The current recession has proven that just having a job is not enough anymore. Millions of people around the world have lost their jobs and now have no income stream. Multiple streams of income is the safest way to ensure you and your family’s financial health. In good times, you’ll have income from your job and from your business. If you are the victim of a layoff, you can use your business as backup income. If your business does extremely well, you can retire from your job altogether.
Here are your 5 reasons to start a business to supplement or replace your job income:
Your Business Can Save You During a Layoff
In 2003 I was laid off from my position as a Director at a Fortune 500 company. I was out of work for exactly one year. However, I was running out of money in the 9th month. With no good job prospects on the horizon, I started a home-based business with Cyberwize. With hard work and a pressing need to make sure I could take care of my family, I was able to fill my income gap and financially survive until I could secure another position.
Unfortunately, my story is not unique. Millions of people have lost their jobs between 2008 and 2009, with many out of work for over 6 months. Thousands of people have lost their homes, or are in the process of losing them. A job alone can no longer be enough, as you are always one decision away from being out of work.
Reason #1 to start a business is to keep a stream of income available when your main income source dissipates.
J.O.B. Is An Acronym for “Just Over Broke”
We typically spend everything that we earn and then some. People happily rack up credit card debt or take on jumbo mortgages as long as the payments fit within their budget. This is how we end up living paycheck to paycheck with nothing left over for savings and investing.
What if you were able to earn an extra $500 per month? That could give you the wiggle room you need to start making meaningful payments down on your debt and putting some of that away for savings. Now imagine what an extra $2,000 per month could do for you.
Reason #2 to start a business is to take yourself out of the category of “just over broke”.
There Are Great Tax Advantages
As a business owner, some of today’s personal expenses could become tomorrow’s business expenses. Business expenses help reduce your taxable income (the amount of income used to calculate your taxes). That’s a good thing! You’ll need a designated business space, good recordkeeping, and a knowledgeable tax person. Home-based businesses are one of the best things a middle income family can begin to help them with taxes.
Reason #3 to start a business is to benefit from the tax advantages of being a business owner.
Do What You Love
What attracted me to the Cyberize opportunity was the ability to help people promote better health, increased energy, reduce weight, achieve mental clarity, and reach a state of physical balance. My home-based business also gave me the opportunity to travel, help others to help themselves, and to become a bit of a “rock star” in my geographic area. I was able to do all of that, and get paid for it!
If you are in a job you really don’t like, you can supplement it with a business that you love! The work in your business can be more than about the amount of money you make. It can also be about the difference you make in other people’s lives.
Reason #4 to start a business is to do what you love and get paid for it.
You Could Retire Early
There are those that take a small home-based business and turn it into an empire. You’ll know that it may be time to retire when your job income is significantly less than you business income, and when you sense that your job is getting in the way of your business! Before making that decision though, make sure your business income is diversified, consistent and you have an understanding of how it ebbs and flows through the seasons.
As a full time business owner, you have more flexibility to determine when, where and how you work. Imagine not waking up to an alarm clock, but instead sleeping until you are done! Some home-based business owners only work a few hours a day, while others throw themselves into their work because they love it so much. When it’s your business, the choice is yours to make.
Reason #5 to start a business is for the possibility of one day being able to retire from your job.