Five Money Questions to Ask Before Quitting Your Day Job

AmandaDailyWorth

Story by AmandaDailyWorth

Published on Nov 24, 2009 in Seller Handbook

Photo by openeyespress

This guest post is by Amanda Steinberg, founder of DailyWorth.com. DailyWorth is a daily email about money for women — delivering practical tips, empowering ideas and the occasional kick in the pants.

I quit my full-time job four years ago to be a full-time entrepreneur. I earn my living running websites like this personal finance website for women called DailyWorth.com. Here are five things I wish someone had told me before I made the financial leap.

 

1. How much do you need to make, really? REALLY. Life without a stable paycheck has far more expenses than someone working 9-to-5 might realize. You’ll need a lot of cash. As a business owner, I’m constantly lusting after marketing dollars I don’t have. Consider additional expenses that you’ll incur once you go out on your own.

Expenses You May Not Have Planned For

In addition to all of the line items in your existing plans and budgets, consider these expenses as well:

Personal Expenses  Business Expenses
Health Insurance  Legal Fees
Retirement Account (Roth IRA, anyone?)  Product Development Fees
Quarterly Estimated Tax Payments  Advertising
Increased Accounting Expenses  Constant Website Enhancements

Not sure what this all adds up to? Ask someone who knows. Life is expensive. Be conservative when you estimate.


Photo by valedesign

2. Reality check: How much revenue can my company really generate?
Evaluate your market and know what your competitors are earning on average. Better yet, be conservative. Don’t collect blog posts featuring glossy success stories and think that everyone experiences the same level of success.

3. Can I cultivate multiple, dependable income streams to support me as I build my business? Now that you have a better idea of what your life and new business will cost in the first year, add 50% to what you think you need to earn. That’s your earning target. Why? Because even though you might think you’ll earn $4,000 in January, life happens, contracts are canceled, checks don’t arrive and WHAM!, the money’s gone. Stuff happens, so you’ll need to earn more than you think you need to hit your earning targets. Don’t think you can earn that much? Good, we’re glad you’re asking yourself this question now, rather than staring at a credit card statement that’s $20,000 in the red.

Figure out where this money will come from.

 

  • Take a part-time job or stable freelance contracts. If you freelance, assume you’ll only be able to bill clients for up to 20 hours of work per week. It’s harder than you think to bill for more than 20 hours as a freelancer. When Nathan Shackles decided to found his own business two years ago, he first started by taking on 10-20 hours per week of extra work, in addition to his day job. “I saved every dime of the money I made from the contract work to provide capital for my business,” he says. One month ago, he launched his new product, ApplicantStack, a web-based applicant tracking and recruitment software for human resources and staffing agencies. While Nathan was able to work full days and extra hours on top of that, that kind of schedule isn’t for everyone.
  • Identify your most bankable skill. How can you make money most easily? Making money while you’re growing your business doesn’t need to be glamorous or fulfilling. It just needs to be lucrative. Period.
  • Line up part-time work before you leave your job. Line it up weeks or months in advance of your transition.
  • Try to turn your full-time job into a part-time job. Don’t burn bridges! You can approach your current employer about reducing your hours or transitioning into a contract position. Given the recession, your boss may be open to ideas that save the company money while giving you the time and flexibility to set up your own business.

4. How much can I save in advance? If you’re leaving a full-time job, start saving aggressively six months before you announce your departure. Commit to making regular, automated deposits. Laura Rangel and Lisa Steen Proctor, co-founders of Karito Kids a multicultural doll company that teaches kids about giving back, started their company with $10,000 each from their savings accounts. Both agree that putting money aside now to help fund your future business is the best way forward.

5. Who do I know that’s already done it? A mentor can point you to networking opportunities, troubleshoot financial pitfalls and show you where you’re drinking your own Kool-Aid a little too aggressively.

Bottom Line
Don’t be delusional. Don’t risk your financial well-being thinking you’re The Next Big Thing (though I hope that you are). Building a lucrative new business takes time and a lot of cash. By the same token, embracing entrepreneurship doesn’t mean that you have to bleed red ink all over the place. Pursue your dream. Just plan for it with your eyes wide open.

Learn more about smart spending and savvy saving by signing up for DailyWorth.

Discuss: 219 comments

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  • ParadiseBodyShop

    ParadiseBodyShop says:

    This is a fabulous basic guideline! I hope it keeps some people out of trouble! Thanks!

    2 years ago

  • fernfiddlehead

    fernfiddlehead says:

    Practical and thought-provoking. Thanks!

    2 years ago

  • SimpleJoysPaperie

    SimpleJoysPaperie says:

    Though I am already "at home", these tips are very helpful. Thanks so much!

    2 years ago

  • SewnNatural

    SewnNatural says:

    Great reminders, very practical ideas to keep at the front of mind. Thank you.

    2 years ago

  • olliegraphic

    olliegraphic says:

    Thanks. Great tips. After a LOT of thought and planning, I gave my day job notice. My last day is Dec. 31. Here's hoping that I'm a success story!

    2 years ago

  • BlueTerracotta

    BlueTerracotta says:

    Excellent article! It's worth reading Daily Worth everyday for regular financial advice and ideas.

    2 years ago

  • BabbidgePatch

    BabbidgePatch says:

    Great advice. Working your craft as a business is often different than selling your craft for pleasure! There is a lovely balance when you can find it :)

    2 years ago

  • HibouCards

    HibouCards says:

    Always good to have a reality check! Thanks, I think that's what I needed to hear, even though I may not like all of it ;)

    2 years ago

  • KBShimmer

    KBShimmer says:

    Great reminders for all of those planning and hoping to ditch the day job.

    2 years ago

  • MetalheartDesign

    MetalheartDesign says:

    great article! Dailyworth.com is a great website/blog.

    2 years ago

  • underoakstudios

    underoakstudios says:

    Sigh... Thank you.

    2 years ago

  • TheBrassHussy

    TheBrassHussy says:

    The big one is to turn the FT job into a part time job. If I could do that, I know I could make this work.

    2 years ago

  • BlueShoeStudio

    BlueShoeStudio says:

    Concise, thank you!

    2 years ago

  • underoakstudios

    underoakstudios says:

    And what is a "savings account"?

    2 years ago

  • poppyswickedgarden

    poppyswickedgarden says:

    These are great pointers. I'm so glad that I was able to quit my day job to make clothing 5 years ago, but I have overcome many hurdles to do so:)

    2 years ago

  • martice

    martice says:

    Great article!

    2 years ago

  • worksandfinds

    worksandfinds says:

    Great! Thank you.

    2 years ago

  • CatherinetteRings

    CatherinetteRings says:

    I quit my job after opening my Etsy shop , i always need good advice . Thanks for the Tips .

    2 years ago

  • spacejam

    spacejam says:

    wonderful article - thank you )

    2 years ago

  • BargainHeadbands

    BargainHeadbands says:

    Great article, I will definitely check that website.

    2 years ago

  • bylynnkrestel

    bylynnkrestel says:

    really great advice!

    2 years ago

  • loopyboopy

    loopyboopy says:

    Wow, a really wonderful, helpful, practical and realistic look at "Quitting your Day Job" Thank you so much for this very responsible and sensible article!!

    2 years ago

  • mazedasastoat

    mazedasastoat says:

    Great advice, it's all too easy to get carried away by your own fabulousness that you forget there will be times when no one wants what you're selling!

    2 years ago

  • Rolyzcreations

    Rolyzcreations says:

    Great article! Thanks!

    2 years ago

  • TessaKim

    TessaKim says:

    Great Advice!

    2 years ago

  • trinketsncharms

    trinketsncharms says:

    Fantastic article, it's pointed out several things I never thought of that I can now add to my preparation list!

    2 years ago

  • ModernMeetsWhimsy

    ModernMeetsWhimsy says:

    love that you guys are highlighting all the not so glamorous parts of owning a business. It can be very hard to rake in a profit after all those expenses!

    2 years ago

  • Kukaramba

    Kukaramba says:

    Great advices.

    2 years ago

  • duckfoot

    duckfoot says:

    i think this is a great article to help people brainstorm whether quitting their day job is the right choice.

    2 years ago

  • VelveteenHabbit

    VelveteenHabbit says:

    DO WE NEED TO mention 1 more EXTRA EXPENSE? SHOPPING FINDING WHAT I LOVE TO SHARE WITH MY CUSTOMERS....GUILTY!!! CAN YOU RELATE???

    2 years ago

  • everyeskimo

    everyeskimo says:

    oh goody, now i'm sad. :P

    2 years ago

  • ricerafferty

    ricerafferty says:

    Great article! Make sure you schedule as many doctors appointments as you can before you quit!

    2 years ago

  • CrochetRUs

    CrochetRUs says:

    Fabulous article!

    2 years ago

  • ShaggyChic

    ShaggyChic says:

    Oh yeah, and here is one more thing to try; I told my husband to find a new job that pays him about 30K more that he is making now,,,and then I can quit my day job and do this full time. That'll work too! ;}

    2 years ago

  • SecretLentil

    SecretLentil says:

    After doing this for a few years, this is my second business, I would add "understand cash flow" to the list. Understanding how to do your books is NOT the same as having some savvy about cash FLOW. There's more to it than a beginner would imagine, and it's harder to find good reading material about it than it should be - especially at the scale of one-person making the things they sell. Thanks for the great article Amanda.

    2 years ago

  • dennisanderson

    dennisanderson says:

    its a good thing that I dont have any credit cards.... I would say to try tosee if you can operate your business without credit.

    2 years ago

  • PomLove

    PomLove says:

    this is really interesting and informative. i can't believe i had never heard of DailyWorth before, so glad i read this! thanks:)

    2 years ago

  • oldworldprimitives

    oldworldprimitives says:

    These tips are spot-on!

    2 years ago

  • MaMagasin

    MaMagasin says:

    good article - especially when i've just dropped hours at work and im hoping to 'quit the day job' just like everyone else! makes me realise i've got a way to go yet...!

    2 years ago

  • beautifulbridget

    beautifulbridget says:

    Excellent advice!

    2 years ago

  • moonscreations

    moonscreations says:

    Fantastic article! Thank you very much.

    2 years ago

  • theLowerEarSide

    theLowerEarSide says:

    great article!

    2 years ago

  • Waterrose

    Waterrose says:

    Great information and something we all need to consider.

    2 years ago

  • 1022SeaShellAve

    1022SeaShellAve says:

    All good to know, thanks for sharing :)

    2 years ago

  • versetle1

    versetle1 says:

    Great article and I can't get enough of the valedesign never ending to do list!

    2 years ago

  • JetWhitePonytail

    JetWhitePonytail says:

    good to see articles like this featured!

    2 years ago

  • BellaSmiles

    BellaSmiles says:

    Awesome.

    2 years ago

  • feltmeupdesigns

    feltmeupdesigns says:

    great advice... i work part time as well as my business for health reasons i wish i had the resources to quit and work full time on my business but i know i have to let it build first!

    2 years ago

  • yosemitevintage

    yosemitevintage says:

    I love this kind of stuff. I cant get enough of it and I am signing up for your daily newsletter too. I've been self employed fore about 8 years now. Due to the economy crunch, things are very different, so I need to learn new creative and smart choices to float this through. Thanks Storque for a great read! I have lots of shoes and jewelry for $10 or Less!

    2 years ago

  • yosemitevintage

    yosemitevintage says:

    sorry for the type-o's. I really do know how to spell.

    2 years ago

  • yosemitevintage

    yosemitevintage says:

    I also want to add that most people (including me) who sell vintage "overbuy it". Yes, we all do it, but it can mean an early death to your business. A real business that is successful does not buy inventory they dont need. Why? Because it comes right off their bottom line. It eats up the profit. We must exercise control and understand vintage items will always be available. There will be another estate sale, another thrift store, always, its never ending, because in the end: Everything we own will belong to someone else. Everything! So now I choose to collect cash instead of stuff. I'm a Seller, not a Buyer. I'm a Seller, not a Buyer! xoxo, Marty

    2 years ago

  • emetalworks

    emetalworks says:

    ha! a nice counterbalance to the regular "quit your day job" articles that sound so magical! i need a little reality from time to time!

    2 years ago

  • blueskyclouds

    blueskyclouds says:

    Yes, I like the practical approach to this article! Thank you.

    2 years ago

  • 1AEON

    1AEON says:

    i know about that never ending "to do list" haha.. that's the only way it works..

    2 years ago

  • jolinne

    jolinne says:

    Great article, thank you!

    2 years ago

  • ReclaimedThreads

    ReclaimedThreads says:

    Thank you! When you are thinking about starting your own business, it's great to have an objective voice offering up advice amongst all the people in our lives that while their hearts are the right place they might be too emotionally involved to give simple, straight to the point advice as you have. I am off to sign up for your email list! :) ~Katherine~

    2 years ago

  • OpulentOddities

    OpulentOddities says:

    YES. Love this article. Thanks so much, guys! Maybe the best storque article ever?

    2 years ago

  • bloomingvintage

    bloomingvintage says:

    great read!

    2 years ago

  • MsRose

    MsRose says:

    Helpful & Concise, Thank you.

    2 years ago

  • SkyBox

    SkyBox says:

    I love these educational articles. Thanks Etsy. Keep 'em coming!

    2 years ago

  • leeandlee

    leeandlee says:

    Thanks for the article. I need all the help I can get.

    2 years ago

  • InnerHooker

    InnerHooker says:

    Love that chore chart!

    2 years ago

  • rakshniyavintage

    rakshniyavintage says:

    great piece! Hopefully I will be facing these questions soon :)

    2 years ago

  • UglyBaby

    UglyBaby says:

    Good advice! We all need to hear this side of things too!

    2 years ago

  • KarleighJae

    KarleighJae says:

    This is an excellent article.

    2 years ago

  • VixVintage

    VixVintage says:

    Thanks for all the good advice.

    2 years ago

  • accentonvintage

    accentonvintage says:

    THANKS FOR BEING HELPFUL !

    2 years ago

  • asundrynotion

    asundrynotion says:

    Much needed article, especially for folks who haven't been self employed before. Ditto re: cash flow comment above. Income can be all or nothing at times and a grounded, reality mindset is essential plus the discipline to save/be fiscally conservative when times are are good to prepare for when times aren't. Actually, a lot of this is simply the old fashioned common sense of a few generations past. Thanks for the pointers!

    2 years ago

  • victoriasadowski

    victoriasadowski says:

    excellent insight! Thank you!

    2 years ago

  • rebeccasanchez

    rebeccasanchez says:

    Practical advice!

    2 years ago

  • whphotography

    whphotography says:

    Thanks for sharing :)

    2 years ago

  • juicychristians

    juicychristians says:

    Thanks for this! Great reality check!

    2 years ago

  • steinschmuckdesign

    steinschmuckdesign says:

    Thank you very much, great to do a reality Check!!

    2 years ago

  • anandi

    anandi says:

    Great article - this is so much more grounded than the QYDJ series, which makes people starry-eyed. You have to think about stuff like health insurance and saving for retirement, and those are big ticket things which are *very* hard to save for when you're working for yourself. But if you don't, it'll come back to bite you later. Thanks again!

    2 years ago

  • HomeStudio

    HomeStudio says:

    very nice. thanks!

    2 years ago

  • kidgiddy

    kidgiddy says:

    thanks for the advice! i'm a SAHM and entrepreneur....and I hope it stays this way!!!

    2 years ago

  • kathrynbowmanstudio

    kathrynbowmanstudio says:

    Thanks great article. Having done this myself, you have really brought things together as a guide for anyone to follow.

    2 years ago

  • ktolve

    ktolve says:

    great article- and how i wish i could quit my day job, someday!

    2 years ago

  • masondesigns

    masondesigns says:

    Great article!

    2 years ago

  • GoldhawkPotteryEtc

    GoldhawkPotteryEtc says:

    Thanks. This is exactly the kind of reality check I need!!

    2 years ago

  • polkadotsandblooms

    polkadotsandblooms says:

    This is a great article and something I will keep in mind on the way. I did not have the choice to quit, as I was made redundant, so currently am thinking whether I should try for a part time job or put all my efforts into etsy. There is lots of food for thought for me in here!

    2 years ago

  • marysgranddaughter

    marysgranddaughter says:

    Awesome post! Thanks!

    2 years ago

  • monkeyandsquirrel

    monkeyandsquirrel says:

    super fantastic tips... thanks!

    2 years ago

  • soule

    soule says:

    great advice!

    2 years ago

  • MissMalaprop

    MissMalaprop says:

    This is such a great piece, and DailyWorth is a great newsletter. (I've been a subscriber since early on!) I just asked my boss last week about the possibility of switching to part time, hopefully 4 days a week at first instead of 5. Hoping to make that transition as smooth and seamless as possible so I can keep building my savings with a steady paycheck while I build my biz.

    2 years ago

  • simpledream2

    simpledream2 says:

    What great information, no fluff, pointed and reasonable. I'll be back to reread this several times. Thanks, Lisa

    2 years ago

  • JemmDeeCreations

    JemmDeeCreations says:

    Very important information. Many things I hadn't thought of. Thank you.

    2 years ago

  • BrillianceFound

    BrillianceFound says:

    Very helpful!

    2 years ago

  • paperbella

    paperbella says:

    {sigh} oh how nice this would be...

    2 years ago

  • BabyEtte

    BabyEtte says:

    thank you so much for getting me thinking about these things way in advance! So helpful! Beth/BabyEtte

    2 years ago

  • Luncheonettevintage

    Luncheonettevintage says:

    Great read! really makes me think. I have a day job but it's a self employed one, and the luncheonette has become a welcome and fruitful escape. Do I make it everything? This article has a lot of great tips -- and so do the comments that follow it. Smart bunch, etsy-ers.

    2 years ago

  • thebestvintage

    thebestvintage says:

    Very good post!

    2 years ago

  • Glitzer

    Glitzer says:

    Very useful tips! Great summary!

    2 years ago

  • mochachild

    mochachild says:

    Great article, very helpful! As always something to think about!

    2 years ago

  • pamwares

    pamwares says:

    great daily worth article!

    2 years ago

  • bittersweetdesign

    bittersweetdesign says:

    fantastic article - and I agree totally with yosemitevintage on her advice regarding overbuying on vintage! so true!

    2 years ago

  • gilstrapdesigns

    gilstrapdesigns says:

    Great tips it put everything into prospective.

    2 years ago

  • BeadFloraJewels

    BeadFloraJewels says:

    Thanks! :) great article.

    2 years ago

  • Morado

    Morado says:

    Thanks for this awesome article!

    2 years ago

  • worksandfinds

    worksandfinds says:

    Thank you for this article.

    2 years ago

  • lucky7seas

    lucky7seas says:

    exactly the article i needed right this moment - today - thank you so much!!

    2 years ago

  • jbeaudet

    jbeaudet says:

    Great advice! Thanks

    2 years ago

  • Goofingoff

    Goofingoff says:

    Common sense and thinking ahead. Good advice. Thanks.

    2 years ago

  • SPUNKbyCM

    SPUNKbyCM says:

    This puts some reality back into it all. It's always nice to think that it all be peachy & sweet, but as this article pointed out, there are lots of things to consider before taking a big leap into something that you might not be prepared for. Thanks for sharing valuable advice with us! Much appreciated

    2 years ago

  • xmittens

    xmittens says:

    as always, practical and thoughtful advice.

    2 years ago

  • foundling

    foundling says:

    so smart! I wish I'd had this list to help me with my transition a few years back. such good advice.

    2 years ago

  • autumnsanticsstore

    autumnsanticsstore says:

    Thank you for the advice!

    2 years ago

  • vintagegirldezigns

    vintagegirldezigns says:

    Some really good points! Thanks.

    2 years ago

  • HappyHector

    HappyHector says:

    Great advice, very practical info that you often don't think about until you're in the thick of it. thanks so much

    2 years ago

  • trudiedavies

    trudiedavies says:

    Thanks for sharing this info. Knowledge is power right.

    2 years ago

  • thevanitytable

    thevanitytable says:

    Love this article!! Althought I've sadly learned a few of the hard lessons,by seeing how others get through it without going broke (or crazy!) really helps. It's great advice.

    2 years ago

  • ShimmeringSky

    ShimmeringSky says:

    Great wake up call and good advice. Unfortunately, my branch of the company I worked for was outsourced so my full time entrepreneurship began a little earlier than expected! The moment we were told I put myself on a ~very~ strict budget and saved every penny. With savings, severance and now unemployment cheques coming until next August, I'm comfortable enough to be able to concentrate on building a quality line of items without having to bail out because my shop wasn't the overnight success I dreamed of ;-)) Heading to check your website out now!

    2 years ago

  • vivikas

    vivikas says:

    Wonderful article!!

    2 years ago

  • NadaBanana

    NadaBanana says:

    great great great guideline!

    2 years ago

  • LiseWinne

    LiseWinne says:

    All I would add to this is that: It's not how much you make, but what you get to keep. Starting a business always means spending money (but it has to be spent wisely). I personally try to live as cheaply as I can & money that I make goes towards business, not for a headboard in the bedroom or a new silk robe.

    2 years ago

  • woodworkingbymike

    woodworkingbymike says:

    I really like the article, I am planning on quitting my day job to open a craft mall with the wife in a year or two one thing I would like to add that I am doing is trying to get out of debt first and I mean completely out of dept like pay of the home and cars and all. that way we can live on the lean startup time.

    2 years ago

  • Gypsymoondesigns

    Gypsymoondesigns says:

    As a self employed person myself the biggest thing that keeps me in business is my savings acct, no credit card debt and frugile living.

    2 years ago

  • MetroGypsy

    MetroGypsy says:

    Great article!

    2 years ago

  • econica

    econica says:

    so true! thank you so much!

    2 years ago

  • timesandchimes

    timesandchimes says:

    Great advice and cute items to go along with it!

    2 years ago

  • LoveAtFirstBlush

    LoveAtFirstBlush says:

    Great article. It puts a lot of things into perspective. Thanks!

    2 years ago

  • earlybirdcreations

    earlybirdcreations says:

    Some great tips here...and lots to think about. Thanks :)

    2 years ago

  • MonikaDesign

    MonikaDesign says:

    Great article!

    2 years ago

  • ExcalibursBoutique

    ExcalibursBoutique says:

    Great article. I retired this year after years in the educational system. Realizing I was being forced out I decided to take the leap. I always knew I wouldn't be old enough for social security. I joined etsy several months ago but never connected. Now that I am back to sewing and engaging in six garage, yard and conference conventions. I decided my retirement probation period is over and work on my to do list. I forgot my passcode and it took me fifteen minutes to obtain a new one. I am determine to get at least ten items on etsy by the weekend. I rolled across this acticle and it gave me great inspiration and gratitude to be free and on my own for my own business. Thank you for the etsy connection. I am glad to say I'm back although I haven't posted any items yet. Entrepreneurially Yours.

    2 years ago

  • pollyputsthekettleon

    pollyputsthekettleon says:

    Great article!

    2 years ago

  • sakizome

    sakizome says:

    Whilst I sometimes dream of doing nothing but my Etsy shop, I realise that "the day job" has given me the pleasure of running my Etsy shop for fun without having to worry about making it pay the bills, etc. And in truth, "the day job" is rather splendid too.

    2 years ago

  • zeropumpkin

    zeropumpkin says:

    aww nice article :D

    2 years ago

  • recycledwares

    recycledwares says:

    great tips, thanks for sharing.

    2 years ago

  • RADROBOT

    RADROBOT says:

    Fantastic advice, thanks!

    2 years ago

  • handbagcave

    handbagcave says:

    I'm usually the dreamer type...So your article definetely helps me put my feet on the ground. Thanks for sharing

    2 years ago

  • whyte

    whyte says:

    What an incredibly factual article for anyone thinking about going into business for themselves. I've been an independent contractor for over 30 years. To reiterate and stress, try to save save save. Not only for retirement, but your entire business can go out like a candle in the wind for reasons totally out of your control. If you become ill and can't work, the economy, functunal obsolescence of your skills or product.....just a few of the obstacles. Tape this article on your bathroom mirror.

    2 years ago

  • squidart

    squidart says:

    This is a really important and informative post. I am so glad that you put this together for us. Most of us dream of working at home full time for our Etsy business...sigh. This article will help people make solid decisions and not get in over their heads. Thanks!

    2 years ago

  • thelonebeader

    thelonebeader says:

    Great post! Thank you!

    2 years ago

  • wristcandycreations

    wristcandycreations says:

    Great article with great tips. I'll be leaving my full time employment soon and your article really helped me to focus in on a few important things.

    2 years ago

  • CoveredLadiesDesigns

    CoveredLadiesDesigns says:

    Inspirational!

    2 years ago

  • PoshPixels

    PoshPixels says:

    Fabulous article! Thanks for sharing!

    2 years ago

  • avrilloreti

    avrilloreti says:

    Great Article! Lots of good advice!

    2 years ago

  • littlewhitechapel

    littlewhitechapel says:

    This has a lot of great points! Thanks for sharing!

    2 years ago

  • tashascreations

    tashascreations says:

    Interesting topic, very informative and definitely helpful for future planning!

    2 years ago

  • southernpaper

    southernpaper says:

    Thank you, this article was very helpful and I have already signed up for dailyworth!

    2 years ago

  • staceyrebecca

    staceyrebecca says:

    Best article in the storque...Ever.

    2 years ago

  • tanglesastangled

    tanglesastangled says:

    wow. awesome article... thanks for reminding us of all the nitty gritty things we need to remember about having a business. I'm a student, and I just don't have a job at all...I would love to be successful at this, even to just pay loans on top of a regular job. ah. the future.

    2 years ago

  • lovinglymadecards

    lovinglymadecards says:

    Creative people are motivated and inspired through their craft...we often don't look at the business aspect of entreprenuership. Great piece.

    2 years ago

  • TheSteelFork

    TheSteelFork says:

    Thank you Amanda. That was extremely well done. My husband and I have been making metal sculptures full time for 7 years. Everything you said is so true! Thank You!

    2 years ago

  • valeriesgallery

    valeriesgallery says:

    Great article. Thanks so much for sharing!

    2 years ago

  • noisettemarketing

    noisettemarketing says:

    Great tips! I was made redundant on maternity leave so didn't get the chance to leave my day job, it left me! I'm working very hard to make sure I can keep being my own boss because I love it this way!!

    2 years ago

  • LethaColleen

    LethaColleen says:

    Wonderful, levelheaded and straightforward advice that still manages to be encouraging and empowering! Well done!

    2 years ago

  • SYHOcustoms

    SYHOcustoms says:

    Well good luck to all who want to quit their day job. As for me, I will never quit my day job. I work at a fabric store. Love it! My mom says it's my dream job. Doesn't leave much of a paycheck though.

    2 years ago

  • RabbitHoleArt

    RabbitHoleArt says:

    Great tips, thank you, Amanda!

    2 years ago

  • CockyRoosterDesign

    CockyRoosterDesign says:

    This is a great article. No sugar-coating it here. I really appreciate your candid approach to moving forward with business ideas. Its helpful and accurate.

    2 years ago

  • InformalElegance

    InformalElegance says:

    Thanks for a very informative and down to earth article!

    2 years ago

  • Iammie

    Iammie says:

    Good article, thank you.

    2 years ago

  • RusticGoth

    RusticGoth says:

    Great article..wished I'd had this information 5 years ago. Thanks for sharing!

    2 years ago

  • andrew12

    andrew12 says:

    Hi im new to this website, please check out my store, its andrew12.etsy.com i make hand sculptured wire wrap jewelry. We are always putting new designs on the page, please watch for them.

    2 years ago

  • CharliesApt

    CharliesApt says:

    Great article. Very logical--thanks for the reminders.

    2 years ago

  • nowonder

    nowonder says:

    I adore the images you have next to your "Daily Worth". Its a very clever idea! Good luck in the feuture.

    2 years ago

  • jdizaclothingco

    jdizaclothingco says:

    always a reminder needed

    2 years ago

  • PirateCamp

    PirateCamp says:

    I think this was OVER analyzed just a bit. My parents had their own business and never had health insurance or a 401K and they were quite successful. Planning is everything, but you can plan so much that nothing gets accomplished either. Sometimes you just have to be like the turtle who only makes progress when he sticks his neck out.

    2 years ago

  • boinne

    boinne says:

    This was a really great read. I have been hoping for an article like this for a while now. Thank you!

    2 years ago

  • GaelicKnotStudio

    GaelicKnotStudio says:

    Very good advice. With the economy as it is today it's not easy to start a business, especially in a highly competative creative field like crafts. We need all the info we can get to make it through. Thanks!

    2 years ago

  • panduhmonium

    panduhmonium says:

    Very informative! Thank you! <3

    2 years ago

  • beadsandbotanicals

    beadsandbotanicals says:

    No matter how much I budget and plan, there are always things that cost more than I planned for, or hiccups in customer shopping patterns I didn't see coming. I'm guessing this has been said before, but I hope no one will ever quit their day job without writing a business plan first. Writing the plan isn't any harder than surviving the ups and downs of entrepreneurship, and is a wonderful learning tool! Free classes and coaching are often available through local Chambers of Commerce, the SCORE program (score.org), libraries and other community education providers. Thanks, Etsy, for a great article!

    2 years ago

  • SmadarsTreasure

    SmadarsTreasure says:

    Great article, very good advices. Thank you!

    2 years ago

  • BorrowedandBlue

    BorrowedandBlue says:

    Thanks for the advice. I just started my etsy shop and work part time to support myself and the business. I hope to quit my part time job as soon as possible. Your article made a lot of sense and is helping me figure out my plan of attack.

    2 years ago

  • BorrowedandBlue

    BorrowedandBlue says:

    Thanks for the advice! I just started my Etsy boutique and will consider these tips as my business grows. I hope to eventually quit my part time job and be a fuill time etsy artisan.

    2 years ago

  • blankcanvasdesigns

    blankcanvasdesigns says:

    Great article that puts things in perspective. Thank you.

    2 years ago

  • Archivia

    Archivia says:

    This is EXCELLENT. It's about time there was some sound advice on owning your own business dreams---many people have no idea what the realities are and what is really involved. Knowing your expenses and projecting how much you can really conceive of making are KEY.

    2 years ago

  • msscarletfaithsplace

    msscarletfaithsplace says:

    This was what I needed to help keep me centered. I am just getting to where my art is being noticed and One must always remember, "take it slow little grasshopper." Thanks for sharing.

    2 years ago

  • FlowerByHand

    FlowerByHand says:

    thank you for sharing

    2 years ago

  • toolisjewelry

    toolisjewelry says:

    I wish I'll get there one day, this is my strongest wish!!!!!!!!! Thanks so much for sharing this information, I know better where to aim now :)

    2 years ago

  • konkokto

    konkokto says:

    cool, thanks !

    2 years ago

  • Downandoutchic

    Downandoutchic says:

    i appreciate the practical, down to earth advice!

    2 years ago

  • JoliOriginals

    JoliOriginals says:

    Thanks!!

    2 years ago

  • ArtistaTree

    ArtistaTree says:

    If you are able to save up cash to support your business I think that is so important. Credit card debt is a scary reality for so many people and at 20-30% interest rates business people cannot afford to hold that debt for long. I would suggest looking for grants and low-interest loans if you need more cash--there are many organizations looking to help fund artists and women-owned businesses, and additionally there are business plan competitions you can enter. Having a detailed business plan can help you work through a lot of the financial and organizational issues we all have. Thanks Etsy!

    2 years ago

  • browneyedgirl1489

    browneyedgirl1489 says:

    I was recently fired and am now relying on my Etsy shop to pick up. It won't pick itself up, though. I have such a long road ahead if I want it to be successful. Thanks for the tips.

    2 years ago

  • downdogdesign

    downdogdesign says:

    This is really valuable advice. However, depending on the complexity of your business and your current financial situation, quitting a full-time job to work at home CAN save a bit of money here and there: think dry-cleaning/work apparel costs, gas, lunch takeout, etc. not to mention freeing up lots of time when you take out the commute. I think if you get creative, you can manage to keep things like marketing costs low (if you take advantage of social networking you may not need much at all).

    2 years ago

  • yanessab

    yanessab says:

    thank you so much for this oh-so helpful advice!

    2 years ago

  • EyvindsAlchemy

    EyvindsAlchemy says:

    great advices!

    2 years ago

  • kat4526

    kat4526 says:

    you're right i really wish i had that info years ago...would have saved a lot of heartache!!

    2 years ago

  • talk2thetrees

    talk2thetrees says:

    Great article! Thanks for all the advice!

    2 years ago

  • newsprout

    newsprout says:

    Oh so true. I finally came to the realization that I may never be able to quit my day job as I am the sole support of my family. So I did the next best thing. I spend my spare time on my art, opened an Etsy shop and have found it to be an amazing inspiration to share my craft with the world and so rewarding when I make a sale, even if I can't quit my day job. A girl can still dream though!

    2 years ago

  • anylouise

    anylouise says:

    Thanks very much for the advices, hope that I can transform my hobby in a money machine...

    2 years ago

  • DreamrKate

    DreamrKate says:

    Great. I DID quit my day job. And I DIDn't take the necessary precautions. And now I can't actually FIND another one, so I'm still creating, but I can't quite get over the hump to actually selling myself.

    2 years ago

  • SeventhCloudStudio

    SeventhCloudStudio says:

    Great advice! I'm on it! :)

    2 years ago

  • drobart

    drobart says:

    Nice article, save alot of money first and foremost. A broke friend once said "if you ain't in debt you ain't living"

    2 years ago

  • iNKmix

    iNKmix says:

    I am so lived through all the pitfalls Amanda warns about! Also I learned hard way, but still want to continue with my Etsy business alongside of the day job. Thank you for the good advises!

    2 years ago

  • ArtMusement

    ArtMusement says:

    Hmmm, My day job quit me- but, I still like your insights on the art of entrepreneurship. I've already bookmarked your website - so thanks!

    2 years ago

  • cedarchestvintage

    cedarchestvintage says:

    definitely important things to think about. great advice!

    2 years ago

  • beijaflores

    beijaflores says:

    There are a LOT of expenses in running your own business and there needs to be a cushion for a fickle market. Thanks for the great resource!

    2 years ago

  • HelensCorner

    HelensCorner says:

    Very helpful! Thank you so much for sharing this wealth of information.

    2 years ago

  • 1920

    1920 says:

    love the resource!

    2 years ago

  • happygolicky

    happygolicky says:

    Great idea to ask your employer about cutting back on your hours instead of leaving completely. This is what I did and it really made sense, and actually benefits us both at the moment.

    2 years ago

  • RockaBlanky

    RockaBlanky says:

    come visit my shop i need more sells everything else is working but not our etsy shop help make me more sells spread the word of Rockablanky..

    2 years ago

  • ChrisBDesigns

    ChrisBDesigns says:

    Super helpful. I've already run my own business and it's hard work. I like the best of both worlds. Part time own business, part time other day job.

    2 years ago

  • LavenderField

    LavenderField says:

    Thank you, I need the sort of financial tips and savvy I can get from a website such as DailyWorth!

    2 years ago

  • Yayahandicraft

    Yayahandicraft says:

    this advice is really helpful!! we need think better in our financial before make any decision.

    2 years ago

  • lizetfrijters

    lizetfrijters says:

    Thanks for the information. I agree it is wise to be fully prepared.

    2 years ago

  • empapers

    empapers says:

    This is a great article, and Daily Worth is a great site. Another option - which I am currently enjoying - is to see if your job will let you take an unpaid leave of absence. I have fantasies of quitting my day job, but I really, really enjoy my paycheck! I've been at my firm for 9 years and had no problem getting my boss to approve a 9 month leave. My husband and I have saved for over a year and a half for this time (we are also going to travel) and we generally live beneath our means. I have my own substantial savings as well, and while I hate to touch it, I think of this time as an investment in me and my business. I can get a sense of what is required, how much I can realistically earn all the while knowing if it doesn't work out I can go back to my job. Some great books that have helped me figure out a strategy that worked for me around transitioning jobs and figuring out finances are: Escape from Cubicle Nation by Pamela Slim Leap by Rick Smith Your Money or your Life by Vicki Robin and Joe Dominguez (sorry, I'm a compulsive book recommender!)

    2 years ago

  • WHITECOCKADE46

    WHITECOCKADE46 says:

    THANKS, VERY HELPFUL

    2 years ago

  • pouch

    pouch says:

    great article, it's good to be prepared and realistic about these things. Since having my first baby in October, I am currently mulling over the idea of 'quitting my day job' and concentrating on Pouch full-time...lots of things to consider before I take the leap :)

    2 years ago

  • jill2day

    jill2day says:

    great reality check and guidlines... Thanks!

    2 years ago

  • limezinnias

    limezinnias says:

    Thank you for the advice. I liked the article.

    2 years ago

  • tomlindesign

    tomlindesign says:

    Great article and advice. This is really solid advice for making the transition. Another suggestion - while you still have a "real" job, build up the inventory of tools and supplies you'll need to set up your studio or shop. Particularly for jewelers, this can be an expensive proposition and spreading that cost over time - while you have a stable income - makes it much more manageable.

    2 years ago

  • galstudio

    galstudio says:

    Thanks!

    2 years ago

  • FaeryKissNaturals

    FaeryKissNaturals says:

    Amanda THANK YOU for this article!! I need all in the info. I can find before quitting my day job. I would love to sell my products full time any way I can!

    2 years ago

  • wellspentjourney

    wellspentjourney says:

    This was a great read with solid advice. One thing I would add is to consider negotiating a work arrangement that includes flex-hours or something of the sort until you are ready to venture out on your own. That way you can remain as full-time, and have the maximum cash flow in so that you can save the 6 months before you venture out. When you go part-time, employers often cut benefits and pay. Considering the economy, part-time jobs are often the first to be cut. I'm actually in the process of negotiating a 10-hour day, 4 day work week. That way, I still maintain status as full-time, but can spend 1 full day a week working on my business goals. I started by negotiating every other Friday off, as long as I made up my hours before that Friday. For me, it was worth it in order to have every other Friday off. My boss saw no issue because it cost him nothing.

    2 years ago

  • MerryPoet

    MerryPoet says:

    Thank you for all the wonderful advice. I will make sure to keep it in mind. :)

    2 years ago

  • ohmyeyesyeah

    ohmyeyesyeah says:

    Thanks for the guideline.

    2 years ago

  • lzubal01

    lzubal01 says:

    Thank you!

    2 years ago

  • buttonandboo

    buttonandboo says:

    Great advice! Thanks so much! there is definetly a lot to learn before taking the leap to quiting your day job to start your own business. I will be aggressivly saving money starting now!

    2 years ago

  • Krissykrull

    Krissykrull says:

    In my never ending quest to NOT learn things the hard way, I thank you for this.

    2 years ago

  • FunkyStones

    FunkyStones says:

    Thank you for the tips. I am new to Etsy. I plan on making this my full time career. So any advice you can share will be great!

    2 years ago

  • toolisjewelry

    toolisjewelry says:

    Wow I have a long way to go!! Thanks so much for the wonderful article :)

    2 years ago

  • oreldesign

    oreldesign says:

    I hope one day my dream of quit my job become a reality... thanks for all the tips.

    2 years ago

  • farandtwee

    farandtwee says:

    How long, do you think, is an average amount of time before a shop brings in consistent sales when doing, email updates, facebook pages, some online marketing, print marketing, etc?

    2 years ago

  • ViewPatricksArt

    ViewPatricksArt says:

    Great information, I should have read this long ago.

    2 years ago

  • elisawalshdesigns

    elisawalshdesigns says:

    This was very helpful

    1 year ago

  • FiredEarthEtc

    FiredEarthEtc says:

    Lots to think about, thanks!

    1 year ago

  • IndyAnya

    Tracey Hansell from IndyAnya says:

    Brilliant article.. it gets the brain thinking.. for now... time is the greatest thing i can invest in my company.. but definately not at the expense of my financial well being.. Thankyou :)

    102 days ago