By: Paul P. Duxbury
It can be tempting to ax your job at the first sign of success in the process of running your business. However, it is important to remember that you may need your job for a period of time, until you know for sure you can fully support yourself on your home business. Some of the reasons why you should not quite your job right away when starting your home business are as follows:
You may need the benefits: If you are a worker who has kept down a job for a year or longer, the chances are that you have substantial medical, dental, and other personal benefits, such as maturity leave, or retirement pension. Depending upon how much time you have put into your job, it would be a shame to let all these benefits go too soon.
You may need the income: Starting a business can be expensive, even if you are starting extremely small on a shoestring budget. Even if you have not taken out any large sums of money for operating or start-up costs you may still need the money to pay your house bills, to buy food, and to support your family if you have one. Not only that, but you may still need it to fun any vacations or extra-curricular activities you choose to participate in, even during the start-up phase of your business.
For Proof of Solid Income: If you are applying for small business loans or other start-up loans, you will need proof of solid income. This is one of the most important aspects of receiving money from the government or private lenders. You need proof of your projected ability to pay back this loan money or you may not quality to receive the money. As tempting as it may be, you will have to hold on to your job for a little while longer.
For Income During Waiting Periods: If you are waiting for an application for a loan to be approved, you may need money to run your business during the waiting period. Of course, then you may still need the money to pay back the loan as you begin to develop your business. It is important to remember this, because the development of a successful business always takes time.
For Emergencies and Unexpected Expenses: You never know what could happen while you start your business. Your car that lasted thirteen years could finally break down. (If you have a car that lasted that long, let others know, by the way!). Either that, strong winds could cause a tree to fall on your roof. You never know what could happen. It is always important to have some security so you are prepared.
To Reduce Amount Needed to Borrow: When you start a business it is a good idea whenever possible to start with as little money as possible. Your job can help fund your business instead of having to take out a loan to cover those expenses. In addition, money that you have earned from a job to start and run a business you do not have to pay back. Therefore, keeping your job for as long as you possibly can after starting your business can help alleviate the possibility of large debt in the future.
For Personal Discipline Reasons: Believe it or not, many people actually work better in the beginning stages of their business if they stick to a regular schedule. Therefore, not only will keeping their job help fund their home businesses, but that it will also help them stay on task. Knowing they have very little time to take for granted they will be less likely to waste it come time to
For Networking Reasons: As long as it is allowed on your job, and your business is not a conflict of interest with your current employer, there may be the possibility of you networking with your co-workers at your current job. For instance, if you want to make extra money housecleaning, and you work in an office all day, you can make arrangements to begin housecleaning on the weekends. You may even be able to get hired by your boss. You never know where your current employment will lead you. Not only that, but the possibility also exists for you to purchase a franchise of that current business as well.
The above reasons are only a few examples of why you may need to keep your job while starting your business. You may have other reasons to keep your job as well, which have to do with other aspects than just with finances, discipline, or networking. For instance, you may need to monitor the success of your growing business for a while; to make sure it will sustain you for the long haul. This is more than about money, but also about a long-term commitment. You need to make sure that the business you are involved in will not only support you in the long run but will also be something that you will enjoy being involved in for the long run.
If you are not sure if a business idea is right for you and yet you start it, you can easily change your mind more readily if you have kept your job. However, if you have made the commitment to your business, and no longer have your job, it may be harder to turn back. You will have to either ask for your old job back or find a new one. To avoid that from happening, you may consider keeping your job for as long as you feel is necessary., until you know for sure you can fully support yourself on your home business. Some of the reasons why you should not quite your job right away when starting your home business are as follows:
You may need the benefits: If you are a worker who has kept down a job for a year or longer, the chances are that you have substantial medical, dental, and other personal benefits, such as maturity leave, or retirement pension. Depending upon how much time you have put into your job, it would be a shame to let all these benefits go too soon.
You may need the income: Starting a business can be expensive, even if you are starting extremely small on a shoestring budget. Even if you have not taken out any large sums of money for operating or start-up costs you may still need the money to pay your house bills, to buy food, and to support your family if you have one. Not only that, but you may still need it to fun any vacations or extra-curricular activities you choose to participate in, even during the start-up phase of your business.
For Proof of Solid Income: If you are applying for small business loans or other start-up loans, you will need proof of solid income. This is one of the most important aspects of receiving money from the government or private lenders. You need proof of your projected ability to pay back this loan money or you may not quality to receive the money. As tempting as it may be, you will have to hold on to your job for a little while longer.
For Income During Waiting Periods: If you are waiting for an application for a loan to be approved, you may need money to run your business during the waiting period. Of course, then you may still need the money to pay back the loan as you begin to develop your business. It is important to remember this, because the development of a successful business always takes time.
For Emergencies and Unexpected Expenses: You never know what could happen while you start your business. Your car that lasted thirteen years could finally break down. (If you have a car that lasted that long, let others know, by the way!). Either that, strong winds could cause a tree to fall on your roof. You never know what could happen. It is always important to have some security so you are prepared.
To Reduce Amount Needed to Borrow: When you start a business it is a good idea whenever possible to start with as little money as possible. Your job can help fund your business instead of having to take out a loan to cover those expenses. In addition, money that you have earned from a job to start and run a business you do not have to pay back. Therefore, keeping your job for as long as you possibly can after starting your business can help alleviate the possibility of large debt in the future.
For Personal Discipline Reasons: Believe it or not, many people actually work better in the beginning stages of their business if they stick to a regular schedule. Therefore, not only will keeping their job help fund their home businesses, but that it will also help them stay on task. Knowing they have very little time to take for granted they will be less likely to waste it come time to
For Networking Reasons: As long as it is allowed on your job, and your business is not a conflict of interest with your current employer, there may be the possibility of you networking with your co-workers at your current job. For instance, if you want to make extra money housecleaning, and you work in an office all day, you can make arrangements to begin housecleaning on the weekends. You may even be able to get hired by your boss. You never know where your current employment will lead you. Not only that, but the possibility also exists for you to purchase a franchise of that current business as well.
The above reasons are only a few examples of why you may need to keep your job while starting your business. You may have other reasons to keep your job as well, which have to do with other aspects than just with finances, discipline, or networking. For instance, you may need to monitor the success of your growing business for a while; to make sure it will sustain you for the long haul. This is more than about money, but also about a long-term commitment. You need to make sure that the business you are involved in will not only support you in the long run but will also be something that you will enjoy being involved in for the long run.
If you are not sure if a business idea is right for you and yet you start it, you can easily change your mind more readily if you have kept your job. However, if you have made the commitment to your business, and no longer have your job, it may be harder to turn back. You will have to either ask for your old job back or find a new one. To avoid that from happening, you may consider keeping your job for as long as you feel is necessary.
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