You can transform your life from being an ordinary employee to becoming a full-time entrepreneur by setting up an online business. This is a common method nowadays as it is easier to put up a company on the Internet than in the physical world. You don’t need office buildings or spaces to start your own company, as you can do this in the virtual world by simply setting up a website. However, you should first assess your financial status before quitting your day job, as online ventures don’t usually earn within the first 6 months.
Why It’s Important to Analyze Your Financial Stability
You need to have some money tucked in somewhere when you decide to quit your day job. If not, how can you survive your daily living?
Note that you will not be getting any paycheck as soon as you stop working, but you still have a lot of bills and obligations to handle. That’s why you just can’t quit your job on a whim and pursue an online career just like that.
Basic Steps to Financial Freedom
You need to contemplate your financial situation so as to assess your stability with regard to money. Exploring other options should also be on your agenda so as to make sure that you are taking the right steps in reaching your goals. Your bank accounts need to be consolidated in order to determine how liquid you are, and any other investments you may have should also be taken into consideration.
Even your real properties’ value plays an important part in assessing your financial status, as these are also convertible to cash. And of course, if you have monthly earnings from rentals and dividends, these should be accounted for too.
Focusing on Your Expenses
Your total expenses should also be looked into when planning on your desired monthly income from your soon-to-be set up an online business. Are you paying rent for your apartment? Or do you need to pay the mortgage for your house? You could also be paying for real property taxes, so jot down all these things too. Even your monthly bills in utilities like phone and electricity bills are important as these are your basic necessities in order to live comfortably.
Likewise, your expenses for groceries, personal care, and entertainment should also be included on your list when looking into your financial plans, as these are all part of your day to day living. And if you have a car, gas, and maintenance money are allotted for this too.
Anticipating Your Online Business Expenses
While expenses on online businesses are considerably lower than offline ventures, there are still costs involved. You could spend about $100 each year for hosting your website, and there could be marketing and advertising expenses too.
Even your basic office supplies like ballpen and paper are also relevant; so make a note of these too.
Your Financial Status Now and Your Future
It may feel a little overwhelming to look closely at one’s financial status, but this is a necessary step in determining if you are ready to start a new business. By knowing where you stand right now, you can make the necessary preparations and budgeting so as to be able to make practical and profitable decisions for the future.