how would your mindset change if you HAD to make a living from your business?

I’m out of town this week at New York Gift.  If you’re at the show, I’d love to meet you! I’m in Accent on Design, booth #3973.   (Or tweet @meganauman to connect.)

How would your mindset about your business change if you HAD to make a living from your business?

While at BlogHer, I had a beautiful conversation with Rachelle (otherwise known as Magpie Girl) about business and our relationship with money and earning.   We talked a lot about keeping all the money in the business, paying yourself a salary, and how much the need to do so impacts the way you perceive your business.

I shared that part of the motivation to make my business successful is that my husband and I need me to generate an income. My husband works, but he doesn’t make enough money to support both of us. (At least, not at the lifestyle we choose to have – which isn’t extravagant, but not exactly frugal either.) From the beginning, I’ve had to come up with my share of the living expenses. It was either make my business work or get a real job.

As I was sharing with story with Rachelle, she pointed out how that has made a huge impact on the way I run my business.

It’s always been sink or swim, and that’s really impacted my decision making. I’ve never had the cushion of living completely off a spouse’s income (don’t get me wrong, having another person to share expenses with does make a big difference) or from a full-time day job. And because I’ve never worked a traditional 9 to 5, the idea of finding a “real job” seems unfathomable to me.

Interestingly, the need to make a living off of my business from the start has made me more willing to take chances and spend the money I need to grow my business, not less.

One of the interesting things I’m realizing is that a lot of the most successful craft business owners I know are in a position where their business has to generate revenue to enable them to live. Whether it’s a single woman with no day job, or a woman, like myself, who has to split bills with her partner, or a couple both pursuing creative businesses, there’s something about that lifestyle that forces you to do what you have to do.

If you aren’t one of the lucky ones who NEEDS to make money from your business (wow, doesn’t that flip conventional wisdom on it’s head) what can you do to bring some of that mindset into your own business decisions?

How would what you’re doing change if you HAD TO support yourself solely from your creative business?

Would you start charging more? Would you do more shows? Buy more marketing? Streamline your production process?

Would you take more risks? Seek out more opportunities? Approach your business with more hunger? More fire?

And if you are in a position where you business does or needs to support you, how do you think that’s impacted the success of your business?

20 Comments

  1. fantastic question Megan! I think about this all the time. The need to make a living for us and our three children changes EVERYTHING (sorry for the caps- but I feel pretty strongly about this one). I see it everyday. We are constantly making decisions that will help us meet our income goals. We just wouldn’t do it if we didn’t have to- cause it isn’t easy. We’re fine tuning every day- marketing, production, pricing. Its absolutely worth it- we’re doing things I never thought possible.

  2. So many artists I know don’t get this part, having the luxury of not “needing” the income, they say they do what they do because they like it. They don’t always charge enough, thinking they won’t get it or are not worth it. Customers say to me “you can’t be earning a living” when I have to try every turn I take. They also want deals and say sometimes prices are too high, but I have the same bills they do. If I devalue my work, they will devalue my work, and this perpetuates the concept that you can’t make a living doing art. Give credit for work done by yourself and by others. It all comes back to the bigger picture.

  3. Great question, I have in the past tried to “psyche myself” into believing this,to force myself to work harder or motivate me. I find it doesn’t work for very long, then I feel mad at myself, frustrated and desperate. I do agree with you that the more successful artist are probably in a sink or swim situation and take more risk than those who are not in that situation. So you guys make better, and quicker biz decisions.

  4. it’s so funny you posted about this today! just last night i was running thru numbers thinking–“the pedal has got to hit the metal beginning this week”. i’m putting myself on a routine and really focused on maximizing all the hours in my day. there are some not-so-fun things that i need to tackle over the next few weeks, but i realize that putting them off doesn’t make this process go any easier OR faster. for me, it’s more marketing, more structure, more studio time. failure’s just not an option.

    ps-downloaded your free ebook and ABSOLUTELY LOVED IT. so, so good–thank your for sharing that. i also bought the business growth planner, filled it out in one day, and will be using it to guide my steps over the next few weeks. i’m be your new coaching client soon!

    dayka

  5. I work full-time and work to develop my business in the evenings…I have to say, depending on the business for all of my income would radically change my methods. Right now I’m gaining clients through word of mouth, and it’s led to a steady stream of jobs, just enough to keep me a little stressed out, but happy. I’d really up my networking game if I were full-time, and I’d dedicate more time to blogging/tweeting/google plus-ing, for one.
    Also I’d probably crack open that book about marketing and pricing for designers that I just bought.

  6. Great post!! I am a NEED my business person after getting laid off a couple of years ago. I think one of the things I took for granted was just what my business income had to cover. When it was a side business, my biz money had to pay for my cost of goods, plus a portion of my household expenses — based on the percentage I was deducting as a home office. Add in a little for tools and supplies, and I was good. Now that the overhead has to include enough to cover my mortgage, utilities, groceries, health insurance, retirement, and any extras (many of which are not deductible and have to be in the part that’s left over AFTER the government gets its cut), well… it can be daunting, to say the least. Add in being a single mom and it definitely puts your feet to the fire. But like Kate suggested above — it is also incredibly empowering, and I wouldn’t change it for the world.

  7. This article was really great and touched on things that were so true to me that I hadn’t realized yet. I’m in a situation where we need my small design business for money but not NEED it like the power bills could cease if I didn’t get it done and I’m realizing now after reading your article that maybe because of this situation maybe I’m being a bit more laid back then I should be. I think this will be good motivation for me to keep in mind.

  8. Great response to the NY Times article yesterday. It seemed so many of those folk didn’t take their business seriously.

    1. Getting serious about your small business before it even starts.
    2. Understanding that infrastructure – administration, accounting, marketing , customer service, etc. are all part of your business and they all take time.
    3. Figuring out what you might earn in a perfect world to see how much you MIGHT make (is your business dream possible).
    4. Figuring out what you NEED to earn in order for the business to make sense.
    5. Examine your product (or service) process to reduce costs, time, and skill (would you be able to hire someone to do some or all of the work at some point).

    Megan – you may want to alter your tweet template to include your @ automatically as well as the article link.

    Thanks for the column!

    Steve

  9. You are correct. Because I work a 9 to 5 job already, I do not do what I need to in order to make my handmade business as successful as it could be. If I lost my job tomorrow, I would be all over building my business thru marketing, product production and I would definitely have more “fire”, as you say.

    The stress I already feel from trying to do both at the same time is detrimental to the growth of my business. I get burned out much too quickly and I feel like I am just holding it all together some times. I think it is a different kind of stress to that of the “sink or swim” stress.

    Diane

  10. I think about this all the time. As someone who’s always had a 9-5 job, it’s kind of unfathomable to me to give it up! We’re trying to get ready to take the jump, but the “sink or swim” concept is really intimidating…

  11. It’s like you read my mind. When I went into my part time job today, which I use to pay my portion of the bills like my car and cell phone, I found out my hours had been cut starting next week. I won’t be able to afford my “basics” any longer. I have two choice – rely on my student loans or buckle down on my business and finally start using it to support myself. I have no idea what I’ll be changing yet, but I’m sure I’ll be thinking about it a lot over the next few days.

  12. Great post! Three weeks ago, I took the plunge and left my day job to work full time at my creative business. That decision has changed everything, I mean EVERYTHING! Because this business needs to earn a certain amount of money, I have had to really carefully examine every decision, from how I prioritize my time to where I spend the money. It is taking some getting used to, but I now have no excuse for not doing everything that needs to be done to build my creative business.

  13. Reading this comforts me that I’m not alone. I must say that I’ve been in this mindset for years. Ironically, my “day” job is one that I’m almost as passionate about as I am about my art photography. It seems that is partly what holds me back. I often read stories of successful entrepreneurs that previously got fired or laid off, and the urgency takes hold and their hobby or passion earns them more than just a living.

    Not being “all in” with my creative endeavor certainly leads to much more conservative decisions which can be the devil in disguise.

  14. Due to becoming pregnant with my first child and being a student, I’m becoming one of those people that NEEDS to depend on my small business endeavours. I’m getting by right now because I have student loans, but come January I will have absolutely nothing but myself to rely on financially, loans to pay back, and a new baby in tow. Not an ideal situation but my plan initially was to finish my accounting courses and sit the CPA exam. Then surprise pregnancy and now everything has dramatically changed and I had to quit my job because of the stress and its impact on me physically and emotionally. What was once a little side income is now becoming a necessity. I can no longer just put things off. I have to DO them even when I’m feeling exhausted and like a slug. Motivation is a problem for me and always has been. My fiance does not make enough money to support us (he also has a 9 year old daughter), so I have never counted his income in any of my equations. I’ve also never expected any man that I’ve had a relationship with to support me financially. I never saw marriage as a safety net for anything so self-reliance has always been important to me. At this point, I can’t afford to lower my prices, otherwise I’d begin to lose money. I’ve only had one person say my stuff was expensive but compared to what? Most of the stuff I’ve seen along the same lines as mine is either equivalent or higher in price. And I’ve noticed some people will pull the “I love your stuff but it’s so expensive” line when they’re trying to see if you’ll cut them a deal. It’s tempting when business is slow, but in the long run I think it can hinder. Even though times are very hard and I can’t predict my income at this point, I’m very relaxed and happy since I don’t have to be somewhere at a specific time, answer to someone else’s rules and expectations while trying to deal with a tremendous amount of discomfort and pain. We all too often, deny ourselves certain things because we are afraid of hurting a person’s feelings or that they’ll have a negative opinion of us, or we think we’re being unreasonable. Pregnancy has removed those filters from my brain, which means I’ll be more likely to speak up about something I dislike and get it fixed than not saying anything. It’s empowering to remove those walls that often stop us from getting what we need.

  15. I have been telling myself that most businesses don’t turn a profit at first, but I am realising that I cannot hang on to that excuse forever. I need to push myself as a business person to make a profit, and that is hard. Pushing myself artistically can be scary but it is fun and exciting too. Pushing myself in marketing and promotion is absolutely terrifying, and not needing the income lets me get away with avoiding it.

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  17. OMG this post is so powerful, it’s scary actually. I think in a way I’ve been fortunate enough financially to not REALLY fret too much because I would always have a roof over my head and food in my stomach, but that doesn’t cheapen the desire to want to live off of my work. That is my ultimate plan. A plan I’m putting into action. And something I think I’m about to share more of in a few. I need to get my thoughts together.

  18. Excellent topic! I’ve often contemplated the same question, but you have tackled it with such grace. Necessity is a great motivator. One of my favorite quotes (by whom I can’t remember) is “sometimes when you have something to fall back on, all you do is fall back.

  19. Like several of your readers, I am in the fortunate position of sink or swim. Yes, fortunate! I have been full time with my business since March of 2009. It can get scary at times, but it is 100% percent worth all of the long hours and labor. I am doing what I love and if I had the luxury of a partner who supported me, financially, I can honestly say, I would be no where near where I am with my business. Necessity is a HUGE motivator. I still hope for lots of future growth, but things are moving in the proper direction and this is the first year I have felt truly confident and able to flex a bit of muscle. Self-reliance is a wonderful feeling. On the other hand, I am sure that there are lots of folks who might freeze in the face of taking the plunge without a spouse or partner paying the bills, and perhaps their journey is different. They may feel better moving slowly toward their goals and that’s okay, too.

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