The Entrepreneur’s Source Reviews How to Financially Plan for Your Career Transition
Many individuals have the desire to build wealth and equity for themselves rather than working hard on someone else’s dream. They like the idea of becoming self-sufficient through business ownership, but have trouble answering the question “How do I make this happen from a financial standpoint?” Not only is this question oftentimes troublesome to dig into, but aspiring business owners similarly have to ask themselves “How do I fund my transition from Employment to Empowerment while still maintaining the financial necessities of running my household? Intentionally leaving behind a steady paycheck, even with the prospect of career autonomy on the horizon, can be a financially frightening idea. Due to this fear, many of us find ourselves staying in our comfort zones and remain dissatisfied in our careers.
Financing is a major concern for many individuals looking to improve their career paths, but it’s important to remember that your investments can be moved around. Just like other fears and barriers you may have already encountered on your journey of discovery toward self-sufficiency, the money question is one that could be dealt with in a variety of ways and eventually overcome. Today The Entrepreneur’s Source reviews how you can set a financial plan and consider your financing options to help you move in your career transition.
The Entrepreneur’s Source Reviews How To Set a Budget
The first step in planning for your career transition is to properly set a budget for yourself and your family. Take time to sit down and draw up a monthly budget, figuring out exactly how much you and your family will need in order to maintain your lifestyle with all of its necessities and activities. Once this has been established, ponder what is possible for you to cut out or live without for a short period of time. Although you probably don’t want to move backwards and temporarily scale back, oftentimes a transitory sacrifice can lead you to your greater goals and aspirations.
Setting a budget with some temporary cutbacks will help you better determine whether or not you have enough to see your family through a possible career transition. However, it’s important to remember that you don’t have to be in this process alone. Although setting a budget and sticking to it is necessary, there are a variety of other ways to get through a career transition if simply cutting your budget doesn’t leave you enough room to embark on your journey.
Consider Your Funding Options
Just like with any other major investment like buying a house or a car, there are funding options for investing in a business or franchise, and many individuals simply aren’t aware of them. There are a variety of options for aspiring business owners such as securing a small business loan, angel investing and securing funds through friends, family or outside investors. There should be no shame in seeking out help when trying to create a better and happier future for your family, so considering assistance should be embraced if offered.
Many people tend to invest in reactive opportunities, like the stock market and real estate. These types of investments are dependent of outside factors, ones you can’t control. Business and franchise ownership is different. It is a proactive form of investment, by investing in yourself and your future, you directly get to affect the results and your ROI.
Oftentimes people are not aware of the strategies available to them to finance a franchise or business. The key is to become educated about and learn more about non-traditional forms of funding that you may not be aware of. For instance, most people who have a 401k don’t think they can leverage it without a steep financial penalty. However, many small businesses today are got their start with what is called a 401K rollover. Other options often overlooked or simply not considered are things like whether you qualify for a veteran discount or a small business loan through the SBA.
Many of us fear utilizing our own capital because we don’t want to be left completely depleted of our resources if things take a turn for the worse. However, looking at it from this perspective will never allow you to truly invest in yourself or your future. Moving some of your reactive investments that compromise your control to more proactive investments like a business or franchise can help move you toward financial independence rather than depending on outside factors. When you invest in yourself, you have complete control over your finances and your future.