Article - How to Quit Your Job by Debra Thorsen,Fearless Guides

How to Quit Your Job

Article by Lea Pitcher

Do you to know how to quit your job without ending up on the street? In a nutshell, you need to avoid the self-employment trap, think like a business, and create multiple passive revenue streams.

Avoid the Self-Employment Trap

If you quit your job and hang up your own shingle, you might work harder for less money. You may enjoy working from home or choosing your own clients, but you might end up living from client to client without building any real wealth.

Many self-employed people I know suffer from feast or famine. They spend lots of time and money marketing their services and get lots of clients. They get really busy doing the work and stop marketing and then their prospective client pool dries up.

If you set up your business so that you do everything - marketing, sales, bookkeeping, operations, and fulfillment, then you are limiting your success potential from day one. You will spend lots of time on non-income generating activities and may get frustrated and burned-out in a short time.

The real key to successfully creating wealth outside of a job is to avoid the mistake of trading one boss for another boss. You need to stop trading your time for dollars. Stop thinking like a wage slave. Look beyond earned income.

Think Like a Business

There are many problems with earned income. The biggest one is that you are trading your time for money. If you stop trading your time, the dollars stop coming. This is a huge problem if you decide to have a baby, get sick, want to take an extended vacation, or are ready to retire.

The IRS penalizes self-employed people who operate as a sole proprietorship with a hefty self-employment tax. How can you avoid this? Well, I am not an accountant or CPA, so I am not giving legal or accounting advice, but I have learned to think like a business. Before you quit your job, interview local tax advisors to educate yourself on different business entities and tax strategies. Start thinking big.

Build a Company with Multiple Passive Income Streams

You need to build a company that works for you. My best advice on how to quit your job is to build a business that offers multiple streams of passive income in addition to your earned income. There are so many exciting ways to design your income portfolio. It requires imagination, courage and planning.

Structure your business so that your daily activities are fun and challenging. Identify the things that you don't enjoy or are not good at and find other people to do these activities — outside partners, independent contractors, or employees.

Go forth and prosper!

Lea Pitcher

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Lea Pitcher is a carefree corporate escapee who uses her MBA from Carnegie Mellon, BA in cultural anthropology, and Personal and Professional Coach certification to help individuals break free from the corporate world and create real wealth and happiness. Please visit www.fearlessguides.com for additional career change advice articles and resources on breaking free from the corporate world.

© 2005 Lea Pitcher, All rights reserved. You are free to republish this article in whole or in part, as long as you include complete attribution, including live web site link. Please also notify me where the material will appear. The attribution should read:

"By Lea Pitcher of Fearless Guides. Please visit Lea's web site at www.fearlessguides.com for more articles and resources on breaking free from the corporate world." (Make sure the link is live if placed in an eZine or in a web site.)

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