Bidding Your Job Farewell
Are you ready to leave the corporate world behind? Here are some things you should consider before you cut ties with your current employer.
Once your business is consistently earning enough income to cover your living and business expenses, you're ready to go full time. But don't give notice before taking these steps:
1. Determine when any company benefit plans you have will vest or increase in value. It would be a shame to quit two weeks before the value of your retirement benefits increase from 40 to 60 percent.
2. Find out when you'll receive benefit money. This could help you plan your financing.
3. Before leaving--while you're still covered by corporate insurance--get all annual health exams and routine procedures done. Check out whether your group coverage can be converted to an individual policy at favorable rates or if other health coverage options are open to you.
4. Take out a home equity line of credit before leaving your job. Having a line of credit to draw upon is invaluable during the first two years you're in business, although you probably won't qualify for one once you leave your job until your business has been successful for more than two years.
5. Pay off or pay down the balance on your credit cards while you're still generating a steady income. This helps your credit rating and enables you to finance various start-up costs.