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.
Personal Salary
I think it is essential that you put in a personal salary as soon as you can. This salary should be part of the income generated by your business. It should be 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.
Personal Savings
You must save an integral part of your salary. This is especially true because your business’s income is likely to resemble a roller coaster, and sometimes you can pay what you have 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.
Why so much? Well, now you must pay for a series of things that you did not have to worry about before (or not), and previous concerns do not disappear.
Investment in Your Business in the Cloud
To successfully grow your business, investing in it is not just important—it’s essential. When running a personal company in the cloud, you will encounter three primary categories of expenses that form the foundation of your business investments:
- Domain and hosting costs: Your journey begins with securing a domain name and reliable hosting services. These initial expenses are relatively modest, typically ranging between $100 and $150 per year, yet they are crucial for establishing your online presence.
- Initial revenue generation: To start generating your first income, you may need to allocate additional funds towards critical areas. This might include enhancing your email marketing through a robust mailing list or developing a high-quality information product that you can market and sell. Investing in these areas can significantly boost your chances of earning.
- Building a support team: Once you start to see a steady stream of recurring income, it’s wise to consider hiring additional support. Delegating tasks can free you to focus on your strengths, particularly on activities that you are passionate about or that significantly impact your business’s profitability.
For example, managing the technical aspects of WordPress—such as plugins, backups, updates, hosting, and design—can consume a lot of your valuable time. Instead of handling these tasks yourself, where possible, delegate them to hired professionals for specific projects. This allows you to focus on what you do best, while also ensuring that the technical aspects of your business are in capable hands.
Ultimately, your energy should be directed toward creating compelling content, developing innovative products, and enhancing your services. On platforms like Elance and Odesk, you can find exceptional freelancers ready to help you achieve your business goals. By investing wisely and building a support system around you, you will position your business for growth and success.
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.
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