A lot of new business owners and freelancers quit because of the financial challenges and headaches of being self-employed. In the early stages, you will find yourself spending a lot of money while seeing little to no return. Your paychecks may be unpredictable, you may find yourself in debt, and the costs of benefits such as medical and dental insurance (necessary for anyone with a family to support) start to weigh on you.
How do you make it work? Consider waiting to make the leap until you have a nest egg. You may also need to take a part-time job or take clients you don’t love to pay the bills. Keep your eye on the end goal, which is the freedom of being self-employed.
I also highly recommend sites such as Due, Mint and QuickBooks to handle your finances. With them, you have everything you need to bill clients, keep track of finances and do your taxes.
Plans
Make plans, and do your research beforehand. For example: will you need to rent office space, or can you save money by working from home? What are the tools that you will need to remain productive, and how much will it cost to get the business up and running?
In business, the unexpected should always be expected, but having an idea of what to expect will make the transition a lot simpler for you.
–written by Peter Daisyme
Peter Daisyme is the co-founder of Palo Alto, California-based Hostt Inc., a hosting company specializing in helping businesses with hosting their website for free, for life.
BusinessCollective, launched in partnership with Citi, is a virtual mentorship program powered by North America’s most ambitious young thought leaders, entrepreneurs, executives and small business owners.