In this day in age more and more people are starting to realize that just having a full time job isn’t going to cut it anymore. Gone are the days where we can go to school for something you’re truly passionate about, land a job, stay with the company for the next 40 years and retire.
With the world changing so rapidly and local companies more than ever before have the ability to hire worldwide talent, employees need to adopt to the times and learn new skills consistently in order to stay employed. My point, job security doesn’t exist.
Why not turn what you’re passionate about into a small business?
Having a career is great and by all means if you have a job keep it and continue to work hard to stay there, but why not supplement your income by having something on the side? something that you create and can give you the opportunity to one day, maybe, just maybe, make you more money than what you make in your job and lets you live the lifestyle you always wanted instead of having to be stuck in the office from 9-5, 40 hours a week.
Here’s my 3 reasons why everyone should start a small business
1. Supplement your income.
It’s not a question of, if you’re going to get downsized?, it’s a question of when will you get downsized?
Everyone goes through it, people are layed off all the time and then are left scrambling to look for another job.I’ve seen it a lot, it could be months before getting another job and then sometimes people who can’t find work try to start a small business because “there are no jobs out there”.
Starting a small business because you’re behind on bills and need to make money next week to pay the mortgage is a bad idea. If you’re going to work with clients, your desperation is going to show in your work and clients will pick up on that. You will also need money to start a business for marketing, supplies, website, inventory, etc, andit could take months before you start making any money.
This is why I recommend for you to start a business while you’re still employed and it should be something you’re passionate about. when you’re passionate about something you’re more willing to stick with it until you figure out how to monetize on your skills, hobbies or niche.
One you’re making money in your business, it’s nice to have that extra income coming in. You’ll be surprised what a couple hundred bucks can do to your monthly bottom line. At this point I suggest you continue to invest in your business at least 50% of what you earn, this will get you on you way to growing your business. This way you’re ahead of the game and you’re not caught by surprise if you find yourself without a job for a undefined amount of time. Who knows maybe during the time you’re unemployed you dedicate that time to your business and it may take you somewhere you didn’t expect, this is what I call a pleasant surprise :).
2. Tax deductions.
Did you know that people that have W-2 jobs pay the most money in taxes?
The average W-2 employee has about 12 tax deductions they can claim on their taxes, how many are you claiming? Most are only able to claim 2-4 of them (the house ,the kids and ?).
When you start a small business, the tax laws are automatically on your side. As a small business owner, you have over 200+ tax deductions you can claim in your taxes, the IRS says, whatever is helping you grow your business can be considered a tax deduction. Think about that, meetings with potential clients at social events, dinners, travel, supplies, night out with your significant other (if your entity is structured correctly)and so much more!
Depending how much money you make in your W-2 job you’re getting killed with taxes, wouldn’t it be nice to keep some of that money every year and invest it in yourself rather than giving it to uncle Sam? A small business can open those doors for you, just make sure you consult with your CPA / accountant before you implement these strategies.
3. Learn New Skills.
As a new business owner you’re going to wear multiple hats and juggle a bunch of things which may be new to you. In order for your business to be successful you’re going to have to get out of your comfort zone and learn new things. This will make you more valuable at your current W-2 job as well, when your employer starts to notice you’re new talents, it’ll make their decision that much more difficult to give you the axe when it comes downsizing time. You may be even able to negotiate a better salary and possibly move up in the company.
Learning new skills is a must to stay competitive in the job market and in business, this is a win win for you.
If you have ever thought about this before and haven’t pulled the trigger, take a leap of faith and believe in yourself, you can do this. There will never be a perfect time, just do it!
If you enjoyed this piece, feel free to share or comment below