Quitting my job last year was a huge risk. I was making good money, had great benefits, but a crappy quality of life. With that risk came a huge amount of responsibility: to myself and to my business. I decided to work for myself after my experience blogging. If you would like to start blogging click here for more information.
In The Beginning
Freelancing was fairly straightforward-I was looking for gigs to work in order to earn income. I was able to execute that part of working for myself really well. I hustled like a Rock Star and found some great opportunities that lasted for months. As I became more confident in my ability to actually find work, feed myself, and pay my bills I was confronted with some decisions that I hadn’t spent a lot of time thinking about prior to working for myself-knowing when to invest money into my freelance business.
To Invest or Not to Invest?
Especially if you have debts…and there are also a number of expenses that I pay to run my blog and my podcast. These expenses range from: blog hosting fees, social media management tools, and the list goes on. I do consider my expenses a bit on the low side-but they are still expenses.
The big difference when considering investing in your freelancing business versus costs to run your business is that there is no guarantee that the money you put into your business will pay off in the long-run and that’s the “rub.” You have to take a risk, and taking that risk is super scary. I decided to take a leap of faith in myself and go for it. In fact, 2015 would be the year of me “going for it.” Why stop taking risks now?
What Did I Invest In?
- Conferences-By the time Fall is over I will have attended three out of state conferences. Why attend those conferences? I am looking to expand my brand, I had the opportunity to speak at two of those conferences, and I networked like crazy.
- Joined The Careful Cents Club-I was fortunate enough to get a slot in the Careful Cents Club and will begin pitching to well-cultivated leads that are shared with members on a weekly basis.
How Did I Decide?
A friend of mine asked how I decided what to invest in, how much, and the affect on my debt repayment. Here’s the answer:
- Return on Investment-ROI was where I really focused. My goal was to collaborate with organizations whose missions I understood and could support through long-term business collaborations. I am excited to say that I more than exceeded that goal and have already made more than what I invested in attending (FinCon and the Type A Conference) The other huge component to how I measured my ROI was if I was able to secure paid opportunities that paid more than what I was getting paid prior to those conferences. These projects also take less time than what I was spending on other projects. I also had FaceTime with my dear friends and colleagues who were able to recommend me for business opportunities.
- Risk Management-I had to be ok with taking some risks which meant that there was a possibility that I would lose some money. However, I knew how focused I was to make this work so I trusted that I would at least break even. Quite frankly, as entrepreneurs we are always in the process of measuring our risk threshold. The key is not to get stuck bogged down by analysis paralysis-I thought about the risk and then I made a decision. I understood that it would either pay off or it wouldn’t. Also, if I was too afraid to make some of these decision then that inability to decide would have indicated that I might need to re-evalute my self-employment aspirations.
- The Debt–Well, I need money to pay off my debt. It’s a cliche but I felt that I had to pay some money to make some money. I needed to get myself in meetings with movers and shakers in the industry that I am currently working in which is-personal finance. The small amount of money that it cost for me to participate in these conferences would have made a tiny dent in the debt that I’m repaying-so, I took the risk. And frankly, I have 2 or 3 years of debt repayment ahead of me. I took the risk and now I will get paid more for projects that take less time. I also believe in these projects/organizations’ missions so I’m excited about the work that I’m about to embark on.
I worked very, very hard to keep expenses incredibly low for the conferences that I attended. I used mileage points and my mom actually gifted me with points for one of my trips (only child bonus). I shared hotel rooms with my Mastermind friends. I ate only what was provided by the conferences. In fact, the Type A Conference had the best food I’ve ever had a conference. Prosciutto, fresh bread, and brie anyone? I spoke at the Type A Conference and that took care of my attendance costs.
Basically, I worked every angle to keep my costs as low as possible. Then, I worked as hard as I could to rock my new business connections and projects. I am very happy that I decided to invest in my business. As a result of taking some well-thought out risks I will be paid more and I love what I’m working on.
During the winter and spring months my priority is to continue to grow my business at every level. It is a huge project but I’m up for it. As I grow my business I will grow my income-and use that income to pay off my debt. I also want to prove something to myself-that the risk I took was worth it and that I can make things happen. We’ll see how it goes.
Have You Faced The Same Dilemma?
What Did you Decide To Do?
Was It Worth It? Why, or Why Not?
How did I get into freelancing for myself? I started a blog, I changed my life, and imagined more for myself. It hasn’t been easy but I’m making it happen. If you’re interested in starting a blog check out my post on How To Start A Blog, Change Your Life, and Find Your Tribes. I use Bluehost and if you click on my affiliate link you can host your blog for $3.49 a month. See How You Can Set Up a WordPress Blog in 15 Minutes Please note: I may receive some compensation if you use purchase a package through this link.
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Michelle, glad to hear that you are doing well and enjoying life more. Yes, these are the kind of decisions, I believe, everyone should tackle at some point in their lives. For you, the main thing is to invest in yourself (cliche, I know, but it works) so that your freelance business will grow and you will be able to pay off debt, invenst in more traditional ways and live the life you want; not the one that is being served to you.
The cliche works! I had to figure out the best way to approach both and I feel very good about the risks that I’ve taken. But, I am planning to work harder for 2016 so it’s GAME ON!
Congrats on this Michelle. It must have taken you courage to leave your full-time job. Me? I am still waiting for the right time. I hope I can be as successful as you and soon enjoy all those benefits in being a freelancer. Good luck!
There were and are downsides to leaving my job-but my quality of life has improved so drastically that I absolutely know that this was the right decision for me. Now, I’m shifting my focus and really working on growing my money. Show me the money!
I understand where you are coming from! I only recently started investing in my business — with an accountant and invoicing software. And I love it! It’s so worth it. Sometimes it’s worth the investment.
I have invoicing software but next year some things will be changing. The first year of learning is over-now, it’s time to dig deeper.
The expenses to run my blog are relatively low. So far, everything I’ve invested in including FinCon and my freelance writing coaching has been worth it and paid for itself so many times again. The best part about my freelance writing side business is that I hardly ever have to cold pitch since I invested in building up my network. It’s hard to make the judgement call when you have debt though. But if I would have held back from investing in myself, I would never have paid off as much debt as I did this year so far.
I think that having low overhead on your blog,etc. makes investing in your business easier. My costs are pretty low as well. I have a different take on investing in myself and debt, if I invest in myself and make more money that equals more money to pay off debt. My primary focus for 2016 is income growth and debt repayment especially now that I’ve learned how to run my business. It’s almost like asking if the chicken or the egg came first. There’s no right answer-just the system that works best for you.
Love hearing a success story. Some great tips to find ways to make your dreams happen. Glad taking the plunge is working out for you!
Well, we’ll see if it’s a success story by the end of next year. I could just be a “holding on story!” Wish me luck.