Staying home--home-based businesses

I have had a few home-based businesses over the years. Here is some of what I've learned:

In-home daycare

The most money I ever made at home was by being a child caregiver. 

Some people say, "Oh you must have a lot of patience to do that." Well, maybe I naturally have patience, but what I found most challenging was keeping the house clean on a daily basis...ready for the doorbell at 7 a.m. or earlier.

Our state didn't even require licensing for watching four or less unrelated children. I wasn't comfortable watching more than that, anyway. If you are considering opening a daycare, check into your state's regulations!! Each state is different. 

The first time I opened a home daycare was more than 10 years ago. Our dining room was empty so that became the playroom. The other time I opened a home daycare, I used the room intended as a formal living room. Both rooms were close to the front door.

Here are some things to do before opening a home daycare:

• Take a CPR, first aid and AED class. About $125, I think.
• Buy a fire extinguisher and learn how to use it.
• Put baby gates up where you don't want kids to go--like near stairs.
• Baby proof. Outlet plugs; doorknob covers; cabinet latches etc.
• Make sure pets are up-to-date on vaccinations.
• Find somewhere to keep unfriendly pets during daycare hours.
• Make sure the outside play area is safe.
• Get a daycare rider on homeowner's insurance. (it's inexpensive)

I don't recommend buying equipment like high chairs and pack 'n plays until you have kids signed up. Sometimes they bring their own. I ended up buying new high chairs at about $30 each and two pack 'n plays for about $50 each.

I charged $125 per week for full-time. My hours were from 7 a.m. til 6 p.m.  No weekends.

Even though $125 a week doesn't sound like a good wage, multiply it by the number of kids enrolled.  Four kids is $500 a week. In addition, you don't have to pay to have your own kids in daycare. 

Sounding better?

But it's not all singing and naps. Kids can totally run you ragged. Then there are the iffy sicknesses (is he really just teething?) and late pickups and late payments.  And just when you think your exhausting day is over, your own family is immediately looking to you for supper. 

I recommend starting gradually with one child at a time. Even if you intend to enroll three or four kids, make sure your own family (and pets) get used to the new routine. You may find yourself wondering how you can ever add on at all. But things typically get easier.

Why I don't offer daycare anymore:

The first time I stopped doing daycare was because the little boy I was watching became ready for preschool. I was also watching half-day kindergarteners who were then ready for all-day first grade.

The second time I stopped doing daycare was because of a couple things: we switched insurance companies and the new company didn't cover in-home daycare businesses; in addition, family issues had been taking me out-of-state quite a bit.

This was just a quick overview. If there is interest, maybe I will post more about daycare as a business along with some activities and meal plans. 

Baking

 

I love to bake and had been getting the hang of decorating cut-out cookies. I decided to open a business.

I ran a small ad in the local paper and got a few orders. I can't even remember what I charged, but I remember baking for a fancy party, baking a tray of cookies for a Bunco party and I was proud to have a repeat customer. She ran an accounting firm and had me bake pretty cookies for her office at each holiday. 

Before starting, I called our health department who told me it was fine to do this...as long as everyone knew I wasn't licensed. Then my neighbor told me to check again. She was SURE I needed to be licensed. And she was right. The person I talked to initially gave me wrong information. After reading the licensing requirements I realized there was no way I could do this bakery. It would cost $10,000 or more to comply. 

Onward to...

Homemade Pet Treats

If I can't bake for people, I'll bake for animals! I had to register with the Department of Agriculture and have my treats analyzed for nutrition. None of that cost too much. Totally doable. 

I had displays of my treats at our veterinarian's office, a local "people" bakery and a pet store. Our county's parks department hired me to pass out my treats at a bark-in-the-park event...oh and I filled a huge order for a woman who bred dogs. With each adoption, she gave the families goodie bags and my treats were included in those. I also participated in a couple craft fairs.

It seemed my reach was limited, though. I just wasn't making much money at all. 

For those who try this nowadays, the Internet will play a much bigger part. In order to sell everywhere, though, licenses are needed in each state.

Writing

I wrote for free quite a bit before actually getting paid. I think that's the way it's done most of the time.

I wrote for a few newspapers and a parenting newsletter. A news magazine hired me as a freelancer. I got paid $200 for a feature article about some friends of mine who became missionaries. I also covered some local events and was paid $75 for each event.

My love of writing prompted me to start a local website and also a newsprint paper. The newspaper endeavor was with my husband. I couldn't have done it on my own.

Here's the thing about publishing a newspaper: ads need sold to cover the cost of printing. It was incredibly difficult to sell enough ads each month to cover expenses. 

Suggestions: If you decide to write for profit, start writing for free. Just write, write, write. Build your portfolio and make connections. Consider purchasing a subscription of Writer's Market when you get serious.

Welcoming

Neighbors About Town began as a welcome service. This was lots of fun. Each month, a realtor friend gave me a list of homes sold in the area. I narrowed my focus to only those moving into our school district. Depending on the time of year, I welcomed 80 to 150 new people a month.

Each newcomer would get a gift bag filled with goodies from local businesses. It was so much fun stuffing the bags. Some things included were: Play-Doh from a Montessori school;  antenna balls, visor clips, small message boards, weather thermometers, tulip bulbs, calendars and of course magnets and coupons. A local college contributed individually-wrapped Little Debbie cookies with a note attached, "Be a Smart Cookie."

I added some tissue paper sticking out and tied the tops of the bags with ribbons. I included a little note from me inviting the newcomers to call me with any questions about the area. 

I rang the doorbell and said, "Welcome" while handing them their bag. If they weren't home, I tied the bag onto their doorknob using the gift bag ribbon.

Home sales tapered and the businesses didn't see much value paying for me to welcome just a handful of people.  Too bad. 

The newcomers enjoyed being welcomed; and I think it's courteous of local businesses to reach out personally rather than blanketing a "demographic" with junk mail. But that's just me.

Now you know why my kids tease about my next endeavor being "Mom's Tire and Lube." I've tried so much! 

I think I should do an entire post on each of these businesses. There is so much more to cover. 

Before starting a business, do your homework. But don't let the information-gathering phase paralyze you. At some point, make the decision to do it or not do it.

Keep good records and pay your taxes. :) 

Also, don't be afraid to wrap it up if it's not making you money or if it ends up costing you money (unless you want it as a hobby).

Good luck!

 

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Staying home--budgeting

Graphic from designedtoat.com

Can you afford to live on one income? 

Here is how I budget for our family. Maybe it will help??

First, I calculate our fixed expenses.

Examples of fixed expenses are payments for: 

• mortgage
• car(s)
• water
• sewer
• electric
• natural gas
• cell phones
• land-line phone
• car insurance
• house insurance
• health insurance
• real estate taxes
• community association dues
• trash pick-up

To get an accurate representation, I gather payment figures from the past year and then divide by 12 for the average. 

In the winter, our natural gas payments are through the roof and in the summer, they are next to nothing. The opposite is true with electricity--summertime is expensive and wintertime isn't. Averages help give a true picture of an entire year.

If you had to use one income, would there be any money left after subtracting the fixed expenses from this income?

If yes, that's great!

If no, don't lose hope. Hang in there with me.

I didn't include expenses for groceries, gasoline, clothes, kids' activities, entertainment, gifts, parties, doctor visits, veterinarian visits etc. These are variable expenses.

If you don't have enough money to cover fixed expenses...or if you don't think your leftover-after-fixed-expenses amount will cover variable expenses..then changes must be made to lower your fixed expenses.

Here are some ways to hack at those fixed expenses:

• Shop around for better insurance rates.
• Turn lights off when leaving a room.
• Keep the house a little chillier in winter.
• Keep the house a little warmer in summer.
• Line dry clothes instead of using the dryer. Just hanging some on the shower curtain rod helps. The dryer is a HUGE electricity sucker.
• Only run the dishwasher when it's full.
• Review phone plans. Consider ditching a land-line phone.
• If you have more than one car, decide if the second is a necessity. Eliminating a second car will also eliminate car insurance and maintenance for it.
• Look into satellite TV instead of cable or the other way around. We actually got rid of our satellite TV in favor of Netflix on the internet. Saved us about $70  month.

 In general, be mindful of what you use and try to use less.

If you are open to the idea, a move could be in order. I won't suggest it necessarily other than to check into it. It is sometimes possible to remain in the same school district but move to an area with a lower tax rate and lower homeowner dues. It does cost money to make the move. There are so many fees! But if it saves in the long run--well, just do your homework.

After getting your fixed expenses lowered enough to have some leftover money for the variables, it's time to seriously consider staying home.

WOO HOO! 

Now for the fun stuff!!

I love that I have control over our variable expenses. This is where my "job" keeps me incredibly busy at home.

Once again, those variable expenses are: groceries, gasoline, clothes, kids' activities, entertainment, gifts, parties, doctor visits, veterinarian visits etc. 

I believe I have an unusual philosophy when it comes to variable expenses. 

Instead of looking for ways to CUT spending...I would rather start from zero and add on as needed. 

Instead of saying:

"I spent $180 on groceries this week. That is unacceptable."

"We can do without the cold cereal and soda."

I will say instead:

"Nutrition for survival costs $50 a week."

"Anything else is bonus."

To me, saving money isn't about finding ways to spend less money. It's about finding ways to spend no money...and then caving in appropriately.

So much can be saved in the groceries category. If you eat out a lot, eat at home. If you eat at home, but eat a lot of processed foods, cook more from scratch. If you are cooking from scratch already, grow your own fruits and veggies. Keep going in this direction until you are doing all you can for yourself. (Total self-sufficiency is next to impossible, by the way, but a good goal to strive for.)

Car trips can be consolidated to save gas money. Stay home whenever possible. This is easy for homebodies. 

Hand-me-downs are a way of life around here. Using second-hand shops and garage sales not only save us money, but also make use of existing clothes. It's a green way of life.

Kids' activities can be so very expensive. My kids didn't participate in many activities in their early years. We did Girl Scouts and 4-H, but that was about it. We tend to put more emphasis on activities during high school. But that's just us.

Entertainment is almost laughable. We aren't from the "date night" generation. We try to do something nice on our anniversary, but we don't make much fuss typically. Our entertainment consists of inviting friends or family over to play board games or watch sports.

So many of the gifts I give are baked treats. Teacher gifts? Cookies. Friend's birthday? Cookies. Neighbor gifts at Christmas? Cookies.  For kids, we give them what they want. Toys usually. See, I cave in sometimes. :)

It is worth looking over your holiday/birthday lists to see which gifts may be created instead of purchased. Even if homemade goodies just supplement someone's gift, it will save you a bit. Planning is key.

For us, parties are usually held at home. We hosted a lot of backyard parties with goofy party games and snacks. No big whoop. 

As kids get older, parties become trickier.

Girls love slumber parties--no matter what age. You can get away with pizzas, cake and ice cream.  Add a movie and you're good to go.

I am usually at a loss with boys' parties. This year, I lucked out. A cover band was playing nearby (free tickets!). Well, we invited a handful of boys and just had some pizza and birthday cake quickly before leaving for the concert. I doubt I will ever be that fortunate again!

Doctor visits are unpredictable. I can only anticipate based on the past. One thing I do know...if there is a doctor expense, there is usually a prescription expense to accompany it. I just budget for a couple doctor/prescription fees per year. 

Veterinarian visits are easier to anticipate. They are the same every year...unless there is a problem. Just check around to make sure you are getting the best rates and keep your eyes open for promotional offers. Our veterinarian gives discounts on Fridays and Saturdays if we are willing to see an assistant instead of the doctor.

Other tips I could give would be to do your own yard work and your own car maintenance, but those are my husband's area. He is handy and rarely gets flustered about something. He studies up on the project at the time and jumps right in!

Curiosity and learning are extremely helpful!

Try some of these suggestions as a trial run while you are still working. Pocket the extra paycheck for savings (yay!) before eliminating an income stream.

Be true to the figures and don't quit your job based on emotion. 

And most importantly...make sure the budget agrees with you!

Good luck!

Stay tuned for:
Staying home--home-based businesses

 

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Staying home--the financials

I am at a point in my life where I can provide insights and perspective by sharing what I've learned during the wild, lean years of motherhood. Who knows? Maybe some of these writings will help someone. I also want to reaffirm my dedication to frugality and continuous learning as this new year begins. Wheee!

So many people are spinning their wheels. Working. Rushing. Crabby.

That used to be me:
worked full time;
attended college part time (to stay competitive, after all);
squeezed out a baby now and then;
used childcare; and
tackled household chores in my spare time, if ever.

Heck with that noise.

My husband's job relocation during the same year as the birth of our second baby forced me to quit my full-time job a few years ago.

I haven't looked back.

I wonder if others are spinning their wheels for no reason. There isn't much time to strategize while one is in "reaction mode."

When a family considers living on one income, they typically do the "daycare" math. Income minus daycare expenses is the logical first calculation. That answer is often surprising and life-changing.

If I worked outside the home, my salary would probably just pay for the conveniences associated with my working. Any money left over wouldn't amount to much.

Those conveniences weren't considered in our initial calculations, but I know how things work. Good intentions are no match for stress and exhaustion. Oftentimes eating fast foods and frozen dinners and mindlessly buying clothes and gifts would happen, because there was no time to create alternatives.

Here is our story:

Just after our second child was born, a job relocation put us in a town where we had no family or friends. I was uncomfortable searching for daycare when I didn't know anyone who could offer suggestions of good caregivers. I didn't have a job lined up, anyway.

We felt confident our fixed expenses (plus a little extra) would be covered with one salary. Everything else was pinched and budgeted.

Pinching and budgeting became my job.

Things changed big time. We couldn't consume as we had. Household expenditures such as food were strictly budgeted. Cooking from scratch became habit as did gifting from scratch and entertaining from scratch. Breast feeding and using cloth diapers relieved some spending. Big ticket items like new tires or a new mattress were budgeted months in advance.

I read The Tightwad Gazette books cover-to-cover REPEATEDLY. Author Amy Dacyczyn became my hero.

We are fortunate we never got in over our heads with expensive mortgages or debt. It doesn't take much to make us happy. We are go-with-the-flow type people and are definitely NOT high maintenance. (High maintenance people probably say that, too. Ha.)

We weren't able to put much money in the bank at first. It was our goal to simply stretch that one income to cover our needs. Things got easier as time progressed.

I stay home because it's best for our family; but by my NOT having a job there is one more job available for someone else. So there's that, too.

Stay tuned for:
Staying home--the human aspect
Staying home--budgeting in detail
Staying home--home-based businesses. Oh boy--I've tried THEM ALL. :)

Are you currently staying home? Would you rather work outside the home? Please share your story!!

(Also stay tuned for my super-duper awesome secret launching sometime around March.)

 

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