When you start a full-time personal business in the cloud based on a blog to sell professional products or services, you should not forget how to organize your finances or manage the money generated by your business.
I think it is essential that as soon as you can, you put in a personal salary. This salary should be part of the income generated by your business. This salary is managed as if it were the money you earned before in the company where you worked.
You must have a salary to manage your business’s revenue, invest in it, and pay your expenses. Separate your money from the money of your business. Never mix them. The money your business wins in the cloud must be separate from personal money and vice versa. Have a separate account and a different card.
If you need to borrow from the “other party,” write it down and mark the same return conditions you would demand from other people in the same circumstances. Personal expenses are paid with private money—the business’s expenses with the funds generated by the company.
It is essential that you save an integral part of your salary. More so because your business’s income is very likely to resemble a roller coaster, and sometimes you can pay what you got and sometimes much less.
The more unstable your income, the more you must save. If you saved 10% -15% from your traditional salary, now you should increase it to 25% -30%. If not more.
Investment in Your Business in the Cloud
If you want your business to grow, you must invest in it. A personal company in the cloud has three types of expenses:
Domain, hosting, and expenses to generate the first income: They will be your first expenses and your first investment in your business. They are low costs, between $100-150 per year.
In addition to these expenses, it is possible that to start entering the first income, you must put some more money, for example, into aspects related to your mailing list or the development of a quality info product that you will then commercialize.
People who help you: Once you start having a recurring income, you should hire people to help you. Or dedicate yourself entirely to the tasks that you least like and especially to the less weight on the benefits of the business.
For example, everything related to managing WordPress (plugins, backups, updates, hosting, and design), but remember that you always try to pay someone for a particular task. If you turn them into a fixed expense, it is worth it.
New Payment Tools and Services
According to this blog, certain services or plugins you use will cease to be free or take a leap in quality. For example, if you use Mailchimp to manage your mailing list from a certain number of subscribers, it is no longer free.
Or, if you want to start monetizing it more thoroughly, you will need payment plugins like OptinSkin. If you make videos, your brother’s camera and a free editor at the beginning are acceptable to break the ice and see how it works. However, if you’re serious (and you’re going because your income depends on it), you’ll need a good camera and a good editor. Do not be afraid to invest in this aspect if you know that spending will impact higher quality and, therefore, higher income. If not, it is not an investment.
To have a personal business in the cloud and, at the same time, your finances are well controlled, these steps are fundamental:
- Put up a salary as soon as the business generates enough money.
- Separate your money from the money that creates the company.