« Internet Marketing Conundrum | Main | 9 Reasons To Do Joint Venture Deals On eBay »

What You Need To Determine Financially When It Is Time To Quit Your Day Job And Work From Home Full Time

Before you walk away from your job to work full-time from home, one of the most critical pieces of information you need to know is how financially stable you are and how long you will be able to survive without a weekly pay check. Here are 5 easy steps to help you plan wisely.

It doesn't have to be unpleasant or messy, but it does have to be done. You may be well on your way to building a full-time home-based business or may just be tossing the idea around right now, but having a clear understanding of your current and future financial commitments will play a MAJOR role in your strategic plan for business success.

Home-based business owners don't normally wake up one day and say, "Yep. I'm quitting my job today and starting a home-based business."  There is usually a period of time for contemplation, exploration, making the decision, creating a plan, and then starting to execute steps within the plan to achieve the final goal.

The process can take anywhere from several months to several years before an employee is in a position to walk away from her job to begin life as a full-time entrepreneur.

Being financially responsible is critical to not only home-based business success, but to create the financial cushion required to transition from being an employee to a full-time entrepreneur.

Understanding your current financial position is mandatory and doesn't have to take more than an hour of your time if you follow the five basic steps below.

1.  Calculate how much money you currently have sitting in bank accounts, investments, registered retirement savings plans, GIC's, real estate, etc.  If you were to leave your job today, would there be any form of payout (ie. sick plan credit, pension plan contributions, unused holidays, anniversary pay, etc.)?

2.  Determine how much you earn on a monthly basis either through employment, child support payments, rental properties, dividends, your existing home-based business, etc. 

3.  Record your monthly household expenses.  Some examples to get you started are:

-  mortgage/rent
-  property tax/house and mortgage insurance
-  utilities (heat/water/hydro)
-  phone/cable/satellite/Internet
-  yard maintenance/snow removal
-  groceries and household supplies
-  vehicle fuel, insurance and maintenance costs
-  medical
-  child care
-  personal care (hair/nails/clothing)
-  entertainment (movies/sports/books/plays)
-  club memberships, publications, etc.

4.  List your monthly business expenses, for example:

-  Internet
-  phone (separate business line)
-  autoresponder
-  shopping cart
-  long distance
-  bank fees
-  office supplies
-  tools
-  web hosting
-  marketing
-  advertising
-  part-time help
-  coaching services
-  shipping/postage, etc.

5.  Identify your outstanding liabilities such as:

-  credit card balances
-  personal loans
-  lines of credit, etc.

When you calculate your earnings and revenue on an annual basis and deduct your personal and business expenses. How much do you have remaining at the end of the year?  Can a portion of this be put aside to build your financial cushion?

If your current business revenue isn't enough to cover your business and personal expenses and if you were to quit work today, how long would you be able to survive on your other revenue sources or savings and assets, taking into account your monthly expenses? 

Have you considered all unexpected expenditures that could arise in the next year or two? 

Is your car running on its last two cylinders?
Has your furnace almost reached its life expectancy?
Is your vacuum cleaner starting to growl at you?
Is your partner's job secure or do you foresee unstable times ahead?

This exercise is by no means intended to scare or discourage.  Financial stability is an area that needs to be addressed so you can keep your feet firmly planted and plans realistic as you build your home-based business.

Understanding where you are and what potentially lies ahead will help you make sound financial decisions as you plan your future.

After completing these five steps, you may realize your dream to break free of your job might take a year longer than expected, or you may learn that in order to move forward at a quicker pace, you may have to bring in a partner or investor, or learn to leverage your time, money and effort more efficiently to expedite progress.

Perhaps seeking professional guidance on reducing debt and managing finances is in order?

No matter what results you generate, don't let them shake your spirit. Knowing exactly where you are financially will help you make informed, practical decisions so you can create your ideal future.

To increase your level of success at home-based business, make sure you have a financial advisor and accountant as part of your success team.

2006 © Laurie Hayes - The HBB Source





-----------------------------------------------------------------------------------------------------------

Leon Edward is the blog owner and webmaster of  http://www.HomeBusinessIT.com where you'll find internet home business ideas and home business management info , legitimate online business ideas reviewed , home business management and marketing information where you can even get step by step  affiliate marketing training to start your own affiliate marketing online business

Run a Home Business From Anywhere,  Part-Time Or Full-Time,  No Inventory To Stock, No Products To Ship No Payments To Collect, No Customer Support to spend time on, Make Money Immediately, HUGE POTENTIAL, Take The First Step.. Learn Details
[Continued...... Click Here - visit Opportunity.com/leonedward]

He started making money online using the Plugin Profit Site. You can get your own Plugin Profit Site set up and ready to make money for you within 24 hours.
Visit http://www.cashmonthlylifetime.com

New people are succeeeding in opening their own online niche store  or supplying what sells well on eBay . Get A Free Trial for Wholesale Products To Sell Online  . Start with eBay Basics


Learn the vital aspects about legitimate home businesses in a FREE comprehensive special report  and Internet Business elibrary, visit http://www.homebusinessit.com/newsletterI've joined top earners on the internet with this  Successful Home Business 

Learn how to build a professional website in minutes. By the makers of Quickbooks. TRY IT FREE

Learn to be a Day Trader , Beginners Day Trading   , Learn Affiliate Marketing , What To Sell On eBay , Home Business Management  

More Energy than money?

Learn How to Turn 5 hours a week into
$500 per month, just visit http://www.StartAHomeBusinessFree.com 

Every year, the government--local, state, and federal--gives away millions of dollars to people just like you for new business ideas. Leon Edward shares information on government funding, Federal, State ,Local Grants , Home Business Management, Setting up a home business ideas, affiliate marketing software and business plan,  Grant Money To Start A Business , where to find start up business grants, sources, how best to fill out applications, grant management step by step tips, setting up a business steps at his website http://www.business-idea-grants.com/

Vacation More, Travel more with family and friends. Learn to budget vacations and save while still getting great vacations. visit Cheap Condo Rentals .After you make tons of money, you may want to visit my  cosmetic surgery website , maybe a tummy tuck  .  Visit Leons Increase IQ improve brain website , increase concentration, be smarter. entrainment cds

Being Rich and Successful is great but you mustt remain healthy and happy. Maintain your health  as you age , visit my anti aging health wensite with anti aging foods, age specific anti aging exercise, resveratrol health info, resv anti aging or purchase resveratrol and  affordable  anti aging HGH .


Finding A Job In A Recession can be tough but here is what is easy...

Use you subconscious mind  and infinite mind to ...

Attract Money, Success, Love, Anything You Desire !

Get Your FREE Mind Movies and Create Your Ideal Future. Visit my special offer link at

http://www.mindmovies.com/vid1/?13757

 

 

 

 


 

 

 

 

 




-----------------------------------------------------------------------------------------------------------

Leon Edward is the blog owner and webmaster of  http://www.HomeBusinessIT.com where you'll find internet home business ideas and home business management info , legitimate online business ideas reviewed , home business management and marketing information where you can even get step by step  affiliate marketing training to start your own affiliate marketing online business

Run a Home Business From Anywhere,  Part-Time Or Full-Time,  No Inventory To Stock, No Products To Ship No Payments To Collect, No Customer Support to spend time on, Make Money Immediately, HUGE POTENTIAL, Take The First Step.. Learn Details
[Continued...... Click Here - visit Opportunity.com/leonedward]

He started making money online using the Plugin Profit Site. You can get your own Plugin Profit Site set up and ready to make money for you within 24 hours.
Visit http://www.cashmonthlylifetime.com

New people are succeeeding in opening their own online niche store  or supplying what sells well on eBay . Get A Free Trial for Wholesale Products To Sell Online  . Start with eBay Basics


Learn the vital aspects about legitimate home businesses in a FREE comprehensive special report  and Internet Business elibrary, visit http://www.homebusinessit.com/newsletterI've joined top earners on the internet with this  Successful Home Business 

Learn how to build a professional website in minutes. By the makers of Quickbooks. TRY IT FREE

Learn to be a Day Trader , Beginners Day Trading   , Learn Affiliate Marketing , What To Sell On eBay , Home Business Management  

More Energy than money?

Learn How to Turn 5 hours a week into
$500 per month, just visit http://www.StartAHomeBusinessFree.com 

Every year, the government--local, state, and federal--gives away millions of dollars to people just like you for new business ideas. Leon Edward shares information on government funding, Federal, State ,Local Grants , Home Business Management, Setting up a home business ideas, affiliate marketing software and business plan,  Grant Money To Start A Business , where to find start up business grants, sources, how best to fill out applications, grant management step by step tips, setting up a business steps at his website http://www.business-idea-grants.com/

Vacation More, Travel more with family and friends. Learn to budget vacations and save while still getting great vacations. visit Cheap Condo Rentals .After you make tons of money, you may want to visit my  cosmetic surgery website , maybe a tummy tuck  .  Visit Leons Increase IQ improve brain website , increase concentration, be smarter. entrainment cds

Being Rich and Successful is great but you mustt remain healthy and happy. Maintain your health  as you age , visit my anti aging health wensite with anti aging foods, age specific anti aging exercise, resveratrol health info, resv anti aging or purchase resveratrol and  affordable  anti aging HGH .


Finding A Job In A Recession can be tough but here is what is easy...

Use you subconscious mind  and infinite mind to ...

Attract Money, Success, Love, Anything You Desire !

Get Your FREE Mind Movies and Create Your Ideal Future. Visit my special offer link at

http://www.mindmovies.com/vid1/?13757

 

 

 

 


 

 

 

 

 




-----------------------------------------------------------------------------------------------------------

Leon Edward is the blog owner and webmaster of  http://www.HomeBusinessIT.com where you'll find internet home business ideas and home business management info , legitimate online business ideas reviewed , home business management and marketing information where you can even get step by step  affiliate marketing training to start your own affiliate marketing online business

Run a Home Business From Anywhere,  Part-Time Or Full-Time,  No Inventory To Stock, No Products To Ship No Payments To Collect, No Customer Support to spend time on, Make Money Immediately, HUGE POTENTIAL, Take The First Step.. Learn Details
[Continued...... Click Here - visit Opportunity.com/leonedward]

He started making money online using the Plugin Profit Site. You can get your own Plugin Profit Site set up and ready to make money for you within 24 hours.
Visit http://www.cashmonthlylifetime.com

New people are succeeeding in opening their own online niche store  or supplying what sells well on eBay . Get A Free Trial for Wholesale Products To Sell Online  . Start with eBay Basics


Learn the vital aspects about legitimate home businesses in a FREE comprehensive special report  and Internet Business elibrary, visit http://www.homebusinessit.com/newsletterI've joined top earners on the internet with this  Successful Home Business 

Learn how to build a professional website in minutes. By the makers of Quickbooks. TRY IT FREE

Learn to be a Day Trader , Beginners Day Trading   , Learn Affiliate Marketing , What To Sell On eBay , Home Business Management  

More Energy than money?

Learn How to Turn 5 hours a week into
$500 per month, just visit http://www.StartAHomeBusinessFree.com 

Every year, the government--local, state, and federal--gives away millions of dollars to people just like you for new business ideas. Leon Edward shares information on government funding, Federal, State ,Local Grants , Home Business Management, Setting up a home business ideas, affiliate marketing software and business plan,  Grant Money To Start A Business , where to find start up business grants, sources, how best to fill out applications, grant management step by step tips, setting up a business steps at his website http://www.business-idea-grants.com/

Vacation More, Travel more with family and friends. Learn to budget vacations and save while still getting great vacations. visit Cheap Condo Rentals .After you make tons of money, you may want to visit my  cosmetic surgery website , maybe a tummy tuck  .  Visit Leons Increase IQ improve brain website , increase concentration, be smarter. entrainment cds

Being Rich and Successful is great but you mustt remain healthy and happy. Maintain your health  as you age , visit my anti aging health wensite with anti aging foods, age specific anti aging exercise, resveratrol health info, resv anti aging or purchase resveratrol and  affordable  anti aging HGH .


Finding A Job In A Recession can be tough but here is what is easy...

Use you subconscious mind  and infinite mind to ...

Attract Money, Success, Love, Anything You Desire !

Get Your FREE Mind Movies and Create Your Ideal Future. Visit my special offer link at

http://www.mindmovies.com/vid1/?13757

 

 

 

 


 

 

 

 

 


Hosting by Yahoo!