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Parents quit jobs to run their own businesses, now earn $1 million

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This is part CNBC Make It’s Millennial Money series, which details how people around the world earn, spend and save their money.

For Jen and Steve Chou, the best part of running their own businesses isn’t the combined $1 million annual income — it’s the ability to spend as much time as they want with their 13-year-old daughter and 12-year-old son.

Jen, 45 and Steve 46 began the journey to quit their 9-to-5 jobs 14 years ago.

Jen started Bumblebee LinensIn 2007, the company began producing custom-designed towels, aprons, and handkerchiefs. Steve founded it, and she co-founded. Jen also blogs about her business adventures. My Wife Quit Her Job. This blog now features podcasts, ebooks, and conferences in person since 2009.

Parents have more freedom to choose their own hours and can be involved with their children in various activities.

Jen tells CNBC Make It that her children are likely sick of Jen. “Whether they like it or not, they will be grateful that they have us in their lives. I tell them how blessed they are to have me there.”

Steve and Jen both say they were raised by hardworking parents. They weren’t always able to spend enough time with their children. Jen finds the independence of her boss a great deal.

She says that her mom died when she was young. “Now I want that time back, and to make sure I am present.” [my kids].”

Owning their businesses

Jen launched Bumblebee Linens during her pregnancy with her first baby. This was after she quit the job of a financial analyst that required her to be in meetings all day, from early in the morning with her European company team through late at night with her Asian team.

Steve and she had previously sold excess handkerchiefs they bought as favors at their wedding. They decided that an identical ecommerce venture would make a great way to generate additional income. To order several hundred handkerchiefs, as well as a camera and digital to take photos of them, the initial investment was $600.

Jen tells Jen that $5,000 was the initial goal of her business. “At that time I thought, ‘If you can just pay the bills, that would really be amazing. 

Bumblebee Linens was quickly growing and, in just five years, had grown from a couple’s garage to a warehouse area with two employees. Bumblebee Linens has a turnover of $1million annually, and Jen takes home about half.

Jen and Steve are both employed at Bumblebee linens. However, the two share very different responsibilities. Jen manages the day-to-day business operations of Bumblebee Linens and oversees orders, packaging, shipping, and embroidery. Steve is responsible for all marketing. 

Jen Chou emphasizing Bumblebee Linens.

Tejas Doshi

Steve states, “The way it is now is really great.” We don’t cross each other’s paths. Each of us has full control of our domain. 

Steve’s responsibilities include Bumblebee Linens. Steve also worked 13 years on My Wife Quit Her Job. This was a project that he began after receiving endless questions and comments from coworkers and friends about Jen and how they built an online business. He was previously an engineer director in electrical, but he decided to devote his time full-time to writing.

You will find a variety of tutorials on building an online business as well as podcast episodes and video tutorials. Steve offers lifetime access to his customers for $1,900 instead of charging for each course, or for a monthly membership.

While he believes his price point equals six to eight month’s worth of competitor access, he would rather get his money upfront. He adds that offering customers lifetime access helps him grow his subscribers base. 

Steve says, “I think if my students succeed, I will become more successful.” They are successful and I boast about it, which leads to more business. 

Apart from membership sales, the blog also earns income via advertising affiliate revenue, sponsorships, and an annual in-person event in ecommerce. The total revenue is approximately $1 million annually. Steve keeps half.

They spend per month

Below are the monthly costs for the couple in November 2021

  • Retirement:An affordable $9,600 SEP IRAAccount
  • Kids’ education:5 400 for tuition fees and extracurriculars at private schools
  • Housing:Their mortgage and property taxes will be $3,650
  • Insurance:$2,800 per year for auto, life, home and dental insurance
  • Food:1 800 is divided between grocery ($600) or dining out ($1,200).
  • Discretionary:Spend $1,050 for clothing, sports events, and charity donations
  • Utilities:$560 for gas, electricity and Wi-Fi
  • Gas:$300 each for two vehicles, to be fully paid
  • Subscriptions:$200 for Kindle Unlimited and Amazon Prime. Hulu, Netflix, Hulu Plus, Amazon Prime, Hulu Premium, Hulu+, Netflix, and credit card fees

Jen and Steve make $1 million combined in annual income, but they don’t feel as wealthy here in Silicon Valley than their friends and neighbours who have made multimillion-dollar exits from public companies. 

However, they say they only spend “a fraction” and that they consider themselves relatively frugal given their income. 

Jen admits that when they see something they want, they will buy it. However, the biggest thing they are willing to spend is on experiences. Jen loves to go on long family vacations each year while Steve likes attending sporting events. He has been to every year that the Golden State Warriors made the NBA Finals over the years.

They spend the majority of their monthly money on their kids’ education and extracurriculars. Their monthly spending includes $4,500 for tuition at private schools, plus $900 to tutor their children in Chinese and other math subjects. 

Jen says, “We share the belief that children are our greatest investment.” “We want them to become well-rounded.”

Both of us believe that the greatest investment we can make is in our children. Our goal is for them to become well-rounded.

Jen Chou

Bumblebee Linens, co-founder

Steve and Jen each contribute approximately $9,600 per month to charity simplified employee pension(SEP), but have been putting off any further investments. Steve says that they do this because the market feels “a little bit” unstable. frothy“They want to have enough cash available to take advantage of any opportunities that arise.

He said, “In past times, when you look at periods of greatest wealth creation, they actually occurred during periods where there was a chance to buy something for a really great deal.”

Find balance and keep a check on your growth

Jen and Steve spend approximately 20 hours a week working at their businesses. Steve finishes his work at 12:30, which leaves him plenty of time to drive full-time Uber for his kids, he says.

Jen volunteers in the student entrepreneurship program at her daughter’s school. Jen also spends free time there. Jen says that this freedom is extremely satisfying. I’m able do what I love while also being a huge part of my kids’ education.

Jen Chou is able to set her own hours so that she can spend more time with her two kids.

Tejas Doshi

Jen is so happy with her flexibility that Bumblebee Linens has not grown as quickly as she would like.

Her words are: “When our company was growing rapidly, it was creating a lot more headaches. And honestly, the job wasn’t something I wanted to do at all.” “We’d have to find a bigger office, hire more workers, and do more stuff that I didn’t want to without making a sacrifice in our daily lives.”

Steve on the other side is open to growth. Steve currently has approximately 5,000 subscribers, and is eager to grow his number every day.

Steve says, “With my wife quitting her job, we sell digital goods.” Because we don’t have anything physical to ship, it is much simpler to scale and grow that.

Forward looking

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