Another new beginning?!

You'll never guess what I did. I decided to start my own home based business. Yep, me...the one who said I had absolutely no interest in EVER running a business of my own.

After last pay-day I think it finally hit me that I was going to have to step up to the plate and quit my whining about how broke I am and how much our family is struggling and do something about it. I could get a job...but then I'd have to find daycare, buy some clothes (sweats are not usually acceptable employment attire!), and all of that sounded like too much work!

A friend of mine started her home based business and suggested I look in to it. She gave me all the recruitment information and we talked quite a bit. I did my research and then some...for those who know me, you know I don't jump into anything without all the facts.

After some thoughtful prayer, deep thought, and much research I decided I would order the "starter kit" and decide from there. I knew the recruitment information would not have all the nitty gritty details and the small investment ($115.82) was worth my time.

The kit showed up and I was absolutely thrilled with the info and the opportunity. Enclosed in the kit was EVERYTHING needed to get started; I actually made my first sale the following day for $108.63 retail! This immediately went towards my initial investment.

I wrote a business plan, made many business decisions (who knew I even had it in me!?) I talked with the Independent Sales Director and asked for guidance as far as how to start up and what step two was.

Now, don't get me wrong, I know how sales people talk and I can ferret out the truth from the hype. Like I said, I didn't just close my eyes and jump off the ledge.

We finally received our federal tax refund deposit and I immediately paid off all the credit cards I had planned to. Here's where my plan began to take a bit more shape. After looking over my business plan I decided that I would place an inventory order and get serious about making money. With a generous profit margin and various bonuses I decided this was worth a try.

My first order was developed over the next few days with the vision of not exceeding my set investment budget of $1000.00. Yes, this was going to be on a credit card...I know I said no more debt and that "just this once" turns in to once more, and once more...not me I say (as I'm sure millions of bankrupt people have said in the past). The order I placed was large enough to take advantage of the "new recruit bonus". Of the $243.50 retail value for this bonus, I will keep $113.5o for personal use, the rest is available for sale.

I've heard Dave Ramsey tell people there is no need to go in to debt to start a business; that the best way to grow wealth is to start at zero, not a negative number. You'd think I'd listened to him enough that it would actually stick in my head...apparently not!

So, now I have an investment budget of $1000 of which there is now $32.75 available. I have an inventory order worth $1705.09 retail on the way. I have made other business related purchases for things like office supplies that have made up the balance of my investment. It is my goal to have all the business debt paid in full within two months of my start date (February 13). From that point forward, it is my intention (and yes I know about intentions...) to operate a debt free business from that point forward.

Here are my business goals for my first year:

1. Pre-sell $300 (wholesale) before business debut. (March 16, 2009)
2. Break even on initial investment on or before April 13, 2009
3. Continue to operate my business with no additional debt. (My Investment budget was $1000.00; I have spent $1075.88 and taken in $108.63).
4. Make a net profit of $6000 before December 31, 2009.

I don't expect any of this to be easy or to just have money fall in my lap. I know I have to work, I know I have to get out there and pound the pavement, make phone calls, attend consultant training and unit meetings.

My first thought was that I was wondering how much money I could make with this business. Within a day I realized this was ineffective thinking. I needed to set a goal and reach for it. I couldn't sit back and expect this business to run itself! No wonder people fail. They hear the hype and the rhetoric, jump in and then sit back and wait...I wasn't going to wait, I AM NOT GOING TO WAIT. I set goals for myself. My profits will be spent as follows:

1. Church - 5%
   
2. baby Step 2 - 85%
   
3. Savings - 5%
   
4. Blow Money - 5%

As I am still operating in the red my first customer payment ($108.63) will be used to open a bank account. I will use this account for business use only. My first priority will be to pay back my investment debt. Fortunately, the credit card I used to make this investment had a zero balance so it will be easy to track any interest payments as a business expense. Then I would like to say that the next $5100 towards my personal debt, the following $300 will go to Savings, the next $300 to the church, and then $300 for 'blow money'. Any profit in excess of $6000 will go towards Baby Step #2. Once I have completed baby step #2, baby step #3 is to build an emergency fund equal to 3-6 months of living expenses...

1. Church - 10%
   
2. Baby Steps 2/3 - 70%
   
3. March of Dimes - 10%
   
4. Blow Money - 10%

Baby Step #4 involves investing 15% for retirement (depending on whether I am still married or not this amount can vary widely because I may be saving either just 15% of my income or 15% of the total household income...) Once Baby Step 4 is in place it is time to pay off the mortgage...

1. Church - 10%
   
2. Retirement - 15%
   
3. Short term savings -40%
   
4. March of Dimes - 15%
   
5. Blow - 20%

So, that's my plan. During our first conversation my Independent Sales Director asked what my ultimate dream would be if failure was not an option. I replied that I would never have to get a 'real' job, my family would go on a vacation every year, and we would live the rest of our life debt free!!

Anybody need a complimentary facial? ;)