There are two schools of thought for many aspiring online entrepreneurs. One is to quit your job and focus on your business full time and the other one is to start a side business and quit once the business shows signs of viability.
I am a proponent of the later and will never tell you to quit your job to start a business. That is not always the right approach however.
There are solid arguments to be made for both approaches. The right approach for each individual is going to be different based on the individual’s personal circumstances.
If your circumstances happen to indicate that you should quit your job to work on your business, don’t quit without benefiting or profiting from your separation from your employer. Yes, it is possible to do that and I have done it before in one of my previous lives.
I am not talking about simply cashing in your unused vacation and getting the standard severance either. Sure, those are there, but what I am talking about is a much more lucrative exit strategy from your current employer, such as a full year’s living expenses for example.
I can summarize the highlights of how you can do this, but it wouldn’t be fair to my friend Sam Dogen who shared with me his new book in which he discusses several other methods to separate from your organization and profit from it that I wasn’t already aware of.
Sam is a personal finance blogger and recently wrote a book on how to engineer your layoff so that you can profit from it while maintaining a good relationship with your employer.
Sam had worked in the financial services industry since graduating college until recently when he retired at 35 to focus on his book and other initiatives. When he separated from his company, he managed to negotiate and secure a separation package to cover 6 years of living expenses. That is not a typo. I too was stunned.
I had to ask Sam about this arrangement and in our discussion he mentioned “I was happy to sign the papers if I could get 36 months worth of living expenses. Instead, I managed to negotiate about 72-84 months worth. That is the biggest no brainer in my mind to quit, ever. It gives me huge breathing room, EXCLUDING all that I saved over the past 13 years to do whatever.”
Sam’s main concerns were “what if I quit and my bank account goes dry in six months?” “What if I can’t find a new job in a new industry that I really love?” “What if my entrepreneurial endeavors fail miserably and some exogenous variable knocks me out for the count?” “What if I turn into a deadbeat with no more motivation to do anything again?”
These are all valid concerns which makes it more important to secure a good separation package when leaving your employer. Sam didn’t hate his job, he just didn’t love it anymore like he once did. Many are in this situation. Many will fall into this situation down the road. And while quitting your job is not always the right decision, if you choose to do so, you want to do it while protecting your best interest.
So when Sam was ready to pull the trigger, he searched everywhere and while he found many books that talk about securing a lucrative job and making lots of money, he couldn’t find a book that talked about how to quit your job and profit from it.
I’ve read his book entirely in which he talks about several other individuals he helped, from bar tenders to folks working in Corporate America negotiate and secure several months of expenses from their employers on their way out. The book gets into the fine details explaining how exactly to do this in a step by step manner.
If you’ve been reading my blog for some time you probably have noticed that while I recommend a lot of the books I’ve read and benefited from here and there in my posts, I normally don’t write about books in this detail. In this case however, I feel that this book not only hits it out of the park, but it is also very much relevant to some of the audience of this blog.
Whether you plan to quit your job now or in the future to start a business, don’t quit like most people do and simply walk away with nothing. This book is a must read to learn how you can profit when you separate from your company while maintaining a good relation at the same time in the event you want to return back to your job or work with them in some capacity down the road. It’s never smart to burn bridges that you don’t have to.
It’s eye opening how much money companies are saving by “screwing” people off while making it seem that they are doing you a favor when they decide to end their relationship with you.
Read this article to understand exactly how, as well as why you may think you are getting a good deal when you are given a severance when in reality you are really not. A severance is chump change. The law gives you rights to much more that companies are not telling you.
The book is lengthier than it can be due to lots of self promotion and tangent material – I felt the book could’ve been more concise, but that’s just Sam. He is very passionate about this topic and it is clearly apparent when you read the book. There is some material that is somewhat related but not critical to the book. It can be done without to make it a quicker read.
There is some philosophical talk as well that although good, could be done without. Again, that is Sam. He loves to pontificate and that also shows in the book. Not necessarily a bad thing – a reader may simply skip these parts to get to the main points.
The book includes several links that require internet connection. Though internet is mostly prevalent, there are still some circumstances where readers may read this book and feel teased because they cannot access the links immediately. Thankfully, none of the links are critical to the main message of the book which is delivered within the book’s content itself.
I felt some of the points required re reading and yet they seemed a bit difficult to understand for me. But then again, that is just my opinion. Everyone interprets material differently. The good news is that when I followed up with some questions, Sam was very responsive and provided elaborate responses that clarified my understanding.
I like the fact that all the research is done for you and tested as well on several professionals. As a reader, you just have to take the information and act on it. Having been through the process of separation in the past, I learned a lot of new things I didnt know already that could have made my previous separations more profitable for me.
The book is very easy to read and although longer than I think it can be, you can easily get through it. The book is very comprehensive, with lots of tangent material that you can further explore through additional links. The book is very detailed, especially the real world examples and anecdotes provided by Sam.
To summarize, the book covers four main points in great depth:
I love the one page questionnaire toward the end. This is a framework, or a matrix that has a few questions that you can answer to determine whether you are ready to quit your job. The questions provide a scoring system that will answer this difficult question for you.
This is a wonderful idea. I can’t tell you the number of aspiring entrepreneurs that have consulted with me who ask me whether they should quit their jobs or whether I feel they are ready to. While many often contemplate quitting their jobs, a lot of them do not know simply when the time is right, or whether they are ready to do so to begin with.
Just ask yourself. Do you know for sure whether you can quit your job and still be alright? You may have an inclination about it, but it is very rare that you know 101%. If you did you’d do it. This framework makes it a lot easier for you to determine the answer to that question.
Knowledge is power. Don’t forget that if you quit or get fired, you are not eligible for unemployment benefits. Whatever you do, do it the smart way. Take time to invest in your education and awareness, which will help you make the most of your strategic decisions in life.
If you are going to quit, do so in a way where you receive several months of living expenses as well as healthcare coverage for you and your family. By doing so, you are eliminating a lot of the concerns people have when they want to quit their jobs and try something new like an online business.
This book really introduces a new perspective on quitting your job the right way. It is very well done and I wouldn’t be surprised if this book received significant attention and led to several other opportunities for Sam.
This is the only book out there that talks about this subject that I know of, and the message needs to be spread, especially to the community of aspiring online entrepreneurs who may have the itch to quit their jobs either now or some day down the road.
I contacted Sam to become an affiliate of his book after having read it and loved it. I really believe this information can significantly impact anyone who puts it into practice. I’d love to answer any of your questions if you are contemplating getting this resource. Let’s continue this discussion in the comments section below.
You may be perfectly happy and successful in your career today, and that’s fantastic. I congratulate you and am happy for you. Not many can say that for their careers.
But the truth is, you don’t have full control over your current situation. Anything can happen at any time because there are just too many external variables involved beyond your control.
You can definitely wait to consume and understand the wisdom in this book until you feel like you have reached a point of pulling the trigger on your job. However, I strongly believe this is information you want to consume when you are in a stable situation, financially and mentally, so that when the right time comes you know exactly what to do and how.
When faced with challenging situations, it is not uncommon to forget things, or not fully understand the material we consume because there is already so much going in our heads. For example, I certainly didn’t need the information in this book right at this moment, but I still took the time to consume it.
I know that when faced with a situation where this information would come handy, I’d be prepared to apply it effectively. You may not need the information in this book today, but when the time comes, you want to be equipped with the right information to make the best decision for yourself and your family.
I was able to secure ONE FREE COPY of the book to giveaway to one lucky reader ($48 value).
I’d be happy to give you a copy if you help me spread the word. Here is how:
1) Please “Like” this post on Facebook
2) Tell me in the comments section if this sounds like a helpful resource, as well as why, and how would you use it? In other words, what is it that you will work on after using this book to quit your job profitably if you ever decide to go that route?
You must do both 1 & 2. I will pick one winner randomly in a couple weeks and tell you how I did it.
One other note. The technical details in this book are specific to those in the United States. That said, the fundamental principles are universal and likely apply no matter where you live and work. In addition, many jurisdictions outside the USA have similar employment rights / programs in place that are equivalent of or similar to the ones mentioned in this book.
Happy Thanksgiving to you if you celebrate. We have some relaxation time coming up with family and friends. Not a bad time to invest in some personal and professional development. All the best to you and I’ll see you after the feast . . .Previous: Finding Value in Unused Items