The love and peace aspects go without saying, so let’s focus some more on the money aspect. It’s been a recurring theme in this book and we have just finished focusing on some of the practicalities in the previous chapter – establishing your property budget, writing your business plan, paying for development work, maintaining a cash flow and so on. If you’re setting off on this downshifting journey, making your first million will not be a high priority. But you must be realistic about making ends meet. Many projects have foundered in the short term because of (let’s not beat about the bush) total financial stupidity – budgeting for a £4,500 kitchen but falling in love with a £25,000 all-singing/all-dancing design which you just had to have.

Many others have collapsed in the medium to long term because people have either paid themselves too much as a wage or have been caught out by some emergency in the quieter season, business-wise, when there’s little or no income around. This chapter brings you face to face with financial realities in a simple, checkpoint format. It follows logically through the development of your business, stage by stage. Read it periodically in the future to keep yourself on message (as the spin doctors would say!).

Money Matters – It Sure Does!

We’ll look at this under a range of headings and timescales. You already know some of the detail – it’s largely common sense and we’ve covered most of it at points throughout the book. Setting it out in an easily digestible form, however, will make it simpler to check back on periodically. It’s important that you keep focused on this angle of your future.

So, the headings are as follows:

• Planning: what am I worth?
• Planning: what can I get/do for my money?
• Planning: have I included everything?
• Setting up: what do I really need?
• Setting up: where’s my initial business?
• Setting up: what are the timescales?
• Refurbishment: how much will it cost?
• Refurbishment: have I allowed for contingencies?
• Refurbishment: how do I keep my feet on the ground?
• First year: am I ready for the teething problems?
• First year: how do I monitor cash flow?
• First year: what’s my marketing strategy?
• Longer term: how do I keep ahead (or a head!)?
• Longer term: how do I budget for development?
• Longer term: how do I respond to the bell curve?

Lots of considerations, so only a few pointers for each at this stage. Think carefully about each statement. You may have to gain wider insight through reading more specialist books, attending workshops and so on. There’s a lot to think about.

Planning: What Am I Worth?

• Be realistic about the expected value of any property you plan to sell.
• Keep your planned borrowings as low as possible – it’s your main, ongoing drain.
• Remember to subtract legal and other related fees from the expected amount.
• Don’t commit everything – keep aside a contingency amount for basic living.
• Write down your final available amount – and keep reminding yourself what it is.

Planning: What Can I Get/Do For My Money?

• Keep a firm grip on the maximum amount you can offer on any property.
• Use this as a bargaining tool for properties which have stuck on the market.
• Be sensible about relative urban/rural property values – do you need five bedrooms?
• Be aware of your total cost requirements for moving to/starting your new life.
• Review unnecessary extras (land, outbuildings) -perhaps they are a financial drain?

Planning: Have I Included Everything?

• If it’s a new business venture for you, talk to people who can give you advice.
• Get to know the locality, the services available and the possible shortfalls.
• Plan the transition between selling your present/moving into your new property.
• Have you found out the costs of removal, storage etc. for your location swap?
• What if new property purchase is threatened by slow sale of current property?