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When to Take the Leap

When to Take The Leap: At Peace With Money

You’ve relegated your passion project to side hustle status for a long time, working on it in between your day job and other parts of your life. But you know that if you want to get your business growing, you need to invest more time. That’s when you start asking yourself, “When can I get this off the ground? When can I take the leap, quit my job, and do this full time?” This is a question that must be considered carefully. While I support jumping in, I think it’s best to make the decision based on practical financial criteria. Taken at the wrong time, that leap could jeopardize your business. So, let’s take a closer look at what criteria you and your business should meet before you’re ready to take it to a full-time level.

Savings

Before you leap into the realm of self-employment, it’s good to have some savings to cover your expenses before things get going. This requires calculating your living expenses for each month, and then deciding how many months worth you want to have saved up. Many sources recommend saving up between six months and a years’ worth of expenses, but it’s ultimately up to you. Whatever number you decide, make sure it correlates with how much time you think you’ll need to get your business to a point where it supports you. If you need some resources to help you determine your monthly expenses, I recommend my article “Three Steps to Financial Clarity.”

Proof Of Concept

It’s important to prove to yourself somehow that people actually want your product or service – that there is a demand and real profitability in your idea. Setting up some metrics specific to your business idea can help you divine whether this is the case or not. Depending on your industry, this test could look very different. It might be helpful to research what success and demand look like in your industry. Ensuring that your business will have customers is an important step in the path towards solopreneurship.

When to Take The Leap: At Peace With MoneyI know they say “Leap and the net will appear,” but in order to take care of yourself financially, I think it’s best to take the leap only when you’ve already constructed at least some of that net for yourself. I understand this is difficult territory. It can be hard to know when you might make more money if you’re able to work on your hustle full time, rather than playing it safe and keeping it on the side. My advice is to think carefully and critically and make sure you have the resources to take care of yourself!

If you enjoyed this article and want to talk more about the profitability of your business, and how you can make it work for you, don’t be afraid to reach out. You can check out my Services page and schedule a call.

I first published this post back in May, but I thought August would be a good time to roll it out again, with our theme being transitions. If you have other business transition-related thoughts or questions, just let me know in the comments. I’d love to address them this month!

☮

Angela

Image:  Chris Ouzounis

When To Take The Leap

When to Take The Leap: At Peace With Money

You’ve relegated your passion project to side hustle status for a long time, working on it in between your day job and other parts of your life. But you know that if you want to get your business growing, you need to invest more time. That’s when you start asking yourself, “When can I get this off the ground? When can I take the leap, quit my job, and do this full time?” This is a question that must be considered carefully. While I support jumping in, I think it’s best to make the decision based on practical financial criteria. Taken at the wrong time, that leap could jeopardize your business. So, let’s take a closer look at what criteria you and your business should meet before you’re ready to take it to a full-time level.

Savings

Before you leap into the realm of self-employment, it’s good to have some savings to cover your expenses before things get going. This requires calculating your living expenses for each month, and then deciding how many months worth you want to have saved up. Many sources recommend saving up between six months and a years’ worth of expenses, but it’s ultimately up to you. Whatever number you decide, make sure it correlates with how much time you think you’ll need to get your business to a point where it supports you. If you need some resources to help you determine your monthly expenses, I recommend my article “Three Steps to Financial Clarity.”

Proof Of Concept

It’s important to prove to yourself somehow that people actually want your product or service – that there is a demand and real profitability in your idea. Setting up some metrics specific to your business idea can help you divine whether this is the case or not. Depending on your industry, this test could look very different. It might be helpful to research what success and demand look like in your industry. Ensuring that your business will have customers is an important step in the path towards solopreneurship. 

When to Take The Leap: At Peace With MoneyI know they say “Leap and the net will appear,” but in order to take care of yourself financially, I think it’s best to take the leap only when you’ve already constructed at least some of that net for yourself. I understand this is difficult territory. It can be hard to know when you might make more money if you’re able to work on your hustle full time, rather than playing it safe and keeping it on the side. My advice is to think carefully and critically and make sure you have the resources to take care of yourself! 

If you enjoyed this article and want to talk more about the profitability of your business, and how you can make it work for you, don’t be afraid to reach out. You can check out my Services page and schedule a call.

Angela

Image:  Chris Ouzounis

The Stages of Financially Growing a Business

Stages of Business Financial Growth: At Peace With Money

Starting a business is a financially intricate process. I’ve written at some length about avoiding financial pitfalls and myths, and important first steps, but something I don’t see many people talk about are the stages of growth a business goes through as it financially matures. Today I’m mapping these out for you, so you know what to expect on your solopreneur journey.

First, some general advice. When first starting a business, you have two priorities: a) get the word out about your business, and b) keep your expenses low. Doing these two things from the get-go will set you up for business success. If you need some more guidance around wrangling your business expenses, check out this article of mine. 

Fledgling

As you build your business, focus on streamlining your processes. Figure out how you can refine them to be time efficient. Keep track of time spent and ensure you are making a living wage and being cost-effective with your expenses. If you’re purchasing a lot of materials to create a product, look into bulk purchasing your supplies.

In this stage, it’s also important to cultivate the relationship with your current customers. Allotting time or room in the budget around strengthening customer relations and making sure your first customers have exemplary experiences with your business is very important. A good reputation sets you up for success, and good word-of-mouth exposure can eliminate advertising costs later on.

Growth

As your business begins to grow, again refine your processes to cut costs and increase efficiency. As you receive more orders or draw in more clients to serve, your processes may have to adjust to accommodate these larger numbers. You will likely find yourself spending more time doing production or client work. Consider the possibility of delegating or outsourcing some of your tasks, or find other solutions. Work on further defining your role in your business – what are the pieces that you want to keep doing yourself? What can you hand off? Continue to keep an eye on your bottom line.

Maintaining and Sustaining

Once your business establishes some staying power and becomes financially stable, it’s time to move to the next stage. Make sure your business is sustainable for you by keeping it fun and engaging. Continue to challenge yourself. Incorporate new ideas and investigate what role your business can play in the lives of your customers, clients, and community.

Stages of Growing a Business: At Peace With MoneySearch for feedback. Listen to your customers to continue innovating and refining your product or service. If you have a team of other people, focus on them to keep things fresh and engaging. Brainstorm together and streamline your business partnerships.

And of course, again make sure you are earning a living wage. Continue to examine your finances and find ways to improve the financial sustainability of your business. Part of the reason you created it was to meet your needs, after all!

Lastly, at all stages utilize Profit First. This is an essential part of every step, especially the fledgling stage. Setting up money systems that allow you to have a steady paycheck and stay focused on your own financial needs will help you create a business that won’t feel draining to operate.

I hope this little walk-through helped inspire you to work on your business idea! If you need more guidance, take a look at my offerings.

Angela

Image Sources: oldskool photography,  rawpixel