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Steps to Uncommon
38 Plays3 days ago
In this enlightening episode of the "Uncommon Wealth Podcast," host Phillip Ramsey delves into the essential steps involved in embarking on an entrepreneurial journey. With an empathetic and strategic approach, Phillip addresses the common anxieties and questions that aspiring business owners face, sharing insights from his experiences as an advisor.
This episode serves as an invaluable guide for anyone considering a transition from a traditional job to running a business. The discussion kicks off with the importance of setting up an LLC to establish a formal business entity and moves on to understanding current job agreements and their implications for side ventures. Ramsey emphasizes the significance of risk assessment and tolerance, aligning one's entrepreneurial plans with both personal and family needs. He also touches on the critical aspect of financial planning, urging listeners to gain a thorough understanding of their monthly budget requirements to make informed business decisions.
### Key Takeaways:
* Forming an LLC can make your business venture feel official and provide a strong foundation.
* Understand any existing job agreements to ensure compliance when starting a side business.
* Creating a business plan and identifying target services are crucial steps for successful entrepreneurship.
- Evaluate your risk tolerance to make confident decisions about leaving a full-time job for your business
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Transcript
Introduction to Uncommon Paths
00:00:00
Speaker
Everyone dreams of living an uncommon life and the best asset you have to achieve your dreams is you. Welcome to the Uncommon Wealth Podcast.
00:00:12
Speaker
We're going to introduce you to people who are living uncommonly. We're also going to give you some tools and strategies for building wealth and for pursuing an uncommon path that is uniquely right for you.
How to Pursue an Uncommon Path
00:00:26
Speaker
Hello and welcome everybody to Uncommon Wealth Podcast. I'm your host, Philip Ramsey. Thank you for tuning in. Today, we're going to talk about something that I think is super important. And it is if you're thinking about going down this uncommon path, what are the steps? What do you do? How do you prepare for it?
00:00:43
Speaker
All that good stuff. So, If you're new to this, if you're first time listening, one, thanks for listening. Two, we are advisors here, Uncommon Wealth Partners, that believe you are your best asset. And so sometimes what that looks like is starting your own business or doing something that you've always wanted to do, but you never actually did it.
00:01:01
Speaker
Maybe you're working an eight to five job, working for somebody else, and just have always had this idea. Well, it really depends on like your risk tolerance on how...
00:01:13
Speaker
quickly you jump into this like do you go head first do you test the waters a little bit that all is dependent on your wrist tolerance but but i thought was important i just had a conversation actually uh earlier this week with a gentleman that is like i really want to do this but what are the steps in order for me to feel confident in doing it okay so the first thing is i believe um If you're really going to go down this path, you probably should set up an LLC. You don't necessarily need that, but I think it's helpful. It just makes it like pretty solid and solidified. It it feels official. ah You get to name that LLC. There's something about that. ah But once you do that, then you have some entity that you are now trying to
Legal and Family Considerations
00:01:55
Speaker
focus on. Let's say a side project. For this example, let's say...
00:01:59
Speaker
ah Being a plumber. i don't know. Just throwing this out there. Always wanted to be a plumber. You have the license, you have the stuff. Maybe you're working for a company that is a plumbing company. ah the The next thing is just to see like what kind of agreements have you ah like officially signed with the company? Like, can you do this? Like, that's kind of the first thing. Can you do on the side? i know a lot of electricians. That's totally okay. If they do it on the side, kind a no, no, maybe it is. I don't know, but definitely look at that. and see what your current kind of like agreement is with the current company you have. But then let's say you're, let's just work at Wells Fargo and you've always want to be a plumber. That will probably be no problem if you're doing on nights and weekends. Okay, so then once you understand your, like your circumstance and your, I think like,
00:02:47
Speaker
regulations and all that stuff, and you have your LLC, you understand your company and and what you can and can do, then it's like, how can we get jobs? And how can we, and maybe your family friends already use you for construction or plumbing, whatever. ah But then you need to start charging, like kind of create a business plan of like, hey, here's the opportunities. This is the different kind of services I'm going to provide. And this is what I can do for people. Okay. Once you've established that,
00:03:14
Speaker
On the business side, then it's just starting to get jobs, get jobs. And also, if you're married, make sure that the time you're working on this is both mutually like agreed upon.
Financial Planning for New Ventures
00:03:27
Speaker
So if you're like really working hard to do day job and then you get home at night and you're gone and you're not helping with the kids or the family or whatever, that can be stressful.
00:03:37
Speaker
So as long as you're both in agreement, so I think that's first one is understand your agreement that you have here as current company or LLC, understand agreement, maybe understand agreement, then LLC, then talk it over with your spouse and just make sure they're on board and then start getting these jobs. so The other thing that i think is hugely important, and you can do this before you do all this, is understanding your monthly budget as a household and your personal monthly budget.
00:04:03
Speaker
How much money do you actually need to come in in order for you to pay your bills? That's a big deal. Okay. And I think this is something often overlooked and you, you go to the fun stuff. Maybe that's the LLC or actually doing the jobs, but you never really understood like how much do I actually need to make in this next endeavor in order to provide for my family, whatever that may look like. Maybe there is none. Like maybe you are a person and your spouse is working full time.
00:04:35
Speaker
And the honest answer is like, I don't need to make much. That would be an ideal scenario, but that's not everybody's scenario. So actually understanding what your monthly need is as a personal budget is hugely important.
00:04:48
Speaker
And something you can do is well before you even start this business, before you start out, see all that stuff. I think you understand your monthly expenses so much so that you know that, okay, I need to have at least $3,000 to that comes in in order to provide for my family or whatever that number is. It could be 7,000. It could be 13,000 a month. It doesn't, it just, I'm totally dependent on your situation. Okay. Okay.
00:05:16
Speaker
So once you understand that, then it's kind of a risk tolerance thing. Like, okay, I know I need to take make $7,000 every month. And on average, when I have put my mental capacity and my focus on this, I'm making about $5,000 a month, let's just say Then you have to make the hard decision. Like, is this business going to keep growing if I can't fully have my focus and attention on it because I'm working at somewhere else full time?
00:05:45
Speaker
Then that's a total decision of like, okay, we're going to take a leap of faith. We're going jump off the proverbial bridge. And then we're going to see if our parachute opens. But at least you have a runway and a track record to say and see that, hey, on average, I'm about $5,000 per month. If I think I can do this full time, then i believe that I can make up the delta of that $2,000 my family order to provide family.
Weighing Risks and Making Decisions
00:06:09
Speaker
So I think those are are kind of the steps I would, at least I counseled this individual for and with, and I know it's scary. And yet there's so many other people that have done this. And at the end of the day, if you could work as hard as you're working for somebody else,
00:06:25
Speaker
Chances are like things are going to go um good. I don't know. Maybe they're going to be hard, but I have a feeling that you're going to be able to make ends meet. um At least that's been my experience with the people that I've counseled and coached.
00:06:37
Speaker
um Yeah, things come up that you're like, I didn't expect that. But at the end of the day, the things that you learn while you're on this uncommon path far outweigh the risks, um in my opinion. Now, if it doesn't work out and you've made a calculated risk, you can always go back and get a job. Now, that sounds scary. I totally get it.
00:06:56
Speaker
um But those are kind of like you got to weigh those out. Like, hey, what are my risks? What are my kind of like list tolerance? What is it? What am I acceptable with? And is the benefits outweigh
Encouragement and Next Steps
00:07:07
Speaker
the risks? There will always be risks no matter what, like, let's say your company is generating $8,000. All you need is $7,000 and you're still not working on full time.
00:07:17
Speaker
There's still a risk of like health insurance. Like that's a big thing. What do we do with that? These are all questions that a lot of people have answered. a lot of people have had. And, um, honestly, there's, that's a lot of the reason why people don't go down this uncommon path is just questions like that. But yeah,
00:07:33
Speaker
There are answers to those questions. And this is an easy way to step off and try to understand what are the steps in order to get to this uncommon path or to get on top of this, the railing of the bridge and looking down and then figuring out what's needed to do to jump. So, um,
00:07:52
Speaker
Hope you enjoyed this one. This was a fun one for me to talk through just because I just had this conversation earlier this week. But at the end of the day if you have this itch and this yearning to do something and start something and create something, I believe that we were called to create, then I'm here to encourage it. I'm in i'm here to stoke the flames. And Uncommon Wealth is here is just to tell you that there's other people who done this and they are thriving.
00:08:15
Speaker
And there's other people that have done it that've done it and haven't been thriving and yet they were still excited they did it. because they learn so much more than they ever have done at the desk job. Anyway, so you've been listening to Uncommon Love Podcast. Until next time, go be uncommon and maybe think about what the steps look like for you in order to take one step closer to to being on your own uncommon path.
00:08:36
Speaker
Thanks again for listening. Have a good day. That's all for this episode brought to you by Uncommon Wealth Partners. Be sure to visit UncommonWealth.com to learn more about our services.
00:08:48
Speaker
Don't miss an episode as we introduce you to inspiring people who are actively pursuing an uncommon life.