As some of you already know I recently made the jump back in self employment. Ok it was actually a couple months ago but I’ve been working too hard to fit in any kind of announcement.
I had been itching to make the move for a while now. Once you get that taste of self employment, I think most people will usually want to give it another shot eventually. Not only is the potential to earn more a lot higher, but it also sure is nice to have the extra freedom.
Dealing With My Previous Job
My plan was to stick it out at my job longer and ensure my online income was diverse enough. After my previous short lived stints with self employment I really wanted to make sure I did it right this time around. Going back to a day job after being self employed is just such a defeating feeling.
Of course plans don’t always go as we envision them. Due to circumstances at my job I was somewhat forced to abruptly quit. No I didn’t just get fed up and throw in the towel, but I did feel that it was something that had to be done right away. So early this month I put on my big boy pants and told my boss that we need to talk. He acted all surprised but I think he must have seen the writing on the wall.
Even though I am confident in my self employment plan, I definitely wasn’t going to burn any bridges. With that in mind I helped prepare a transition document with any necessary instructions and finished up any pending projects. I also helped write up a job posting and will be sitting in on future interviews. They’ll appreciate my insight on replacement candidates and it would be extremely useful if I ever need to get back into the job market. I’d have an insider’s view of my competition and what they do well or poorly in interviews.
The Plan Going Forward
As mentioned I wanted to make my income sources my diverse. I feel that the lack of diversity in my previous self employment attempts is why I eventually had to get a job again. With online income there can be a lot of instability, especially while building things up. One day Google can release a rankings update and temporarily wipe out your business.
So this time I have made a real effort to build up multiple sources of income. They key is that they are not all relying on the same traffic source. This way if anything happens with one source I can shift focus while still earning money. Or I might get lucky and develop several strong income streams at once.
My other concern is an emergency fund. While I had a job I didn’t give this much thought, but to make this self employment thing last long term I need to be prepared for the instability. If I run into any problems I need to have something to fall back upon. Without an emergency fund I’d be forced to get another day job and push my online business to the back-burner. In other words: FAILURE! That’s just not happening this time. I’m making decent progress saving money, but with the money I owe on taxes I know I need to keep saving more.
The other half of the equation is reducing expenses. If I’m not spending much I’ll be able to put a lot more money aside. Since I’m not paying for a monthly transit pass and constantly tempted by stuff downtown, I think this should be easy enough. The question is how often I’ll go stir crazy and end up venturing out to a coffee shop or fast food restaurant.
Beyond that it’s just going to come down to working hard and staying focused. It’s easy to take advantage of the freedom and slack off too much. I know my desire to stay self employed will keep me disciplined though. Wish me luck!