In this economy, with unemployment approaching historically high levels, many people are choosing to try their hand at running their own business. Sometimes this decision comes because they are unable to find a job, and other times it is something the person has wanted for some time and this just seems to be the right time to give it a go. Whatever your reason for considering this move, you should definitely give it serious consideration to be sure it is the right move for you.
In many places, unemployment insurance provides some assistance with those who are recently unemployed, provided the circumstances of their unemployment fit within their guidelines. While the money that comes from unemployment is typically less than you made at your job, for most it is enough to get by for a while, even if it requires some belt tightening.
However, if you begin to work at your own business, money you bring in from there will often be deducted from your unemployment payment. On the surface this may not seem like a problem, but if you have business expenses that must be paid and this takes away from the bit of money that is coming in, you may find yourself struggling far more than you were previously.
Additionally, the average business takes some time before it is profitable. While not true of all businesses, it is not uncommon for a business to take two years or more before seeing a profit. While this doesn’t mean the owner is not taking home any money from the business, it may not be regular and may not be as much as a job had provided.
In addition to the financial hardships you will be facing, there is the added emotional toll that a business can exact. Becoming unemployed is often an emotional roller coaster as it is, and starting a business under the best of circumstances can be stressful and emotionally exhausting, but when you couple these together it can be a recipe for disaster. Your once supportive spouse may loose patience when there is less money coming in, and your friends and family will probably tell you to go back to work. While they all mean well, you will find your support structure was already under strain from the lay-off, and the added stress of a business can be enough to break it.
While you are considering the possible negative outcomes portrayed above, you should also be considering why you want to go into business in the first place. If it is something you’ve wanted and you think this is the best opportunity, you may find success. However, if you are looking at starting a business as something you can fall back on because you can’t find a suitable job, you are likely to be very disappointed with the results. Starting and running a successful business requires dedication and motivation, and if you are missing either you will not succeed.
One last think you should consider while thinking about starting a business now is how it will affect your ability to get suitable employment in the future if you choose to go back. Although many hiring managers will understand the attempt to run your own business, especially considering the economy, when things turn around and companies are hiring again, the people who have continued to network with recruiters and the people in their field may find themselves with an advantage. If you think you may end up going back to a job when things get better, at least do yourself a favor and keep in contact and keep putting yourself out there for positions.
While many people successfully start their business, especially in a time like this, it is still not a decision that should be made lightly. Consider your options and be certain this is what you want to do. You’ll be glad that you did.
One type of business you can start while laid-off that will allow you the flexibility and freedom to still search for a job, and continue building it if you find one, is internet marketing. Many people have built up very successful businesses doing this part time, so it is definitely something you may want to consider.
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