I've actually started a side business that does reasonably well. How do I extricate myself from the 9-5?

[Harry B., Telepath]

I'm a bit over 40 and created a somewhat successful side business a few years ago that does reasonably well but not enough for me to quit the day job. Here are the numbers:

After expenses, my side business, which I mostly accomplish on weekends, brings in about $40k a year.

My day job is about 50 hours a week and brings in about $70k, but includes benefits (though about $10,000 a year in commuting costs).

Neither number above takes into account taxes. These are just rough numbers.

Now the home business is not simply one where if I devote more hours it will pay more. It is a nice operation with certain clientele. But I believe it would be able to blossom and reach a fuller potential if I were available M-F to tend to it. Also, as stated, it has no benefits and payments come in in dribs and drabs.

Now, up until a few years ago, somehow, my family and I used to be able to live off of a total gross income under $60k. Our expenses have not increased that much, however, my savings are minimal because I've only entered this higher income bracket in the past couple of years and have been catching up on older bills and expenses associated with starting the business. At this point, any additional income should be gravy.

What would be a reasonable plan of action for me to get away from the 9-5 and become self-sufficient?

[Apollenaire]

The plan of action is the same for every business owner looking to expand, save up until you have enough to survive while it grows to sustain you and your family, get a loan or get investors. If your family can live for under 60k and this brings in 40k on weekends, it would seem reasonable that working M-F you will be able to support your family. Another possible option is getting a part-time job that allows you to work your business full time.

[Friendlybat537]

Those numbers are great, but you didn't mention one important thing: health insurance. If you have decent benefits that you don't have to pay for at your day job, keep the day job! Health insurance is no joke, it's not a good idea to gamble with "I'm healthy now and my family is too so we need less."

Things can change in a minute.

[SSF Tofudebeast]

I was in a very similar position about 5 years ago. What finally convinced me to take the leap was that my corporate job was doing a round of layoffs. I volunteered, and got laid off with a 4 month severance package.

That helped, but really 4 months isn't that long. We grew the business (my wife and I, we started it together), but still we went into debt around $50k just getting by until the business was strong enough to take up the slack. We are doing better now, and have about half the debt paid down.

I would suggest you look at your business and and put together realistic numbers as to how long it will take to grow it to where you can replace your lost income. Do you have savings to cover the gap? What can you cut out of your household budget to live cheaper? How much money can you save up over the next year to help cover you during the transition? Can you get a business loan to help out? If you get a loan, can you cover the payments even if the economy should weaken again? Look into getting a line of credit (apply now while your income is strong) to cover you when payments are coming in inconsistently. These are some things to keep in mind.

Like Kelly said, health insurance can be a big deal. Find a good agent, and start shopping around. You almost definitely won't be able to afford a policy as good as your current corporate one, but at least arrange it so you can get basic coverage lined up for when you make the big leap.

[Small Business Gal]

Hello Harry!

Congratulations on your business. Making 40K on the weekends is wonderful! You are doing something right!

As I understand, putting in more time into your business will help it blossom. Would hiring a business manager help? I am not sure what is it that you do, but if you're talking about email and technical stuff like that, having someone that could do that for you virtually while you are at work on a project basis will help out a lot.

Again, I wish I knew what is it that you do to better help you. I believe you would have a website, and a Facebook Page, as well as a Twitter account. If not, do that asap.

Another option would be to ask your employer if you could cut down your hours at work a bit. Not necessarily going part time, but just enough to give you a bit more time to work on your business.

I believe that giving a bit more time to your business as well as tweaking around with marketing and client attraction will give you the boost for you to be able to go part time, and eventually quit. People do it all the time. You can buy your own health insurance.

I suggest reading the "$100 startup" by Chris Guillebeau - it changed the way I do my business.

If there is anything I can do to help you, please reach out, I would love to help you any way I can!