So you’re finally ready to quit your job and get started building your own online business and making a living in the online world.
The lure of a more flexible lifestyle and being more available for your family, leaves you realising that working online from home or starting an online side gig is your next step.
But the one thing playing on your mind, is how are you going to support yourself and your family whilst you’re learning the ropes?
You know that for your new online business to work, it needs to at least replace your current income. But how long will this take, and how much time and money can you afford to invest?
However, what if I told you that there may be no need for concern if you flipped your thought process and asked yourself the following question; “do I really need to earn that much when working from home?”
In fact, for most of us, whatever you are earning in your current job, you do not need to earn as much with an online business. You can even earn less and still enjoy a better lifestyle, and here is the all-important why;
Having an online business costs you less than a traditional 9-5 job. Sounds ridiculous right? Well, let’s have a closer look.
What Are Your Work Expenses?
Being employed in a traditional 9-5 job means for the vast majority, you will have to commute. Whether that be in your own vehicle or by public transport, there will invariably be compounding costs eating away at your disposable income.
Petrol, wear and tear, traffic accidents and depreciation in value all have to be taken into consideration when driving. And I’m sure I don’t need to remind you of public transport costs.
If you have an online business (and assuming you have an internet connection at home), there is no commute required. Working from home wins that argument hands down.
What if I did not commute in the first place?
While at work, you need to eat right? Whether that’s from the workplace canteen or from a surrounding food outlet. Either way, prices will almost always be inflated in this scenario as a result. Yes, of course, you will have to eat at home, but eating at home is almost always cheaper and more convenient. Planning your meals in advance will be even cheaper, and free up more time.
What do you wear to work, do you have to buy a uniform or do you have to buy particular clothes that really you would only wear in a work environment? If so, there’s money to be saved here too.
Working online from home requires no special clothes, you can wear what you want. But don’t fall into the trap of wearing pyjamas all day, it doesn’t help your productivity at all. In fact, getting dressed before you start working from home can boost your productivity by preparing your mindset for starting work.
There are other top tips to consider when working from home and you can read about all of those here.
Do you need to buy certain tools for work in order for you to do that job correctly? I previously had a career as a chef and worked in a Michelin starred restaurant. My knife collection alone set me back hundreds of pounds and that’s without the uniform costs!
And probably the biggest factor for most people…
Who looks after your kids while you are at work?
Are you lucky enough to have a family member do this regularly, or are you paying out for childcare? And what happens if your child gets ill, do you have to take time off work, or is it a mad rush to find childcare on the day, making sure your child is looked after?
When my kids were born (twins), I commuted in and out of London four times a day to help out at home on my break. This was because, at the time, childcare costs for two children were out of reach for me and my partner, who was then a full-time student.
Another often forgotten point regarding childcare is that even if your children are attending a “free school“, the fact you would not have to commute (working from home), means you could save money on breakfast or after school clubs.
Taking into consideration all the costs I have highlighted (and I’m sure you can think of others), then you begin to realise that the level of income you need when working from home and/or starting an online business, is somewhat less than you may have anticipated.
Try it yourself, add up all of your work expenses (post in the comments box below) and see how much you could save, whilst building your business online from the comfort of your own home. Oh, and of course, let me tell you from experience, that having your own online business and working from home is a hell of a lot less stressful than having a boss and working fixed hours!!
How Much Will Setting Up My Online Business Cost?
Now obviously to work from home online, you are going to need a computer or laptop and an internet connection to be in business, but I’m assuming the vast majority of you already have these. And once your up and running, there are various ways you can manage and automate parts of your business from your smartphone on the go.
Whilst you’re starting out and finding your feet with your new online business, there’s no need to splash the cash and invest a ton of money on things that you’re not sure about, or how they will even help you. Leave these expenses until you know what you want and you’re earning enough to justify them.
However, there are a few necessary expenses that you need to include from day 1, such as;
- A Domain name (e.g. life-captain.com)
- A Website Builder (e.g. WordPress)
- Web Hosting (e.g Siteground. This may also depend on your website builder)
Setting up a website can set you back anywhere between $25 and upwards of $25’000, depending on your needs.
However, if you’re looking to keep the cost to a minimum from the get-go, then a trusted and reputable provider such as Bluehost is a great place to start for beginners. Why Bluehost?
- they feature a “1-click WordPress install”, which makes the set-up process quick and easy
- they include a FREE domain name (worth $13) with all their hosting plans starting at just $4/month
- they currently have brilliant 24/7 support and are officially recommended by WordPress
So to begin with for just $4 per month, you can have a powerful WordPress website up and running and ready for you to start building your business with. I’m not promising your expenses will stay at $4 per month forever, but when starting out on a budget, that’s an incredible deal!
And just in case you’re wondering why WordPress? Well, it’s FREE, extremely flexible and powers a third of all websites, making it the most widely used software worldwide. UsainBolt.com is powered by WordPress and if it’s good enough for the fastest man on earth, then it’s good enough for me!
With experience, you’ll soon learn which tools and products are actually helpful and right for you in setting up and running your business and which ones you can do without.
When you’re working online from home, it not only means you have more time and freedom to be around for the people close to you but you can actually enjoy more downtime for yourself without ever feeling guilty. You get to decide when and where you work, which is great, as not everyone that decides to start an online business favours the home environment.
For more information on learning the ropes, read more about the free training I used where I started. There’s no catch, it’s FREE and there’s no credit card required. It’s for you to see if working online from home is indeed something of interest to you and to find out if it could help you, as it has helped me.
If you have any thoughts or can think of any other costs associated with having an online business, please leave your comments below and share it with us.