One of the biggest misconceptions that parents who want to quit their job make is in the financial preparations. If it takes at least a year to build a business from home, then logically that would mean you would need to save at least your full annual income to live off of in that year, right? WRONG.
No wonder so many people think it is impossible and remain STUCK in a less than desirable situation.
The good news is that you are NOT STUCK.
The bad news? There are still sacrifices to be made.
Before losing all hope, create a financial spreadsheet. Cut out all of the expenses that go along with working outside of the home, such as daycare expenses, house cleaning, commuting, etc. With your spouse’s income, you should only be in the negative $200-$500 a month. If you are higher than that, go back to the drawing board and see if you can’t cut something else out. Sacrifices will need to be made for a short time.
Once you have gotten your expenses down to no more than -$500, multiply THAT amount by 12 months.
For example: 500 x 12 = $6,000
Now isn’t that a more logical annual goal to save before you quit your job? $6,000 is much more attainable to have saved than $60,000, and should minimize the fear of jumping without that safety net.
Furthermore, this now gives you a new income goal as a first time business owner.
You have enough of a safety net for a year… and that is more than enough time to get your small business up and running. Remember, you don’t have to REPLACE your monthly income. The goal now is to earn $500/ month. Sure, it may take you a few months to get there, but when you do, you won’t have to dip into your safety net anymore… or if you have a down month, your safety net should still be there for you.
Don’t look now, but you are self-employed.
Before you know it, you’ll be thriving as a self-employed career parent. You may even get used to the less expensive way of life. Once business picks up, you’ll need to think about how to scale it up, hire some outsourcing support, or even scale it back for busier times of the year. You got this!
The goal of any business is to make money. To that end, many businesses should be focusing on a multi-billion dollar market: moms. Marketing to moms is the wave of the future…and the wave of now!
Why are moms so important?
Moms are enterprising. According to BSM Media, Inc., the amount of money spent by moms is already over the trillion dollar mark. That’s more than the budget of some third world countries!
Also according to BSM Media, Inc., almost ninety percent of moms consider themselves the financial head of the home. The husband may be the one in many cases that brings home most or all of the money, but moms are usually the ones that make the ‘how-to-spend-the-money’ decisions. Moms shop for everything that is related to the household: clothes for the kids, appliances, electronics, outdoor furniture, accessories and home improvement items.
The majority of husbands who shop for these items will consult their wives before buying them. Why do they do this? It is because the wives tend to do most of the research into the products to find the best one on the market for them. Moms influence as much as eighty-five percent of the purchases for their homes. That’s a huge number of moms! Over seventy million!
Take a moment and think about all of the tasks that moms handle in a day. The tasks can include housework, driving kids to and from school and activities, cooking meals and managing finances. They need to keep all of these things straight…and to that they usually employ a wide variety of technology. It is quite common these days to see a mom sitting at a park, watching her kids playing while browsing/working on an iPad, iPhone, or other such mobile device.
Moms are typically quite savvy on the internet. For many years, the trend has been for moms, and women about to become moms, to come out of the ‘9-5’ workplace and come home to start their own business so they can be home with their children. To that end, moms have developed a network of blogs, websites and forums designed to teach moms everthing from designing websites, starting businesses online, marketing to other moms, all while managing their homes. With all of this additional knowledge, moms’ buying power has increased exponentially.
Traditionally, the only products marketed towards women were household and cooking products. This goes back to the old thought that a woman’s place was in the home. Many companies are now seeing what a huge detriment that approach has been to them.
Women and moms have made a huge imprint in what was traditionally a man’s world. Women are not limited to office jobs. They are CEOs and CFOs. Women don’t just ‘surf the internet’, they are becoming entrepreneurs with increasing influence over internet marketing. These days, having moms shun your product because you are not marketing to them means that they are spreading the word via the internet and in their own communities.
Moms are influenced by other moms. Several generations of moms are coming together to influence spending habits of major corporations. In the future, you can expect this trend to continue. As moms become more ‘connected’ in the world, their influence over spending will increase [as their circles of influce do].
Gain the support of savvy moms with your products/services and your business will reap the benefits.
Julianne Alvarez-Wish is a military wife, mother, business owner, professional writer, blogger and legislative advocate. She is the Director of Communications for Our Milk Money, the Colorado State Leader for the National Association for Moms in Business and the owner of Buy By Mom and Buy By Mom Blog. She is the Colorado Springs Stay-at-Home Mom Examiner for Examiner.com. She also blogs at A Wishful Thought. Her passion, purpose and goal is to help parents work from home so they can be home with their children.