When to Go Full Time With a Home Business
Many people start their home business as a part time venture while they’re still working at a job for someone else. This is a way to earn extra income. It’s also a good way to determine whether your business has a chance of succeeding and whether you’re cut out to be a home based business owner.
The idea of working for oneself, based from one’s home has great appeal to many people, but they fail to consider the drawbacks they may face, such as those I discussed in “5 Disadvantages to a Home Business”. So they jump into it full time too soon.
Here are some “to do’s” or a check list when deciding whether to go full time with your business.
*Write the pros and cons on a piece of paper
*Write down a business plan…where you need to be in 6 months, a year, 2 years, etc. and the steps you need to take to accomplish this.
*Determine what you’ll need for equipment and supplies.
*How much will this cost? For instance, when I began looking into the sewing equipment to make my children’s appliqued vest business more productive, I realized the cost would be prohibitive unless I wanted to get really big and have employees.
*What will you have to net (after expenses) to provide a living?
*How much money must you have saved up to live on for 6 months?
*Do you have a back-up plan if your business doesn’t progress as rapidly as you’d hoped.
*If your work involves the weather (working outside), are you prepared for the days you can’t work and earn anything?
*Have you made enough money from your home based business that you don’t need to use your pay check from your “job” for 6 months?
*Do you see this income trend continuing?
*Have you looked into health and other insurances when you no longer have it with your employer?
Consider these items, see where you stand, and determine how you can overcome any that might prevent you from going full time…if you decide full time is what you’d like.
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2 opinions for When to Go Full Time With a Home Business
Des Walsh
Oct 26, 2006 at 7:23 pm
Great list - and in previous posts! One item I would add is *do you have an exit strategy? I don’t mean just as a backup plan, as you rightly list, but as in, is this a business where I want to build intrinsic value/equity, as distinct from just a income business, exchanging time for dollars? In other words, what is my succession plan? Some home business people might find this a bit high-falutin’, but if you are going to put in the hours, and years, why not build something you can sell or bequeath, rather than something that has no value the moment you decide you’ve had enough?
Mary Emma
Nov 17, 2006 at 6:17 pm
Thanks, Des, for your input. This is a good idea to consider and expand upon.
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