The number of unemployed workers seems to be growing by the day, but so is the number of people who are starting their own business. In fact, owning a small business has become a very popular option for unemployed workers all over the country.
Many unemployed workers have actually created companies that handle the same tasks as their old employers. For example, there are scientists out there who bought up lab equipment - cheaply! - as their old plants started to close, and started up a similar business.
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For many people, being unemployed is the perfect opportunity to dive into entrepreneurship. They may have long dreamed of owning a small business, but were too afraid to take the plunge - until being unemployed forced them into doing something new.
Did you know that some of the world's most successful companies were created as small businesses during a recession? FedEx, Burger King, GE, Hewlett-Packard, and Microsoft all started out as tiny ventures during tough economic times. Today, they are huge corporations.
But how do you know if starting your own business is right for you? After all, owning a small business takes a lot of planning and organization. You can't just jump into something blind.
If you're one of the many unemployed workers out there who are thinking of owning a small business, there are some questions you need to ask yourself:
1. Are you giving this enough thought?
Many unemployed workers do not allow themselves enough time to get over the shock of being unemployed before jumping into something else. Starting your own business is something that takes planning and foresight. Don't hop into a major life change without really thinking about it.
2. Do you have the right skills?
If you can, start up a business in an industry you are already experienced with. That will make the learning curve much smaller, and could lead to quicker profits. Just make sure that your current industry can handle a new business. After all, you don't want the same circumstances that led to your layoff to doom your new business
3. Do you have the financial resources?
It can be costly to start up a new business. However, the Small Business Administration might be able to help. The SBA is an independent government agency that can, among other things, guarantee loans for small businesses.
But it's not all about start-up capital. Starting your own business takes time to build momentum. It can take awhile for you to actually turn a profit. Do you have enough money saved up to survive while you get your business off the ground?
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