- In 2017, Paul Millard quit his high-paying consulting job to work independently.
- He became financially independent by saving up 12 months' worth of funds and negotiating a gradual transition.
- This article is part of “Unlocking Small Business Success,” a series that provides small businesses with a roadmap to growth.
In 2017, Paul Millard stepped away from his six-figure consulting fee.
The decision also means he will fully repay his $24,000 joining bonus to his former employer, he said.
“It wasn't a cliché, 'I'm going to take the plunge and quit my job and ride off into the sunset and bet on myself,'” the 39-year-old self-employed person and author of “No Road” told Business Insider. . “Rather, it was a frustrating mindset that left me with no options. I didn't love my job. I was working with a boss I didn't fit in with.”
Since graduating from college, Millard has worked for five companies, convinced that every move was a “final destination,” but in 2017 he found himself exactly where he was. He was burnt out and looking for another consulting job.
It was time to try something new, but he didn't know what to do. He shared the steps he took to leave corporate America and trade a comfortable salary for the unknown.
1. He had a 12-month cash runway
Mr. Millard had about $50,000 in savings after repaying his bonus. That was enough to keep him around for about a year, according to behind-the-scenes calculations.
Without the cash cushion, he wouldn't necessarily have been able to quit comfortably. “Once I calculated that 50 grand a year was enough to live on, I was at my limit,” he said, adding that he didn't always have savings. Business school “wiped out” the meager savings he had accumulated early in his career and left him with about $70,000 in student loan debt.
“As soon as I had a savings account, I got a little bolder in terms of taking risks,” he said. “It was like a potential freedom to try different things.”
2. He negotiated a gradual transition with the company.
Mr. Millard did not give two weeks' notice or immediately resign.
“I negotiated to stay and train some people,” he said. “I needed at least a few months because I really didn’t have a plan.”
In fact, he added, “a month or month and a half stay was too long.” But he says it has given him time to prepare for his next chapter and think about what freelancing will be like.
“I formed an LLC,” he said. “I started networking. I reached out to a few small consulting firms to see if they needed a contractor. I reached out to a friend from his school of business. I built a website and , did some writing.”
The networking paid off. At a business school reunion, I reconnected with one of my ex-professor's girlfriends who was looking for consulting work, and I was able to land my first freelance job.
3. He cut expenses and financed a cheaper lifestyle through freelance projects.
After leaving the company in May 2017, Millard said the “first step” of working for himself was to “get paid and keep costs down.”
He has become more intentional with his money. “A lot of people start out by saying, 'Here's what I'm going to make, here's what I'm going to budget for,'” he said. Ta. When I turned this equation around in my head, for me it was, “Because of taxes, he has to earn 30% more than all the money he spends.” So if you go to eat ramen in New York and it costs $20, it will cost you $26. I have to earn $26. ”
It helped that I temporarily moved to Boston for my first freelance job at the end of 2017. He sublet an apartment in New York City and lived with a roommate in Boston, which “really simplified life,” he said, adding that he was able to reduce his living expenses. Living on about $6,500 a month to $3,500 a month.
Millard, who moved to Taiwan in 2019 and further cut back on expenses, said she adopted a money mindset early on that was to “buy time” by living with as little as possible. The less he spends, the longer his runway will last.
“If you spend $1,000 a month, you can buy six months for $6,000,” he said. “That was the mode I was in from my second year to my third year.”
Cutting costs will relieve some revenue pressure, but it will still generate income even when cash is flush.
“I think the smoothest transition is what I've done: go from a full-time job to a freelance job, which is essentially having a full-time job but with a more flexible contract. You just do it in a way,” says Millard, who recommends: Aspiring entrepreneurs start asking employers about flexible part-time work. “Go to your company and say, 'I don't want to quit.' Can you turn this into a four-day work week? Can you turn it into a three-day work week? Here's what I think.” What I want to do There is, but how much will it cost? ”
If your boss doesn't want to lose you, he says, he may be more tolerant of part-time work than you think.
4. He planned to “break the glass”
Even if the worst happened, and she used up her savings and couldn't get any freelance work, Millard always knew she would find a way to make money.
Since leaving corporate America in 2017, his sources of income include freelance consulting, coaching, online course sales, book sales, and affiliate marketing.
Even if he didn't know how to work for himself and make money, “I always had the feeling that in an emergency I could break glass,” he said, adding: ”