Small Business Startup - Don’t Quit Your Day Job Just Yet!
Don’t quit your day job
just yet! Yes, you heard me. After numerous small business startups on a shoe
string, I have to bury my ego and say don’t do it! There are many reasons for my
turn around in my thought process.
Reasons to Wait:
current bills to live on are not currently met.
business has not shown a profit yet.
is not a reserve of cash to keep the business going without outside income.
are in debt even more because of the new business idea.
business startup is exciting and yet definitely challenging. When starting a
home based business the first thing needed is (besides knowledge) enough money
to get it up and running smoothly. One thing that ruins a small business startup
faster then anything else I can think of is lack of funding. Now I am not
proposing going out and borrowing for your business, but I am an advocate of
being prudent with what money you currently have coming into your daily life.
home based business you are actually going to be the chief financial
officer of your new small business startup. If you have not been able to keep
your personal expenses and spending down, what makes you think you will be able
to do it in your home business startup? If your savings account is at a low
now, then what will change in the business? Remember you will be the same
financial officer as the one running your personal expenses.
Current Bills are not Met
mistake many first time home business owners make is to expect their current
bills to be met by their new business startup before it has even made a dime. If
your current bills are not being met with the job you currently have, then you
have too much debt.
suggest you cut your living expenses down first. Get rid of as much bad debt as
possible (credit card, car payments, student loans etc.) These bills will go
with you into the new business and that will mean not only will you have to pay
for your personal bills but now you will have business bills that need to be
address as well.
important part of a home business startup is proper planning not only at the
beginning but through the whole business existence. Going into a home based
business without the proper funding for its survival is why one out of three
businesses closes the doors within the first 3 years.
home business startup was a real shocker when I realized that I had way too much
personal debt to make the business work. In order for the business to succeed it
needed double what I was making at my job just to keep up! That was not taking a
profit out, it was just paying bills for personal and business expenses.
way too much stress for most people including me!
The Business has not shown a
times we get excited about our new home based business and believe that we can
make money overnight. With this false belief we rationalize that it is time to
quit our day jobs. We say to ourselves; “If only I worked the home business
startup full time we would have all the money we need”.
have not made any money working part time in your home based business then you
do not have a base for your profit projections. Yet too many of us base our
monthly money projections on a false premise.
is very rational, even if we are not. A business makes a profit, subtracts
expenses and gives you a positive or negative cash flow. That is it. It is not a
magic genie that will just produce money overnight. It needs to be built from
the ground up.
No Reserve Cash
first time home based business owners make this major mistake. Reserve cash is
needed for the survival of your business. If you do not have a reserve after
paying all your personal and business expenses, what will happen if you had a
few bad months of business? Will your personal and business expenses be paid?
What about being able to promote your business? Where will the money come from
for advertising etc?
have an income coming in from another job and you are not spending every dime to
live on, this is where you will be able to start to focus on putting some money
aside for a rainy day until your home based business begins to turn a profit.
More Debt because of Small Business Startup
business startup inevitably takes on more debt. You will have expenses that you
may not have calculated into your new home business. To run a business you will
need equipment you may not already have. Marketing, advertising, office setup
and supplies are a few of the costs that come to mind. Keeping
your job and lowering your personal expenses will help you to pay for the small
business startup as well as putting a reserve together.
thought: Only you
will be able to decide what is right for you and your new home based business. I
just wanted to give you a heads up from my own experiences.
The Home Based Business Blog keeps you up-to-date with all
the additions and changes to the Home-Based-Business-Solutions.com Web site. We are constantly
adding quality information to make your home based business run smoother and
Subscribe here by right clicking on the Orange Button below:
What is a
RSS feed? If you don't know what a RSS feed is, click on the blue line to
find out how easy it is to use!
Also don’t forget to Sign up for my Newsletter below. I am sending one article per month. Your email will be used only for the Home-Based-Business-Solutions.com website newsletter. I respect your privacy and will not sell your email.
Done with Small Business Startup? Go to Home Page