Comments on: How To Get Off The Treadmill: A Detailed Guide To Becoming Self-Employed http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/ Simple, applicable personal finance advice for the modern world Sat, 21 Nov 2009 22:03:21 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Luke http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/comment-page-1/#comment-61692 Luke Sat, 25 Aug 2007 00:09:10 +0000 http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/#comment-61692 Hey, Congrats on a great post and on achieving your purpose, you really are changing peoples lives with your writing. I've been thinking about going it alone for quite a while, and have workshopped a few ideas with friends and family, but the whole 'find your purpose' exercise has given me real clarity. I really thought it sounded like a total wank, but it seriously worked. Hey,
Congrats on a great post and on achieving your purpose, you really are changing peoples lives with your writing.

I’ve been thinking about going it alone for quite a while, and have workshopped a few ideas with friends and family, but the whole ‘find your purpose’ exercise has given me real clarity. I really thought it sounded like a total wank, but it seriously worked.

]]> By: Erin Sullivan, CPC-A http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/comment-page-1/#comment-57069 Erin Sullivan, CPC-A Tue, 14 Aug 2007 09:57:58 +0000 http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/#comment-57069 Thank you for this article although I felt it to be associated with the more "personal" aspects of starting a small business rather than the financial. I have had a dream of starting my own medical billing business (been in the field for seven years) and have the opportunity to secure my first client; a rather large client. The hardest part they say is finding that first client willing to give you the chance to make a difference in their practice but it seemed easy enough for me to get my foot in the door. My issue will be finding the capital to meet overhead costs in the first 3 months as well as startup costs. I did enjoy your suggestions on life preparedness. I tend to stray from my responsibilities on occassion and forget my priorities. I will definitely start working on the home first to ready myself for the daily grind of a home-based business. Thanks for the information! Thank you for this article although I felt it to be associated with the more “personal” aspects of starting a small business rather than the financial. I have had a dream of starting my own medical billing business (been in the field for seven years) and have the opportunity to secure my first client; a rather large client. The hardest part they say is finding that first client willing to give you the chance to make a difference in their practice but it seemed easy enough for me to get my foot in the door. My issue will be finding the capital to meet overhead costs in the first 3 months as well as startup costs.

I did enjoy your suggestions on life preparedness. I tend to stray from my responsibilities on occassion and forget my priorities. I will definitely start working on the home first to ready myself for the daily grind of a home-based business. Thanks for the information!

]]> By: Jason Alba http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/comment-page-1/#comment-34840 Jason Alba Thu, 14 Jun 2007 14:15:20 +0000 http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/#comment-34840 Yes, this is a long article but full of meat. Don't take it as a blog post, take it as an article. I got laid off and within a couple of months started my new business. It consumes my life (kind of) but it is better than working for "the man" - there is NO job security out there and even if I go back and get a job somewhere else I'll still have this on the side. Starting/owning a business is a huge, serious matter, it's not easy and there will be significant challenges. But the world has changed - where can you find a job with a pension? What "stable" company doesn't do layoffs? I strongly urge people that are concerned about their future to figure out an alternative source of income and move on it - don't wait until you have to - start now! I'm happy I did, and work as much as I did as GM of a software company with a regular paycheck. But the benefits greatly outweigh the cons. Jason Alba CEO - <a href="http://www.JibberJobber.com" rel="nofollow">JibberJobber.com</a> because relationships are key in what you are doing... Yes, this is a long article but full of meat. Don’t take it as a blog post, take it as an article.

I got laid off and within a couple of months started my new business. It consumes my life (kind of) but it is better than working for “the man” – there is NO job security out there and even if I go back and get a job somewhere else I’ll still have this on the side.

Starting/owning a business is a huge, serious matter, it’s not easy and there will be significant challenges. But the world has changed – where can you find a job with a pension? What “stable” company doesn’t do layoffs?

I strongly urge people that are concerned about their future to figure out an alternative source of income and move on it – don’t wait until you have to – start now!

I’m happy I did, and work as much as I did as GM of a software company with a regular paycheck. But the benefits greatly outweigh the cons.

Jason Alba
CEO – JibberJobber.com
because relationships are key in what you are doing…

]]> By: Rachel http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/comment-page-1/#comment-34822 Rachel Thu, 14 Jun 2007 12:47:41 +0000 http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/#comment-34822 I really likes this article, because it hit on some things that are an issue for me. My health has been bad for about 7 years now. I had a dr.'s appt. yesterday to discuss some of these issues and she put it to me point blank- the stress in my life is causing a lot of it, and I do way too much for others and not enough for myself. It is my nature to help others, but I took her advice to heart, and I will have to break this. I came home from the dr. very depressed. I laid in bed for about 30 minutes, then on the couch watching t.v. for about 2 hours, something I NEVER do. Strangely I felt invigorated enough to empty the dishwasher, then hang out a load of clothes. While I was hanging out the clothes, enjoying the fresh breeze and the warm sun, it hit me. I want to help others help themselves! Not do for others, but show them how to find alternatives for their situation. I can do this in a couple of different ways. I can become a Crown financial leader. This is a financial help program run by Howard Dayton. I listen to the program on my local Christian radio station whenever I can. You can train as a counselor through their program and then lead small group studies in your church. Or I could return to college and become a therapist. Both are options, but the first seems more practical for me and not so overwhelming. Our daughter is about to move back home with her 5 month old baby so that she can work full time to save money for a down payment on a house. We will be providing child care in the evenings. The dr. was not too thrilled to hear this. She said I really need to set some limits so that I don't become worn out. While I know she is right I will still help my daughter with this important step. She is only 22 and is looking at the future and how to provide the best for her son. Maybe something I have taught her over the years has rubbed off. I really likes this article, because it hit on some things that are an issue for me. My health has been bad for about 7 years now. I had a dr.’s appt. yesterday to discuss some of these issues and she put it to me point blank- the stress in my life is causing a lot of it, and I do way too much for others and not enough for myself. It is my nature to help others, but I took her advice to heart, and I will have to break this. I came home from the dr. very depressed. I laid in bed for about 30 minutes, then on the couch watching t.v. for about 2 hours, something I NEVER do. Strangely I felt invigorated enough to empty the dishwasher, then hang out a load of clothes. While I was hanging out the clothes, enjoying the fresh breeze and the warm sun, it hit me. I want to help others help themselves! Not do for others, but show them how to find alternatives for their situation. I can do this in a couple of different ways. I can become a Crown financial leader. This is a financial help program run by Howard Dayton. I listen to the program on my local Christian radio station whenever I can. You can train as a counselor through their program and then lead small group studies in your church. Or I could return to college and become a therapist. Both are options, but the first seems more practical for me and not so overwhelming. Our daughter is about to move back home with her 5 month old baby so that she can work full time to save money for a down payment on a house. We will be providing child care in the evenings. The dr. was not too thrilled to hear this. She said I really need to set some limits so that I don’t become worn out. While I know she is right I will still help my daughter with this important step. She is only 22 and is looking at the future and how to provide the best for her son. Maybe something I have taught her over the years has rubbed off.

]]> By: lorax http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/comment-page-1/#comment-34689 lorax Thu, 14 Jun 2007 02:06:24 +0000 http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/#comment-34689 Forget expensive health insurance, it might be impossible to get it at all if you aren't part of a group risk pool. Think diabetes, high blood pressure, cystic fibrosis, congenital problems. One option is to move to a state with "universal" coverage. Forget expensive health insurance, it might be impossible to get it at all if you aren’t part of a group risk pool. Think diabetes, high blood pressure, cystic fibrosis, congenital problems.

One option is to move to a state with “universal” coverage.

]]> By: Art Dinkin http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/comment-page-1/#comment-34668 Art Dinkin Thu, 14 Jun 2007 00:25:26 +0000 http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/#comment-34668 I'm self employed and I only work 1/2 days. Best part is there is no one to tell me which 12 hours a day to work! Seriously. I don't have one boss, I have about 200 (clients). I’m self employed and I only work 1/2 days. Best part is there is no one to tell me which 12 hours a day to work!

Seriously. I don’t have one boss, I have about 200 (clients).

]]> By: Amber Yount http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/comment-page-1/#comment-34648 Amber Yount Wed, 13 Jun 2007 22:49:19 +0000 http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/#comment-34648 I've spent my entire summer beginning my home-based design business before i graduate next spring. This article is definately a help! I’ve spent my entire summer beginning my home-based design business before i graduate next spring. This article is definately a help!

]]> By: elkit http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/comment-page-1/#comment-34627 elkit Wed, 13 Jun 2007 21:31:29 +0000 http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/#comment-34627 This has nothing to do with what you write about in this entry, but - I'm sorry, I got distracted by the painting of the lady with the fan. Can you tell me more about it? Soon as my curiosity is satisfied, I can relax and read what you wrote. :-) Thanks! Elke This has nothing to do with what you write about in this entry, but – I’m sorry, I got distracted by the painting of the lady with the fan. Can you tell me more about it? Soon as my curiosity is satisfied, I can relax and read what you wrote. :-)
Thanks!

Elke

]]> By: Mark http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/comment-page-1/#comment-34625 Mark Wed, 13 Jun 2007 21:16:28 +0000 http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/#comment-34625 This is way too long. My father who was a senior veep of marketing for the number one textile manufacturer said to me once, if you can't sell a customer under 1 minute, its not worth the presentation. I lost track of how long it took me to read the first half and stopped. You have a good topic but isn't it better to break it up? This is way too long. My father who was a senior veep of marketing for the number one textile manufacturer said to me once, if you can’t sell a customer under 1 minute, its not worth the presentation. I lost track of how long it took me to read the first half and stopped. You have a good topic but isn’t it better to break it up?

]]> By: Rob in Madrid http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/comment-page-1/#comment-34624 Rob in Madrid Wed, 13 Jun 2007 21:14:32 +0000 http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/#comment-34624 Sorry folks but Self Employment is the worse kind of rat race there is, 7/24 stress and pressure. I see in my wife's family all the time. They are all, for the most part self employed, and none of them have had the same financial success (in terms of pure income - what you do with it is another matter) than my wife has being a salaried employee. For the most part it is the spouse’s job that often is keeping them afloat. While work can my wife down at times when it comes to holiday time she shuts off the computer the phone and no email etc. You can't do that when your self employed. If you can do as Trent says live frugal save a years wage than why not work a year or two longer and retire at 35 or 40 and work part time somewhere . That's what Derek Foster (of stopworking.ca fame) did retired at age 34. Early retirement beats the hell out of self employment any day (or working for that matter) There are very rarely times when a person can give up paid employment and follow what they love and make a living at it, but as I said it's rare. Sorry folks but Self Employment is the worse kind of rat race there is, 7/24 stress and pressure. I see in my wife’s family all the time. They are all, for the most part self employed, and none of them have had the same financial success (in terms of pure income – what you do with it is another matter) than my wife has being a salaried employee. For the most part it is the spouse’s job that often is keeping them afloat.

While work can my wife down at times when it comes to holiday time she shuts off the computer the phone and no email etc. You can’t do that when your self employed. If you can do as Trent says live frugal save a years wage than why not work a year or two longer and retire at 35 or 40 and work part time somewhere . That’s what Derek Foster (of stopworking.ca fame) did retired at age 34. Early retirement beats the hell out of self employment any day (or working for that matter)

There are very rarely times when a person can give up paid employment and follow what they love and make a living at it, but as I said it’s rare.

]]> By: Mark Shead http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/comment-page-1/#comment-34613 Mark Shead Wed, 13 Jun 2007 20:03:45 +0000 http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/#comment-34613 When I started my company it took about a year of planning before I quite my regular job. By that time I had 1.5 years worth of living expenses saved up. If you are living week to week, you can't operate your business correctly because you will be too focused on short term gains and not focused on how to correctly set everything up. For example, I had a client fall behind on payment so I set them up with credit terms. It gave me some tax benefits and in the long run I'll get much more money that I would have initially. If I had of been living paycheck to paycheck, I wouldn't have been able to be as flexible which not only would have made me seem less professional, but it would have meant missing out on a significant financial opportunity. When I started my company it took about a year of planning before I quite my regular job. By that time I had 1.5 years worth of living expenses saved up. If you are living week to week, you can’t operate your business correctly because you will be too focused on short term gains and not focused on how to correctly set everything up.

For example, I had a client fall behind on payment so I set them up with credit terms. It gave me some tax benefits and in the long run I’ll get much more money that I would have initially. If I had of been living paycheck to paycheck, I wouldn’t have been able to be as flexible which not only would have made me seem less professional, but it would have meant missing out on a significant financial opportunity.

]]> By: single Incoming Parenting http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/comment-page-1/#comment-34601 single Incoming Parenting Wed, 13 Jun 2007 19:48:42 +0000 http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/#comment-34601 I agree that health insurance is a huge part of self -employment that many people don't think about before quitting their jobs. Take a look at your last paycheck and hopefully your company breaks down where all your deductions go and you can see just how much they pay for your health insurance. It can be easily over $1000 if you have the full medical/dental/vision plan. Also, don't forget that if you have higher deductible, you can save a little money each month but if you have to pay for expenses with a 20% credit card, it might not be worth it! I agree that health insurance is a huge part of self -employment that many people don’t think about before quitting their jobs. Take a look at your last paycheck and hopefully your company breaks down where all your deductions go and you can see just how much they pay for your health insurance. It can be easily over $1000 if you have the full medical/dental/vision plan. Also, don’t forget that if you have higher deductible, you can save a little money each month but if you have to pay for expenses with a 20% credit card, it might not be worth it!

]]> By: 60 in 3 http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/comment-page-1/#comment-34591 60 in 3 Wed, 13 Jun 2007 19:22:03 +0000 http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/#comment-34591 James, Not sure what kind of engineer you are, but there are ways to work this out in my industry (high tech). Some companies can be very supportive of employees with good ideas. They may even want to invest or support you in some way (obviously they'll want something in return). Make sure you talk to your boss about this but only do it when you're absolutely confident in your idea and your willingness to take it on. You need to be prepared for the possibility of losing your job. However, you might be pleasantly surprised by the outcome. Gal James,
Not sure what kind of engineer you are, but there are ways to work this out in my industry (high tech). Some companies can be very supportive of employees with good ideas. They may even want to invest or support you in some way (obviously they’ll want something in return).

Make sure you talk to your boss about this but only do it when you’re absolutely confident in your idea and your willingness to take it on. You need to be prepared for the possibility of losing your job. However, you might be pleasantly surprised by the outcome.

Gal

]]> By: James http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/comment-page-1/#comment-34578 James Wed, 13 Jun 2007 18:47:52 +0000 http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/#comment-34578 boomie: is that one year's personal AND business expense? Unfortunately if I start my own business in anything related to my major (and thus to my full-time job), I will probably NOT be able to start it while still keeping that full-time job due to various IP and conflict of interest agreements (engineering...). Now, I may be able to get a signed release allowing me to work on such things provided it does not interfere or compete with my work. We shall see when I get to that bridge. boomie:

is that one year’s personal AND business expense?

Unfortunately if I start my own business in anything related to my major (and thus to my full-time job), I will probably NOT be able to start it while still keeping that full-time job due to various IP and conflict of interest agreements (engineering…).

Now, I may be able to get a signed release allowing me to work on such things provided it does not interfere or compete with my work. We shall see when I get to that bridge.

]]> By: Lor http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/comment-page-1/#comment-34564 Lor Wed, 13 Jun 2007 17:57:09 +0000 http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/#comment-34564 I found this article very informative. Health insurance issues are another significant factor to consider in thinking about a transition to self employment. I found this article very informative. Health insurance issues are another significant factor to consider in thinking about a transition to self employment.

]]> By: Steve http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/comment-page-1/#comment-34560 Steve Wed, 13 Jun 2007 17:44:56 +0000 http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/#comment-34560 Great piece! I like how you keep stressing about not quitting your job (yet). I did quit a job one time and I thought I was going to get a quick one before my savings run out... It didn't quite happen that way. Now I am big proponent (to my friends) of not moving until the job prospects are pretty good. Not quitting until you have another job, etc. Just like the Emergency Fund, I consider having your day job a nice backup as you get into a new business until you figure your cash flow out. Great piece!
I like how you keep stressing about not quitting your job (yet). I did quit a job one time and I thought I was going to get a quick one before my savings run out… It didn’t quite happen that way. Now I am big proponent (to my friends) of not moving until the job prospects are pretty good. Not quitting until you have another job, etc. Just like the Emergency Fund, I consider having your day job a nice backup as you get into a new business until you figure your cash flow out.

]]> By: boomie http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/comment-page-1/#comment-34556 boomie Wed, 13 Jun 2007 17:37:36 +0000 http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/#comment-34556 Interesting post chock full of valuable information. here's my 2 cents from self-employed experience: have at least one full years worth of expense money in the bank. have a great accountant and lawyer in your back pocket. one law suit can wipe you out. have understanding significant other and family. pray, pray, pray. Interesting post chock full of valuable information.
here’s my 2 cents from self-employed experience:

have at least one full years worth of expense money in the bank.

have a great accountant and lawyer in your back pocket. one law suit can wipe you out.

have understanding significant other and family.

pray, pray, pray.

]]> By: !wanda http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/comment-page-1/#comment-34553 !wanda Wed, 13 Jun 2007 17:03:36 +0000 http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/#comment-34553 I tried Steve Pavlina's "write down stuff until you cry" method to find my passion, but I ended up crying over something very negative, the opposite of what I want my life to be like. This isn't a situation that's discussed on his blog post. Maybe I just worry about things too much. I tried Steve Pavlina’s “write down stuff until you cry” method to find my passion, but I ended up crying over something very negative, the opposite of what I want my life to be like. This isn’t a situation that’s discussed on his blog post. Maybe I just worry about things too much.

]]> By: Kevin http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/comment-page-1/#comment-34544 Kevin Wed, 13 Jun 2007 16:37:25 +0000 http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/#comment-34544 GREAT article! That's a huge amount of good information. I like your suggestion of wading in while working your current job rather than diving in. My wife and I have a small startup. After a good deal of initial work, a market shift knocked the business plan to pieces (always a risk in the tech world). Fortunately the company framework is flexible, so we just have to start over with different products than our original one. Had we "quit the day job" -- well, I don't want to think about it! GREAT article! That’s a huge amount of good information.

I like your suggestion of wading in while working your current job rather than diving in. My wife and I have a small startup. After a good deal of initial work, a market shift knocked the business plan to pieces (always a risk in the tech world). Fortunately the company framework is flexible, so we just have to start over with different products than our original one. Had we “quit the day job” — well, I don’t want to think about it!

]]> By: Lori http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/comment-page-1/#comment-34537 Lori Wed, 13 Jun 2007 16:15:12 +0000 http://www.thesimpledollar.com/2007/06/13/how-to-get-off-the-treadmill-a-detailed-guide-to-becoming-self-employed/#comment-34537 Just saw your comment on ProBlogger and thought I would check out your site. I found your post useful yet lengthy..lol. Hope you are doing well in your money ventures. Just saw your comment on ProBlogger and thought I would check out your site. I found your post useful yet lengthy..lol. Hope you are doing well in your money ventures.

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