Garrett Dimon, who bootstrapped Sifter and now runs it full time:
In 2007, I made $86,978 and had a full suite of benefits. My income came out to around $71,417 after taxes. January 1st, 2008, I quit my job to focus my efforts on Sifter knowing that I could freelance to make money when I needed to. In 2008, the year that I built and launched Sifter, I made $36,124 and had no benefits. After taxes, I made about $24,832.
My first year after quitting my job, I made 41.5% of my previous income.
The pay cut plus health insurance issue is one of the biggest roadblocks to entrepreneurs and startups. Many people with great ideas simply aren’t willing to take this risk when they have a family and mortgage.
His advice is apt though: your lifestyle is your biggest roadblock to quitting your job.
Disclaimer: Garrett and Sifter have sponsored this site through The Syndicate previously.