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I ran up my credit card!

post #1 of 15
Thread Starter 
To make a long story short, I recolated to another Province 5 months ago and cannot find a full time job. I am an Accountant. I had several interviews but they want me to use half of my brain to perform as an accounts receivable clerk and bookkeeper. Well, a professional accountant just dont do AR. Moving right along, so I have no job and no financial obligations. I need some sort of income to take care of my kids, so I decided to charge up the credit card and line of credit.

At first I was nervous, but then I am happy I stepped out on faith. I often read your talent will make room for you. At present, I have no customers and no body knows me as I am new to the area. So I am literally starting from scratch.

Have any of you step out on faith and started your cake business? Please share your story.
post #2 of 15
Yes I started a cake and cupcake business 3 yrs ago with what was left of my last month's salary because I was downsized. Pretty much had less than the equivalent of $1000 US in my bank account because I had no idea my position was being tossed out the window. I've been running my business for 3 years now from home. If you have access to bookstores, I would advise you to read Rich Dad books. I did the 10 week course and it changed my life forever. I've been volunteering ever since as my way of giving back for the knowledge and wealth it has brought me. It can change your life like it did mine when I was stuck in a rut. Just remember, there is "good debt" and "bad debt". "Good debt" will bring money back into your hands. Invest in something that will help you recover and get back on your feet. All the best icon_smile.gif
post #3 of 15
Faith had nothing to do with the cake business I started, I put together a business plan and made sure the numbers made sense before we started with our initial investment.

It's expensive to start a business, and you should assume that you won't be making a profit for a year or two. I strongly recommend putting together a plan both for your business and your personal finances to make sure you can pay your bills without relying on a credit card (which is one of the most expensive ways to raise money).
post #4 of 15
Hi Major!
You will do fine. Faith is a powerful thing, and it will all work out. I am also exercising faith here. I am in the process of moving from the deep south to Seattle WA. All I have is faith. No money nothing. But, I am so optimistic it is not funny.
Everyday that goes by I am making ways for my move.
If you have a vision work towards it. Everything will WORK OUT FOR YOU!

Quote:
Originally Posted by majormichel

To make a long story short, I recolated to another Province 5 months ago and cannot find a full time job. I am an Accountant. I had several interviews but they want me to use half of my brain to perform as an accounts receivable clerk and bookkeeper. Well, a professional accountant just dont do AR. Moving right along, so I have no job and no financial obligations. I need some sort of income to take care of my kids, so I decided to charge up the credit card and line of credit.

At first I was nervous, but then I am happy I stepped out on faith. I often read your talent will make room for you. At present, I have no customers and no body knows me as I am new to the area. So I am literally starting from scratch.

Have any of you step out on faith and started your cake business? Please share your story.
I can do ALL things through Christ who strengthens me!
Reply
I can do ALL things through Christ who strengthens me!
Reply
post #5 of 15
Agreed. A business plan is your starting point. It will be your road map each year. Fortunately, you have an accounting background so you have the ability to read and write financial statements which is important in business. I still have my business plan I wrote in the earlies. I found free sample structures off the internet and went off to our Central Statistical Office for data on the market. Slowly but surely I completed it and actually in the end I reached out to a CC member who had a thriving wedding cake business who helped me complete the plan. I'm sure there are lots of experienced business CCers who can help you with your business plan if you PM them. I tend to look for the ones who give the best advice consistently icon_smile.gif I'm still young in this business with just 3 yrs experience. More like 5 mths real business experience as I now have a partner who has brought way more business experience to the table.
post #6 of 15
You moved to Nova Scotia which is known for its cottage economy. In NS it is considered necessary for accountants outside of Halifax to do bookkeeping to keep themselves off the EI rolls.

The advantage of doing some financial work at least part time is that it will bring you into personal contact with the people who will become your cake customers. Just think--you would be paying some of the bills and building your customer base without having to pay for advertising.
post #7 of 15
Thread Starter 
Thank you so much for your comments

Pearl645 - I read Rich Dad a few years back and was very intrigued. I guess I need to read it again. As an accountant I am very frutal on spending money. Well like you said "good debt" will bring money back to me. I started a business plan but nevery completed it, that was a long time ago. I need to revisit that to.

I like to read inspiration stories how businesses got started. I recall the founders of the big Pretzel business started their business by charging their credit cards. Today they are very successful. What an inspiration of not find excuses and just doing it.

Jason_Kraft - In the past I have accumulated alot of caking decorating stuff whiles studying in Unviersity and obtaining my certification. So far I have spend a few thousand nothing drastic. So hopefully, I will repaid the credit card off rather quickly with help of great advertisement.

BakingIrene - I do not live in Nova Scotia, I relocated to Ontario. I am thinking of starting my own pratice in the near future if that job does not come around. Nothing like being you own boss.

Thank you so much for your comments.
post #8 of 15
Having moved a few times, you have that experience of sticking your neck out that is so difficult for some people to manage.

Your profile says "Nova Scotia" and we don't have any other way of knowing. Like that lady who's in a mad panic for white chocolate...but no info about where she lives.

So making any small business successful is about networking, networking, networking. Make up a catchy logo for letterhead and business cards. Advertise in the local weekly paper that is delivered free to all households. Donate cakes to local hospital fundraisers--and get the tax receipt for the retail value.

And please beware of GoogleDocs--they own all images that you post there.
post #9 of 15
majormichel, keep up your faith, as the other poster said, it gets us everywhere. I wish you a successful future!!!!
post #10 of 15
I haven't heard faith and accountant too many times in the same sentence.

My guess is it has more to do with your education and experience.

I certainly believe in the saying, "Necessity is the mother of invention". As a single mom for 15 years (with an accounting degree), with all of the ups and downs of self-employment, and market changes, I think that leap of faith is a tribute to your ability to make something from nothing and be successful at it.

Good luck with your venture. There is no better motive than a mom taking care of her babies. Been there.
post #11 of 15
You say you have no financial obligations, then say you have to support your kids.

I say HECK NO!! to racking up your credit cards on this one whim. No matter how much you want this, no matter how good you are....this is not smart in my opinion.

You have kids. What if one needs braces? One has an accident? CC's should be used for those emergencies,not to blow them up for a cake business.

And one reason I"m saying this is because there was this supposedly well-off couple near me. She wanted to open up a huge shop (not cake related), and wanted to be sure she could impress everyone. Well she did impress. And she blew up their cc's.

They had to declare bankruptcy, and then they left the state in shame.
post #12 of 15
Thread Starter 
Interesting responses.

vtcake - If I wanted to live a safe and dreamless life, I would follow normal guideline of playing it safe and sticking to the budget. As we are all aware, there is a time and place for everything.

Of course going against the odds does not always make sense. Well, for some but not all. I am not one to wait for things to happen in my life but rather I make things happen. Not everyone was born with a silver spoon in their mouth.

Let's take Donald Trump for example. "
In 1990, the effects of recession left Trump unable to meet loan payments. Trump financed the construction of his third casino, the $1 billion Taj Mahal, primarily with high-interest junk bonds. That put him at a disadvantage with competitors who used more of their own money to finance their projects, industry experts have said. Things were so bleak for Trump at this time that in the August 21, 1990 edition of the Jersey Record, columnist Mike Kelly wrote "If we still had debtors' prisons, Trump would be in the dungeon." He sure took a chance but today he is a millionaire.

Please do not compare apples with oranges. I dont live like "the Jones" and I careless what people think of me. I know my worth and value. I dont believe in living in fear thinking if something was to happen to my kids then what. God has given each person a talent. Either you use your talent or it will be buried in the ground when you die. That why it is commonly said "The grave yard is the riches place on earth."

I believe it's better to fail than to not try at all.
post #13 of 15
Well said, majormichel. And my thoughts exactly. I don't believe in waiting for things to happen either. And good luck with everything. If you set your mind to do it, you will.
post #14 of 15
Quote:
Originally Posted by majormichel

If I wanted to live a safe and dreamless life, I would follow normal guideline of playing it safe and sticking to the budget. As we are all aware, there is a time and place for everything.


This is a false dichotomy, as there are several different types of risks. It is certainly possible to start a risky business venture while still sticking to a budget and financing the business with means other than high interest credit cards you are personally responsible for.
post #15 of 15
OP, having no interest in Trump, I didn't read your story about him.

If you are comfortable with having your dream doing it the way you are while trying to support kids, then it's your call.

We all have dreams...just some folks save and plan, while others put everything they have in one crap shoot.

Just gave my opinion, doesn't mean I'm trying to be the boss of you.
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