How Much Personal Wealth Do You Want?
Are you starting this business because you want to retire early? Take big trips? Make $1,000,000 by age 35? Whatever your plans are, make sure you have them in writing when you start the business.
It is called “starting with the end in mind,” and it is very important. Your business decisions will be driven by this plan. You are also more likely to reach your goals if you have a plan. There are certain risks you will have to take to grow a business to the point that you can sell it within 10 years. You will have to hire a great, self-motivated staff if you want a number of vacations a year.
Bringing home a salary of $40,000 might be reasonable after a year or more of hard work and no pay. Will this be an improvement over your current situation? Have you considered what health insurance costs ($200 to $400+ a month)? A retirement plan? Are you still coming out ahead? Maybe the flexible hours will make up for this change in take-home pay.
I will share a little secret with you. During the second year of my business, I made less than if I had worked full time at the local McDonalds. I worked 40-50 hours a week on my business. Was it worth it? Yes, because I learned many important lessons. Now that stage is over and better things are coming my way. It took a lot of faith!