We are in the middle of one of the worst recessions in the history of the world. Unemployment is sky-rocketing through the roof at rates not seen since the Great Depression. Those of us who still have a job are seeing downward pressure on income levels across the board. And the price of everything is shooting through the roof at higher rates than we've seen for a long long time.
If you have a steady job, it may not be the best time to start your own business. If, on the other hand, you have been unlucky enough to lose your job and are having trouble finding a new one in this down economy; then it may be the perfect time for you to start your own business.
So is entrepreneurship for you? That is exactly what I will be discussing in this article today...
First of all you should only start a new business after you have created a complete business plan. And there is no set way to create a business plan, everybody will do it slightly differently. But your plan should include at least projections of your monthly cash needs and how you plan to make money for the first one to three years. Realize that most businesses don't make a lot of money at the very beginning, or at least don't make positive cash flow early on.
There are four question you should answer before you start a new business.
The first question to ask yourself is this... can you afford to lose all of the money you invest in your business? 9 out of 10 new businesses fail, that's just a fact. You should go into it knowing that there's a big chance you will fail. If this risk is acceptable to you, then you can move on to the next step. If not then you need to seriously consider whether or not starting a new business is right for you.
The next question you should ask yourself is this. Are you young enough to get another job or even build a whole new career if this new business that you build fails? Starting over is hard; it's even harder when you're older. You may put in 3 to 5 years into building this business before it finally fails. How old will you be when that time comes? This is something that a lot of people don't think about before starting a new business but it is something that is very important, so think about it carefully.
The next question to ask yourself is can you afford to replace insurance coverage that you may be receiving at your current job if you start your business. Most people don't realize the insurance costs much less when it is bought in bulk by large companies for their employees. You will not receive such cheap insurance as a sole proprietor or small business owner. In fact, you may have to pay 5 to 10 times more per year in insurance premiums. Think about that for a second; if you are paying $2000 a year for insurance at your job you may have to pay up to $10,000, $15,000, or even $20,000 a year out of your own pocket for the same amount of coverage as a small-business owner. It's an ugly fact of American life that most people don't understand until they start their own business.
Finally ask yourself whether or not you will need a bank loan to start a business. What is your current credit history? Will you be able to get a loan even if you need one?
If you can answer all these questions and are ready to take on the risk of owning your own business then have at it! And Good luck to you! Owning your own business is a great way to live.
If you have a steady job, it may not be the best time to start your own business. If, on the other hand, you have been unlucky enough to lose your job and are having trouble finding a new one in this down economy; then it may be the perfect time for you to start your own business.
So is entrepreneurship for you? That is exactly what I will be discussing in this article today...
First of all you should only start a new business after you have created a complete business plan. And there is no set way to create a business plan, everybody will do it slightly differently. But your plan should include at least projections of your monthly cash needs and how you plan to make money for the first one to three years. Realize that most businesses don't make a lot of money at the very beginning, or at least don't make positive cash flow early on.
There are four question you should answer before you start a new business.
The first question to ask yourself is this... can you afford to lose all of the money you invest in your business? 9 out of 10 new businesses fail, that's just a fact. You should go into it knowing that there's a big chance you will fail. If this risk is acceptable to you, then you can move on to the next step. If not then you need to seriously consider whether or not starting a new business is right for you.
The next question you should ask yourself is this. Are you young enough to get another job or even build a whole new career if this new business that you build fails? Starting over is hard; it's even harder when you're older. You may put in 3 to 5 years into building this business before it finally fails. How old will you be when that time comes? This is something that a lot of people don't think about before starting a new business but it is something that is very important, so think about it carefully.
The next question to ask yourself is can you afford to replace insurance coverage that you may be receiving at your current job if you start your business. Most people don't realize the insurance costs much less when it is bought in bulk by large companies for their employees. You will not receive such cheap insurance as a sole proprietor or small business owner. In fact, you may have to pay 5 to 10 times more per year in insurance premiums. Think about that for a second; if you are paying $2000 a year for insurance at your job you may have to pay up to $10,000, $15,000, or even $20,000 a year out of your own pocket for the same amount of coverage as a small-business owner. It's an ugly fact of American life that most people don't understand until they start their own business.
Finally ask yourself whether or not you will need a bank loan to start a business. What is your current credit history? Will you be able to get a loan even if you need one?
If you can answer all these questions and are ready to take on the risk of owning your own business then have at it! And Good luck to you! Owning your own business is a great way to live.
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