Advice from Working Moms Who Quit Their 9-5 Job and Started Their Own Business

Do you have good tax and legal counsel? A solid business plan? Money to fund your start-up? If not.......start there.

I was not working 9-5 as my hubby was an outside sales rep and I was his sidekick as far as customer service, travel arrangements, etc., substitute teacher and volunteer at the school.

About 4 yrs ago, we got the opportunity to start our company and have managed to maintain it well and it maintains our lifestyle well since. It is not all easy, takes a LOT of work, LOT of planning, and LOT of patience. The rewards are wonderful.

We are in the raw materials industry and we have grown substaintially from our start up year from beginning our sales process to projected sales over $4 million this year. We have funded it personally because if you go to a bank for funding, they will want you to have presentations every so often and you must do what they want you to do because they own you. We answer to no one but our tax and legal counsel and by having our books in perfect order per the IRS.

I manage all the Quickbooks, financials of all types, travel arrangements, freight quotes for our transportation needs, etc.

I'd say the BIGGEST challenge is the money. In the beginning, of course you have no credit as a new company but our personal credit was in the high 800's near perfect so that helped a LOT. We paid in advance by wiring money all the time. Soon after though we started getting the 30 day terms and discounts if paid in 10 days and we ALWAYS take advantage of a 10 day discount.

I don't know what line of business you are in but for us, it was tough in the beginning wiring $75,000 to a supplier and relying that all the specs (formulas) were just right for the customer so the product was exactly as they ordered and they would pay us in a timely manner. It is MUCH easier now. I do daily reports which have sales and revenue forcasting along with all the accounts payable.

Another thing we feel is important is multiple income streams. Even though this business is thriving, I still substitute teach as I have for over 10 yrs because first, I LOVE it and second, it is another form of income coming in that could be stepped up if needed in the future.

Best wishes to you! Owning your own business is hard, it is scary, it is 24/7, but it is rewarding.

I went freelance, which is not entirely the same thing, but I do have an LLC and received legal and financial advice through our accountant and a lawyer. Other friends opened a bookstore together and got a LOT of help and advice from several small business and women in business organizations in their area. What you need also depends on your business, too. I have very little overhead and my product is myself (and sometimes my husband's projects). But if you sell items, or you have employees, that will be different.

I did back in 2001. I left the corporate world to become a freelance public relations writer. I work primarily for my former employer and have been fortunate it worked out. At the time, it was a HUGE leap of faith they'd give me any work. It was all done with no promises of anything.

As the others have mentioned, you'll want to get things squared away legally and accounting-wise. I wish I knew how much of a royal pain the financial aspect would be. I love to write, but hate math, so maintaining my QuickBooks records is awful, awful, awful. I also didn't realize that being self-employed I'd lose 40 percent of my income to taxes. You're dealing with quarterly taxes and it's all a hassle. Definitely invest in hiring an accountant for ongoing support.

You definitely want a solid business plan. Research the market for your services. Is there a real need for what you have to offer? Are you really good at what you want to do? I have done well because I know how to meet my clients' writing needs.

Also, think about the time commitment. My husband owns his own business and works at least 60 hours a week. I'm able to work less and manage the kids, but make sure you have the same type of support. Know who will watch your kids while you're working and have backup plans when that doesn't work out.

Best of luck!

Biggest challenges - staying motivated and focuses and organized. Getting up every day, getting dressed, and getting to work without stopping to play with the dog, watch a quick TV show, throw in a load of laundry, and so on.

It's also essential to have a good business plan, to know what you are trying to accomplish, and to have support. That support can come from family in the house (leaving you alone, respecting your work space, etc.) and it can come from networking groups, training opportunities, and more.

Also, good advice on keeping records, receipts, and what's necessary to take all allowed deductions come tax time! I use a scanner and some excel files to keep track of everything - miles, tolls, supplies, client lunches, etc.

If you want to share more about your plan, maybe we can give you more suggestions.