If you want to increase your income, transition into another profession or simply fulfill a life long dream, starting your own business may be the key to unlock all three of those doors. A recent study from the Kauffman Foundation unveiled that more than half of Americans, ages 18 to 34, have the desire to start their own companies. However, less than 10 percent achieve that goal. Considering that it can take as little as 30 days to start your own business, the number of CEO’s can increase exponentially over the next five years.
Taking the risk is the highest factor for pause. One-third of potential company presidents fear failing. Perhaps they don’t’ realize that they have the skills to succeed. “Most people are already prepped to be entrepreneurs,” says Gary Stephens Managing partner of the SMG Consulting Group in Piscataway, New Jersey, that specializes in inspiring and supporting entrepreneurship. “The word ‘entrepreneur’ tends to have people think that it’s a large undertaking that only a few can achieve. But it’s just perception.”
Stephens explains that, at a closer look, it becomes easier to see how starting and running a business are identical to searching for a job. Composing a resume takes the same effort as creating a company brochure. The goal is to have the maximum amount of people review your resume (in business, your brochure) to secure a job (or a customer). The more appealing your resume is (or your business presentation), the higher the chances that someone will contact you for an interview (or a sales presentation). Everyone has to manage money, whether it’s their own paycheck (or a customer’s payment). Once you receive the funds, your debtors (or vendors) are paid.
An additional income is always a plus. And, having your own business allows you the job security that may be missing from working in corporate America. There are other perks too. “Running your own company can serve as a tax benefit,” says Stephens. “If the company has a net loss, it can possibly reduce one’s taxable income generated from their employment wages. This can result in an increase in their tax refund or a reduction in their tax liabilities.”
What’s best is that there are only three quick, yet very crucial, steps to start the process: “Figure out your passion; conduct research; and map out your plan,” advises Stephens. “These steps are very important components to transitioning into entrepreneurship. This is the area that most people neglect and the main reason why most businesses fail.”
So what fields are most lucrative? Stephens insists that passion, not money, is the mainstay of a successful company. “Starting a business that may be on a top five list doesn’t typically pan out,” says Stephens who adds that accounting, marketing, freelance writing, and service oriented fields offer great start up opportunities.
A final thought from Stephens: “With the technology that exists today, you can make a ton of income from the comfort of your bed.” Clearly, the best perk of them all.
For more financial advice, click here.