Starting your own business is the iconic American dream. If you have a passion, perhaps it’s time to pursue it in a more serious way and see if you can make a living doing it. The figures are daunting. Approximately 8 out of 10 start-ups fail within the first 18 months, and new entrepreneurs will invariably make mistakes, many of which will be costly. Often there is financial pain along with the uncertainty of how long to keep going if the concept isn’t working. At times, you will feel like you jumped off a cliff, but nevertheless, there are so many reasons to try.
Here are 5 reasons to start your small business right now:
1. Be Your Own Boss
Work Life Balance is the enviable state of successfully managing a career and life. A highly-regarded online medical resource, WebMD, even has a section on how to improve your work life balance, and the pursuit of it is one of the key drivers behind the exponential rise in the freelancing industry. Starting your own business will certainly throw your work life balance off for a while as you build, fund and grow a new venture. Ultimately, the rewards include the ability to manage your own time and be your own boss. You can decide how large to grow your business and who to hire. You can even work from home until such time as you choose to expand your company.
2. Pursuing a Creative Passion is Good for Your Health
Having a creative outlet is important to your mental well-being. For many people, it takes the form of a hobby that is enjoyed around a structured work week. But why not try to build your hobby into a business. In Six Tips for Turning Your Hobby Into Your Job, Jacquelyn Smith encourages people to figure out if there is an income stream in their hobby and pursue it. Do you like to crochet? Help others learn how to enjoy your hobby by teaching at a local community college or develop a series of classes from home. Doing so can be good for your health. A study in the Journal for Aging and Health found that creative people had lower levels of stress and healthier brains.
(Effective Loan Rate of SBA Loan Portion from Spedco.com)
3. Interest Rates are at Historic Lows
Whether it’s seed capital or money for day-to-day operations, many aspiring entrepreneurs need funding. One of the primary reasons for small business failure is lack of cash flow, and small businesses are perceived as risky, so they pay much higher interest rates on loans than large corporations. If you are looking to start a new business, the interest rate environment matters. In the United States, the Small Business Association (SBA) has a loan program that will guarantee up to $5 million dollars or 75% of the loan repayment called the 7(a) Loan Program. Typically, interest rates on SBA loans are benchmarked off prime rates and the Federal Funds rate. The Federal Funds rate is at historic lows.
4. Age Discrimination in the Workplace
As workers age, many find it nearly impossible to re-enter the workforce after any lapse in employment, particularly after the age of 50. Age discrimination is well-documented. Not surprisingly, many older Americans apply their skill set to starting their own business. With a lifetime of experience and a wealth of knowledge, olderpreneurs are on the rise. And because older business owners typically have more money than their younger peers, they borrow less and their ventures have a higher rate of survival.
5. Individual Health Insurance under the Affordable Care Act
The landmark healthcare legislation, the Affordable Care Act, made individual healthcare plans available to many Americans who previously did not qualify. One of the main reasons employees hesitated to leave a traditional workplace environment was the ensuing loss of health coverage, but solopreneurs can now purchase individual health plans on the Federal open marketplace. Small businesses can even set-up a defined contribution plan for employees and provide allowances to reimburse employees for their individual health insurance costs, and it is typically cheaper than a group healthcare option.
So, if starting a new business has been on your to-do list, there is no time like the present. From the practicalities of finding funding and getting health coverage to the benefits of achieving employment flexibility and work life balance, it’s a great time to consider pursuing your passion. If you choose to take the leap, contact Resourceful Business and we will create a digital marketing strategy to make your new business soar!