Bob O'Brien
Head Instructor
bobrien@mywealth.com
Employment numbers are horrible to say the least. However, many great businesses have been started when someone has lost their job and decided to start their own business. Is this the time though? Businesses and individuals alike are cutting back on their spending. Even if the entrepreneur has all of the optimism in the world it’s not going to change this general trend. That negative “bent” will still remain for a while.
Financing is another real big challenge. Established businesses are having trouble getting credit right now, so venture capital and other loans for new businesses are not that easy to come by. However, this does not mean that people and businesses are not spending at all. There will definitely be some businesses that succeed.
If you have been laid off, and you don’t feel you have a money making idea that is a home run and that would attract financing, I would strongly consider starting a low expense business from your home. It is amazing what you can do with a laptop and a cell phone these days.
I do strongly caution you though, to be certain to keep your expenses low. I have seen a high overhead take people out of the game before they even knew they were in one. If you ask any successful entrepreneur one of the main things that you need to do to succeed, they will tell you that it is to keep expenses low (and in this economy it is a must). Do you have a personal finance question for me?
Here are some of the benefits to starting a low cost home based business.
1. You get in touch with your entrepreneurial spirit. This is the real key to business success. If you are not completely in touch with this spirit, the experience of having your own business will help you out.
2. It keeps you active and learning. This is the key staying sharp and engaged with an industry that you love.
3. You can start a business and look for a job simultaneously. Employers love people that think like an entrepreneur. Plus with all the automated job searches on the internet, you should have the time.
5. You will become better at networking. This may lead to meeting someone important that you partner with, work for, or that sparks the creativity in which a big idea is born.
6. If it doesn’t workout, your losses are limited. This is big, because who wants to lose money? There has been enough of that already.
7. It may just work! Realize that these are tough times and it is just not practical to think that you can create some type of overnight financial windfall. However, if you can manage to hang around and establish some sort of base… you may have a profitable enterprise in 3-5 years.
I love getting pumped and feeling like I can conquer the world as much as the next guy, but this type of excessive optimism is what gets people into trouble with their finances all the time. Starting a business in this economy is a bold move, but if you have the time and you are not already buried in debt, it may be more educational than an MBA business degree. I truly wish you well!
Sincerely,
Bob O’Brien
Senior Instructor
