Before you quit your day job, take a close look at your finances.
If you are a part-time entrepreneur who is still employed by someone else, and if you expect to receive a year-end bonus or other additional compensation, you may want to defer receipt until the forthcoming year, especially if you will be in a lower tax bracket in the following year. This is often the case with first-time entrepreneurs who quit their jobs without securing the steady sources of income they need until their new businesses break even. You may also want to negotiate an agreement with your employer whereby part of your earnings will be deferred and paid in either one or several future years.
Excerpted from Starting a Home-based Business