Breaking Free!

If you are waiting for the best time to escape from your cubicle and start your dream business then do I have news for you. The best time for starting your new business is now!

If you are thinking that it may not be a very smart idea to start a new business in a recession, then think again. Costs are lower during a down economy so most of the things that you will need to start your new business will generally cost less. It is also easier to find talented people due to the after effects of downsizing at many of the bigger companies. Don’t think that whatever you want to do “can’t be done”. It absolutely can. The Internet has leveled the playing field for people looking to start a business. So many things are more easily available and far less expensive today than they used to be. It takes hundreds of dollars to start a business, not tens of thousands.

Don’t fall into the trap of “I will start a business if/when I lose my job” thinking that you will have all the time to do this properly. The problem is that while you may have the time to do this, you will most likely lack the other key resource that is required to start a new business - money. Starting a new business typically requires personal savings of at least six months to a year’s worth of living expenses. Most people don't have that kind of cash to fund a business and still pay personal housing, grocery and utility bills. Even if you had some emergency funds saved up or got a severance package, which is usually a couple of weeks salary at most companies these days, you will likely need this money to pay your living expenses while you are launching your new business. You also will not know how long it will take for your business to become profitable so you will likely want to save as much money as you can for your living expenses.

Keeping your day job also allows you to take chances to see what works and what doesn’t. It’s a lot easier to experiment and make radical changes to your business when you are not depending on it for your livelihood. Similarly, keeping your day job lets you keep your options open. If your business idea turns out to be really bad then you can close up your business with the security of having income from your day job. It is for these reasons and more that I recommend that you start your new business while you are already employed.

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