Starting a minimum viable freelance business
Keep your day job until profit is high enough that it forces you to quite.
- What’s your minimum cost of living/ operating? Mine is $30,000 per year.
- Be sure to include some business advice and accounting help. You will need it, I promise.
- Your cost of taxes will be *33% after business expenses. $45,000 x .33 = $15,000 per year.
- So $45,000 is my new minimum cost of living (without going to jail).
So, when you’re working out the numbers to see if you should make the jump or not, be sure to consider keeping your day job temporarily as an option.
Or, you can do what I did 6 years ago and turn your day job into a customer. I offered to provide the same service (web marketing) to my boss for 1/2 the salary if he’d let me work from home. But I did this only after I got a check from someone else willing to pay me the same amount for the same service 🙂
*You can argue the effective cost of taxes will be less. But (for a freelancer) if that margin means the difference between your business working or not, I urge you to rethink your business idea.
Any thoughts? Ideas? Criticism? Complaints?