When Will I Know It Is Ok To Go Full-Time?

Business By arsc77 Updated 23 Sep 2008 , 10:56pm by leah_s

arsc77 Posted 23 Sep 2008 , 9:18pm
post #1 of 3

Hello all cake centralers!

I just joined today (my partner has been on forever and raves about it!) I was just wondering for all you home people..when did you know when it was ok financially to go full time? My partner and I would love to quit our jobs and do this all the time, but we are scared. How do you think the economy will be in this area in the future? Is it a bad time to start a buisness? Did you take out a loan to get you through as a back up? Thanks everyone!

April St. Cyr
Tickled Pink LTD in Maine

2 replies
Mike1394 Posted 23 Sep 2008 , 10:43pm
post #2 of 3

Here is the Q to you? Do you have a minimum set amount you need to make each month? I'm assuming you do since your working. Take that amount, and add 50% to it. Why do I say 50? Because things happen, ovens break, feet trip, there are many pitfalls to owing a biz. Remember the 50 % I mentioned that IS profit not gross income.

Mike

leah_s Posted 23 Sep 2008 , 10:56pm
post #3 of 3

Well, yeah, it's hard to get a loan right now. The credit markets are in a melt-down. If you have to borrow for operating cash, then you need more savings. Borrowing for property or equipment is one thing, but for operating cash, quite another. Do a business plan (page Indydeb) to get your head wrapped around exactly what the finances are.

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