Living Within Your Means

New Business? Things to Consider Before Dumping Your Day Job

Planning and budgetijng will help your new business succeed!
A written financial plan will help your business succeed!

I love being a freelance business woman. #Girlboss. Entrepreneur. I have been working hard on my online business, and would like nothing more than to be able to give it my full time and attention.

I am looking forward to the day when I can let go of my Monday through Friday day job and be totally my own boss. No more schlepping to work in rain and snow. Working the hours that match my energy levels – and not working the hours that don’t. Not working two jobs! Heavenly!

There is nothing easy about launching a new business. Exciting, yes… worth it, yes again! But it is very hard work, and putting in the necessary start-up hours on top of a full-time day job is extremely challenging and stressful. So why do I keep doing it?

My plan is to continue to live within my means while launching my online business. If you are interested in keeping financial balance as your build your empire, there are three areas of consideration before you dump your day job!

Promises, Promises

There are loads of internet courses that will offer you the secret formula for building your online business in a certain number of days. Some even promise that if you really go for it, you can quickly grow your income to make thousands per month!

Other biz bosses have made it big, so why not you? Armed with your course materials and fueled by enthusiasm, you begin to actually create your business and see some achievement. Hot dog!

In every social media group for business newbies, the question invariably arises, “When can I quit my day job?” With success and big bucks just beyond the horizon, why not now?

When you are being cheered on to “Listen to your heart”, “Trust in your abilities”, and “Just go for it” it’s easy to feel like nothing can stop you from claiming that gold ring. Right now.

Show Me The Money

Getting your first few customers or a huge order for a month’s worth of your services is great stuff! It’s a start, a good start. But unless you have a solid back-up plan, it is not enough to rationalize typing up your day-job resignation yet. And it is definitely not enough to justify an abrupt departure. Momma was right, don’t burn your bridges!

Having been through economic downturns and a few unexpected family emergencies over the years, I learned to keep a practical financial plan in place.Let’s face it… stuff happens!

That’s why I appreciate that some of the top online business celebrities have been touching on these topics lately. These women are inspirational and encouraging to new business owners, and they provide a needed dose of realism.

Alexis Giostra, also known as MissTrenchcoat on her site Strange and Charmed, is a multi-platform star Business Coach and Productivity Guru. Alexis has been very candid about the measurable financial goals she set for her online business that had to be met before leaving her position with a Fortune 50 company. Goals that included a savings cushion and reaching target income levels before resigning her day job.

Earlier this week, the wildly popular Hilary Rushford, known for her fashion and business coaching services through her site Dean Street Society, gave an absolutely hilarious scope on a completely serious topic. While sporting a blonde wig, big glasses and an accent, “Gigi” explained that there are no overnight successes. Anyone you see who is making a steady financial success of their online business worked their tail off for more than a couple months!

The valuable take away from these two icons of successful online business is (1) having a written financial plan is an important part of building your business; and (2) you are not a failure if you haven’t replaced your day job income right out of the box.

Dollars and Sense

You can build a successful business in a short period of time. I know, because I’ve done it! I have a good foundational framework for my business, and paying customers.

So why do I still have a day job?

One reason is that I work for a fabulous employer that has been very good to me. I’m in no rush to run out the door forever.

More importantly from an entrepreneur’s perspective, is that my business is not yet where I want it to be. If I have to rely solely on my online business revenue, I won’t feel as free to take risks and try new things.

Since I started my business, I have learned so much from continuing education with exceptional mentors like MissTrenchcoat , Anne Samoilov and Mandy Jean Chic that my vision of the possibilities for my venture has grown! I am also benefiting tremendously from the communities formed by like-minded online business owners.

My financial plan and business budget is right where it needs to be. I am debt-free and have enough savings to cover all my living expenses for more than the recommended minimum six months.

I could quit my day job today and probably be all right. Since I really don’t want to have to burn through my savings, I would have to keep my nose so close to the grindstone that I would not likely be able to drop back and make changes and dream bigger. So I will wait a bit longer.

After Careful Consideration

Congratulations, your new business is taking off! You are a full-fledged entrepreneur!

Before you dump your day job, take stock of your unique situation in the three areas of expenses, income and expectations.

  • Expenses: Do you have debts that could be paid off if you keep the day job a bit longer? Have you prepared a written budget that includes quarterly or annual expenses pro-rated for each month so you are not caught short? Are there expenses currently covered by your employer that will have to be paid out of pocket, like health insurance? Will you be able to avoid incurring debt?
  • Income: Is your side-hustle now bringing in enough income to cover your monthly expenses and pay your taxes and related costs? Remember, as a self-employed person, you will be responsible for timely payment of taxes, usually quarterly. Do you have a savings cushion to cover at least six months of your expenses?
  • Expectations: You will be evolving as a manager and growing your business. Are there business enhancements you would like to invest in that would improve your platform, products or marketing? Improvements may include things like business courses, coaching services, web hosting, a camera or anything else that would help you work smarter or enhance your brand. Would you have to do without those improvements if you quit your day job now?

If you are ready to take the plunge and leave your day job, celebrate! It is a major milestone in your life.

If you are like me, and not quite ready yet, that’s okay too! We are still successful, still growing and have a lot to share with our communities. Tip: It doesn’t have to be all-or-nothing. My plan is to cut back to part-time and have the best of both worlds for a while.

Are you still working full or part time? What are your thoughts on dumping a day job? Have you done it? How did you make it work? Leave your comments below!

Living Within Your Means – Why You Should Be Planning To Shop Now!

planning
Plan your holiday shopping now!

Hi there! My name is Debra. I have been married for 38 years and raised two children while living a frugal lifestyle. We own a lovely home and are totally debt-free.

Would you like to be comfortable and debt-free? You can do it. I am here to share my experience and tips that will help you Live Within Your Means.

What? How will it help you Live Within Your Means if you get in the car and go shopping?

If you are struggling with debt, and feel like you are getting deeper and deeper, the first order of business is to stop digging. Stop digging and start planning.

If you are dreaming about starting your own business but can’t afford to leave your day job, that’s another reason to stop the same spending pattern and start planning.

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