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I Quit My Job – Online Business Ideas

You must have a plan to quit your 9-5 Job

Are you are thinking about becoming an Online Business Guru. If this is you then there is a plan that should be followed. Leaving your regular day job and plunging yourself into the online business world can be a frightening experience for new comers. The best approach is to not quit your job straight away and burn all of your bridges. Look after all of the relationships, both business and personal that you have built up over the past years. These can become one of your best assets while moving forward. Some of these people could end up becoming a valuable of your team in the near future.

Starting of your online business while you still have a permanent job/income is by far the safest strategy. This way also keeps your stress level down and this in turn has a far better outcome with your decision making. When you approach any type of business venture with the sole mindset of having to make it work and make money the decisions you make will most likely be incorrect.

You will have to choose the level of profit that you need for your particular circumstances from your online business before you can leave your fulltime position.

I Quit My Job

1. The Product or Service. You will have plenty ideas of what you want to sell onto a market. Most of these will not be profitable but you have to test them out. Make sure that you enter a market that already exists and has a good deal of completion in it. This is a proven market do not try and invent a new product for a new market this will untimely end up as a failure. A plan has to be in place that covers all production costs, overheads, distribution channels factored in. This determines the selling price of your product/service.

2. Remember in this world. We only make money when we sell something to real customers. Selling to friends and relations do not count, it is the people that you sell to that you don’t know that count. Having a product/service that is reusable on an ongoing basis is the ultimate prize. This is the goal that you should be planning and heading towards. We classify a customer as the one-off purchaser and a client as a ongoing that purchases on an ongoing basis.

3. To be profitable in the long-term. It is your responsibility to build up a data base of clients that are repeat buyers. For an online business this can be easily managed by a autoresponder service that collects and records the names of buyers so you are able to build up a long term relationship with these people. These clients end up on a data base we call them subscribers. With this subscriber base we will be able to send them out news snippets, up in coming offers etc within our online business.

4. Forget all the hype you see online how you can make these great streams of money in a matter of months without have to do hardly anything for it. That is all rubbish, a real business does take time and energy to develop. The time frame can be anything from six months if you’re lucky to 1 to 2 to 3 or more years. This is what 97% of people do not want to know about.

5. Funds. Make sure you have sufficient funds to back up your new venture. If you are buying things for your dream out of your grocery money then you are irresponsible to yourself and are not good candidate to be successful with an online business. This way is recognized as an outright gambling approach to business which is fraught with danger. Setting up a business has a calculated gamble risk element which is okay.

6. If you are to leave your fulltime job to pursuer your online dream then make sure you have enough funds stashed away to cover you for at least 12 months if you were to not make a profit from your online adventure.

I Quit My Job

The plan is to get your new offline business to the point that it is generating a minimal profit that you require before thinking about leaving your day job. The best scenario is to leave on good terms so the door is still wide open if you wish to return. Another tip is to negotiate a 12 month leave of absence from your employer It is all about building a great relationship network.

How To Write Your Own Business Contracts: 10 Key Elements

Everybody knows that the best practice in business is to put agreements in writing. But many small business owners do not do it. In my experience a combination of factors contribute to this error. Business people often do not want to add a layer of expense to business deal by involving “the lawyers.” Further, business deals are often time sensitive, and as a result people often believe they do not have time to consult a lawyer. Here are ten elements of any good contract. Follow these steps and you can do it yourself.

1. Put it in writing

Many times oral agreements are legal and binding; however, they are usually more expensive and more difficult to enforce in court ( in some situations, they aren’t enforceable at all). Most agreements should be in writing. And here is where the trouble starts. I have had clients use contracts from one business agreement in a second, different situation with disastrous results. A written agreement is less risky than an oral agreement, but only if you have a document that clearly spells out each party’s rights and obligations in case of disagreement. Using form partnership agreements or contracts from online vendors can be as bad as reusing old agreements without carefully reviewing them. In one case I represented a partner in a partnership dispute. The parties had bought a partnership agreement online and the agreement specifically allowed the individual partners to compete with the partnership. While that clause is contrary to common sense, neither party read the agreement and caught it. Therefore it was enforceable to the great shock of one of the partners.

2. Keep your deal straight.

Contrary to what many lawyers think, you don’t need a lot of legal “mumbo-jumbo” to make a contract enforceable. Instead, short, clear sentences with a simple, logical headings system which provides a roadmap to the reader to what’s in the paragraph is what is required. And yes, you can write your own contract if you put some effort into it. Just like you could change the oil on a modern car, or work on your bathroom tile. You have to weigh the cost in time to the benefit of using a lawyer. An experienced lawyer should be able to quote you a flat fee, upfront without obligation, so it doesn’t hurt to ask.

3. Deal with the person who can contract on behalf of the business.

Don’t waste time negotiating a business agreement with a junior person who has to okay everything with someone above him (or her) in the business. If you’re not sure who has the authority to bind a business, ask.

4. Describe the parties with precision.

Include the correct legal names of the parties to the contract. Make clear who is responsible for doing what.

5. Include the details in the written agreement.

The agreement should state the rights and obligations of each party. Most lawyers include language in a contract that states the written agreement is the complete agreement between the parties.

6. Specify payment obligations.

Obviously, most contracts arise from deals in which one party provides goods or services and the other pays for them. Specify when the payments must be made, and the conditions for making payments. If you’re going to pay in installments or only when work is completed to your satisfaction, say so and list dates, times, and requirements. Consider including the method of payment as well–check, a cashier’s check or credit card.

7. Agree on circumstances that terminate the contract.

It makes sense to set out the circumstances under which the parties can terminate the contract. For instance, if one party misses too many important deadlines, the other party should have the right to terminate the contract without being on the hook legally for breaching (violating) the agreement.

8. Specify how disputes will be resolved and if the prevailing party will be awarded attorneys fees and costs.

Write into your agreement what you and the other party will do if something goes wrong. I am not a fan of arbitration. Particularly in California it is a very expensive proposition with the retired judges who act as arbitrators commanding stupendous fees. Many judges openly admit that they retired from the bench to make more money as arbitrators. You also want to give careful consideration to whether the prevailing party in a legal dispute shall be awarded attorneys fees and the costs of the suit such as filing fees, deposition fees and the like. This can be a good idea if you might have to fight over a modest amount like $100,000.00 (I know, I know… Right now you’re thinking I have an unusual idea of modest!) The reality is that without an attorneys fees clause you could have a victory in name only as arbitrations and lawsuits are expensive. On the flip side if you’re more likely to breach the contract than the other side you may not want an attorneys fees/costs clause.

9. Pick a state law to govern the contract.

If you and the other party are located in different states, you should choose only one of your state’s laws to apply to the contract to avoid sticky legal wrangling later, and I cannot think of any reason that you’d agree to litigate under the laws of a state other than California as I write this. In addition, you want to specify where you will mediate, arbitrate, or bring legal actions under the contract. This is an important thing to consider when presented with a contract by another party. For example if you desire to become a franchisee and you end up having a legal dispute you may have to pursue it thousands of miles away under state laws which differ greatly from California laws.

10. Keep it confidential.

Often, when one business hires another to perform a service, the other business will become privy to sensitive business information. Your agreement should contain mutual promises that each party will keep confidential any business information it learns of while performing the contract. This clause is very different from a non-competition clause. California laws on non-competition clauses are unique and the subject of another post.