“How do entrepreneurs live without a salary to sustain their family?”
All the responses were straight up IDIOTIC.
Advice centered around conventional wisdom. It ranged from, “move in with the in-laws”, to “cut back on expenses”, to “build the business alongside a full time job”, to “live off your savings.”
You definitely need an income to live off and support your family. Not only is your young business unable to sustain you…it also DEMANDS huge amounts of two scarce resources:
Time and Money.
So, if you have a job and you kept it so you can make money, you’re building your business with little time. On the other hand, if you quit the job so you can make time, you’re building your business with little money.
Both are shitty situations.
Building your business “on the side” of your job means you’ll never really take your business seriously. Since you don’t rely on the business to survive, your job will always take precedence. Eventually, you will (if you haven’t yet), drop your business ambitions.
On the other hand, quitting your job to focus all your time on the business…even if you have a nest egg…means you’re using your TIME to solve problems that could have been more quickly solved with money. You end up eating up your time resources to streeeeeetch your meager financial resources.
When your savings finish…eventually they will…you’ll get desperate and either return to the job market or destroy your life, and still return to the job market.
What do i recommend instead?
Get a realistic salary to live off, and make your business pay. It should be less than what you’re making at work right now, but only slightly.
Here’s how you do this crazy thing…
First, don’t make any major life changes yet.
Then recognise that your business is not synonymous with you. Treat it like a separate entity, treat your job (or source of income) as an investor, and treat yourself, when you work on the business, as an employee.
You MUST plan to receive a realistic income for the time you work. Your time is not free. Put a value on it. And you’re not a slave, you need rest and leisure, so give yourself formal work hours.
This way you either outsource to someone cheaper or more available than you – or – you prioritise yourself for only the most high level work.
Now how do you get the money and time to execute your plan?
For money, you find it by getting a business loan or grant (it can be from a relative), pitching an investor (it can also be a friend, partner, or relative), applying to a job, landing a contract, or by saving a nest-egg.
If you have an income, keep it, and bankroll your business with it. Including, paying yourself a salary from it.
For time, you find it by renting a shared office space and being disciplined about your work hours, or perhaps you switch to a less demanding role in your job, etc. Whatever you do, be formal, disciplined, and realistic about expectations from yourself.
Also, you must plan how you’re going to make money; what you will sell, how much you need to sell for, how many customers you need, what level of growth to expect, and how much time and money it will take to reach your targets.
Oh, and what ARE your targets?
Whatever your plan, always make three versions:
(1) an optimistic plan,
(2) a pessimistic plan (absolute worst-case scenario),
(3) and, a “most likely” plan.
The “most likely” will inevitably lean closer to optimistic, so make sure that your absolute worst case scenario is still a win.
Do NOT make a single move until you have a comprehensive, well-studied, FORMAL plan for allocating money and time, and for profit.
We guide you with instructions, inspire you with ideas, and give you tools to make a formal plan for your business. Moreover, the training itself gives you CERTAINTY because we’re with you building every step.