Great post... s o d u K
Walking your own path...shift from a "job" to business
- Thread starter MsAli
- Start date
Great post... s o d u K
I find it interesting how these types think they are "clever", but are invariably in the lower paid (or maybe a tad higher) jobs for their whole working life, and then retire on a pension.....
If I cannot run my business in two hours a day or less then it is not the right business for me.
So starting it up while working full time is good discipline. The idea is I step away from my job and keep the same level of involvement in the business.
It is also critical to do it entirely debt free. That means that I can grow the business at my pace without worrying about the banks. And to do that you need an income stream.
So starting it up while working full time is good discipline. The idea is I step away from my job and keep the same level of involvement in the business.
It is also critical to do it entirely debt free. That means that I can grow the business at my pace without worrying about the banks. And to do that you need an income stream.
http://www.theage.com.au/nsw/pm-pledges-extra-1-billion-for-lowpaid-workers-20120715-223r8.html
Can I have a tax break pleaseeeeeeee?
Gillard has got no business and no mandate to be giving away money she doesn't have out to a timeline she couldn't possibly control.
Why is she talking about programs out to 2021 - she's gonna be out on her ear next year - banished to the cold opposition benches for the next decade.
8.2 Billion in interest we pay on her stinking debt pile of 130 Billion that they've racked up.
I suppose when you are that far in debt, what's another Billion ??
is it possible to keep politics to political threads?
This one is about peoples experiences running small businesses and I'd hate to see it going down a path of Dazz vs Evand..... there are more than enough of those.
Lets try to keep to the topic.....
Thanks I can't wait for this break to kick in... like literally breaking your back. Whooaaaaweeeeeeee
Here is my two cents worth....
I think one needs to look very carefully at going into business on their own. The questions I would ask without the Rose coloured glasses are:
1. Would I have reasonable chance of making more money than my current PAYE job?
2. Would I work more than I work now when I consider the admin involved? Could I outsource this and still make a good living?
3. How much staff management is required? Is it hard to hire staff and are they reliable?
4. Are you good at CF management?
5. Do you have sufficient funds to run your business and more importantly support your self for at least 1 year?
If you answered no to more than two of these you need to seriously consider whether going into business is right for you.
Often people cannot see past the glamour of working for themselves.
Property however does offer a model where you work on PAYE job as well as build a property business via a portfolio over a number of years and is low risk.
I think one needs to look very carefully at going into business on their own. The questions I would ask without the Rose coloured glasses are:
1. Would I have reasonable chance of making more money than my current PAYE job?
2. Would I work more than I work now when I consider the admin involved? Could I outsource this and still make a good living?
3. How much staff management is required? Is it hard to hire staff and are they reliable?
4. Are you good at CF management?
5. Do you have sufficient funds to run your business and more importantly support your self for at least 1 year?
If you answered no to more than two of these you need to seriously consider whether going into business is right for you.
Often people cannot see past the glamour of working for themselves.
Property however does offer a model where you work on PAYE job as well as build a property business via a portfolio over a number of years and is low risk.
To love your work...
I just spent the weekend down on the in-laws farm with the kids. Most of Saturday was spent tailing lambs. Saved a few ewes who had fallen over in lambing and couldn't get back up by themselves. Lost a few too... Not my idea of a particularly good time but it's great learning for the kids about the cycle of life. Had some fun on the quad bike and with a bonfire... good to do some manual work for a change out in the fresh air at least.
My FIL is past mid 60s and has farmed all his life. He grew up on a farm and all his family are farmers. He has always had a significant disability and all he ever wanted to do was have his own farm. His disability meant that pretty much his entire family thought that dream would never be possible but he worked incredibly hard and proved them all wrong - he bought his own farm and built a new house for his own family and is still farming it to this day.
So when I come along and ask why he is putting in such massive hours for what looks to me like a pretty modest reward, he just looks at me and says "it's what I love doing, it's what I've always loved doing ever since I was a little kid and what I will always love doing for however long I can do it". Every year we think his body can't be up for any more but every year so far it has proven us wrong. His biggest fear seems to be the day he won't be able to keep farming.
While it seems crazy and is really just a financial dead end, a part of me is jealous of him having that much satisfaction in his job. The reality of course is that it's more of a full-time hobby that he can justify as being a job. But still, I can't imagine being happy doing anything over and over again like that for around six decades... but I'm looking at someone who is and can only admire his spirit and determination. And there are plenty of others just like him out there - there is obviously more to this self employment thing than mere financial rewards.
I just spent the weekend down on the in-laws farm with the kids. Most of Saturday was spent tailing lambs. Saved a few ewes who had fallen over in lambing and couldn't get back up by themselves. Lost a few too... Not my idea of a particularly good time but it's great learning for the kids about the cycle of life. Had some fun on the quad bike and with a bonfire... good to do some manual work for a change out in the fresh air at least.
My FIL is past mid 60s and has farmed all his life. He grew up on a farm and all his family are farmers. He has always had a significant disability and all he ever wanted to do was have his own farm. His disability meant that pretty much his entire family thought that dream would never be possible but he worked incredibly hard and proved them all wrong - he bought his own farm and built a new house for his own family and is still farming it to this day.
So when I come along and ask why he is putting in such massive hours for what looks to me like a pretty modest reward, he just looks at me and says "it's what I love doing, it's what I've always loved doing ever since I was a little kid and what I will always love doing for however long I can do it". Every year we think his body can't be up for any more but every year so far it has proven us wrong. His biggest fear seems to be the day he won't be able to keep farming.
While it seems crazy and is really just a financial dead end, a part of me is jealous of him having that much satisfaction in his job. The reality of course is that it's more of a full-time hobby that he can justify as being a job. But still, I can't imagine being happy doing anything over and over again like that for around six decades... but I'm looking at someone who is and can only admire his spirit and determination. And there are plenty of others just like him out there - there is obviously more to this self employment thing than mere financial rewards.
I think most people who are in business/self employed do it for different reasons, and not everyone wants to, or has the ability, to turn their little business into a franchise/employ dozens of people/afford to have someone run it, etc.
My position is similar to pennys, in that I really don't mind my job. I earn well above the average wage for working roughly 3 days a week, and my practical side knows I'd need to develop a business that earned at worst twice the average wage for no more than fulltime hours (not the case in the early stages, if at all).
If that required substancial funds injected and risk, then I'd expect an even bigger return.
What is important is being realistic, as well as knowing why you want to start a business and what you hope to achieve. I think the more clearly defined your plans and ideas are the happier you'll be and the more chance of success.
Btw, your FIL sounds like a top guy
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I'm going through this transition at the moment. I have a fulltime job, running 3 property development projects and want to setup a website, write a book, create a boardgame and buy USA property in the next year.
The money I make from property developing takes a significant amount of time to come through (18-24 months) and is pretty demanding with everything else going on. The difficulty is being able to commit so much time to be able to get into a financial position that I don't need a job, while still convincing the bank to lend me money to continue with more development projects after I have left the well paid corporate role.
I want my developing to deliver lump sum cash for reinvestment, while replacing my salary through the new website and USA property. I had originally planned to wait another year or so, but have decided this week that it is really costing me money to remain in the workforce, so as soon as I have enough cash in the bank account, I will be leaving working for someone else forever and just do what I want to with my time. Fortunately this is highly correlated with money making activities
A must read book is the 4 hour work week. Anyone planning to go out on their own should read it, to figure out how to get the work / life balance right, creating a revenue stream, rather than tying yourself to another job, even if you become your own boss. Very inspiring stuff, the best book I have read in a long time.
The money I make from property developing takes a significant amount of time to come through (18-24 months) and is pretty demanding with everything else going on. The difficulty is being able to commit so much time to be able to get into a financial position that I don't need a job, while still convincing the bank to lend me money to continue with more development projects after I have left the well paid corporate role.
I want my developing to deliver lump sum cash for reinvestment, while replacing my salary through the new website and USA property. I had originally planned to wait another year or so, but have decided this week that it is really costing me money to remain in the workforce, so as soon as I have enough cash in the bank account, I will be leaving working for someone else forever and just do what I want to with my time. Fortunately this is highly correlated with money making activities
A must read book is the 4 hour work week. Anyone planning to go out on their own should read it, to figure out how to get the work / life balance right, creating a revenue stream, rather than tying yourself to another job, even if you become your own boss. Very inspiring stuff, the best book I have read in a long time.
That's it... tying yourself to another job that puts me off, especially one that you're going to work harder at, for less or the same pay
.Will try to get hold of that book.
According to the banks being a property developer isn't a true occupation
Interesting... so when you have 2 years of tax returns with $500k per year profits from developing they don't consider this income?
Nope - they do not consider it sustainable income - which sort of makes sense, I guess.
Abosolutely agree....it was a real eye opener! Tim Ferriss nailed it on the head.
The key take aways are:
1. Value time over money....you can earn money but can youn get back time?
2. Learn to value your hourly rate...why earn 200k when you are working 80+ hours weeks. This resonated well for me.
3. He also talks about have a millionaire's experiences on smallish budget by being smart about things.
4. The use of Virtual Assistants to simplify your life.....if your hourly rate is high why would oyu do admin work?
The key take aways are:
1. Value time over money....you can earn money but can youn get back time?
2. Learn to value your hourly rate...why earn 200k when you are working 80+ hours weeks. This resonated well for me.
3. He also talks about have a millionaire's experiences on smallish budget by being smart about things.
4. The use of Virtual Assistants to simplify your life.....if your hourly rate is high why would oyu do admin work?
Low risk low return, that's all.
If you had a successful business, you could build a property portfolio in one year that would've taken 10 years. In fact you wouldn't even do that because it's such low returns. You'd keep growing your business.
Which is why most successful business people only find themselves in property when they run out of ways to grow their business.
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