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The Financial Burden of Being a Work-at-Home Mom


When planning your new business, the financial burden of your business may try to overwhelm you. As a work-at-home mom, you want to generate income, but you may need to put money into your business before you are able to get anything back. Therefore, before launching your business, you should know what to expect financially.

Planning Your Business

As you are planning your business, write down a list of items and resources you will need to keep your business going. This includes personal computers, software and any other physical tools you will need, as well as expenses for a hosted website, phone lines and overall Internet expenses. If you are opening an office-extension in your home, write down any expenses that will correlate to that.

After you have totaled your total monthly expenses, research your business type, and determine if it will be feasible to make any income in your work-at-home business. Do this by realistically seeing how many customers you will be able to reach or how many orders or projects you will be able to complete in a month.

When you have determined realistically that you will be able to eventually meet financial requirements to maintain the company, see what your gain would be, and if your gain would be worth your time. For example, if you have $1500 in expense per month and you receive $1650 total from customers, the difference would be $150. Is that amount of money worth you're your time and energy?

Before the Business Opens

If you have done the math and have determined that you will be able to make more than you are spending (and are happy with your salary), check your savings to see if you have enough to get your business started. It is a good practice to have 6-18 months worth of expenses saved before beginning your business, as it usually takes time for business to begin making money.

If you do not have the money available, contact your local bank and see if you would be eligible for a business loan. Also, check into getting government grants or government loans. Even if you are unsure if you will need a loan, make sure you will be able to get one if you are not financially able to meet the first 6-18 months of your business budget. It would be a shame to get close to having a successful business and then have it close because you didn't have the financial security to back it up.

When the Business Begins to Operate

While your business is running, make sure that you have a separate bank account specifically for your business. This will help you see how much you are making, and if it is still worth working at home. It will also prevent you from spending more of your personal money funding the business.

Remember that you may not make a lot of money right away, but there is always hope for the future of your business.

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