Navigating Financial Challenges and Embracing Self-Employment

You’re a business owner - Congratulations!!  In stage 4, there needs to be a mindset shift. You are no longer just doing this little side hustle, you are an entrepreneur! I will never forget when a  friend said to me that I was a home organizer. That was it!! The common thread of all my side hustles was some aspect of home organizing. But I identified as a stay at home mom. However, she was right and that’s when my mindset shifted because now my unique talents had an identity. Did you know that 39.1% of all businesses are owned by women? Those women, on average, are 42 and have been in business for 11 years. The most common reasons people start new businesses are to pursue a passion, seeking financial freedom, and to increase flexibility in their life. 

Do you do this?

Now that your household is counting on this income, you need to get the math straight. The trap a lot of us fall into is still thinking like a W2 employee. Before we got a $2000 paycheck and all of that was for our house. Now, as an entrepreneur, you need to account for your business expenses AND taxes. So if your business had $500 in expenses and you need to save $500 for taxes, all your house really gets is $1000. In stage 4 you may need to evaluate your services or product offerings to make sure you are working smarter not harder. Because you are both the business owner and the admin, it can make it challenging to hit income goals.

Entrepreneurs

As an entrepreneur, you are officially dedicating time outside of your W2 employment and all your time is no longer for household tasks and leisure.  This can include volunteer/charity work where you are dedicating your time to benefit people outside your home. And the longer you are in this work, the more you will narrow down the services or products you want to offer, keeping the ones with the best money exchanged for your time. That’s the beauty of entrepreneurship, flexibility. You also have flexibility in your time.  This can be a double edged sword because since you are likely working from home, all your household tasks are there, begging for your attention.  When you go to your W2 work they don’t expect you to clean the bathrooms. But at home…

How to Organize Administration and Track Profitability

And you may think your business isn’t taking that much time. But you probably aren’t tracking how long it takes for your administration tasks. Just like in your home, you use the Sunday Basket® to get it all done, you need a Friday Workbox® at work to get everything done. You are wearing a lot of hats in your business now. There are 4 types of work I teach you about in the Friday Workbox® and they are color coded. 

The pink slash pockets are a safe place for ideas you have for the business, future products or services, and personal development you’d like to consider. The purple slash pockets are for projects with deadlines or products that are making money. With all of your paid work is plenty of invisible unpaid work too. And all of those tasks fall into administrative work which is in green slash pockets. Administrative work is bookkeeping, invoicing, emails, leads, tracking expenses, monthly P&L, and more. And blue is for the team we will talk about in stage 5.

In stage 4, it’s time to legitimize your business by organizing all of your tasks and creating an LLC. Administration is the key in stage 4. You need systems in place to free up capacity to be more productive and profitable. 

EPISODE RESOURCES:

• The Sunday Basket®

• The Friday Workbox®

• The Paper Solution®

• The Productive Home Solution

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