There comes a point in your working career when you decide that you want to go in a different direction. You may be in a traditional nine to five job, and you have grown frustrated with the corporate culture, or just fed up with reaching that invisible earnings ceiling. You have years of business experience that can be applied to making money for yourself. It is at this point after careful consideration of all the pros and cons that you may have decided to open your own home based business. This is an exciting step and the beginning of an adventure into self sustenance.
Many people take the plunge and storm into the bosses office and hand in their resignation. They take their hard earned severance packages and apply all their retirement funds into the new home based business. A mixture of excitement and anticipation of finally being independent pushes the prospective entrepreneur to go it alone from the outset.
There is a different strategy to opening up your home based business. It is far less risky and it ensures a smooth transition from employment to self employment. It is admirable to have single minded commitment to kick starting your home based business, but this can be done without sacrificing your current earnings position. It is possible to retain employment and open your home based business. The two events can be run on a parallel basis. You can remain employed and dedicate after hours time to running your home based business. Always ensure that you are conducting yourself ethically and not in contravention of the company rules. Many companies frown upon “moonlighting”. I do not consider the establishment of a home based business in a different industry in your own time to be “male fides”. However your company may view this differently. It is wise to tread carefully and be certain that you are operating within accepted business practice. Seek our professional advice if you are uncertain.
Before you resign from your current job it is worthwhile considering the possible financial impacts of making this decision.
• Make sure that you have maximized any retirement or pension payout. It may be worth your while to hang on for another year or two depending on the scheme rules. Examine the rules and the payout very carefully. A few months can literally make the difference of thousands of dollars.
• Take advantage of cashing in on any share options or other incentives. Once again it pays to be careful in timing your resignation. You may be a few weeks or months away from a large share option payout. It pays to be patient and maximize your dollars by playing a clever exit strategy.
• Time your resignation so as not to endanger possible annual bonuses or performance bonuses. If you have a few months to complete you twenty years long service award, it pays to see out the time.
• Always part on good terms. Do not let your enthusiasm for starting up a home based business sour the relationships with your soon to be ex employers. Good business practice is about building and retaining relationships, even old ones.
It pays to stay on with your current employment a little longer while building your home based business after hours. Any measure that reduces your risk is a measure worth taking. You can retain your current employment until such time as you feel that the home based business is able to sustain you financially on its own. Leaving your current employment and building up your home based business can be done on a phased approach. There will come a time when the home based business demands more and more of your time. This may be the moment to make the switch. This approach may be the wisest for those who are a little more cautious and who have a lot to lose by resigning their post before the alternative is established. |
| Why it's important to reinvest back into your home based business |
| You’ve started your home based business and it’s been running for a few months. You’ve built up a great reputation on the sales you’ve done and word of mouth referrals have brought you in a steady clientele. Read More |
| Finances: How to Get Them Together For Your Home Based Business |
| Your finances are a huge factor when it comes to starting your business…here’s why! When you start out, it’s the same as any other business. Read More |
