Okay here is the deal. My husband and I own a residential/small commercial electrical wiring company. I work 40 hours a week and also do the books, payroll...etc for our business. How can I get to the point where I can stay at home and just work for our business? What is the debt/income ratio that is needed for this to succeed? We are in the process of paying off our vehicles. I pay extra every month. I also pay more on the mortgage. All answeres are appreciated.
2006-09-26 08:48:13 · 3 answers · asked by GreeneyedCowgirl 5 in Business & Finance ➔ Small Business
I am where you want to be.... but I don't figure ratios. We do electrical work, bill the customers out, I do all the books and pay myself. If you have no bills you don't need to worry so much about money so paying your car loans off ahead of time is super!!!
As for the business....Do not buy a new piece of equipment till you can pay cash for it. This will ultimately save you more money too. We needed a trencher for electrical installation... we saved then went shopping. We can't help but laugh at all the money others are wasting by getting loans on everything. They are tapped out and better not miss one day of work!
Are you and your husband contributing to an I.R.A. ? You should be!!
Do you go to an accountant for year end income taxes ? You should be!!
There are soooooooooo many benefits with having your own business, thing YOU won't know about unless you take courses in the american tax system. Getting someone smarter than you to help you with things is always a benefit. Our accountant saved us $8000.oo the first year alone in taxes due to deductions I didn't know existed.
All in all...You bet it is possible to quit your job and work for your business... amazing it is, to sit in my jammies all day if I so decide !! : )
Good Luck ! : )
2006-09-26 09:29:34 · answer #1 · answered by Kitty 6 · 0⤊ 0⤋
What you need to do is ensure that you are taking home from your business what you are already taking home from your 9to5 job. Ensure that you have made this income from you side business and you are making it no less then 8 months to a year.
it might sound like a long time, but you want to be safe. Also ensure that you have saved at lease a few month's of your monthly home bills just in case business hit's a rough spot.
good luck and hope you live the American dream
Auggie
MyTurnkeyBusiness.com
2006-09-26 23:32:01 · answer #2 · answered by formy.biz 3 · 0⤊ 0⤋
It would depend on various factors but with your go-get-'em attitude, I would love for you to join me in my extra income producing endeavor!
2006-09-26 15:54:10 · answer #3 · answered by allnontoxic 2 · 0⤊ 1⤋