How much money do you need to quit your job?
When getting started in the home business industry, one very important question a person should ask themselves is: “How much money do I need to quit my job?” $5,000? 10,000? 100,000? Only you can answer that question because only you know what type of lifestyle you want to live and how much it’s going to cost.
If you earn $50,000 a year from your current job, after taxes, you probably bring home $32,000. That breaks down to around $2,700 a month, $675 a week and $135 a day. It’s good to know that information so you can have a daily goal in mind. Having a daily goal to reach, before you stop working your current job, will insure that you earn enough to maintain your lifestyle. Who wants to quit their job and not be able to live, at least, at their current level?
What about health care?
Health insurance is the biggest concern for most people who are thinking about leaving their job to start a business, especally if they have a family.
According to HealthCare.gov, people who are self-employed can use the individual Health Insurance Marketplace® to enroll in flexible, high-quality health coverage which works well for people who run their own businesses. If you have a business that takes in income, but doesn’t have any employees, you’re considered self-employed. So, you can enroll through the Marketplace if you’re a freelancer, consultant, independent contractor, or some other self-employed worker who doesn’t have any employees. Now, if your business has even one employee (other than yourself, a spouse or a family member), you may be able to use the SHOP Marketplace for small businesses to offer coverage for yourself and your employees. See “How do I know if I’m self-employed or a small employer?” to learn more.
Is this a financial burden on your spouse?
By starting a business, you are probably hoping that it will one day free you up so you can spend more time with your loved ones. However, it’s very important to make sure you have enough money coming in, so you don’t become a burden to your spouse. The last thing you want is for your business venture to put a strain on your marriage, but if you don’t have any income coming in that is very possible, especially if you’re just starting the business.
There are a couple things you can do to avoid becoming a burden. First, save enough money to cover all your bills for up to six months before quitting your job. Second, talk to your spouse and make sure they are on board with you quitting your job. Also, make sure you show them the forecast numbers of what income you believe the business will generate. The last thing you want is an unhappy spouse. Remember the saying, “Happy wife, happy life!” And a happy husband is, well, a happy husband lol!
Online vs Brick & Mortar
To start any type of business, you need money. An online business costs a little less than a brick & mortar business. For example, starting a retail store can cost somewhere between $2,000 and $100,000, while an online store can start as low as $34 on shopify.com.
If it’s brick & mortar, you are going to need to find a supplier for the products you’re selling. If it’s a restaurant, you’re going to need the little items like napkins, bread baskets, plates and silverware.When you consider the cost, it may be a good idea to stay on your job a little longer than you want in order to finance your new company. You want to allow yourself time to build up enough customers to pay for the overhead.
Online businesses normally only cost a few hundred dollars to start, so it’s a bit easier to get it up and running. Now, I said it’s easy to start, but it’s not easy to grow. With a brick & mortar, you can have a sign displayed out front and, hopefully, the business located in a busy area, so customers can find you. However, with an online business, you have to put your business where the people, who want what you have, can see it. Posting on social media doesn’t mean potential customers will see your products. For example, when I first started my online business, I would post on Facebook every day, but nobody would engage my posts. I thought to myself, “Why not?” I realized that my Facebook friends weren’t into online marketing. They were into socializing and remembering things we did in high school. It was like putting a steak in front of a vegetarian. I was wasting my time!
I didin’t have any success with posting on social media until I started running ads. At first, my ads were unsuccessful and I was wasting a lot of cash because I didin’t understand the need for a targeted audience. However, once I got clear on that, I could make sales even without using ads because I was able to put my offer in front of the people who were already looking for what I had.
Essential Pieces of Business Equipment to Start Your Business
- Computers and Smartphones. …
- Internet and Communications. …
- Printer and Shredder. …
- Security Systems. …
- Company Vehicle. …
- Shipping Tools. …
- Specialty Equipment. …
- All-in-One Software.
With a traditional or online business, you are going to need most of these tools, if not all of them, and yes it’s going to cost!!
So, how much money do you need to quit your job? Again, it depends on the type of business you want to own and the lifestyle you want to live.