"Murphy was an optimist!"
So you want to work for youself February 4, 2010 11:17 am
Posted by Doug McCaughan in : Touchy Subjects , trackbackThe grass is always greener on the other side. If you dream of escaping Cubeville to work as a freelancer or consultant taking business calls from the beach, setting your own schedule, working in pajamas or nothing at all, and taking vacations whenever you want, I am here to warn you about the brown spots in that greener grass. The biggest brown spot will be cash flow. That 8 to 5 job which you view as a prison to escape provides something unknown to the self-employed…predictable income. For instance, I expected a full payment from one client last night; instead, I received a half payment today. That should be no big deal since another client was scheduled to deliver a full payment today but instead delivered a message that the payment should come tomorrow. These scenarios are why people recommend keeping 6 months of income in the bank. If you don’t have that, the greener grass is too dangerous. Stay in Cubeville! If you are venturing over here from Cubeville with that 6 month income in the bank, your exit plan from self-employment back to Cubeville better be well before that reserve hits zero. Exit plan? Don’t have one? Well, that’s for a different post, but if you don’t have an exit plan, you aren’t ready for self-employment.
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We, who also work from home, for ourselves, have a system to prevent this. It’s called collateral, and it works! We haven’t gone without full payment, on time, for three years.
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