Should I start my dream business while the economy is good? I have enough money to get my business started, but I would be leaving a secure job. What advice can you give me based on what you have seen from your clients?
If you are even considering being an entrepreneur, then chances are you already have the work ethic and drive to be successful. If you are thinking of becoming a business owner, then surely a strong and growing economy can only help your cause.
In addition to having enough money to start the business itself, you need to have money saved to replace the paycheck you are giving up. What if you can’t afford to pay yourself for 6 or 12 months? How will you pay your mortgage, car insurance, children’s daycare, or the multitude of other expenses that you have? Where will your health insurance come from?
You also need to have a source of additional capital for your business. This may be additional savings you have, a loan from a family member, or a line of credit with a bank. One thing is almost certain, once you open the doors you will need more money at some point or another.
Starting a business has infinite challenges and obstacles that must be overcome…there are entire books written on this very subject. The risks you take will hopefully lead to a great reward down the line. Make sure you are financially prepared before taking the plunge.