29 December 2010 ~ 15 Comments

Leaving Corporate America: An Internet Business Story

breaking-chainI quit my job in Corporate America 26 months ago. I’m not going to lie and say it was easy to do. Not at all. In fact, it was one of the scariest things I’ve done in my life.

At the time, I was a sales manager with a Fortune 1000 company. I had a six figure income, and I was the only earner in my family. I was married with three children, two dogs, and a house.

How could I walk away from that? Why would I? How did I pull it off?

My Side Business Made Money

Without a doubt, my biggest advantage was that my Izzy Video business was generating consistent revenue every month, even though I was working on it in my spare time – mostly on weekends.

It wasn’t a lot of money, but it was a few thousand dollars every month. While it wasn’t enough to replace my family’s lifestyle, it was enough to cover my mortgage and groceries. I considered these non-negotiables. If things really got bad, I could do without a lot of other things, but we needed a place to live and food to eat.

I thought if I was earning this amount on a spare-time basis, I could increase the revenue if I spent more time working on it.

Luckily I was right. It took almost a year, but I eventually replaced my income. In fact, I’m now earning more than I did in Corporate America.

But you need more than income…

My Expenses Were Low

Early in my marriage with Noell, we were much bigger spenders than we are these days. It used to be that when I made money, I would immediately think about buying things with it. We had accumulated consumer debt that took us years to pay off, so we learned to hate it.

Because of this, when I was considering leaving Corporate America, we didn’t have much debt — only the mortgage. We had no credit card debt, and the cars were paid off.

Also, we didn’t have cable television, satellite, or many unnecessary monthly expenses.

The expenses we did have, we reduced when I quit my job.

In fact, one of our biggest monthly expenses at the time was our daughter’s once-per-week dance class. It was around $45 every month. She loved this, and it broke our hearts when we pulled her out to eliminate the expense.

We promised her that as soon as we could, we would put her back in. (Not only is she currently dancing again, but she dances four times per week, and she’s on the company team.)

Low expenses give you freedom because it’s easier to make a move away from your j-o-b when your expenses are low.

I Had a Bad Day

Right before I left, my sales team and I were under our projections. Our performance needed to get higher. For the first time in my career, I was seriously starting to wonder if I would get demoted or let go. I had always performed well previously, so this was new to me.

During this time, three of my bosses came to visit me at the same time. They interviewed my team members. They went through my reports and books. It was something they frequently did with other managers, but this time I was very nervous, and it showed. I stumbled on my words, and my team could see that I was nervous.

At the end of the day, my immediate boss pulled me aside and told me that I “made us look like fools today.”

That was a very bad day.

(It wasn’t the only bad day I had. I had some good days, but plenty of bad days before that one.)

As I drove home, I thought about how my little side business had started generating revenue. I thought about how my family’s expenses were low. And I wondered if I had the courage to strike out on my own, leaving the “security” of my paycheck behind.

Not long after that final bad day, I gave notice that I was leaving. They tried to keep me, but my heart yearned for freedom, so I rejected all the offers.

The Happy Ending

Here I am now. Two months ago I celebrated my two year anniversary since leaving Corporate America, and I intend to never go back.

It’s hard to describe how amazing it feels to take your children to school in the morning and pick them up in the afternoon when you couldn’t do it before. I know some people might consider it a chore, but I feel like it’s a privilege.

It’s hard to describe the feeling of heading to Starbucks to spend a couple hours writing emails, or notes for tutorials, or all kinds of other content for our incredible audiences.

It’s hard to describe the feeling of waking up in the morning knowing that you’re free to do what you want.

For me, it’s not about the money even though I’m earning more than I did before. It’s about freedom.

If you’re at all like me, or find yourself in a situation similar to what mine was with too many bad days to justify staying, I strongly encourage you to reduce your expenses and build a side income, so you can give yourself the freedom to do what you want.

You deserve to give yourself the chance to try.

  • http://www.spiritspizza.com Kevin J Railsback

    I’m hoping I can join you in self-employment this year Izzy!

    You’re certainly an inspiration to get motivated and make it happen.
    Along with Tim’s advice it’s pretty hard not to be chomping at the bit to get out there and make your own Foolish Adventure a reality!

  • Craig

    Inspiring as always!

  • Tom

    Absolutely Inspiring Izzy. I’m just at the beginning and scared like hell!

  • http://www.izzyvideo.com IzzyVideo

    You can do it, Kevin! For sure.

    I’ve seen little bits of your work, and you’re clearly talented. Go get it done! :)

  • http://www.izzyvideo.com IzzyVideo

    Thanks, Craig!

  • http://www.izzyvideo.com IzzyVideo

    Being scared is normal. It’s a totally different feeling to look back on it later and think “Why was I so scared?” because you basically prove to yourself that you can do it.

    Yeah, it’s normal to be scared, but don’t let that stop you from trying.

    Looking back, I really shouldn’t have been very scared. 1) I already had an income, even though it was small. and 2) My expenses were pretty low. This allowed me to steal second base with my foot on first.

    In fact, I probably could have left MUCH earlier.

  • http://twitter.com/16x9cinema Carl Olson

    I appreciate your candor. The key is simplification and keeping expenses low. That’s a hard lesson considering we are constantly bombarded with advertising and propaganda implying we just have to have this or that.

  • http://twitter.com/dompruitt Dominic Pruitt

    Izzy, it’s so awesome to see you write all this down and take us briefly through your experience. You are doing some amazing work lately and I for one appreciate it.

    It does take a certain amount of effort, energy, & discipline to get to debt free. I myself dealt with credit cards from college and school loans over the years. And luckily, I can always move to the reservation to get expenses even lower.

    I’m still plugging away at some things of my own to build new revenue streams. Since I’m still in the employed camp, I am a bit curious about how you handled some of the little things in life like retirement, healthcare, & the additional costs of being a business vs working in one. Maybe an idea for a show someday.

    Thanks again!

    - Dom

  • Noellhyman

    Hey, Dominic — Izzy’s wife here…

    Retirement — Once our online business income was clearly above our minimum necessary expenses and proved to be secure (at least for now), I suppose we could have done nice things to our small little humble house. Or we could have gotten a newer, nicer, and bigger one. But we’re not doing that and don’t ever plan to. We’re paying this house off.

    I feel view that as our biggest retirement plan — not having any debts or a house payment to worry about. Barring any major medical catastrophes that our health insurance won’t cover, I figure we’ll always at least be able to find a way to pay for the most basic necessities like food.

    Once the house is paid for we’ll start putting money away again for retirement (our former retirement fund with the J.O.B. is gone).

    So basically, we came into this without a retirement plan but I think it’s working out.

    Health insurance — Pain in the neck. Took us forever but we finally found a policy for our kids and a policy for us (we’re not as insurable as the kids are). We have high deductibles for lower monthly payments but it’s worth it.

    Life insurance — We have good-sized policies on both of us. We use term life insurance to keep the costs low.

    We’re not experts in these areas and can’t give advice. ;) It’s just what we’re doing.

  • Noellhyman

    Yeah, it helps when you don’t watch t.v.

    Our culture has gotten really sucked into this idea that we need all this stuff. But I think when you start looking critically at all the hype and shallowness of it, the fact that it’s so dominant makes it easier to detest.

  • http://snowmoon.us Janet

    Catching up on things here after Christmas – thanks so much for continuing to be an inspiration! Somehow, in some way, I have a feeling this year is going to provide us with enough successes to make a huge shift at least mentally.

  • Mark Briley

    Izzy,

    This is an awesome story. I was interested in video a few years ago, and I remember going to your site even before you announced that you had quit your job to do Izzy Video full time. I remember talking to a co-worker and wondering just how this Izzy guy was actually able to quit his full time job and do the video site full time.

    That’s cool that you’ve surpassed you’re previous salary – very inspirational. I’m currently a team lead for a software development company, and I’ve been longing to get out of the IT world (been in it for 15 years) along with all the stress that comes along with the position I’m in. I’d rather not have as much money and do something I love – the cube life is driving me nuts. I want to start a woodworking biz but that’s another topic – at least now I have a passion where as before the question was if I don’t do IT, what is it that I would be passionate about enough to do as a business.

    My wife and I are basically working on the same financial issues you did – paying off some credit card debt and a vehicle so that we’ll just have the mortgage. She stays home as a housewife, so there’s no backup income and benefits if I quit. With that said, the thought of going on my own in some woodworking business venture is a scary thought. I’m taking things one day at a time though and trying to plan things out in stages for the next 2 years to get where I want to go. Anyway, thanks for sharing you story!

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  • Jcm2323

    great story!  i love the comments below as well.  it makes me wonder what would happen if we got all of us in a room to disucss ideas…  I have one foot out and the other is right there. 

  • Madhuri

    I say that you have done the right thing my fren.I too agree with ur words absolutely.Cheers !