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vasman
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Peter – FS Administrator, post: 262635, member: 1 wrote:
Hey Bill,
Thanks for joining and posting. This is such a great question and it’s a very common point that people get to when starting up a side business.

Firstly I would say that there is no simple answer… shifting from full time work to full time business will alway have a transition period. Often it starts where you are now which is being overloaded with work + business. Then often there is a financial gap in the middle while your new business revenue grows to replace your job.

Where you are now is actually a great place to get to because it means you’ve tested the market and your business is showing good signs of success.

One thing to do as a next step would be to get a spreadsheet out and model the financials… how much $ do you need to maintain your lifestyle, how long could you manage on a bit less, assuming conservative growth, how long might it take for your clients to replace for wage – i.e. how many students etc…. While it’s never guaranteed, these sort of scenarios can at least show you the financial realities of the feasibility.

A few other options that spring to mind:

  • Could you change to part-time teaching either in your current role or a new one – i.e. do 2 or 3 days a week teaching for stable income and 2 or 3 days coaching.
  • Could you save a financial buffer that would buy me some time. If you could save up 3-6 months ‘buffer’ that gives you some runway to grow.
  • Could you partner up with another like-minded teacher who wanted to earn some extra money tutoring as you grew. That way you could take on more students but agree a revenue split – i.e. you give your teaching partner a student but you retain a percentage of the fee to give you an extra revenue stream.
  • Could you talk to more established tutors or tutoring businesses and see if they need extra tutors – if they could offer you a set number of students or hours then that could replace a chunk of wage (even if for now it is tutoring for another business).
  • Could relief teaching fill a few gaps?
  • Is there another job altogether that you could do part-time to remporarily provide some income (if teaching p/t isn’t feasible)?

If taking a clean jump just isn’t feasible right now (financially or too risky) as is often the case, the puzzle is to find creative ways to fill the income gap during the transition period to keep things ticking over while you grow the business.

A nice, but hard, challenge to have :) Others may have different paths that they have gone down too.

Congrats on getting this far and keep us posted on progress!!
Peter

Thanks Peter,

Fantastic advice! I think the part time option may be the way to go…just have to back myself and trust in my ability.Keep you posted with my progress.

Bill