,  you  file  a  separate   Accounting  software  can  also  be  hard  
business  tax  return  for  your   to  figure  out,  especially  since  many  of  

 
the  most  well-­‐known  brands  are  very   Interact  
expensive.    
  Finally,  tell  us  what  business  
The  top  of  the  line  accounting   structure  you’re  using  and  what  
program  for  small  businesses  is   accounting  software  you  love.  
QuickBooks.    You’ve  probably  heard    
of  it.       Share  your  thoughts  on  the  topic  
  using  the  hashtag  #QuitterStep9.    
However,  I’ve  found  that  QuickBooks    
doesn’t  work  well  for  the    
solopreneur.    Why?    Because  it  keeps      
you  constrained  to  your  desktop,  or  
where  ever  you  installed  it.      
 
I’m  a  huge  fan  of  cloud-­‐based  
accounting  solutions,  and  I’ve  
compiled  a  great  list  of  options  for  
you,  including  my  favorite,  Wave  
Accounting.      
 
Check  out  the  Best  Online  Cloud  
Accounting  Programs  for  more  
information.      
 

 
Step  10:  Be  Aware  of  Your   your  start-­‐up  or  side  job.    Plus,  you   company,  even  if  you  work  on  it  
Employer   may  have  a  wife  or  family  that  needs   when  you’re  at  home.      
  your  attention  as  well.      
Developing  your  own  side  business     In  these  circumstances,  you  need  to  
while  working  is  a  great  way  to  get   You  don’t  want  to  leave  a  nine  to  five   leave  your  job  or  consult  a  lawyer  
started  and  have  a  base  before   job,  just  to  come  home  and  be   before  going  forward.    If  you  don’t,  
becoming  an  entrepreneur.     working  again  from  six  to  midnight.     you  could  be  sued,  and  you  could  not  
However,  there  are  several   When  will  you  see  your  family?       only  lose  a  lot  of  money,  but  your  
important  things  you  need  to  be     idea  could  end  up  belonging  to  your  
aware  of  when  it  comes  to  your   Maybe  that’s  not  a  priority  for  you,   employer  in  the  end.      
employer.       but  you  need  to  take  that  into  strong    
  consideration.    Burnout  does  happen,   Imagine  developing  the  next  
First,  you  need  to  be  sure  that  you   and  it’s  extremely  common  among   Facebook,  only  to  see  your  current  
can  still  fully  maintain  the   entrepreneurs  and  freelancers.       company  reap  all  the  benefits.    In  
responsibilities  of  your  job.     some  circumstances,  it  could  make  
  Non-­‐Compete  Agreements   sense  to  skip  the  checklist  and  just  go  
Second,  you  need  to  make  sure  that     with  the  idea.  
there  are  no  conditions  on  your   In  some  industries,  it’s  very  common    
employment  that  prevent  you  from   to  have  employees  sign  non-­‐compete   However,  for  many  cases,  starting  a  
starting  a  side  hustle.       agreements  as  a  condition  of   side  gig  is  not  a  problem  with  
  employment.    This  usually  occurs  in   employers.    It  just  involves  being  
Work  /  Start-­‐Up  Balance   the  technology  field,  but  also  in  any   strategic  with  your  time  and  
  company  that  conducts  research  and   resources.      
The  first  thing  you  need  to  take  into   development.        
consideration  is  whether  you  can     For  example,  never  work  on  your  
fully  handle  all  of  your   The  reason  is  that  the  company   side  business  while  at  work.    Don’t  
responsibilities.    This  means  your   wants  your  idea  to  be  theirs.    So,  if   use  company  assets.    Don’t  use  
primary  responsibility  to  your   you  work  in  programming  and   company  time.    Doing  so,  even  with  a  
current  job,  as  well  as  any   develop  the  next  big  thing  for   non-­‐compete  agreement,  could  signal  
obligations  that  you  take  on  with   software,  that  belongs  to  the   that  you  were  really  working  on  the  

 
project  for  your  company.    You  could    
lose  it  in  the  end.       If  you  have  any  questions  or   Avoiding  The  Career  Detour  
  concerns,  talk  to  a  lawyer.    You  don’t    
Also,  be  mindful  about  freelancing  in   want  to  run  afoul  of  your  company,   Many  technology  companies  have  non-­‐
the  same  field  as  your  employer.    If   and  you  don’t  want  to  lose  a   compete  clauses  in  their  employee  
you’re  in  healthcare,  don’t  become  a   potential  business  idea  either.       contracts  that  can  last  up  to  two  years.    
consultant  for  hospitals  on  the  side.       This  can  be  detrimental  to  starting  a  
That  looks  really  bad  and  could  cause   Interact   side  hustle  and  moving  towards  self-­‐
conflict  with  your  employer.         employment.      
  Does  your  workplace  have  a  non-­‐  
Now,  working  at  Starbucks  as  a   compete  or  other  clause  preventing   There  are  only  three  key  ways  to  avoid  
barista  and  launching  a  video  game   you  from  starting  a  side  gig?    Share   the  career  detour:  
on  nights  and  weekends  is  probably   your  story!   1. Go  into  a  different  industry    
acceptable  under  non-­‐compete     2. Develop  a  long-­‐term  plan  
agreements.    Just  be  mindful  of  your   Share  your  thoughts  on  the  topic   3. Get  out  of  the  non-­‐compete  
employers’  rules  and  regulations.       using  the  hashtag  #QuitterStep10.     clause  when  you  leave  as  part  
    of  your  severance  
Task      
      Which  ever  path  you  choose,  you  just  
The  task  for  this  step  is  to  find  and   need  to  be  aware  of  the  dramatic  
research  your  company’s  policy  and   effects  that  a  non-­‐compete  clause  can  
procedures  for  starting  a  side   have  on  your  aspirations  to  be  a  
business.    See  if  you  have  a  non-­‐ solopreneur.    
compete  agreement  in  your    
employment  contract.       It  can  cripple  you  if  you  don’t  plan  
  ahead.  
If  you  don’t  have  a  contract,  look  at    
your  workplace  rules  and  regulations  
to  see  what  is  allowed  and  not  
allowed.      

 
Step  11:  Sustainability  and     How  many  “entrepreneurs”  or  “small  
Consistency   The  Test  of  Time   business  owners”  have  you  spoken  to  
    or  heard  of  that  have  only  had  one  
A  key  aspect  of  quitting  your  job  to   The  other  aspect  you  need  to   business  in  their  lives?    Very  few.      
become  self-­‐employed  is  being  able   consider  is  time.    If  you’re  30,  do  you    
to  sustain  your  momentum  and   really  think  this  business  structure   The  reason  is  change  and  adaptation.    
generate  consistent  income  over   and  model  is  going  to  last  you  10  to   Many  people  stay  in  the  same  line  of  
time.       20  years?       work  (say,  programming  or  
    hardware)  but  continually  evolve  
Now  that  you’ve  built  a  side  business   Probably  not.       their  business  to  adapt  to  changing  
and  are  generating  side  income,  you     business  and  customer  needs.      
need  to  really  assess  the   So,  the  real  question  is  do  you  have    
sustainability  of  it  before  your  quit   the  skills  to  continually  transform   Just  think  –  what  was  the  Internet  10  
your  primary  job.       your  business  over  time  to  continue   years  ago?    Not  much.    Look  at  it  
  the  same  success  you’ve  encountered   today…    Now,  where  will  it  be  in  
A  good  measure  I  have  for   in  12  months.       another  10  year?    Very  hard  to  say.      
sustainability  and  consistency  is  12      
months.       Can  you  adapt  to  change?    Can  you   Interact  
  understand  and  read  the  market?      
Go  back  to  your  budget  in  Step  2.     Can  you  identify  a  need  and  solve  it?       Share  with  us  how  you’ve  built  a  
Look  at  how  much  you  really  need.    If     sustainable  business.    Showcase  your  
your  side  business  is  generating  at   These  skills  come  with  building  a   company!    Share  a  link!      
least  that  amount,  consistently,  for   successful  business,  but  they  aren’t    
over  12  months,  you  have  a   always  the  focus.       Get  in  touch  with  us  using  the  
sustainable  business  model.         hashtag:  #QuitterStep11.    
  I’m  telling  you  now  that  your  skills    
However,  that  isn’t  the  only   should  always  be  the  primary  focus,      
consideration  that  you  should  have,   above  your  business.    Because  
because  even  consistent  business   businesses  come  and  go.      
models  need  to  change.    

 
Stage  3:  Planning  Your  Exit    
 
Welcome  to  Stage  3  –  the  critical  part  that  you’ve  been  looking  forward  to.    You’ve  made  it  through  Stage  2  of  the  checklist,  
which  was  no  doubt  the  hardest.    Building  a  consistent  and  sustainable  business  is  the  biggest  challenge  that  all  self-­‐employed  
individuals  face.    It  can’t  be  done  overnight,  and  it  can’t  be  faked  at  all.    Consistent  results  over  time  are  what  make  long-­‐term  
entrepreneurs  successful,  nothing  else.      
 
But  now  that  you’ve  got  a  business  going,  and  are  reaching  the  point  of  sustainability,  it  is  essential  that  you  start  planning  
your  exit.    Don’t  wait  until  one  month  before  you  want  to  leave  to  plan  your  escape.    That  just  sets  you  up  for  failure.    Instead,  
exit  planning  takes  time,  patience,  and  a  little  insider  knowledge.      
 
In  this  section  I  want  to  give  you  the  tools  needed  to  exit  your  current  job  successfully.    I’m  putting  it  out  there  right  now  that  
I’m  not  the  expert  when  it  comes  to  this.    However,  I’ve  found  some  great  resources  and  partnered  with  some  amazing  people  
who  have  done  it,  and  share  their  insider  knowledge.      
 
The  goal,  of  course,  is  to  maximize  your  exit  so  that  you  are  setup  for  success  on  your  entrepreneurial  journey.      
 
Let’s  begin  the  end…  
 
 
   

 
can  be  very  helpful  for  someone  who   essentially  are  being  given  the  
Step  12:  Quit  or  Get  Laid  Off   is  making  the  jump  to  self-­‐ proverbial  “high  five”  to  go  to  what  
  employment.    Any  little  extra  boost   you  want  to.      
This  is  the  Quitters  Checklist,   can  really  help.        
designed  for  people  looking  to  quit     Just  think,  what  if  your  company  paid  
their  jobs  and  start  their   Second,  when  you  quit  your  job   you  4  weeks  pay  to  leave.    Wouldn’t  
entrepreneurial  careers.    So  why   outright,  you  leave  the  potential  of   that  be  great?    What  if  they  gave  you  
does  getting  laid  off  come  into  the   burning  the  bridge  of  your  employer.     health  insurance  for  4  weeks  as  well?      
mix?   Not  always,  but  sometimes.    It  really    
  depends  on  how  your  leave  your  job,   Like  I  said  earlier,  every  little  bit  
Because,  you  can  actually  get   your  standing  in  the  organization,   counts  when  you’re  becoming  a  
yourself  laid  off.    It’s  true.    The  key  is   and  the  terms  of  your  departure.     solopreneur.      
to  identify  how  your  leaving  your      
company  is  not  only  beneficial  to   If  you  walk  in  one  day  and  say  you’re   Not  only  could  you  get  these  benefits  
you,  but  also  to  your  company.       done,  you  can  pretty  much  bet  that   from  your  company,  but  you  could  
  you’ve  closed  that  door  for  good.     also  qualify  for  state  and  Federal  
Too  many  people  just  quit,  and  you   Plus,  you  never  know  when  key   benefits  as  well.      
shouldn’t  do  it  unless  you  have  no   players  in  the  company  may  interact    
other  option.       with  you  in  the  future.    You  only   Why  This  Matters  
  want  people  to  have  an  extremely    
Why  Quitting  Sucks   positive  image  of  you  when  you   You  may  be  thinking,  it  doesn’t  
  leave.   matter,    have  a  great  
Just  quitting  without  any     idea/company/product/etc.    And  
consideration  is  a  tough  way  to  leave   Getting  Laid  Off  Rules!   you  probably  do.    But  what  if  this  
your  employer.         doesn’t  pan  out  in  three  months  and  
  If  you  want  to  become  an   you’re  struggling?    What  if  you  don’t  
First,  when  you  quit  your  job,  you   entrepreneur,  getting  laid  off  is  the   maintain  consistency  and  you  see  
don’t  get  any  state  or  Federal   best  way  to  go  about  it.    Not  only  do   your  earnings  disappear?      
benefits,  like  unemployment  or   you  part  ways  with  your  old    
Cobra.    These  government  programs   company  on  good  terms,  you  

 
This  is  why  quitting  versus  getting   companies  may  not  want  to  hire  you   The  bottom  line  is  how  you  leave  
laid  off  matters.   either.       matters!    
     
If  you  get  laid  off,  you’ve  given   I  have  a  story  about  a  guy  who  used   Notes  
yourself  an  extra  cushion  to  help  you   to  work  for  me,  who  was  an  okay    
if  your  plans  don’t  work  out.    You  got   employee.    Not  great,  but  not  poor  at   Many  of  you  will  not  believe  this  is  
more  money  (which  helps),  you  have   all.    He  was  a  strong  contributor,  and   possible,  so  I  wanted  to  highlight  two  
benefits,  and  you  have  potential   just  went  about  his  work.    Then,  one   stories:  
government  lifelines  to  help  you   day,  he  came  in  and  quit  on  the  spot.     1. Retiring  on  my  Own  Terms  
through.       We  asked  why,  and  he  said  that  he   2. I’m  Unemployed    
  was  “pursuing  other  opportunities    
If  you  quit,  you  get  none  of  that.       and  he  wouldn’t  be  working  two   Both  of  these  stories  highlight  the  
  weeks  or  helping  with  a  transition”.       ability  to  quit  on  your  own  terms.      
Plus,  what  happens  if  you  need  to  go      
back  to  work?    Not  the  ideal  scenario   Fair  enough,  but  still  left  a  sour  taste   If  you  want  a  great  resource  on  
for  someone  who  wants  to  be  an   in  my  mouth.       engineering  your  layoff,  I  highly  
entrepreneur,  but  a  very  valid     recommend:  How  to  Engineer  Your  
situation  that  could  happen  in  the   Well,  about  three  months  later,  the   Layoff
future.       same  guy  applied  for  his  old  job  back.    
  And  guess  what,  we  didn’t  even  call  
If  you  quit  on  poor  terms,  you  could   him  in  for  an  interview.    Why?    
be  in  a  lot  of  trouble.    Not  only  did   Because  apparently  we  didn’t  mean  
you  probably  lose  all  chances  of   enough  to  him  in  the  first  place  to  
being  rehired  at  the  same  firm,  but   care,  so  why  should  we  return  the  
you  may  have  lot  a  lot  of  chances  to   favor.      
be  rehired  in  the  same  industry.      
Most  people  maintain  industry-­‐level   And  this  story  is  incredibly  common  
contacts,  and  if  you  left  on  poor   in  most  companies  and  industries.    
terms,  word  could  get  out  and  other    
 
 

 
Tasks   In  those  cases,  look  at  what  COBRA  
  or  other  state  programs  may  be  able  
If  you’re  planning  to  quit  your  job,   to  offer  you.      
you  need  to  complete  these  tasks!    
  Finally,  buy  How  to  Engineer  Your  
First,  you  need  to  research  what   Layoff  and  fully  understand  how  you  
benefits  your  company  offers   can  get  a  severance  package  from  
employees,  especially  when  it  comes   your  company  to  quit  your  job  and  
to  severance  packages.    Many   pursue  your  dreams!  
employees  never  even  consider  this,    
as  the  word  “severance”  is  always   Interact  
used  in  conjunction  with  mass  layoffs    
or  downsizings.       Tell  us  how  you  plan  to  engineer  
  your  layoff.    We  love  great  plans  and  
However,  you  may  not  realize  that   stories!    Check  out  the  story  above  in  
people  get  severances  at  big,  healthy   the  notes  for  a  great  example!      
companies  all  the  time.        
  Share  your  thoughts  on  the  topic  
So,  make  a  friend  in  the  HR   using  the  hashtag  #QuitterStep12.    
Department,  talk  to  your  manager  or    
other  managers,  and  see  what  types    
of  benefits  your  company  offers.          
 
Second,  research  the  potential  state  
and  Federal  benefits  that  you  may  
qualify  for  if  you  get  laid  off.    
Remember  to  look  back  at  your  
budget  in  Step  2  and  see  if  you  have  
any  true  needs,  like  insurance.      
 

 
Step  13:  Other  Options  For  Escape   mentioned  in  Step  10,  building  a  non-­‐ Notes  
  competitive  side  business  is  fine.        
In  some  circumstances,  you  may     You  may  notice  that  neither  of  these  
have  other  options  for  escape.    I  want   The  Personal  Leave   are  permanent  solutions.    You’re  
to  highlight  that  these  circumstances     right.    These  are  great  ways,  
are  rare,  but  they  may  be  available  to   Some  companies  offer  employees   however,  to  see  if  you  can  make  it  as  
you  and  give  you  hope  in  your   personal  leaves  of  absence.    This  is   a  solopreneur  and  having  everything  
situation.       similar  to  a  sabbatical,  except  the   dependent  on  yourself.    Use  these  
  duration  is  shorter,  typically  90  days.       wisely  to  set  yourself  up  for  success.      
The  Sabbatical      
  With  leaves  of  absence,  there  are   Interact  
Some  companies  have  formalized   typically  rules  that  you  cannot  work    
sabbatical  programs,  while  other  do   while  you’re  away.       Let  us  know  if  you’re  planning  on  
not.         taking  a  sabbatical  and  what  you  
  However,  this  doesn’t  mean  that  you   plan  to  do  while  away!  
A  sabbatical  is  typically  a  leave  of   can’t  work  on  an  idea  you  had  or    
absence  taken  to  fulfill  a  life  goal,   build  something  up  that  isn’t  a   Share  your  thoughts  on  the  topic  
build  a  skill  or  go  to  school,  or  to  do   business.       using  the  hashtag  #QuitterStep13.    
research.    Many  people  also  tend  to      
combine  sabbaticals  with  travel.       For  example,  a  Personal  Leave  can  be    
  a  great  time  to  write,  learn  skills  for      
The  key  to  the  sabbatical  is  that  it  is   your  business,  or  other  tasks.    While  
designed  for  personal  growth.    While   not  directly  working  towards  making  
on  a  sabbatical,  you  can  typically   a  profit,  these  things  will  significantly  
build  a  business.    However,  you  need   benefit  you  in  the  future  when  you  
to  check  with  your  company  first  to   are  self-­‐employed.      
ensure  that  this  is  allowed.      
 
Many  companies  don’t  allow  you  to  
work  for  a  competitor,  but  like  we  

 
Step  14:  Maximizing  Your  Exit   a  lot  of  vacation,  now  is  the  time  to    
  take  it  before  you  leave.    You  don’t   Also  with  your  401k,  if  your  
Finally,  when  it’s  time  to  leave,  you   want  to  quit  with  8  weeks  of   employer  matches  your  contribution,  
have  to  maximize  your  exit.    There   vacation,  only  to  find  out  you  get   you  should  try  to  maximize  this  
are  some  key  ways  to  do  this,   cashed  out  for  4  weeks  worth.       before  you  leave.    Once  you’ve  
regardless  of  whether  you  quit  your     decided  that  you’re  ready  to  quit,  up  
job  or  you  get  laid  off.       With  sick  pay,  you  typically  don’t  get   your  contribution  so  your  employer  
  to  cash  this  out  if  you  quit.    Since  sick   matches  you  more.      
Consider  these  things  carefully,  as   pay  is  a  special  program  different    
they  directly  relate  to  what  was   from  a  vacation  plan,  your  employer   As  of  writing  this,  the  maximum  
discussed  in  Stage  1.       is  not  obligated  to  pay  you  for   contribution  limit  is  $17,500  for  an  
  unused  time  in  many  circumstances.     employee.    If  you’re  employer  
Pay   So,  before  you  leave,  it  may  be  a  good   matches  your  contribution,  that’s  an  
  idea  to  come  down  with  the  flu  and   extra  $17,500!    Nothing  to  scoff  at!    
When  it’s  time  to  leave  your   take  some  time  off.   However,  if  you  don’t  plan  ahead,  
company,  the  most  important  thing     you  could  leave  that  money  on  the  
you  need  to  maximize  is  your  pay.     Benefits   table.        
Failure  to  do  so  is  leaving  money  on      
the  table,  and  that’s  just  a  waste.   The  next  key  area  is  benefits.    Once   You  also  need  to  look  at  any  flexible  
  again,  beyond  your  severance   spending  accounts  you  have  –  such  
Beyond  getting  a  severance,  there  are   package,  there  are  a  few  key  things   as  healthcare,  daycare,  or  
a  few  key  areas  of  your  pay  that  you   you  should  know  when  it  comes  to   transportation.    In  many  cases,  these  
should  be  aware  of.       your  benefits.   “use  it  or  lose  it”  accounts  simply  end  
    when  you  quit,  and  you  can’t  get  your  
First  is  vacation  and  sick  pay.    At   A  key  one  to  start  is  your  401k  plan.     money  out  or  back.      
some  companies,  you  can’t  always   If  you  have  a  401k  loan  (which  you    
get  cashed  out  on  all  your  vacation   should  never,  ever  have),  it  will  be   As  such,  you  need  to  plan  on  
pay  –  they  put  limits  on  how  much   due  in  full  within  30  days  of  quitting   spending  any  and  all  money  in  these  
you  can  leave  with  (typically  2  to  4   your  job.    Understand  that  you  have   accounts  before  you  quit  your  job.      
weeks  worth).    So,  if  you’re  sitting  on   to  pay  this  back  immediately.        

 
Networking  Opportunities     looking  for  no  longer  works  there.    It   since  they  may  just  let  you  go  on  the  
  just  goes  to  show  that  you  didn’t   spot.      
Finally,  you  need  to  keep  your   have  a  great  relationship  with  them    
network  open,  even  if  you  don’t  plan   to  start  with.       Tasks  
on  returning  to  your  same      
organization  or  industry.       Second,  try  to  get  a  letter  of  reference   The  tasks  for  this  step  are  
  from  your  manager.    Even  if  you  plan   researching  your  company  vacation  
Why?    Beyond  it  being  the  right  thing   on  becoming  a  solopreneur,  this   and  sick  plans,  and  seeing  what  you  
to  do,  it  also  prevents  future  doors   letter  can  be  useful  should  things   get  to  keep  when  you  leave.      
from  closing  because  you  never   change.    Regardless,  if  your  boss  is    
know  where  some  of  your  previous   willing  to  write  you  a  letter  of   If  you  don’t  get  much,  plan  a  vacation  
colleagues  will  be  in  10-­‐20  years.       reference,  it  usually  means  you’re   right  now!      
  leaving  on  good  terms,  which  is    
To  maximize  your  exit,  make  sure   great.       Also,  look  at  how  much  you  have  in  
that  you  have  contact  information  for     any  flexible  spending  accounts  and  
all  the  key  players  and   Notes   start  getting  reimbursed  today!      
acquaintances.    Don’t  just  get  work      
information,  but  their  personal   It’s  important  to  realize  that,  at  some   Interact  
phone  numbers  as  well.       companies,  once  you  announce  your    
  intention  to  leave  and  give  notice,   Are  you  planning  to  take  a  big  
This  can  be  incredibly  useful  for   they  fire  you  on  the  spot.    For   vacation  before  you  leave?    Share  
networking  in  the  future,  but  also  if   whatever  reason,  this  is  a  pretty   your  plans  with  us  online!  
you  were  to  need  a  reference  for  any   common  practice.    As  such,  you  need    
reason.       to  have  all  of  these  tasks  done  before   Share  your  thoughts  on  the  topic  
  giving  your  notice.   using  the  hashtag  #QuitterStep14.    
In  my  experience,  I  find  it      
embarrassing  when  a  candidate  gives   Thinking  that  giving  2  weeks  or  30    
the  company  phone  number  as  the   days  notice  and  you  have  time  to      
reference,  and  the  individual  they’re   wrap  things  up  is  poor  planning,  

 
Stage  4:  Basic  Structures  for  Ongoing  Success  
 
Quitting  your  job  is  one  of  the  most  rewarding  parts  of  moving  to  entrepreneurship.    But  it  is  also  one  of  the  most  life  changing.    
For  many  of  us,  working  the  nine  to  five  job  was  something  that  was  ingrained  in  our  minds  since  childhood.    When  you  were  
little,  you  didn’t  really  understand  people  starting  companies.    Rather,  you  thought  you  were  going  to  work  somewhere  –  as  a  
police  officer,  fire  fighter,  or  doctor.    The  idea  to  change  things  was  unheard  of.      
 
Now,  after  working  for  years  and  building  a  routine  around  it,  you’re  shaking  things  up.    On  one  front,  it’s  the  best  thing  that’s  
ever  happened  to  you.    On  the  other  hand,  it  is  probably  the  scariest  thing  you’ve  done  since  asking  a  girl  to  prom.      
 
And  now  that  you’ve  done  it  (or  planned  to  do  it),  you  need  to  make  sure  that  you  set  yourself  up  for  ongoing  success.    As  I  
mentioned  in  Stage  2  (Developing  Your  Business),  the  key  is  consistency  and  sustainability  over  time.    While  it’s  not  the  end  of  
the  world  to  have  to  go  back  to  a  regular  nine  to  five  job,  it  sucks  to  fail.    And  it’s  embarrassing.    And  nobody  who  makes  the  
jump  wants  to  do  that.      
 
So,  as  you  make  the  transition,  here  are  some  key  structures  and  outlines  to  help  you  with  ongoing  success.    There  are  really  
no  right  or  wrong  answers  at  this  point,  but  you  should  keep  these  key  points  in  mind  as  you  progress  on  your  journey.    These  
are  battles  that  a  lot  of  entrepreneurs  have  dealt  with,  and  you’re  going  to  inevitably  come  across  them  as  well.      
 
 
   

 
A  Story  on  Networking   Most  everyone  has  heard  of  a  
Step  15:  Networking  as  an     Chamber  of  Commerce,  but  few  
Entrepreneur     A  great  example  is  a  friend  of  mine   people  actually  know  what  they  do  
  who  wanted  to  become  a  freelance   and  why  they  should  be  involved.  A  
When  you’re  making  the  break  to   web  developer.    He  wasn’t  even  in   Chamber  can  be  incredibly  valuable  
entrepreneurship,  a  big  change  is   the  “industry”  before  deciding  to   to  a  new  business.  Here  is  what  you  
having  to  rethink  the  way  you   become  one,  he  was  actually  in   need  to  know.  
network.       finance.        
    A  Chamber  of  Commerce  is  a  non-­‐
When  you  work  in  the  corporate   However,  he  had  skills,  and  he  could   profit  organization  dedicated  to  
world,  networking  is  forced  on  you  –   design  great  websites,  but  he  just   advancing  the  needs  of  businesses.  
you  have  an  office  with  like-­‐minded   needed  clients  and  a  network.   Most  Chambers  are  based  on  specific  
people,  you  attend  meetings,  and  you     geographic  areas,  such  as  a  city,  
go  to  industry  conferences.       So,  to  build  his  network,  he  joined   county,  or  metro  area.  However,  
  the  local  Chamber  of  Commerce  to   there  are  some  specialized  Chambers  
However,  as  an  entrepreneur,   get  to  know  other  small  business   dedicated  to  the  needs  of  certain  
everything  is  pushed  onto  you.    You   owners.    And  just  by  talking  with   minority  groups.  
have  to  find  like-­‐minded  people.    You   them  and  trying  to  help  them,  he  also    
have  to  setup  and  lead  your  own   was  able  to  highlight  his  products   Chambers  have  several  purposes  and  
meetings.    You  have  to  identify   and  services.   goals,  but  all  of  them  revolve  around  
potential  conferences,  book  them,     helping  businesses  and  their  
and  attend  out  of  your  own  pocket.       Now,  he  designs  websites  for  local   community.  
  small  businesses  (which  is  a  gigantic    
However,  networking  is  key,  because   market  in  our  area),  and  is   They  act  as  a  government  liaison  for  
it  allows  you  to  build  your  business   consistently  booked  for  6  months   its  members  in  community  issues  
and  make  connections.    This  is   out.       They  bring  together  business  owners  
especially  true  if  you  plan  on  leaving     for  networking  and  helps  drive  
your  current  industry  for  a  new  one.       The  Chamber  of  Commerce   potential  new  customers  towards  its  
    members  

 
They  are  not  a  government   often  contact  a  Chamber  looking  for   natural  way  to  meet  people,  because  
organization,  but  they  may  lobby  a   things  to  do  and  places  to  stay  when   they  are  going  for  the  same  reason  
government  when  in  its  member’s   visiting  a  new  city  or  town.   you  are,  to  meet  up!  
best  interest.    They  promote   Chambers  will  often  refer  those    
economic  development  in  the  region   tourists  to  its  member  businesses.   Next,  look  to  official  startup  groups.  
      For  example,  in  my  city  there  is  a  
The  biggest  direct  impact  a  Chamber   While  you  may  already  unknowingly   group  that  plans  an  annual  Startup  
will  have  on  a  member  is  the   be  reaping  the  benefits  of  a  local   Week.  Startup  Weekend  is  a  big  
facilitation  of  networking  with  other   Chamber,  it  is  important  to  support   event  that  brings  together  
local  businesses.  Through  the   these  non-­‐profit  organizations  so   entrepreneurs  all  over  the  world.  
development  of  a  strong  community   they  can  continue  to  work  on  your    
network,  increased  business-­‐to-­‐ behalf.   All  entrepreneurs  are  not  outgoing  
business  trade  can  take  place,  and     and  social  extroverts,  but  that  is  an  
that  should  include  you.   Every  business  in  a  community   important  skill  to  practice  when  
  benefits  from  the  Chamber,  whether   meeting  other  entrepreneurs.  When  
Chambers  host  a  variety  of   they  are  a  member  or  not.  A  Chamber   at  a  social  or  business  function  with  
networking  and  community  events   has  strong  connections  with  local   others,  be  ready  to  share  your  
that  give  its  members  a  chance  to   government  officials,  such  as  the   elevator  pitch  on  what  you  do  and  
interact  with  each  other  or  the  local   mayor  and  city  council,  and  uses  that   tell  a  little  about  yourself  and  your  
community.  One  local  Chamber  hosts   connection  to  advance  the  interests   company  very  quickly.  
monthly  “business  after  hours”   of  its  members,  which  are  all    
events  where  its  members  can  come,   businesses  in  the  community.   Bring  your  business  cards  and  make  
for  free,  to  network.  It  hosts  concerts     sure  to  have  email,  Twitter,  and  
in  a  park  over  the  summer,  where   Other  Ways  to  Connect   website  information  on  them.  
members  come  together  with  the     Remember,  most  startup  folks  these  
larger  community.   Connecting  with  other  entrepreneurs   days  prefer  quick  electronic  
  is  not  difficult  in  most  large  cities.   communications,  not  phone  calls.  
I  have  hired  a  plumber  and  home   First,  look  to  Meetup  for  startup    
inspector  in  the  last  year  from  a   groups  that  bring  together  like   When  you  begin  a  conversation,  have  
Chamber  recommendation.  Tourists   minded  people.  Meetup  is  an  easy  an   two  thoughts  in  mind.  First,  and  most  

 
important,  what  can  you  offer  the   Tasks  
person  you  are  speaking  to.  As  we  all    
know,  people  are  self-­‐serving.  They   For  this  step,  identify  and  contact  
want  to  know  what  they  can  get  out   your  local  Chamber  of  Commerce.    
of  any  situation.  Quick  wins  and   Not  only  can  they  help  you  network,  
measurable  outcomes  are  preferred.   but  they  also  usually  have  resources  
Be  ready  to  share  what  you  or  your   to  help  you  navigate  the  government  
company  can  offer  them,  but  don’t   bureaucracy  required  for  setting  up  
scare  them  off  with  a  hard  sell.   your  business  as  discussed  in  Step  9.      
   
Second,  what  can  you  get  or  what  do   Once  you’ve  identified  your  local  
you  hope  to  gain?  Are  you  looking  for   Chamber,  find  entrepreneurial  
friends?  Peers  to  bounce  ideas  off?   groups  in  your  area  that  you  can  
Business  partners?  Leads?  Referrals?   meet  with.    Meetup  is  a  great  tool,  
Whatever  you  are  looking  for,  be   but  the  Chamber  may  also  have  good  
clear  with  yourself  and  create  a   contacts  that  you  can  leverage.      
strategy  to  help  reach  those  goals.    
  Interact  
 Notes    
  Are  you  a  member  of  any  awesome  
At  the  end  of  the  day,  it  is  all  about   entrepreneurial  groups?    Share  your  
putting  yourself  out  there.  There  are   stories  and  experiences  with  the  
social  risks  involved,  but  rarely  any   community!      
big  cost  beyond  your  time.  I  have    
made  great  friends  and  had  great   Share  your  thoughts  on  the  topic  
opportunities  arise  from  startup   using  the  hashtag  #QuitterStep15.    
events.  Make  sure  to  take  advantage    
of  what  your  community  has  to  offer      
to  grow  yourself  and  your  business.  

 
Step  16:  Preventing  Isolation   Make  Personal  Connections   sick  of  the  lonely  feeling  and  
    isolation  of  working  alone  at  home.  
This  probably  isn’t  something  that   As  mentioned  in  Step  15,  building   While  a  company  office  might  not  be  
you  have  really  ever  given  much   personal  connections  and   cost-­‐effective,  co-­‐working  might  be  a  
through  about,  but  it’s  a  real  problem   networking  is  key.       good  fit.  
for  solopreneurs  and  freelancers  –      
isolation.       However,  it  is  more  than  just  having   A  co-­‐working  space  is  an  office  for  
  someone’s  contact  information  –  you   small  business  owners  and  tech  
For  years  you’ve  gone  to  work,   actually  need  to  contact  them!    Call,   oriented  folks  to  work  together  in  a  
interacted  with  people,  had   Skype,  or  make  the  connection  so   shared  space.  There  are  often  desks,  
meetings,  and  gone  home.    You   that  you  actually  interact  with  a   conference  rooms,  small  offices,  and  
probably  have  some  “work  friends”,   human  and  hear  them.    It’s  even   other  amenities  at  your  disposal.  
but  never  really  thought  about  the   better  if  you  can  see  them.    
social  interaction  side  of  work.         Workers  generally  buy  a  plan  that  
  Also,  try  to  meet  for  coffee  or  drinks.     allows  them  to  work  in  the  space  for  
But  for  most  people,  work  is  the  most   This  is  something  that  I  enjoyed  at   a  certain  number  of  days  per  week  or  
amount  of  time  that  people  interact   the  office  –  getting  coffee  in  the   month.  It  is  common  for  a  co-­‐worker  
with  others  during  the  day.    And  as   morning  and  happy  hours  after  work.       to  buy  a  two  or  three  day  per  week  
humans,  we  need  social  interaction     plan  that  is  much  cheaper  than  an  
to  stay  healthy  and  sane.       Just  because  you’re  an  entrepreneur   office  rental.  
  doesn’t  mean  that  you  can’t  do  the    
To  perpetuate  long-­‐term   same  thing!    You  just  need  to  find   Because  you  don’t  need  your  own  
entrepreneurial  success,  you  need  to   some  like-­‐minded  people  to  join  you.   office,  mailing  address,  and  utilities,  
prevent  isolation.    There  are  a  few     you  can  share  them  with  other  co-­‐
key  ways  that  you  can  do  this.       Join  a  Co-­‐Working  Space   workers  and  save  money.  
     
When  starting  a  new  company,  you   One  local  co-­‐working  space  in  my  
might  be  stuck  working  in  a  home   neighborhood  charges  $75  to  $300  
office  for  a  long  time.  While  many   per  month  depending  on  your  needs.  
entrepreneurs  enjoy  that,  others  get   That  is  a  pretty  good  deal  for  a  part-­‐

 
time  office  with  great  amenities,  such   Everything  is  designed  to  help  you   decided  that  being  self-­‐employed  
as  color  laser  printers,  copy   succeed.   wasn’t  for  them.      
machines,  and  more.      
  Of  course,  they  will  not  do  the  work   That’s  fine  –  it’s  just  another  lesson  
Another  big  benefit  is  that  your  office   for  you.  This  is  a  place  to  go  and   learned.    But  I  wanted  to  share  this  
is  social.  If  you  miss  chatting  by  the   work.  It  is  an  office.  People  are   with  you  so  that  you  are  armed  with  
water  cooler,  this  is  a  great  benefit   expected  to  be  respectful  toward   the  knowledge  before  you  quit  your  
for  you.  Your  other  co-­‐workers  are   other’s  need  for  some  level  of  privacy   job.      
also  small  business  owners  and  enjoy   and  quiet.  You  will  be  left  alone    
a  little  human  interaction  from  time   during  most  business  hours  to  focus   Interact  
to  time.   on  your  business.    
    What  are  you  doing  to  prevent  
Co-­‐working  spaces  also  hold  social   This  will  not  lead  to  success   isolation  in  your  business?  
events  and  workshops  that  foster   overnight,  but  it  can  help  you  along    
interaction  and  camaraderie  among   your  journey  toward  a  more   Share  your  thoughts  on  the  topic  
members.  For  example,  a  local  co-­‐ successful  business.  If  you  are  lonely   using  the  hashtag  #QuitterStep16.    
working  space  recently  hosted  a   in  your  office,  co-­‐working  may  be  a    
happy  hour  party  for  singles.    A  lot  of   great  fit  for  you.    
the  members  turned  out  along  with  a        
handful  of  like-­‐minded  people  from   Notes  
around  town.    
  I’ve  known  at  least  2  solopreneurs  
One  of  the  biggest  benefits  of  co-­‐ that  gave  it  up  to  go  back  to  work  for  
working  is  that  your  co-­‐working   this  single  reason!    It  is  really  
space  will  help  you  grow.  Your  fellow   detrimental  to  your  well  being  not  to  
members  will  help  you  grow.  Your   interact  with  others.      
co-­‐working  space  will  host  events    
designed  to  help  you  run  a  better  and   These  individuals  were  successful,  
bigger  business.  You  can  network   had  6  figure  businesses  and  easily  
with  other  business  owners.   supported  their  families,  yet  they  

 
Step  17:  Work/Life  Balance   your  friends  want  to  hang  out  with   Control  
  you  too  sometimes.        
As  I  mentioned  multiple  times     Work  limits  the  control  that  we  have  
throughout  this  checklist,   Working  is  certainly  important,  but   over  our  own  time.    Therefore,  the  
maintaining  balance  is  key  for   we  should  be  careful  to  ensure  that   first  step  in  learning  how  to  improve  
ongoing  success.       our  work  never  consumes  our  lives.     work  life  balance  is  to  identify  the  
  Similarly,  we  should  also  be  careful   key  aspects  of  our  lives  that  we  can  
You  can’t  sacrifice  everything  to  be   not  to  let  our  personal  lives  interfere   control.    You  should  begin  by  
successful  and  then  continue  to   with  our  job.    Therefore,  a  balance  is   identifying  how  much  time  is  
sacrifice  more.    There  is  only  so   needed  to  control  the  relationship   required  for  work  while,  for  the  time  
much  of  you  to  give.       between  our  careers  and  personal   being,  ignoring  how  much  extra  work  
  lives.    This  is  especially  true  for   you  complete  for  additional  income.    
You  need  to  make  sure  that  you   freelancers  and  others  that  work   Other  important  aspects  of  your  life,  
setup  a  structure  that  allows  you  to   from  home,  as  their  residence  and   including  personal  projects,  hobbies,  
have  work/life  balance,  or  else  you’ll   place  of  business  share  the  same   family  time,  lifestyle,  and  so  on  
quickly  find  yourself  heading  back  to   building.       should  also  be  carefully  considered  
the  nine  to  five  job.     and  written  down.  
  Those  that  do  not  learn  how  to    
The  problem  I’ve  encountered  with   improve  work-­‐life  balance  not  only   Time  Management  
most  entrepreneurs,  including   face  the  possibility  of  experiencing    
myself,  is  that  we  can’t  turn  off  our   burnout,  but  may  also  become  at  risk   You  should  then  identify  the  
minds.    We’re  either  working  on  our   for  stress-­‐related  health  issues.     activities  that  limit  your  productivity  
business,  thinking  about  our   Therefore,  learning  how  to  improve   or  lead  to  unnecessary  levels  of  
business,  or  talking  about  out   work  life  balance  is  essential  to   stress.    For  example,  if  you  find  that  
business.   maintaining  a  healthy  and  productive   your  work  is  taking  longer  than  it  
  lifestyle.       probably  should,  you  may  want  to  
But  that  isn’t  always  healthy.    You     consider  how  much  time  you  spend  
need  a  break.    If  you  have  a  family,       browsing  the  web  or  chatting  with  
they  deserve  your  attention.    I  bet   others  when  you  could  be  working.    
Such  activities  will  certainly  slow  you  

 
down  and  should  usually  be  saved   Organization   could  outsource.    There  is  no  reason  
for  a  more  appropriate  time.    When     to  do  everything  when  someone  else  
it’s  time  to  work,  that’s  exactly  what   After  identifying  these  important   could  do  some  of  the  tasks  for  you.  
you  should  be  doing  (though  it  is   aspects,  the  next  step  is  to  carefully    
important  to  take  one  or  two  breaks,   develop  a  schedule  that  organizes   Outsourcing    
depending  upon  how  long  your   each  part  of  your  life.    This  schedule    
workday  is).    If  you  spend  time   should  include  the  amount  of  time   Outsourcing  is  a  term  that  goes  in  
gossiping  with  coworkers,  be  careful;   you  need  each  day  for  work,  but   and  out  of  many  people’s  mouth  very  
not  only  can  this  lead  to  elevated   should  also  account  for  the  varying   often  nowadays.  You  might  get  the  
stress  levels,  it  can  also  breach  the   activities  that  are  sure  to  occur  on   idea  that  it  pertains  to  the  corporate  
barrier  that  should  exist  between   different  days.       and  professional  world,  but  what  is  it  
your  work  and  personal  life.     really?  How  can  different  parties  
  For  example,  you  may  want  to  plan   (businesses  and  freelancers)  benefit  
Determine  the  hobbies  that  you  wish   some  recreational  activities  for  the   from  it?  What  are  the  different  types  
you  could  do  but  never  seem  to  have   weekend  with  your  family.    You  may   of  outsourcing  jobs  that  companies  
time  for.    This  may  include  jogging,   also  need  to  set  aside  some  time   can  avail  of  from  outsourcing  
hiking,  or  a  number  of  other   during  the  week  to  complete   companies  and  freelancers?  
recreational  activities.    It’s  especially   personal  errands.    Even  if  you  prefer    
important  to  determine  which   to  work  a  little  harder  each  week  for   A  lot  of  companies  opt  to  outsource  
activities  both  help  you  recharge  and   an  extra  income,  you  can  devote   some  of  their  business  processes  
benefit  your  health.    Ideally,  this  will   more  of  your  time  to  work  on  some   because  of  an  ultimate  reason:  it  is  
include  time  spent  with  family  and   days  while  leaving  a  little  more  for   cost  efficient  and  time  efficient.  It  
friends.    It’s  important  to  avoid  stress   yourself  on  others.    You’ll  be   also  saves  them  the  trouble  of  
as  much  as  possible  in  your  down   surprised  how  much  extra  time  you   managing  and  training  employees.    
time,  since  you  will  suffer  more  than   have  on  your  hands  by  creating  a    
your  fair  share  of  this  at  work.   comprehensive  schedule  and   All  they  have  to  do  is  find  a  reliable  
  carefully  adhering  to  it.   outsourcing  company  or  a  freelancer  
  and  give  the  details  of  the  job  that  
Also,  identify  which  activities  require   they  want  to  have  done.  Transactions  
you  to  work,  and  which  activities  you   that  involve  the  outsourcing  of  

 
business  processes  is  normally   doesn’t  mean  your  business  takes  a   outstanding  emails,  messages,  
hassle  free.  This  is  why  a  lot  of   vacation.       projects,  or  deadlines,  make  sure  
companies  just  choose  to  outsource     everyone  is  updated  and  knows  what  
instead  of  looking  for  and  hiring  new   Planning  ahead  is  huge.  If  you  have  a   to  expect  while  you  are  away.  
employees.   staff  (even  outsourced  staff),  you  can    
  prepare  them  for  anything  that  needs   In  my  experience,  the  best  way  to  do  
Below  are  the  types  of  outsourcing   to  be  done  while  you  are  away.  Detail   this  is  to  work  ahead  and  complete  
jobs  that  you  can  benefit  from   is  very  important.  You  don’t  want  to   any  outstanding  projects  before  you  
outsourcing  to  freelancers:   forget  about  something  important   leave.  If  you  don’t  owe  anyone  any  
• Web  Administration   and  just  miss  it  while  you  are  away.   follow-­‐ups,  you  won’t  miss  any  
• Online  Marketing     deadlines.  
• Web  Development   If  you  have  a  staff,  make  a  detailed    
• Virtual  Assistant   list  of  everything  that  needs  to   You  can  also  set  your  voice  mail  and  
• Link  Building   happen  by  day.  Explain  what  needs   email  with  way  messages  so  you  
• Content  Writing   to  be  done  to  successfully  complete   don’t  miss  out  on  anything  new.  
• Social  Media  Management   each  task  and  make  sure  to  answer    
• Lead  Generation   any  questions.  While  you  are  gone,   Anything  that  can  be  automated  
    they  are  on  their  own  to  figure  things   should  be.  I  pre-­‐set  bank  transfers,  
The  list  goes  on  and  on.    The  point  is,   out.   emails,  and  other  needed  business  
identify  what  you  need  help  with,     activities  to  take  place  while  I  was  
and  see  if  it  makes  more  sense  to  pay   If  you  don’t  have  a  staff,  you  have  to   gone.  
others  to  do  it  for  you.       set  everything  up  yourself.  For  my    
  blogging  businesses,  I  pre-­‐posted  and   Automating  your  finances  is  a  good  
Take  Vacations   scheduled  everything  that  needed  to   idea  anyway,  but  make  sure  you  have  
  be  taken  care  of.  For  my  other   the  funds  in  the  right  places  ahead  of  
Taking  a  vacation  is  just  as  important   company,  I  had  freelancers  start  on  a   time  so  your  outstanding  automated  
for  entrepreneurs  as  it  is  for  people   project  while  I  was  a  way.   transactions  will  not  cause  any  
working  a  nine  to  five  job.    However,     problems.  
just  because  you  take  a  vacation   Keeping  your  customers  and  staff  up    
to  date  is  important.  If  you  have  any  

 
Finally,  remember  you  are  on   What  works  for  one  person  may  not   successful,  while  at  the  same  time  
vacation  to  relax,  get  away,  and  have   work  for  another  person.       allowing  your  personal  life  to  
fun.  Don’t  work  while  away  if  you  can     flourish  as  well.      
avoid  it.  Many  entrepreneurs  suffer   You  need  to  do  some  trial  and  error    
from  burnout  if  they  don’t  take   on  your  part  to  discover  what  works   Interact  
breaks  and  relax  every  once  in  a   for  you.        
while.  Time  away  and  relaxation  are     What  work/life  balance  structures  
important  for  long-­‐term  success  and   Don’t  be  afraid  to  try  different  time   have  you  found  to  be  successful?  
happiness.   management  systems,  or  different    
  schedules,  until  one  clicks.       Share  your  thoughts  on  the  topic  
Notes     using  the  hashtag  #QuitterStep17.    
  One  you  actually  find  something  that    
There  is  no  right  or  wrong  answer  to   works,  you’ll  be  so  incredibly    
developing  a  good  work/life  balance.     thankful  that  you  did,  because  it  will      
make  your  business  so  much  more  

 
What  Now?  
 
At  this  point,  you’ve  gone  through  the  entire  Quitters  Checklist.    Hopefully  you’ve  fully  understood  everything  that  goes  into  
actually  quitting  your  job  and  learned  something  as  a  result.  
 
The  goal  is  to  make  your  transition  successful.    I  hope  you  see  that  there  are  a  lot  of  key  strategies  that  you  can  use  to  make  
your  transition  successful.    Nobody  wants  to  fail  at  anything,  but  it  becomes  even  more  important  when  everything  is  on  the  
line  in  starting  your  own  business.  
 
Whatever  you  call  it:  entrepreneurship,  solopreneurship,  freelancing,  self-­‐employment  –  the  bottom  line  is  you  are  dependent  
on  yourself,  and  you  are  in  charge.    This  is  a  change.    This  is  a  good  thing.    But  it  requires  a  different  skill  set  and  a  different  
way  of  thinking  about  things.      
 
At  this  point,  I  wish  you  all  the  success  in  the  world!    I  hope  you’ve  become  inspired  to  create  something  and  develop  a  plan  for  
success.  
 
I  urge  you  to  continue  to  follow  along  in  my  journey  to  self-­‐employment.    I  admit  that  I’m  not  the  expert.    I’m  still  working  
through  this  checklist  myself.      
 
As  always,  feel  free  to  reach  out  and  interact.    Life’s  a  journey,  and  so  is  entrepreneurship.    You  never  have  to  do  it  alone.    We  
can  all  beat  the  nine  to  five  together!  
   

 
Resources  Mentioned   Accounting  Tools   How  to  Engineer  Your  Layoff  
  • Wave  Accounting    
Throughout  this  eBook  there  were  a   • QuickBooks  
lot  of  different  resources  mentioned.      
Here  is  an  overview  of  all  the  key   Organizations  
tools  you  need  to  successfully   • National  Association  for  the  
execute  the  Quitters  Checklist.       Self-­‐Employed  
  • The  Freelancers  Union  
Books    
• David  Chilton,  The  Wealthy   • Meetup  
Barber    
• Jean  Chatzky,  You  Don’t  Have    
to  be  Rich    
• Dave  Ramsey,  The  Total    
Money  Makeover   How  to  Engineer  Your  Layoff  
• David  Bach,  The  Automatic    
Millionaire    
     
Personal  Finance  Tools  
• Mint  
• Quicken  
• Personal  Capital  
 
• 10  Free  Budget  Spreadsheets  
 
Legal  Tools  
• Rocket  Lawyer  
• Nolo  
• Legal  Zoom  
 

 
Printable  Quitters  Checklist  
 
☐   Setup  an  Emergency  Fund  
☐   Create  a  Budget  
☐   Understand  Your  Tax  Situation  
☐   Get  Insured  
☐   Figure  Out  Your  Retirement  Plan  
☐   Create  Your  Side  Business  
☐   Do  Market  Research  
☐   Setup  Your  Business  Structure  
☐ Learn  the  Rules  of  Your  Employer  
☐ Start  Planning  Your  Exit  
☐ See  If  You  Can  Get  Laid  Off  
☐ Understand  Your  LOA  Options  
☐ Maximize  Your  Exit  Benefits    
☐ Build  an  Entrepreneur  Network  
☐ Construct  Relationships  
☐ Make  Plans  for  Work/Life  Balance