Author Topic: Pay off debt or grow my business?  (Read 3168 times)

P938LVR

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Pay off debt or grow my business?
« on: April 30, 2015, 06:04:56 PM »
I'm in a bit of a financial dilemma. To make a long story short I work at a job in which I am undervalued, underpaid and am taken advantage of on a daily basis. I have been at this job for several years and I am just tired of being treated poorly. I am on call day and night including weekends yet I am not paid what is the industry standard for the position I hold. A person who was hired who I trained completely makes more money than I do. I am this persons boss and the owner of the company tells this person to address me with any problems yet they make more than I do. They had zero experience in the field that we are in. Also, this person is late daily and has shown up to work too hungover to function more than once. I have been busting my ass at a high stress job for years and this is the thanks I get. I have asked for more money in the past and I get laughed at yet I work much more than anyone else does in my office.

I have been saving money and I have a side business which is taking off but it would be a risk to leave my job in case it fails. I could pay off 15 % of my debt with what I have in the bank or I could use it to buy equipment for my business and grow it further. Or I could just keep working at a job that I don't enjoy just to get a paycheck and pay off the rest of my debt which would take many more years.  It has taken me quite some time to save up this money so it would take many years to pay off my debt.

I would love some advice as I'm not sure what to do! Thanks in advance!
 

Argyle

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Re: Pay off debt or grow my business?
« Reply #1 on: April 30, 2015, 06:11:16 PM »
I'm wondering why you don't get a job at another company in the same field?

P938LVR

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Re: Pay off debt or grow my business?
« Reply #2 on: April 30, 2015, 06:22:13 PM »
I am allowed to bring my child to work with me when my child is not in school if I don't have someone to watch my child. There aren't many jobs that would allow that.

Fuzz

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Re: Pay off debt or grow my business?
« Reply #3 on: April 30, 2015, 10:13:13 PM »
Ask for more money. See what happens.

Also, you don't give any details relative to side biz income, expenses and debt. Plus you mention in comments that you've got a kid. That really changes your risk tolerance. So more details please.

Chrissy

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Re: Pay off debt or grow my business?
« Reply #4 on: April 30, 2015, 10:49:14 PM »
P938LVR!!!  It's been almost a year since you posted about your work situation:  http://forum.mrmoneymustache.com/ask-a-mustachian/i-need-a-raise-but-i-keep-getting-denied/

Grow your business or get another job.  For gawd's sake, just quit now!  Your father is not going to change.  He's just jerking you around with the promise of giving you the business.

Take a chance on your own business.  Buy that equipment.  You'll be amazed at what you can do when you HAVE to.

P938LVR

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Re: Pay off debt or grow my business?
« Reply #5 on: May 01, 2015, 12:35:23 PM »
Thanks for the advice. Tonight I'm going to look at som equipment. It's just hard saying goodbye to such a large amount of money... The equipment will eat up almost all of my savings. That's what makes it so hard... Has anyone else had the same experience? Any advice?

P938LVR

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Re: Pay off debt or grow my business?
« Reply #6 on: May 01, 2015, 12:39:26 PM »
Also would it make sense to try to stick out my job for as long as possible or should I just turn in my notice once I feel like things are going smoothly. The problem is that I am already working a lot at the current job and it would be like working another full time job on top of that too. I'm already stressed and at my limit with the workload I have it feels like.

Jeremy E.

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Re: Pay off debt or grow my business?
« Reply #7 on: May 01, 2015, 02:27:14 PM »
If you think you can make enough money to sustain you and your kid with your own business, then take that FU money, buy that equipment(if it is a good deal), put in your notice, and then laugh at your dad when you make more money than him. Even if you don't make quite as much to begin with, not having to be in your current situation will probably be worth it! Good Luck!

Axecleaver

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Re: Pay off debt or grow my business?
« Reply #8 on: May 01, 2015, 02:30:26 PM »
Quote
it would be a risk to leave my job in case it fails.

If there's no risk, there's no reward. All good things come with risk - investing, relationships, career, everything. You've been at this job with your Dad for a year and you're still miserable. Nothing positive has happened. You know where the risk is? It's a risk to stay in your job in case NOTHING EVER CHANGES!

Your question isn't really about paying off debt or investing in new equipment. It's about how to find the courage to invest in yourself. If you've been thinking about this for a year and haven't done anything, you need a solid plan to work toward. Follow these steps and keep us updated on your progress. You can do this!

1. Write a business plan. You can find a template and examples at www.score.org. This plan will help you fully articulate your thoughts around your business and where it is going. In my business plan, for example, I wrote up all the services and target rates I would charge, where I would find customers, how I would go after business, and my growth plan (# of clients, # of billable staff, etc.). This lays out your goals for the business. Make it achievable and reasonable but be aggressive in your goal setting.

2. Cut your expenses to the bone and start saving up every dime you can. Your goal is to have at least six months of living expenses. If the worst possible case happens, and you make $0 in your business, you need to have enough in the bank to cover your expenses for six months before you give up.

3. Set the date. Figure out when you will get to that six-month figure, that's your quit date. In the meantime, expand your business without the extra equipment you want, and work on building a pipeline of clients. You can speed up your quit date by spending less or earning more- same as FIRE.

4. Pull the trigger. Turn in your resignation and spend the next six months making your business fly! I'm so excited for you to be working toward this goal. You'll work 10x harder for yourself than you will for someone else, and you'll enjoy the sweet success of the fruit of your labors.

5. Fly or die. Write down your exit strategy in case things don't work out. If you burn through your six months of expenses before you achieve x clients, or get to $x per month in earnings (set a goal for yourself to achieve), then you need to give up the dream, lick your wounds and find a full time job while you plan your next move. This step was the key to my success: at one point I was down to one month of expenses, and I knew if I didn't sign another deal that the dream was dead. You have no idea how hard you can work and how creatively you can solve problems when your back is against the wall. Write it down and commit to it, and you'll have that goal in your head to keep you oriented.

Good luck P938!

Jeremy E.

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Re: Pay off debt or grow my business?
« Reply #9 on: May 01, 2015, 02:42:05 PM »
http://www.madfientist.com/forever-jobless-interview/

Here's a podcast where they talk about expected value, and Billy Murphy talks about how sometimes people will not start there own business because they think it is "too risky" but if there is a positive expected value you should do it anyways.