Just Have a Plan

I have been asked a few times in the last 2 months if I would have jumped into self employment if I knew Google would hit my clients and advertisers in March and April 2012.  Yes, yes I would.  Self employment obviously has its ups and downs, but quite frankly, I feel that a bad day working for myself is better than a great day working for someone else.  Period.

Just Have a Plan

That said, bad months need to be planned for.  Here is what I have concentrated on:

- Diversification.  We have many clients and many advertiser contacts.  That helps lessen the risk.  I also have started a side commenting business, can go back to staff writing, and have a few other ideas in the shoot.  In short, there are backups – lots of backups.

- Save.  We make sure to keep cash on hand to cover bad months and build this padding up during the good ones.  We also used extra to pay down our mortgage so we’d have less debt liability overall.  We’ll be buying a new home, but will be renting out our current home and a room in our new house, which will cover the new mortgage, taxes, and expenses.

- Pay yourself a salary.  The reason we could save and pay down mortgage debt during the good months is that we didn’t spend the extra we were making then.  We pay ourselves a salary that relies on us making way less than normal and stick to it.  I swear by this method and would suggest it to anyone.

My View

Overall, self employment is NOT for everyone.  Some of my friends actually like their regular day jobs, and I think that’s awesome.  Really.  I just want everyone to love what they do.

No matter what you choose, I would suggest having a plan.  Plan for good months.  Plan for bad months.  Plan for layoffs.  And make sure to budget in some fun.  Just have a plan.

Be Sociable, Share!

3 comments to Just Have a Plan

  • Good idea! I have seen recently how in one day you could lose your main source of income. It is best to make sure you are planning ahead so you don’t get yourself in trouble.

  • I’ve faced this – I had a successful eBay business, until my primary supplier went bankrupt and I couldn’t replace them fast enough. I’m also fortunate – I really like my day job and make really good money doing it, so I’m not leaving any time soon.

    You have a solid plan for your business, and it seems to be working for you.

  • Yeah it is true being an entrepreneur is borderline madness and not for everyone but i love it same as you and never want to work for someone else again. If you “fail to plan you plan to fail” as they say so making sure you have things in place in the case of a disaster is super important. Poor cash flow can be one of the biggest reasons businesses fail so you should always be on top of this matter and have a solid plan for this

    Hope there is better months to come for you mate

Subscription Options:

Subscribe via RSS
How I Make Money Blogging Ebook