Have you been thinking about starting a new business, or taking over an existing one? Are you wondering if you're ready to give up
security of having a "job" and a steady paycheck? Starting your own business, or buying an existing business can be a daunting task that requires a lot of hard work, effort and time. On
other hand, being a business owner brings a level of excitement, challenge (and risk) that you just don't find as an employee.
If you have a burning desire to be your own boss, and want to be
one who decides how successful you are, based on your own efforts, and
thought of financial independence makes you tingle, then keep reading to see if you're ready to go it alone.
One of
things I always tell my clients is that before you burn your bridges, take a good, hard look at exactly what owning your own business is going to cost you in terms of
time, money and
effort required to plan, build and grow it. Make sure that you're willing to pay
price.
Also, don't believe everything you read! In spite of those claims made by certain business opportunity companies, self-proclaimed "gurus" or other businesses, if you could really make $100,000 within 90 days, don't you think everyone would be doing it? The reality is that as a business owner you might not have enough left over at
end of
month to write yourself a paycheck for several months -- or even longer. You need to be sure that if that is
case, you've got some way to pay your own bills and keep your head above water. Have a backup plan.
One way to do that is by starting your business on
side, keeping your current job as your financial security. This is often
wisest course of action -- it can help to ensure that your standard of living doesn't go down, and keep some of
pressure off of your shoulders as well during
critical start-up stage of your business.
Another option, of course, is living on your personal savings. However, if you decide to go that route, make sure it's enough to cover
costs of developing your business (marketing, advertising, purchasing supplies, paying
monthly business costs) along with providing for your personal needs.
If your business is still in
planning stages, and you're don't expect to start your business for one to three years, look into opening an Individual Development Account (IDA) to help you fund your small business start-up costs.