It’s a dream for many people to start a home business that takes care of all their bills and lets them live a comfortable lifestyle. If you’ve looked carefully at what it takes to start a successful business, you probably know you’re in for a lot of hard work and that things don’t always work out even when you do work hard. Is it a good idea to get or keep your outside the home job as you build your home business?
Some people find having to live off their savings motivating. It’s a challenge, knowing that you’ll be in deep financial trouble if you don’t succeed. It makes going without any source of income other than that business both tempting and satisfying. Others need the security of having money still coming in, so they aren’t too stressed over their finances to work on their business.
There’s no one right answer for everyone. You have to consider your own situation.
How Long Can You Live Without a Reliable Income?
While you may have an estimate for how long it will take you to reach your income goals, there are no guarantees when you run a business. It might prove harder to reach your goals than you thought, or easier. Either way, you need to know how long you can cope without a reliable income before you’re in a bad financial position.
If you’re going without a job, you need at least six months’ living expenses saved up, more if you think it will take you longer. More isn’t a bad idea anyhow.
Don’t assume you can make it off credit cards and pay them down later. You could, but that means later on your basic expenses will be higher, as you have to pay off the credit cards and deal with your living expenses. It increases how much you have to earn in order to consider your business a success.
What About the People Relying on You?
Thinking about the people relying on you is particularly important for parents and caregivers. You’d better have a way to support the people who rely on you and cannot support themselves.
How Will You Find Enough Time to Work on Your Home Business?
The advantage to plunging straight into a home business with no job is that you have more time to work on it. You can do the long hours required to make your home business a success.
This is more challenging if you have to go to work. You’ll have to work as many hours as you can manage outside the times you’re at work. It’s a pretty rough lifestyle, especially if the job often involves overtime.
What Options Do You Have?
Be aware of the options you have that might make things work better for you. Some people have no problem with the prospect of having to move back in with parents if their home business fails or is slow to take off. They’d better hope their parents feel the same.
You may also consider alternative ways to earn money from home while building your core business, such as writing articles for pay, other types of freelancing, finding a work at home job and so forth.
Have a Backup Plan
You should always know what you’re going to do if things don’t work out with your business. You can’t always get a job immediately, and even if you get one quickly, it won’t always pay enough. Know when you need to implement your backup plan so it has time to work before things become a crisis.
Of course, if your home business is in addition to the income earned by your spouse and your family won’t be relying on it right away, you have a lot more flexibility in how you handle things.