So it has finally happened folks. The talk is over. I have quit my job, my Christmas vacation is over, and I am back home with nothing standing between me and world domination. I can no longer say, “I’m ready to kick start my business, but…” The barriers are down and it’s all me from now on in.
Reality, Like A Punch In The Face
And boy does it feel like it. I only arrived back in England on Wednesday morning, but the reality of my situation is already crystal clear.
I don’t think you ever quite know how it feels to be totally exposed until you actually are. For me, emotions are currently ranging between mild panic and near-euphoric excitement. I have a feeling that keeping my emotions in check will be important.
Jet Lag
Flying from east to west, I have no problems with jet lag whatsoever. I typically fly out in the early morning, catch an hour or two of sleep on the flight, and arrive in the USA in the early afternoon. Then it is just a case of staying awake until around 10pm, at which time I go to bed and have a fairly restful night’s sleep.
Unfortunately, the same level of acclimatisation cannot be said for west to east flights. It is always an overnight flight (that I get no sleep on), and the first day back is a hellish struggle to stay awake. If I do manage to stay awake, I can look forward to a solid 10 hours sleep.
But that doesn’t spell the end of my jet lag woes. The second night’s sleep is the killer. I say that from immediate experience – it is currently 2:18am, and I am wide awake. This does not bode well for my wakefulness tomorrow.
One other thing – it seems that leaving the States is more of a wrench every time I do it. It will be interesting to see how that affects the big decision of where I want to live in the future.
Time Management
One thing that has hit me in the short time I have been back is just how important time management is going to be. I am planning to achieve a great deal, but my time will be limited, and extremely precious.
I have already decided that 2012 will be a year of discipline and goal-setting in all parts of my life, and time management will be no exception. Control over time spent on the “secondary” (i.e. not incoming producing) aspects of my business – emailing, social media, blog reading, and so on – will be key.
The Importance Of Balance
For any of you who have been keeping up with my plans, you will know that my number one priority is to establish an income that matches my outgoings. That goal takes precedence over everything – a cash flow negative business will rarely be in business for long.
The key will be in achieving a modicum of balance. I have set myself goals for a reason, and moaning that there aren’t enough hours in the day will not help my achieve them (quite the opposite).
I am certain that there will be many long days ahead, and I know that it will become hard at times to justify my more speculative endeavours. At that time, conquering my logical thought processes with leaps of faith will be vital. As they say – nothing ventured, nothing gained.
Cash Flow
As you probably know, I promote pure transparency and honesty as the two key selling points of this blog. I use the word “pure” very deliberately, as I know of a lot of blogs out there who claim to be transparent and honest, but are in fact hiding ulterior motives.
So in the interest of transparency, I think it is only fair that you see my cash flow projection for the next three months:
As you can see, all things being well, I will not be sailing too close to the wind.
The two commission payouts from my previous job and the rent I get from my housemate will be an enormous help in what will be my most income-poor months. I will also receive a final commission payment in April.
As you can see, I am putting aside 30% for taxes. Given my fairly considerable expenditure in this financial year, my tax bill in April will probably be far smaller, but I don’t like nasty surprises.
My income estimates are very conservative – and that’s how I like it. Like I said – I hate nasty surprises. I am assuming that I will acquire no more freelance clients in the next 3 months and make no money from my authority and niche sites. As far as the cash flow is concerned, anything I do above my existing efforts will make a positive difference.
Given the relatively positive outlook that I read from my cash flow, I am comfortable with setting some money aside for my more speculative internet marketing endeavours. There will be more on that in the near future.
Room To Breathe
The most important thing that the cash flow shows me is that I have time.
I am currently reading Quitter by Jon Acuff (thanks for the suggestion Deacon!), in which he basically advises not to do what I am doing. Putting that amusing fact to one side, he states that one of the reasons you should not quit your job “early” is because you will be pressured into accepting low-paying jobs just to make ends meet.
However, my cash flow projection tells me that I don’t need to do that – although my savings are far from endless, I have quite a lot of room for manouveur in the short term. This goes back to the safety net principle I spoke about previously. I don’t even need to consider compromising my goals until April, so I can approach my work in the coming months with a highly positive outlook.
Confidence Is Key
My cash flow projection makes one more vital thing clear – I don’t need to panic. It is natural to think, “Shit – I have a mortgage and bills to pay, and my outgoings far outweigh my current income”. But I need to trust myself and my abilities.
One of the most common character traits of any successful entrepreneur is supreme confidence (bordering on arrogance, if you can get away with it) in one’s own ability. Nothing in life is guaranteed. All you can do is set goals, then hit them out of the park. That is what I plan to do.
Only Time Will Tell What The Future Holds
There is one more key takeaway from my first couple of days as a self-employed businessman – I will only get out what I put in.
My business is clearly divided into two areas – freelance writing and internet marketing. I am going to need to hammer away at both disciplines, knowing that there are no guarantees of success, but also knowing that there is certainly a guarantee of failure, if I don’t try. “Speculate to accumulate” is a well-worn phrase, but will apply well to my efforts.
Exciting times abound! Now to try and get some sleep…
Creative Commons images courtesy of pop culture geek, badjonni, Dave Dugdale, Neerav Bhatt, Jessica Florence and Dilbert
I’ve never really been hit by jet lag before, although I’ve only done a handful of trans-Atlantic flights so far. I’m not sure why I’m able to avoid it, so I can’t quite relate to your misery.
I was also recommend Quitter this week, so I’ll have to check it out.
One of the things that concerns me most this year is taxes and how to handle them being self-employed. I’ve been thinking about sitting down with an accountant to put myself at ease a bit. I also need to factor in tax payments from my income, which is something I haven’t put too much effort into figuring out.
Excited to see more about your project, Tom!
Hi Jeff,
Have you flown the red-eye before? That’s the killer…
Taxes are a concern, which is why I am being so liberal in the amount I put to one side. Better to be safe than sorry…but yes, one of my first priorities is to hire a good accountant.
As always, thank you for your support 🙂
Tom
Congratulations my friend. There’s no excuses now: “I can no longer say, “I’m ready to kick start my business, but…”
Jet lag for me is a killer too, especially west to east. Coming to Australia from Europe is plain awful. And when the time comes for you to decide on where to live in the future, the answer is simple: come to Australia!
I think that projecting your cash flow (conservatively) into the future is a smart move, because it allows you to stay focused on your goals, so I hope that everything goes according to plan mate.
Best of wishes, and I’ll be (as always) following closely what you’ll be doing now.
Cheers
Hey Bernardo,
I would love to live in Australia – it’s just too far from family! It would just have to be a holiday destination, or maybe home for the winter 😉
Thanks for your ongoing support – I really appreciate it.
Tom
I disagree with Deacon (or perhaps it’s really a debate about the meaning of the word ‘early’). I left my job before I had enough freelance writing business lined up to cover my expenses. Far from it. But desperation was an extremely powerful motivator.
As long as I stayed in my job (which was ‘comfortable’ and secure), I wasn’t nearly motivated enough to hustle and prospect the way that I did in those beginning months of solo-preneurship.
I think you made the right move. And, as you’ve demonstrated, the timing was calculated. It’s not entirely irresponsible; you’re not going to starve. You’ll be just desperate enough to apply yourself 150%!
Hey Ruth!
You don’t necessarily need to disagree with Deacon, unless he agrees with the author’s views 😉
Our attitudes seem identical. “Desperation”, as you call it (I think I’m a notch below “desperation” at the moment 😉 ), is an enormously powerful motivating factor. My whole mindset has changed drastically, just because I have quit my job.
Thanks for stopping by 🙂
Tom
Wish you good luck on your self-employed journey. However, do take breaks from your computer every 30 minutes or so and take a walk and stretch a bit. The journey does become painful for those who do not take breaks in between work on the computer.
Good advice Khan – not that I followed it today 😉
Tom,
Big congrats on striking out on your own. I certainly have felt that feeling you started talking about. “between mild panic and near-euphoric excitement”
Being live without a net is scary, but the potential and excitement of really living or dieing only by dint of your own hard work or efforts is quite exhilarating.
Time management is key. Time literally is money, and wasting it is now a crucial error. Glad to see you totally get that point.
I am sure you will kill it and hopefully do well above and beyond your conservative projections. I certainly look forward to hearing more of your experiment.
BTW, I hope the future hold hover boards too! I have wanted one since i was a little kid and saw Back to the Future II. Since that movie takes place in 2015… there should be one soon. (as well as a Mr. Fusion)
Steve
Yep – just 3 more years Steve! 😉
Thanks so much for your ongoing support – your website is certainly helping!
Tom, congrats! I just happen to be listening to Kelly’s SoloSmarts podcast epi #8 where she talked to you back in September. And you had just told your dad you would be leaving his biz soon. Funny that the day I hear that epi and check out your blog, lo and behold, I find this post.
Keep on rockin’! 🙂
Hey Emily!
It would be strange listening to that podcast now…so much has gone on!
Thanks for stopping by! 🙂
Tom
Hi Tom,
You seem a level headed sort of guy so I for one am confident that you can make it.
One thing that really helps is setting up a default diary, but what helps even more…. STICKING TO IT!!
Good luck mate!
Hello Mias,
Thanks for your kind words 🙂 the idea of setting up a default diary had been rolling around in my head for the last few weeks, but you have just galvanized me into setting one up!
Cheers,
Tom
Super fun!
I’m ditching work too – have 8.5 more days left. So far they’ve pretty much not asked me to do anything. So I get to sit in their offices and do my own stuff.
Still feels a little like I’m not free, though.
Not only that, but I’ve been writing like crazy – and crazy stuff. Inciting people to almost riotous activity: http://mathfour.com/general/break-the-rules-and-get-fired
But it’s probably your fault. 🙂
Yay, Tom!
Hey Bon,
8.5 days – that’s nothing! I remember counting down the days – around 25 it seemed like an eternity, but the last 10 days or so were piece of cake. Getting to do all of your own stuff is a good bonus!
Inspiring people is always a good thing. Well, maybe not if you’re inspiring riotous activity, but at least you’re on the right tracks 😉
Tom
P.S. Did you get my email the other day?
Tom,
congratulations on the big step! I am sure that freelance writing and online marketing are not the only things you will be doing soon. I suppose many new opportunities will come along. Excited to read about your progress!
Alex! How are you doing? 🙂
I am hoping that will be the case – when it comes to making money online, diversity is key. I have more ideas in my head that I have time for, so I am currently logging them all away and figuring out how I can most efficiently stream my workload to get as much done as possible.
Cheers,
Tom
YES – you’re on your way Tom (I’m a little behind on my reader as you can see, hah). I had a brief (8 month) experiment with being 100% on my own and you’re right about the time-management thing.
I think your focus on planning and discipline will keep you moving forward. You’re also fortunate to have a supportive community (which I didn’t have when I tried).
Let me know if I can help Tom! Oh, and glad you’re liking Quitter. I learned a lot of great stuff from that book.
Hey Deacon,
Thanks for dropping by. I know you’re busy, so I appreciate you including me in your RSS catch up! 🙂
I’ve really enjoyed what I’ve read of Quitter so far (even if I don’t agree with everything he says) – I love his writing style. Unfortunately, I haven’t picked up a book (or my iPad, I should say) in over a week now – not good!
I am so grateful to all of the guys and girls here who are cheering me along – it means a great deal. And I consider myself fortunate to have struck up an online friendship with people such as yourself.
You keep up the great work on your end – Life Stoked continues to inspire me!
Cheers,
Tom
Very transparent approach Tom, and it’s nice to see someone for a change actually mentioning the T(axes) word (all too often there is no mention of paying the taxman in the IM game).
I see you’ve been busy with your posts since your return from holiday….I’m just playing catch-up.
Adrian
(p.s did you know your introduction video (http://vimeo.com/30228159) on your homepage, which I think is a great idea BTW, has a lip-sync issue, the audio doesn’t quite match up to the visual?)
Hi Adrian,
Yeah – a lot of the less glamorous stuff does tend to fall by the wayside…the fact that a lot of people report their gross income (rather than net) is another bugbear of mine.
I had not noticed the lip sync issue…thank you for bringing it to my attention! It will go on my very long list of things to do 😉
Cheers,
Tom
Very empowering. I wish you the very best of luck!
Go get em tiger.
Phil
Thanks Phil! For anyone who doesn’t know, Phil is the guy behind tweriod.com – if you’re big on tweets, you should check his service out. Probably worth a post at some point… 😉
Great post! Got here from your tweet. I appreciate the transparency for sure, and delight in your optimism and confidence- there’s nothing like it for firing up positive energy in others!
I’ll have to check out some of the resources mentioned above, since I think that while I would hope to have enough streams of income before I separate from my job to sustain me, it will be a challenge to make that happen, and I’m not sure how necessary it is. You know, except for the amazing ability it has to comfort your mother… 😉
Best of luck and keep up that monitoring and motivation!
Hey Margaret,
Glad you enjoyed the post! The optimism and confidence are still burning bright, 3 months later 😉
Cheers,
Tom