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!
When I think back to before I came home to work and take care of my new son, I remember how “stuck” I felt. I envied other women and men who had their own businesses and I believed that the only reason that I didn’t have one was because I lacked the motivation.
No, actually that wasn’t the only reason. Now that I think about it, I had a whole list of why I couldn’t be my own boss: I didn’t think I could hold myself accountable if I didn’t have a boss, I was sure I’d never get out of my pajamas during the day, I was afraid I might blow off all the work I was supposed to do and I’d eventually run my business into the ground, this little business of mine would end up being a hobby of some sort ike a never ending project of scrapbooking, I didn’t know what the start-up costs were, I didn’t have the money, I didn’t have a unique idea or a business plan, I was sure that I lacked whatever skills I needed, I was certainly not organized, I didn’t know the first thing about becoming a business owner, or about financing, taxes, or even the slightest notion what I could actually DO. I’d also had way too many jobs (more than I care to share, actually) where bosses had convinced me that I was capable of very little. The sad thing is that I really believed them.
Now that I am self-employed, I look back and laugh at how absurd I was thinking that I couldn’t pull this off, and I wonder what took me so long to get here. I know that it was the fear of the unknown, but had I really grasped what it would be like to work for myself, I would have started 10 years earlier, and spared myself all of those confidence crashes, not to mention the most difficult year of my life while my infant son was in daycare.
The really crazy part is that I know how many others still feel stuck the way that I did, and are probably surfing all over the internet right now for the answer. I have no problem admitting that 90 percent of my corporate salary was spent surfing the internet for a way out. I found that to be so ironic when being a stay at home parent pays nothing and is literally one of the most difficult jobs there is.
If you are looking for a quick easy answer, sorry to tell you there isn’t one. I do not have a fool proof business to sell you, I personally don’t have a job to offer you, and I certainly don’t have any specific answers. But I promise you… you can do it, because anyone can. If you have a skill, you can work for yourself. So many people do not realize that they already have what it takes to become self-employed. The simplest question is this: What are you doing for someone else that you could be doing for yourself? Without making a single excuse, just answer the question. Make a list of your skills. Then, trust that you will figure out the rest. You’ll find ways to market, to connect with others, to tap into resources that will give you whatever information you are lacking. Trust that you will find the answers and that there will always be someone to help you.
The internet is an amazing thing and has given us unlimited resources as far as information is concerned. Plus, it connects us to just about everyone on the planet, so when you do decide to venture out on your own, you will have help and support. The possibilities are endless. All you have to do is ask. I had no idea a year ago that the internet community existed to support one another the way that it does. I have been blown away by the generosity of those that I’ve met in my first 2 years as an entrepreneur. I am astounded every day at the passion others have to see ME succeed. Why? Because my success means their success. I GET IT NOW.
So the reason I wanted to write this article is because it wasn’t out there when I was looking for it. I wish that back when I was feeling stuck, someone had invited me to THIS party, just for a moment. I needed to be taken by the hand and introduced to this encouraging world of self-employed parents. Perhaps I wouldn’t have quite realized the compassion and the support that it contained, even if it was staring me directly in the face, but I do know that it was something even greater than what I was searching for, and others need to know that it exists as well. So if this is you, then welcome to the party. You’ll love it here.
Self -employed Parent Enthusiast Ally Loprete is the Founder of OurMilkMoney.com, a nationwide online business directory of self-employed parents, and the host of This Little Parent Stayed Home, a live weekly radio show, on The Toginet.com Radio Group which can be downloaded on iTunes. Ally is on a mission to help other’s deal with the sometimes overwhelming prospect of leaving a full time job to start a new business, while running a full time household and raising kids. She is resolute about creating a haven in which parents across the nation will continue to thrive and obtain the support they need in their personal journeys. Visit more at www.ourmilkmoney.com. Private coaching is available at www.thislittleparent.info
In case you haven’t noticed, “Less is more” is not only economical, it’s the latest trend. With good reason. With the unsteadiness of the economy people are beginning to feel more comfortable with those who are also behaving with frugality. Your clients want to know that you appreciate the need for living within tighter budgets and that their hard earned dollars are not supporting frivolous spending or unnecessary expenses for flashy arrogance.
Where the high rise office in the business district once may have appeared impressive to clients, it now may appear unmindful to the financial challenges of our current society. Setting up your place of business in a home doesn’t necessarily indicate a flailing business as it once did, but instead, it indicates common sense and that the business is smart for making the choice to conserve.
We are a quickly evolving culture, and the one thing that we all have going for us is the ability to empathize with one another. It’s the primary reason we need to make the decision to support those who have chosen to provide products or services out of their home. Small businesses need you as much as you need them. By working together and utilizing our power as consumers, we can rebuild an economy that works in our favor.