From Unemployed to Self-Employed… Here’s What You Need to Get There

According to a new CareerBuilder survey, many are taking matters into their own hands when it comes to earning a living, with more than a quarter of those laid off in the last six months pondering self-employment.  With the job market still so tight and the rewards of self-employment great, it’s no wonder.  Once an exciting new business idea strikes, enthusiasm and optimism soar, and it’s tempting to dive right into the new venture.

But a prospective self-employed – especially one whose financial situation has been made more precarious by a layoff — is wise to test the waters first.  Why?  As Small Business Administration (SBA) legend has it, only about half of new businesses survive past year 4.  This SBA article lists the reasons, but they pretty much add up to one thing: cash flow, cash flow, cash flow.

So how to make sure cash from your new business flows in the right direction?  In the Wall Street Journal article Becoming the Boss Can Cost Plenty, a few who’ve recently found themselves in over their heads share what they’ve learned about launching a start-up and how they would do things differently if they had it to do over again.

About the author

Sherrill St. Germain, CFP®

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