Friday, January 10, 2020

7 money related methodologies for the progress from salaried to simply



7 money related methodologies for the progress from salaried to simply


The other day, a 40-year-old woman told me about her growing sense of frustration with "working for someone else" and her desire to "do my thing, drive my own car." But, he said with dismay: "I have a family that has me and a standard of living that I don't want to sacrifice."

Everyone has to decide for themselves what level of sacrifice and risk they are willing to take to enjoy the satisfactions of working independently. Knowing some risk management strategies will allow you to make a well informed decision.


Of the seven strategies included below, the first two suggest ways to make a gradual transition from salaried to alone, rather than diving into the edge. The second two are ways to stretch the dollar; and the last three are ideas to start without stopping.

1. Continue to get a salary (reduced)

Leaving your current job to develop your new business may seem the only option, based on the assumption that you will not get approval to reduce your hours. While this may be the case, wondering why and how your company will benefit from retaining your skills and experience during a transition period can provide the basis for approaching your employer. However, be sure to do your homework first and be able to support your request with a solid justification.
Consider also the issue of time. You want to consider informing your employer of your desire to leave with being prepared to leave if the answer to your request is no.

2. Develop another revenue stream.

If you need to leave your current job, is there any skill in your tool bag that can resuscitate and put to work without a significant expenditure of time or energy? Is moonlight or independent work an option? Virtual e-lancing websites (such as eWork.com, Guru.com and e-lance.com) may be worth looking for short-term professional service opportunities.
Examples: A community mental health worker in transition to private practice used his conflict resolution experience to sell a training package to public schools. A woman leaving an insurance brokerage created and sold seminars on financing long-term care at local retirement centers.


3. Reduce expenses

In addition to fixed expenses (mortgages, taxes, insurance, etc.) are discretionary expenses that constitute the bulk of budgets. Making a careful analysis of these expenses and choosing what you can give up for a while can often save thousands per year.
Careful analysis of hidden expenses (credit card interest rates, bank charges, late payment charges, auto debits, telephone plans) or "money loss" due to low interest rates on savings can generate several thousand more by year.


4. Borrow

It is not necessary to wait to borrow the initial costs until you have a well-documented idea to present a commercial loan. Refinancing a home or obtaining a credit line are relatively inexpensive ways to generate capital. Depending on your credit rating, you can also obtain low-interest loans with limited terms from credit card companies.
If you choose this option, it is strongly recommended to apply for loans or refinancing packages while you are still employed. Your qualification as a borrower decreases rapidly once regular paychecks are finalized.

You do not have to wait!

Start with your new business idea while still employed. Several of the most important first steps (below) can be started by standing on the grocery line or running on the treadmill. They involve asking yourself some questions and doing informal research to clarify your idea. This may take weeks of your actual start time.

5. Identify your niche.

Think of the services for which you are especially qualified to provide, as well as those you enjoy most. Be specific! Write them down! Then, think about which group of people would benefit from these services and could afford them. Again, be specific: age, where they congregate, habits and values, how they define the problem that their services will solve. If you don't know, ask. Find someone who fits your "ideal client" profile (you can be on the treadmill next to yours in the gym) and get permission to ask some questions. People generally love being useful.

6. Create your marketing plan.

Do not be intimidated by the term "marketing plan." While what you need from a marketing plan will become more sophisticated as your business develops, for now it simply means answering the question: How will my business make money? What is the product or service you are going to sell? How will you describe it so that people quickly recognize value? How will you pack it? (Fee for service? For the project? On the retainer?) How will you set it? (What is charged for comparable services? What do you think is "right"?)

7. Manage fear!

For most people, anything that involves money implies a certain level of fear. It is important to recognize yourself and others that you are taking a risk, and you have decided that it is a risk that you want to assume. So consider natural fear and find ways to handle it.
Getting the support of people who believe in you and what you are embarking on is number 1 in fear management tactics. Do not assume that you will get it from the people closest to you, or that if you do not have it, you should not continue. They are probably the ones most affected by their decision and, therefore, are less prepared to offer assistance. Your consent, a willingness to follow your plan, is helpful, but support may have to come later.
It is also useful to set a goal (and an end date) that is key to your new business: organize financing on a particular date or sign a lease, and announce it to at least one person. You will discover that making that commitment, saying it out loud and following it in turn will generate more confidence and more momentum forward.

For all of you who are tired of going to someone else's drum and are eager to go alone, these strategies should help you take prudent but positive steps to achieve your goal. Good luck!