Being a full time business owner, online or physical shop, is more than a 40 hour work week that you may already have with day job. Still, there is something to be said about having a full time Etsy shop and successfully living your dream. Therefore I would like to share with you some practical and basic tips for financial independence and for turning a dream of going from an employee to a full time Etsy shop owner into a reality.
1. Do a business plan. Some may be asking what is a business plan and is it necessary? A business plan is very necessary if you want to be successful. It's like a road map that provides directions on how to get from here to there and avoid many bumps along the way. In more technical terms, it's a written document that describes the business; has a sales and marketing strategy; contains the financial background and the projected profit and loss statement. It has objectives and goals that guides you and helps to stay you on track.
2. Become financially independent. This one is a little harder, but doable. The reason for this is that you want to be able to have monies available in order to grow your shop. So how do you do this?
- Sell anything you really don't need or you haven't used in over a year. Don't buy anything unless it's absolutely necessary.
- Down size your assets. For instance, can you live in a smaller house? Get by on one car? Take public transportation more frequently?
- Begin paying down your debt. This may seem a little overwhelming to some, but it's easier than you might think. Begin with your smallest monthly bill and pay a few dollars more then the minimal payment. For example, if you have a $10.00 payment, pay $15.00 every month until it's paid off. Then begin with your next lowest bill and pay the minimum payment plus the $15.00 that you were paying from the first bill. So if this bill has a minimum monthly payment of $25.00, then pay the $25.00 plus the $15.00 for a total of forty dollars on that bill until it's paid off. Now you have freed up $40.00 to put with the minimum payment of the next lowest bill. Keep doing this until your debt is paid. You will find that you have now freed up all that money to put towards your business.
- Don't forget to put 10%-15% of your freed up money away for starting up your rainy day fund.
3. Live off of a single income in a two income family. Now that you have freed up your debt, learn to live off one income.
- This will allow you to take the other income and put toward your business until you have sufficient amount of money to put towards your business.
- Living off one income will help you get through the harder times when business is slow.
5. Continuing working your online shop. While you are working on getting to your dream of quitting your day job, continue working your shop and on your business plan goals. Review your business plan every couple months and update it at least every year.
6. Say goodbye to your day job. Once you have done these steps, you are now ready to fly solo and live your dream.
Following these steps is not an easy task and can't be done overnight. It takes determination and initiative. There will be setbacks, but staying on task and not being distracted by outside factors will help you achieve your dream.
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