I love service based businesses. They value knowledge and have incredibly low overheads compared to pretty much any other business model.
Nothing wrong with product based businesses, but service is just what sits perfectly with me.
In researching a new part time business idea I’ve had since ProBlogger (I can’t keep up with my damn ideas!) I wanted to know how viable my idea was.
A worst case scenario is obviously that I make no money at all. Which would suck giant balls, but I also still have a day job, so I won’t be homeless. Yet. I am a contract worker. I was given a brief extension recently that will cover me for Christmas & New Years, but not much further than that. Unemployment is now, and has always been, a constant and real risk for my line of day job work.
So how would I go about supporting Ben & I?
I looked up what I would earn on the dole (slang for unemployment payments, for any non-Aussies). I would be able to receive $452.30 per fortnight in unemployment and $116 per fortnight towards my rent.
That’s $568.30 per fortnight, or if you’re used to looking at things in salary terms, $14,775.80 per year (per person, if both partners are eligible).
And yep, in the past few years I have had to apply for unemployment due to contracts ending and Ben being too sick to work. You can live on that, though I’ll freely admit it’s not much of a life.
Plus, there’s the unbelievable level of paperwork, stress, and hassle involved in apply for unemployment. Wouldn’t it be nice to avoid that? So, what if you had a part time business that could cover the amount of money that you would ordinarily receive from the government?
This is a good type of backup plan for anyone these days! I don’t believe that there is such a thing as a permanent job anymore, and while it’s great to have 6 months of savings for unexpected situations, wouldn’t it be even better if you used your skills and expertise to make sure you always have an additional source of income?
That means you wouldn’t have to use your savings, you save yourself the stress of government paperwork, and you still have motivation and personal satisfaction levels from your business.
If this seems like a somewhat negative way of looking at things, I’ll reveal more about my new business idea in coming weeks (yes, I’m a tease!) and the reason I’m looking at finances in this manner will become obvious.
So, when I was doing my calculations of how much to charge for my new business idea, this was my plan – to cover myself for the last day of my contract so that I don’t have to apply for unemployment benefits until I desperately need to. It’s also handy that the service I will be launching from this blog ties in nicely with the services I offer in my other business for those who need it.
Disclaimer: I’m no financial planner, these are just my thoughts. They may work for you, they may not work for you. They may be just logic. Don’t sue me if they don’t work for you.
Do you have a back up income plan for your household?