From 9–5 to My First Business
When I had a job, I got a regular paycheck plus bonuses based on how well my projects did. But even with that, I felt stuck, like I wasn’t getting anywhere. I was holding myself back.
My first insight was: to make more money, I need to start trying new things or look at what I do from a different angle. Slowly climbing the career ladder was not enough for me. Observing my bosses every day, I quickly realized they had career limits too — they are far from financial freedom and dream jobs. With this career path, neither they nor I would be able to make the money I wanted to make. Dream big or quit!
And… I quit my office job in March 2018.
By that time, I had saved some money from other side gigs I did, so I had saved around 30–35K USD, and I had put that money into Bitcoin the year before. In September 2017, the price of Bitcoin started going up, making me 5x more than I had purchased it for. I felt like a king and that I could conquer the world without 9–5. But then the price dropped just as I was leaving my job, which made my savings go down a lot. It went down SO quickly, leaving me in a tough spot right when I was quitting. I got my last paycheck, and that was it — everything happened really fast.
Also, I had bought an apartment a year before. It was time to get it ready for a move in — basically to start fixing it up with the money I made from Bitcoin. I was fixing the place to live in it while managing the side jobs. It was a very stressful time, it felt almost like the end of the world.
There was no time to relax.
I had a big dream to start my own company, but the reality was not working for me.
My second takeaway: When you know exactly what your money situation is and understand business finances, it’s easier to see and fix problems. Statistical data reveal that the entrepreneurial landscape is diverse, with a majority of business owners starting their companies from scratch. This entrepreneurial spirit is great, but the challenge is that a significant percentage of small business owners do not have a formal business education, relying instead on personal experiences, the internet, and their networks for business-related advice and support.
Young business owners often have to borrow money just to pay their workers because they don’t have enough cash. Research indicates that more than two-thirds of startups encounter financial difficulties, with startups less than two years old facing even more challenges. This trend reveals the critical nature of securing adequate funding and managing finances efficiently from the beginning.
The main thing I’ve learned? Being ready for these money challenges is super important. It’s not enough to have a cool business idea. You also need a good plan for handling your money to ensure your business can grow and last.
My first and biggest crisis was when I had no money to pay my staff. And I got the loan. So, we all learn from the mistakes.
But even with enough money, success isn’t guaranteed. No matter how well things are selling or how much money you’re making, you can either spend ALL your earnings or reinvest them in your business. I really wanted to reinvest everything to grow the business.
This led to my first step toward entrepreneurial growth: my financial realization, and understanding of how much money I can make as a business owner. The trickiest part was to stop seeing all the business income as all the money I made and owned. So I started to separate the business income from my salary. It gave me the first taste of the money I could make and if all my entrepreneurial activities were really worth it.
Separating money helped me a lot to start planning finances and forecast success. First, I paid my employees, then used what was left to streamline the business process, so we could deliver even higher quality results and get bigger projects. But I often didn’t have much money left for myself — and here comes fourth takeaway.
Things changed when I decided to pay myself first before dealing with other expenses. Some people weren’t happy because their pay was late, but it helped me avoid stress and feel more secure financially, feel happier, and highly motivated. I did, though, pay my staff on time but could delay the other expenses. In the end, this approach made me more confident about the future and helped me stay focused on growing my business.
So my recommendation, fellow entrepreneurs: learn from others’ mistakes as much as you can, but often experience only comes from actually facing the challenges and making mistakes on your own.
Some key takeaways for you:
Embrace Change and Innovation
To truly make more money and advance in your career, be open to trying new things and examining your current methods from a fresh perspective. The traditional path may not always lead to financial freedom or your dream job.
Savings and Investment Are Key
Before taking the leap into entrepreneurship, having a financial cushion, such as savings or investments, can provide a temporary safety net. However, be aware of the volatility in investments and plan accordingly.
Understand Your Financial Landscape
A clear understanding of your business’s financial situation can significantly aid in navigating challenges like staffing and salary payments. Knowledge in business finance is crucial.
Preparedness for Financial Challenges
Anticipate financial hurdles as part of your entrepreneurial journey. A solid plan for managing your finances is as important as a great business idea for the growth and sustainability of your business.
Reinvestment Is Crucial for Growth
While it might be tempting to spend your earnings, reinvesting them back into your business is essential for long-term growth and success.
Separation of Personal and Business Finances
Learning to distinguish between business income and personal salary can help in better financial planning and understanding the true worth of your entrepreneurial efforts.
Prioritize Your Financial Well-being
Deciding to pay yourself first might seem unconventional, but it can lead to better financial security and motivation, enabling you to focus more on business growth.
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