Saraphina Churchill of Images by Saraphina
Here is a story about how back of the envelope math saved my business from a full shut down during a global pandemic.
First, a bit of back story, partly for context but also to make you laugh. Because that’s how I roll! (Envision some sort of flashback graphic… the Wayne Words wave plus sound effects will totally do the trick! BAM it’s 2006.)
I one hundred percent hate my job. My boss is pressuring me to finish school and get my Masters. I am looking to for a way out. The economy is good. Screw grad school. I am going to art school. (YAY!)
Fast-forward 2 years. Summer of 2008.
WOOHOO I have an art degree. I am going to be a photographer, or a graphic designer. WHO CARES I will figure it out. Freelance equals freedom baby. Life is awesome! What could possibly go wrong? (dun dun dun)
The 2008 economic crash hit at same time as my student loans.
For 10 years I shuffle from job to job never quite being happy but making enough money to pay my bills and save for a house and I guess that is what my life is… but if I am honest with myself I am not happy in my career path.
2019 — I decided to try freelance again. With a HUGE dream of maybe someday having a company with staff… A few months into that adventure I discover EforAll and am accepted into the Fall 2019 Business Accelerator. I already know how to budget my personal money but business money seems different. I was so used to income equals paycheck. Paychecks pays the bills. My art school lizard brain could not reconcile the difference between the two accounts.
It seems basic, especially now, but the back of the envelope class flipped the switch in my head. I finally REALLY understood that self employed means business owner with one employee. I finally started to understand that first I must have the business budget solid, including my pay, which is a business expense. This also makes me understand that I have to base my billing not just on my paycheck but also everything else I need for the business, every single time I quote a gig. Especially if I ever wish to grow and hire staff, that was a GAME CHANGER.
Now cut to — March 12, 2020 — the COVID 19 pandemic strikes. I receive the first of many calls either cancelling or postponing indefinitely, all gigs I had lined up for the foreseeable future. I spend the first week or so totally freaking out. Then I magically heard in my head the voice of Kristine Celorier of Growth Mode Co. I remembered the advice she had given us as the subject matter expert teaching Back of the Envelope Math in our EforAll accelerator class. “Make sure you always have at least 6 months of operational funds in your business account at all times. More if you can, but always at least 6 months.” SO I dusted off the budget, looked at necessary expenses for the next 6 months and then I checked my bank accounts. I was ok. I calmed down and I was able to develop a strategy from there.
In 2008 I panicked and took a day job that didn’t truly suit me because I was scared and did not know how to budget both a company and an income. This time around, we are both ok.
THANK YOU Kristine and EforAll!
Saraphina Churchill
Imager
413–512–0824
