Tips For Starting A Business While On Unemployment
The period of unemployment is a down moment for anyone that has lost their job. Irrespective of why you may have lost your job, you are likely wishing to get back to work again. And if you have to go into business, do you know what it entails starting a business while on unemployment ?
The stress of finding a new job and adjusting to its conditioning can be really tiring. Even worse, is having to live only on the unemployment benefits offered by the Government.
The troubles of hunting for a new job and the feeling of dependency makes some people shift to more entrepreneurial ventures. Moments of unemployment open doors for self searching and introspection. It is at this moments that many have career shifts. Most people who had initially pursued careers they never loved or had interest in cease unemployment to change their careers.
The changes people opt for during times of unemployment falls in three categories. Its either searching for a new job and continuing with the new job. Or, taking the huge step of changing a career and resuming a job in a completely different field. Or the last choice which is moving to an entrepreneurial line and starting up a business while on unemployment.
Is Starting A Business While On Unemployment Really Possible?
Yes, you can start a business while on unemployment. There are lot of businesses that you can start when you are unemployed and you can really succeed in them. All that is needed is the right amount of work and time for effective planning in order to succeed.
We hear tales of Doctors saying they would prefer to be Journalists, Actors wanting to become Chefs and so on. Career shifts often happen during times of unemployment and most people change careers to start up their own businesses.
If you always had this great love for flowers and a deep connection for them, you could look to starting your own flower shop and watch it blossom. The great news is that you can take this step while being unemployed. If it is a love for food and cooking, you can start up your own bakery right now while being unemployed, just with the resources available. Whatever the shift may be and whatever career you may be changing from, you can cease the current moment and launch your startup.
What About Unemployment Benefits?
Taking the bold step of starting your own business is not all that is needed to run a successful business in the time of unemployment. A lot of factors come to play. Like any entrepreneurial venture, there are risks involved, fears, stress and the regular highs and lows. Business isn’t stable hence it is often said that entrepreneurship is not for the faint minded.
Relying on unemployment benefits to support your business can be a bit risky as the moment your venture begins to materialize, you gradually start losing a percentage of your unemployment allowance. This can be dangerous especially if your venture requires a huge start up capital. There is no outside budget and if care is not taken, some business can crash at this baby stage due to lack of funds. This fear has made so many wonder if it is indeed wise to start a business despite this trend.
Yes, it is still wise to start your own business if that is what you love and enjoy. You just need to be careful with expenses and brilliantly map out a plan to effectively start small and thrive. This way, the fear of having your business crash wouldn’t come up as all the predicted expenses will be taken note of in the business start up budget.
Job Hunt Procedures
We all know that to qualify for unemployment benefits, you need to be actively searching for a new job and it must be reflected in your report. Then, the question of time comes up and how to mix the two activities together.
The job hunt procedure can be demanding yet this is a must. On the other hand, the start up you venture into will also be demanding for a fair share of time. And time is a requirement. You cannot start up your venture and abandon it with the believe that it will grow to success. The time your business demands cannot be compromised if success is non-negotiable. Back to the big question, how possible is it to manage both activities?
Its clearly difficult to manage through the both activities but with a strong determination and a clear head, you will be able to manage both programs. And, the State Self Employment Assistance Programs will be really helpful here.
State Self Employment Assistance Programs
Some US states like Washington, Hampshire, Oregon and New York have self employment assistance programs for those that decide to start up their businesses during unemployment. If you stay in any of these states, reaching out for benefits from these programs will make your task a lot easier.
With the state self employment assistance programs, you wouldn’t have to get yourself worked up over a job hunt. They also offer programs that may be beneficial to the growth of your start up.
Advantages Of Starting A Business While On Unemployment
- You get the opportunity to start a profitable business venture that alligns with your passion despite being unemployed.
- Room is created for you to be your own employer. Its an opportunity to know what entrepreneurship feels like.
- It is the perfect moment for many considering a change in career to finally take the big leap.
- The unemployment benefits you receive will serve as a financial backing for your business.
Disadvantages Of Starting A Business While On Unemployment
- The highs and lows of an entrepreneurial life can be tough to deal with considering the current circumstance.
- The moment your business materializes, you start to lose certain percentages of your unemployment benefit.
Planning To Start A Business On Unemployment
You will never know how well you will do if you don’t try. So, starting a business while on unemployment should not scare you. Set a goal, do the needful and take the following into consideration.
- Make sure you don’t heap more than you can carry upon yourself. Start small.
- Discover your niche, explore that path and distinguish yourself
- Plan for when you will be letting go of your unemployment allowance so you focus on your business.