Confusing right? I get it, I really do.
Have you heard of the saying, let your 9-5 fund your dreams? Let’s talk about it.
There seems to be a lot of pressure in having your own “side hustle” or to be an entrepreneur. While the thought of multiple streams of income and “being your own boss” sounds great, being self-employed is a learning process and not for the faint of heart. From the many expenses involved before launch or extended periods of time before profit is made.
There is a current statistic that most start ups do not survive the first 18 months. Why? Mainly because funds have ran out and the business is unable to break even. The best and worst way to tackle this is by keeping your 9-5.
Of course, before creating a business, you should plan your start ups costs and keep a steady budget. As keeping a 9 to 5 role provides you with a security blanket should you be unable to profit or continue with self employment. However, the downside to this is having to work even once you’ve left work, keeping up appearances at your workplace (for example, if you have a boom in your personal business – you cannot slack in your 9-5), the chance of having to pay extra tax and of course, tiring out all together.
How does one overcome this? Is there a way around it?
In one word, no…there isn’t. It’s about finding a balance that best works for you. Use your annual leave, make the most of your lunch breaks and have clear response/processing times available on your business platforms; As great as the customer service would appear, avoid promising to respond within 1 hour when you know you have a fast paced and high demand 9 to 5. Clients will always appreciate honesty over unrealistic expectations set by the business owner.
So, congratulations! Business is consistently booming! You have gone from making £500 pure profit per month to £1,500 and are ready to leave your 9-5!
Great! Before you make this decision, ask yourself the following:
• Have you saved enough income to sustain not only your business but your personal living expenses for 3-6 months?
• How consistent is business? Can you guarantee yourself a payout of X amount each week/month?
• Are you planning to grow? If so, do you have enough set aside to support this?
If you are able to answer these comfortably, then we wish you the best of luck!
Don’t be afraid to go back into full time employment should you feel any of these change. Above all, financial security is most important and you do not want to end up in a negative situation due to lack of preparation for any ‘quiet spells’ (which almost all businesses have)