Own a Side Business, When to Quit Your Job
Owning a side business can be one of the most profitable ways to make money. It can even help you find your passion in life and have a more diverse income.
But how do you know when it is time to quit your job and work on your business full time. This is a question I have been thinking about because owning a business is much more complicated than having a job.
The income may not be as steady as an average job. Just because you made $4,000 this month does not mean you will make that again next month. When you own your own business there will be ups and downs.
Ideally you want your business to keep growing and expanding. But what will you do if your business takes a huge hit? What will you do if you lose your ranking in Google or if your sales are taking a hit due to the season or changing market conditions?
You want to be prepared for anything after you quit your job. That way you will not have to come crawling back to your old boss 3 months after you quit.
Currently making enough money to cover your financial obligations may not be enough anymore. This is what I have been thinking about lately and I have made a checklist that to help decide if it is a wise idea to quit a job or not.
1. Did You Save Up 6 Months Worth Of Expenses?
Financial professionals always talk about the importance of saving money. Having a reserve of money on the side is always good for a business owner.
By having a 6 months of reserves in savings you will be better prepared if your business crashes. It will give you 6 months to either rebuild your business or to look for a job.
2. Do You Make Enough to Save?
If your business is barely making enough to cover your expenses it is probably better to keep your job alongside your business. If your business is barely paying for your expenses what will happen if business slows down a little?
It is better to have some money to live the kind of life you want and to save money on top of that for the future.
3. How Long Have You Been Making Money
The longer your business has been making money the better. If your business has been turning a profit for a year it gives you a much better indicator of your future success with it then if it has been just turning a profit for you for 2 months.
Ideally you want your business to have been making money consistently for about a year before quitting out job. This way you can also tell what the current trends are and what your busiest months are.
4. Do You Have Other Potential Sources of Income?
I am a big believer in gaining security through diversification. Looking for other extra income ideas outside of your business can be a good idea.
You might look into renting out a spare room in your house, start donating plasma, or you might want to invest some of the extra money you are making off of your business now so that by the time you do quit your job you are making money through your investments as well as your business. Saving the profits your business is making now comes in handy later on when you decide to live off of it full time.
5. Did You Talk to Your Accountant?
I was shocked when I figured out how much of my money actually went to taxes. Remember if you own your own business you will have to pay social security and Medicare twice. (Once as the employee and once as the employer) You also have to pay income tax on your money based on how much you make.
Before you quit your job, be sure to talk with an accountant and figure out how much you need to make to pay for taxes along with your average everyday expenses. If you don’t you may find yourself getting a job just to pay Uncle Sam.
These are just some of the things which I feel are important when deciding whether you are ready to quit your job or not. Being as conservative as possible will help you to stay safe no matter what life throws at you.
We are a leading online payday loan resource company that provides quick cash loans to help you address your financial needs. If an unexpected financial cost is burdening you, quick cash loans are an immediate solution to help you until your next payday. By utilizing quick cash loans, you save money by avoiding late payment penalties or overdraft fees. Apply now for your quick cash loans
Do you have unexpected bills or are strapped for cash till payday? If you are desperately short of funds and need a payday advance as you cannot wait till your next paycheck then apply here now. It is very quick and very easy. Apply here for payday loans online.
If you are into mining, no matter if it is gold, coal, heavy or light mining, when lookin for you should always consider to compare new mining equipment cost to costs.
With Today's economy and the financial hurdles that stun us, monetary safety is one of the most essential priorities we must undertake. The key to this is your credit score; nothing can be more important than those three digits. You might ask yourself, "What is a good credit score" We will tell you all about it and more. We offer financial information and support about your credit scores and reports, and the importance of knowing what each thing means.
If you are serious about improving your finance situation Forex trading might be what you are looking for, in the Forex Forum you will find all the information you'll need to know about how to increase your income with Forex.
For a slow PC or to correct most of the errors on your PC, you should try the and get your PC speed back.
These Christmas gift baskets and holiday gift ideas make great presents.
If you are short of cash and need money fast one of you best options to get a loan is from a 100 day loans company, you will need to return the loan in 100 days.
If you own an iPad and you are asking yourself than you just have to read this . Discover the full potential of your iPad.
Online education is also a great invention which comes with the help of information technology and online degree programs.