With the national unemployment rate still hovering around 8 percent,Â many individuals have found themselves on the outside looking in whenÂ it comes to wanting to start their own businesses.
Whether they are looking to get out of the daily corporate world orÂ have been laid off and are thinking of trying a new means by which toÂ make money, the idea of starting one’s own business comes with manyÂ challenges. The most daunting challenge is oftentimes coming up withÂ the money to set out on for what many is the dream of a lifetime.
As someone that has fallen victim to the layoff bug twice in sevenÂ years, the dream of owning my own marketing business has always beenÂ biting at me. Do I have the time and patience to go out on my own inÂ the business world? Do I have the necessary financial resources or am IÂ better off looking for a regular job with a steady paycheck? Lastly,Â can I make a go of it when there are so many other people doing exactlyÂ what I want to do and be my own boss?
I’ve had to come to terms with those questions recently in light of aÂ company layoff, so now seemed as good a time as ever to consider theseÂ things.
While I have a very supportive set of parents, along with some trueÂ friends that are there when I need them, I would never once think ofÂ asking for financial assistance to start my own business from any ofÂ them. My feeling has always been that I would and could do this on myÂ own should I choose to go that route.
Given that I am likely touching on some thoughts that others have had,Â I would recommend considering the following should you be thinkingÂ about reaching out to others for financial assistance in hopes ofÂ starting your own small business:
* Get it in writing – If you do come to an agreement with parents,Â other family members or friends to assist you in getting a smallÂ business off the ground, by all means get it in writing. Too manyÂ people work out deals where nothing is in writing, then all hell breaksÂ loose when it comes time to start paying the loans back. Whether it isÂ a parent or your best friend, produce a legal document that showsÂ exactly how much will be loaned, when the money is expected to be paidÂ back, and what the terms are regarding any missed payments;
* Are there alternative sources? – While it is easy to turn to familyÂ and friends for funds in hopes of opening a small business, are thereÂ other sources for the funds? Although the economy is still strugglingÂ along, a good credit record and a good mission plan can get you in theÂ door for a bank loan, etc. While bank loans can be scary because ofÂ penalties, interest etc. that can accrue, at least you avoid theÂ potential for a family blow out should you fall behind on payments;
* Will this put family or friends in a bad financial spot? – One reasonÂ I have always been hesitant to ask family and/or friends for loans forÂ such a business venture is because I know they have bills just as I do.Â Knowing this,I find it hard to simply reach out for a loan, feelingÂ like I am taking away needed funds from them when emergencies can crop Â up at anytime;
* I can do this on my own – We all have streaks of stubbornness in us,Â myself especially at times. The last thing I’d want to do is askÂ someone close to me for a business loan when I know that many people Â out there,Â including family and friends, are having just as tough a time as myself Â meetingÂ daily financial needs. One of the great things about doing it on your Â own,Â even if that means a number of struggles along the way, is recognizing Â that all yourÂ sweat and tears were worth it over time.Â I’m still weighing my business options now some three weeks after aÂ company layoff.
While I have drafted a business site and begun marketing myself toÂ potential clients, I am not at the point yet where I am in need ofÂ financial assistance to get things off and running.
When that time comes, you can bet that going to family and friends willÂ be a last option for me. Not because they would not help me, butÂ because I’m one stubborn person at times.
Then again, being a little stubborn never hurt the best of businessÂ owners.
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Dave Thomas has more than 20 years’ experience as a writer, coveringÂ marketing, SEO, press releases, social media and more. Contact Dave at:Â http://beemoresocial.wordpress.com/