Who isn't sick of the incessant slog of working for a big corporation under the looming shadow of global economic pressure that sends American jobs and whole companies overseas. When you add in an unappreciative boss and workplace malaise, it's only natural to start dreaming about starting your own business. However, it's essential you learn how to finance your own business.
Related: Ready For A Career Switch? Consider A Franchise
The questions add up fast — How do I even start? Don't I need a lot of money? — and you go back to your desk and spin on that hamster wheel a little longer. Wonder no more. Starting your own business is easier than you think. A whole growing sector of our economy proves the point, as people continue to start franchises at a rising rate. Folks at mid-career represent the largest cohort of entrepreneurs in the U.S. economy, which isn't really surprising since they have the experience and skills to be successful. The best thing about choosing a franchise to jumpstart your career is you can find out everything you need to know to succeed before signing any contracts. With the assistance of a franchise coach — whose services are free — you can learn how to investigate the market to make the right match for your skills, experience and interests. So the big question remaining is how to finance your new business. Not all franchise businesses require the type of large outlays typical of fast food restaurants like McDonald's or Five Guys. Lots of franchises in the area of personal and business services require less than $150,000 and can offer a six-figure income. Many excellent earnings opportunities are available for a total investment of under $100,000! Among the most popular ways to finance your new business is to tap into your retirement funds. Think of it as investing in yourself. Just as you would invest a 401K in other people's company, i.e. the stock market, you would instead invest in your own business, and the profits would roll right back into the fund. Basically the way it works is the Employee Retirement Income Security Act of 1974 allows people to roll over a portion or all of their 401K or IRA into a new 401K profit-sharing plan sponsored by your new business entity, which buys stock in the new corporation without penalty or paying additional tax. While you do put your retirement savings is at risk, you're betting on your business acumen. The question is do you think you're a good risk? If you believe you have the skills and experience to succeed then the risk is low when you buy a franchise with a good track record. If you're not sure you should invest your own money in yourself, you might want to reconsider starting a business altogether. Of course, you might be able to finance the start-up cost with a combination of savings, and a home equity loan. A big advantage of tapping into your own savings is you don't need to put other collateral at risk. The goal is to take every step possible to minimize your risk. This includes conducting a thorough due diligence of the franchise company, including checking out its record of success and how well it trains and supports its new franchisees. If you believe you have what it takes to run a business and you connect with a great operation, your risk may actually fall lower than remaining with a company whose loyalty is to shareholders, not you.
Disclosure: This post is sponsored by a Work It Daily-approved expert.
