Prior to the global health crisis setting in, I had an enjoyable time participating in a podcast interview with Andy, the face behind Marriage Kids & Money, who’s also a home-based independent entrepreneur. The connection was special, since we were both fathers of two young kids navigating the online world.
Andy’s courageous decision to follow a new path in 2012 came at a stage in life very close to mine. My initial intention to leave the finance field wasn’t to make Financial Samurai into a business, but it ended up being a source of extra earnings, keeping my wife and me away from our previous jobs.
Being confined to my home now, I’ve invested more time in comprehending the online business landscape. It’s truly captivating to see how some are innovating ways to earn online, with sophisticated websites and concentrated marketing tactics, hopefully turning a profit as well.
If you’re contemplating starting a home-based entrepreneurial journey, here’s wisdom from Andy on how to get started:
Give it a shot, or you’ll never know!
Becoming a Home-Based Independent Entrepreneur The shift from being a full-time employee to a home-based independent entrepreneur might seem monumental, especially for young parents. It’s not just about our own financial and physical needs; we must also look out for our partners and children.
This huge decision loomed over me for some years as I uncovered a side project that I became passionate about. I initiated a podcast and blog, Marriage, Kids and Money, in 2016 after a rough day at work and cherished the time spent on it.
Meanwhile, my enthusiasm for my full-time role in corporate event marketing began to wane. After more than 15 years, I felt I had reached a plateau. My career options seemed limited, and I felt stagnant.
One of the pressing challenges in leaving my job was the discrepancy between the $30,000 annual income from my side project and my $180,000 full-time salary.
Moreover, I would lose incredible perks like healthcare, dental coverage, paid vacation, 401k match, an Employee Stock Ownership Program (ESOP), and more.
So a critical decision was before me: Should I abandon my secure, well-remunerated corporate position with the hope of matching my previous salary through my side hustle?
Or should I continue my 9-5 career in corporate event marketing, pursuing financial independence, and possibly retiring early?
After thoughtful conversations and support from my wife, I decided to leave my job earlier this year. Here’s how I managed the transition and what I’ve discovered in my first six months as an independent entrepreneur.
Steps to Becoming an Independent Entrepreneur:
- Experiment with the business as a side hustle first. It was vital to determine that I truly adored my side hustle before diving into it full-time. I spent three years on this, a period filled with highs and lows, failures, and triumphs that gave me real insights into small business ownership. The experience was revealing, and I wanted more.
- Wait for the children to be in school all day. My wife had been a wonderful stay-at-home mom for the previous seven years. When our youngest entered kindergarten, she was eager to rejoin the workforce. We found a job that fit our family’s schedule, which also provided some financial support to offset my loss of income.
- Ensure financial readiness for the leap. We prioritized our family’s financial safety by saving over a year’s worth of expenses and researching healthcare options. Aggressively paying off our mortgage in less than five years also lowered our expenses by $35,000 annually.
Lessons from My First Half Year as an Independent Entrepreneur:
- Business ownership is more complex than employment. The transition revealed the true value of the benefits and departments I had at my previous job. Now, roles like Accounts Receivable, Legal, Marketing, and Sales fell upon me.
- Delegating tasks is vital. I soon realized that handling everything was impossible without overworking. Outsourcing areas like accounting made my life easier, but it did slim down the profits. I am still working on finding the right balance.
- Adaptability is key in uncertain times. The global pandemic and recession forced me to continually adjust my business approach. Pivoting allowed me to adapt to new realities.
Is Entrepreneurship Worth the Effort?
Yes, it’s hard work, and I expect it will take years to reach my former salary level. But it’s not just about the money; it’s about building a life centered around health, family, and fulfilling work.
Despite the setbacks in income, our net worth surpassed $1,000,000. A remarkable achievement for our family.
I enjoy every moment of my entrepreneurial journey and have no desire to return to employment. Do I miss the benefits and consistent paycheck? Definitely!
Would I trade my current life for the old one? Not likely.
But the future is unpredictable. The ever-changing economy might lead me back to employment. If that happens, I’ll be proud knowing I gave entrepreneurship my best effort.
