Home – New Forums Starting your journey Self employed/in business, how do you cope financially ?

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  • #979602
    oasis1frog
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    After 20 odd years in a 9-5 job, am now self employed as a business broker, not drawing any decent wage yet. Many small businesses I won’t take on as there is no money in it, eg. a couple working 12 hrs day 7 days make less than $50K pa. My fully employed wife is paying the bills. So my comments re flying solo :
    a. unless you have a niche/competitive edge better off with a job
    b. the main disadvantage of self employed/in business being difficulty in borrowing money to invest, which is the foundation of future wealth.
    Having said that I’ll never go back to all the dog eat dog office politics.

    #1115591
    AdvancedPetSitting
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    Another early bird like me :)

    I think that when going in business for yourself you need to have some sort of financial security for up to 24 months. Or someone to pay the bills like in your case :) Financial freedom is what will make or break your first steps in my opinion. If you are constantly stressed about where you are going to get money to pay this or that you will never give your business 100%

    #1115592
    oasis1frog
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    yes I agree people are wired differently, my wife is happy to be in a job and want me just to get another job. But I said now is the happiest time of my working life and I am giving it a go, life is too short to be told what to do and handcuffed to the desk 8 hours everyday.

    #1115593
    Greg_M
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    Financially it can get pretty tough working for yourself, a partner that has a job is probably the best way to balance cash flow for personal living.

    Poor cash flow kills off small business quickly, especially if you’re used to a salary, I know a lot of people working for themselves (partly because it’s the mainstay of the industry I work in), most don’t draw a set wage on a regular basis, even the ones who are bigger, have employees and substantial plant and equipment, factories etc.

    I think the example you gave of 7 days, 50 hours etc. is more the norm than the exception and as I mentioned in another post, these micro businesses underpin productivity in the broader economy with little or no outside assistance.

    If I weighed up the numbers I would possibly of been better off in a job but who knows how long a “job” will actually last and what price you pay in personal freedom and well being to keep it.

    I think the whole idea of “job security” is a concept from another era, so building a business no matter how small is a sensible option IMHO the trick is to find or build one that works and you enjoy working in.

    Unless you are very clever, well funded or just plain lucky being in business will be financially tough at times but the reward of being your own master and beholding to no one takes a lot of the pain away.

    Good luck with your new venture.

    #1115594
    JacquiPryor
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    It certainly can be tough, especially in the very beginning. I found it helpful to actually set a goal before I commenced my business – what did I want to be earning? How often did I want to be paid? How long would I allow to reach that goal? By having this clear direction I remained motivated to reach those targets (I always find it easier to achieve ‘something’ if it clear and written of what that ‘something’ is).

    At the time I started my company, my partner wasn’t working (he is now). So the first few months especially were tough – he wasn’t working and that’s when I finally decided to take the plunge with no guarantee of income, so, this probably made me work harder to reach my targets sooner. But, as Advanced Pet Sitting said – ensuring you have some finances behind you for a period of time is a must, I think, when starting a business because for most people it will be a little while before a regular wage can be drawn from the business.

    #1115595
    inara
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    Hi, luck plays a lot in the self employed game.
    There has been high and lows. There are times I wish I am working on a normal 9-5 job. Especially when financial is not good.
    My wife works full time, and that really helps when things are going tough

    #1115596
    yourvirtualboard
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    I have to ask, what’s the point of being self employed if you cannot earn a decent living from it?

    I also believe that you make your own luck – being unprepared when an opportunity comes along isn’t good or bad luck it’s poor business. The same as being prepared and searching out opportunities isn’t good or bad luck either but good business.

    Struggling every day and still coming up short – that’s got to be one of the toughest things to cope with.

    I also believe not everyone is suited to running a business and those that make it work really hard (much harder than they thought when they started) to get it off the ground. They generally have a bit of a plan (even if only in their head), some funds and plenty of drive.

    Those that have the best chance are those that have found a gap in the market and fill this, coming second to this is those that have a clearly defined reason that their chosen market will buy from them over anyone else and they are able to communicate it very well. Just starting anything up because you can or have a skill is the most risky strategy of all.

    Know who needs your product / service, how this will improve their situation and how you’ll let them know in a way that would get them to switch or try (if a new product).

    #1115597
    kathiemt
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    I was fortunate that my husband was in a full time job and paid all the household bills. My goal was to be home full time for our 5 children and get them to their club activities, medical and dental appointments, be home for them during school holidays, etc. Instead of having to pay for after school care and holiday care, and train fares and stuff that I used to pay for, I had a much smaller list of bills to pay while establishing my business. Over time I was able to pay for extras and contribute to the household bills again.

    I look back now and there is a lot in our house (and office) that we’ve been able to gain because of my running a business at home. And I’ve been able to employ others – like a cleaner, ironing lady, and so on.

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