I hope you are reading this article because you are ambitious and are working towards attain financial freedom. Times have become so touch that white collar jobs cannot offer you financial peace. This is mainly because your employer, I been one of them, pay you just enough to barely make you survive through the month. Since, if he/she paid you more you would easily leave to maybe become a competitor.
It is good to have a well thought out strategic plan before making that big move. Formal employment comes with many incentives which include retirement benefits and medical covers which you can take advantage of to save in order to raise capital to start a small business. Also, you will need to be in a position to afford and maintain a medical cover since your health is directly related to your business success especially in the initial stages.Self employment comes with its challenges, a major one being an irregular income and the unpredictability that comes with it, unlike formal employment where you have a secure and guaranteed salary. Therefore, an entrepreneur needs to create a revenue buffer that can act as a cushion during times of low and high income tides.
Begin by calculating your average monthly expenses over at least six months period; this should include your necessities and variable expenses. This will help you know and budget your monthly average expenses. In your plan remember to cater and budget for your financial goals, medical cover and retirement.The fluctuation of income in self employment is a tricky affair and many businesses may fail to take off. Therefore, consider your risk appetite before making the big leap into the business world. Despite all, having your own small business is the sure route to be financially free.