You have decided to make some big changes in your life so you can have the dream job you always wanted. Depending on the kind of business you want to start, you could have months or years of hard work in front of you. Aside from the basic essentials, a place to live, food, water and clothing, you are going to need a high-speed internet connection and a dedicated phone line. All of these things cost money, but you don’t have any income yet. So what do you need to do so you can start your own business?
You are going to need to make some sacrifices and get a crappy job to pay the bills so you have enough time to build your business.
For those that have a desk job that you hate, I am sorry. Things are going to get worse before they get better.
Remember, time is money, and you need your new “basic essentials job” to take up as little time and effort as possible. Regardless of what job you get you will need at least one day off during the week where you can travel and schedule meetings. You may have to work nights or weekends.
Ideally, you want a “reception” type job where you have limited responsibilities. You need to be able to get work done for your new business while you are at your job. If your new employer gives you lots of tasks and responsibility, it is not going to work. I worked as a projectionist in a movie theater to pay my bills when I was starting my first business. I would spend five minutes setting up the movie, and then I would have time to work on my business.
If you can’t find a flexible job where you can work on your business, you need to work at night. Your business and future happiness are important enough that the sacrifice is worth it. People are going to need to contact you during the standard business hours of 9-5. Wait tables, be a hit man and do whatever it takes so you can work during the day.
The worst part about this whole process is the sacrifices you have to make (unless you have rich parents or friends, in which case you can move in with them and eat for free). When you are planning your finances for the business setup period, make a list of things that you absolutely need.
- Rent/Mortgage
- Car Payment/Insurance
- Gas
- Utilities
- Food
- Internet
- Phone
- Household supplies
- A new suit for meetings (if you don’t already have one)
- Basic Business Expenses (don’t expect to get financed just yet)
You might have to go a year without TV. You might have to avoid eating out. You might have to drive less. You will definitely have to build leisure into your budget. Although starting your own business is immensely rewarding, it can be extremely stressful. Do whatever you can to keep costs down. Take in roommates if you have to. The lower your monthly living expenses, the less time you have to spend working to pay the bills, and the more time you can spend building your new business.
You know it will take short-term sacrifices to create long-term income and independence, but before you do anything drastic, like quitting your job to work the nightshift at Dennys, let’s weigh the risks.
First off, there is healthcare. Quitting your job at a corporation could mean losing benefits. If you are in a position where you could get very sick, make sure you have coverage. Do your best to stay healthy.
Second, there is debt. Be smart about this. Get out of debt before you cut back drastically on your income.
Thirdly, there are the other people in your life. I started my first business while I was still in college. I didn’t have a wife or kids. I only had to take care of myself. Make sure you fulfill any obligations. If you have a family, please make sure they are ok with this. Can you get by on your spouse’s income? You shouldn’t have to sacrifice your own happiness for your family but they shouldn’t have to sacrifice everything for you.
Now, you understand you will have to make sacrifices and you want to get started.
Let’s review some Basic Business Fundamentals.
