While your downsized colleagues fret about their futures, you can turn the negative of a job loss into the positive of a new business. Many out-of-work Americans are not waiting for their old positions to return as economically viable. Instead, they are taking their job loss as an opportunity to pursue their entrepreneurial dreams.
You can find the seed money you need for your new small business from your own severance check. Before you use it to invest in your future, there are a few factors to consider.
First, study your options. You need a real business opportunity rather than a mere idea. Consider whether you should operate a consulting practice in your field or enter an entirely new business. There are franchise opportunities to consider and local operations for sale that only need your input of expertise to thrive.
Planning for your business is a job itself. Start by setting up an office in your home to consider all your possibilities. This is where you analyze the choices, draft your business plan, get your corporation formed, and set up your record keeping system.
During this process, you will have living expenses that utilize some of your financial resources. This is why acting quickly is important. Don’t use all your severance money on living costs so that nothing is left to invest in your new business. You will need your own corporation as a launching pad. Even if you acquire an existing business, the purchase should involve only the assets of a current operation. The old owner sells business assets to your corporation as the new owner. This way, you don’t have to contend with liabilities of the previous owner.
Set a timeline for every step in creating and funding your new business as well as making purchases. Consider how you can budget your family situation while building profits. You need enough investment capital to reach your optimal sales level. The objective is for your new business to sustain a successful path.
The initial step is selecting a corporate name. After that, you can move forward with everything else. Before making those other expenditures, consider the branding you want within the industry that you enter. Incorporating the business name you need is the first detail to capture.