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Recession, Corporate Downsizing: Is Going into Business Right for You?
By Sanford | August 15, 2008
As the economy slows down and corporate downsizings increase, people begin to consider going into business. It can appear to be one means to gain more control over your life. It can be very seductive: the money you make is yours; no more bosses, working at home, the list of benefits goes on. Small businesses have a very high mortality rate, especially in their first five years. Yet, for some people who have been laid off, there may not be another good alternative. Their bills have to be paid. Is going into business for you?
Perhaps the question is not whether going into business is right for you, but how can you be a success in business. It is possible for a new business to succeed, but it means being willing to do the work. Most businesses fail because they lack sufficient money in reserve to carry them until they can become profitable. In reality, the lack of funds is just one aspect of lack of sufficient planning. You need to know what your monthly expenses are; how much money it will take to start up your business; and how long you can last before the business needs to make money. Using that information, you can develop a business plan. Starting with insufficient funds hamstrings the owner’s ability to maneuver off the mark. That’s like not providing sufficient nutrition and care to a new born.
Is going into business right for you? If the answer is yes, then your business can beat the odds and succeed. However, it means doing the work.
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