Anyone step away from the corporate grind to build something on your own? I am not in a position where I could moonlight (competing with employer though I do not have a non compete).

I have so many questions and don't know where to start. I have an idea and a website. Would be in the realm of project management consulting.

Need to set up an LLC
I need to understand taxes
I need to understand health insurance
I need to start drumming up interest so if I get a bite I can jump ship

We are financially very stable with no debt and about 12 months of expenses saved up.

Dill-Ag13 said:

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Anyone step away from the corporate grind to build something on your own? I am not in a position where I could moonlight (competing with employer though I do not have a non compete).

I have so many questions and don't know where to start. I have an idea and a website. Would be in the realm of project management consulting.

Need to set up an LLC -$1000 maybe a dba as well
I need to understand taxes - llc runs through your personal taxes - accountant costs $200 per hour but some will waive in order to get your tax business - find a friend or another Aggie to help
I need to understand health insurance - ouch - my wife works so we have insurance through her - still rough
I need to start drumming up interest so if I get a bite I can jump ship ……starting up a business will take a while.

We are financially very stable with no debt and about 12 months of expenses saved up.

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Does your year include medical? If not rethink. Will 12 months be enough? How many clients will you need to equal current lifestyle? If fail how long to get another job to equal current lifestyle? Travel expenses to new clients? Other expenses not thought of? Are their clients that you current employer passes on because of something? In other words a niche that your current employers doesn't capitalize on?

If you identify a niche and you approached your current employer would they turn it down or give you a raise? Can you grow within your current job?

I've thought about it. But I'm already in the world having bounced around Big4/boutique for a few years post-MBA.

I haven't because, 1) I really hate sales and 2) benefits; have you peaked what paying for your insurance would look like? If I ever did, I wouldn't turn in 2 weeks until I had my first contract signed for a minimum of 6 months.

There are some middle grounds to consider. Firms like ghSMART are where some of my colleagues have downshifted. You run your own book, but the firm sells itself and you don't really have to chase much. You also take on only what you want to work, so great WLB while still maintaining comp and benefits. Some other firms offer similar models - some fully just staff aug you under contract - you do the work while they sell you. Just an alternative thought of staying in corporate, but having more flexibility.

Gig-work is also something our firm uses. Contract people we pull in for specific roles. Mainly, PMO / Project Managers / Subject matter folks. I'm not exactly sure how it works, but we have a pre-"screened" pool and they are added to the bench like any normal FTE. We pick them up and the firm writes them a contract based on how long we need them. I'm pretty jelly when they roll off and plan to chill for a few months. They're in multiple consulting firm pools and seem to have plenty of flexibility to pick-up/decline. I'll probably do this at some point: transition from FTE to contract in the pool and start building out my personal quals that way.

I run my own shop and have done so for 8 years. I'm in IT services and resale. Running your own shop sucks. That is all.

Started doing my own thing 1/1/20 after leaving corporate and now I'm back in big consulting. Don't see myself full time doing consulting for someone else much longer.

If your wife has insurance, get on her plan along with any kids even if it's a trash plan.

I was able to set up my own 401k and match with my revenues.

Most importantly, understand pricing. I knew what the work was worth to me but at first it was hard interpreting that as value to the company.

BD is important and it is going to become 70% of your time if you want to get to a point where you have enough revenue to sustain you and your family. Underestimate the work you expect to be doing to determine finances.

Set boundaries on work you won't do. At a certain point in your career there really is work that's below you. Don't waste your time on stuff like this because you will get sucked in doing cheap work you don't enjoy.

Happy to chat more.

ItalianAggie at gmail

I am not sure if the signup for marketplace insurance has expired, but you would think that a life change event would allow you to sign up for that.

Marketplace is very affordable because of the subsidies. I know of some folks who have low income but a lot of assets. They are paying less than $100/mo for the same coverage they were getting thru work.

You may be in a low income year due to a start up and the costs associated. Once you make over $100k (MAGI), it starts to get comparable to other health insurance premiums.

The above only works if spouse does not have health insurance through work.

Oh yeah? Where are you located?

I work in ag, left a great sales role in 2017 to go out on my own in a service role. I won't add on to any of the advice already given, it's good advice and things to think about. My advice would be to make sure you're in the correct headspace to be self employed. Figure out how to handle the idle time or slow stretches, and don't bring it home with you. I've seen the slow periods drive some people crazy, it's tough to handle if you're not mentally prepared for it.

I love self employment, I've created a business that has a very high margin by running much leaner than others in the industry thought possible, and that allows me the freedom to only take on the work I want and for who I want. I don't miss the job security or check every 2 weeks, going into this role has allowed to make far more than I would if I stayed in a sales role and climbed that ladder. You won't regret it if you're mentally prepared and have the personality for it.

you are doing this now heading into at best a 'soft recession'?

talk about timing.

How long have we been heading into this recession?

Went out on my own 33 years ago, now retired for just over two years. At the time I went out on my own, I could no longer work for anyone else. It has its tradeoffs. Never missed any of my children's games or practices, awards ceremonies, once a week lunches at school where the kids invited a parent and all that good stuff. Worked from home about half the time during those years. When I did go to the office, my start time was when I wanted it to be.

I never wanted a huge practice because I didn't want to deal with employee issues or reviewing their work, so I only had one employee and she worked with me the entire time I was in business. The downside was when I was away for a week or ten days, the revenue took a huge dip since I wasn't generating billable hours. Most of the time in the corporate world, if you do enough not to get fired, your income stays in place regardless of illness, vacation, and other time off.

About 8 or so years before I retired, I hit a sweet spot and did not take on any new clients other than when an existing client started a new business. That allowed me to slow down a good bit and still have a decent income.

Being your own boss works out differently for some. One of my brothers was one of the best employees a company could ask for but was terrible at being self-employed. He had a couple of business ventures that didn't make it and he would return to the corporate world.

I do recommend going out on your own for those who can and have the discipline to make it work!

Best of luck to you.