We know that buying or starting a business can be a very exciting time in your life, and while you may be tempted to quit your current job so you can give as much time, effort, and energy to this new endeavor, you shouldn’t immediately bid your current company goodbye. At least, not yet. Here, we’ll be going over why keeping your job as a side hustle is important and the questions you need to have answered before buying or starting a business.
Why it’s a Good Idea to Keep Your Job as Your Side Hustle Grows
A job and a good credit score will help you get qualified for funding
Perhaps the most important reason you should stay at your current job as you’re in the process of buying or starting a business is due to your current income. Your employment status can help you qualify for the financing you need. Most lenders will look at your credit score and history, and the better it is, the more likely you are to not only get qualified for a personal loan but receive a favorable interest rate as well. Additionally, your current income is a critical component in whether or not a lender sees you as a qualified applicant.
“Failing” allows you to fall back into your safety net, your job
Failing is always something you need to consider when you buy a business or start one. Keeping your current job provides you with a safety net of income should something go wrong with your new business venture, and it allows you to take a few more risks and gain valuable skills that can ultimately enhance your career and future ventures.
You’ll have more time to test and validate your business idea
It can take a while to find your business’ target market fit – the right audience and the right product or service they’re willing to pay for. Without the immediate financial pressure that comes with being a business owner, you can take your time to better understand your customer and their needs.
You can more easily stake out a premium position in the marketplace
When money isn’t weighing on your mind because you have still have a steady income from your day job, you’re able to be more selective with the work that your business does and the clients you take on. Thus, you can carve out a more premium position in the marketplace.
You can fund valuable professional development for yourself
Without having to dedicate all of your revenue to marketing and creating a product, you have more resources to put towards professional development opportunities for yourself. This will benefit you and your business greatly in the long run.
You can enjoy professional life much more
If you consider your day job monotonous, mundane, or just plain boring, an entrepreneurial side hustle can add some spice and excitement to your life. The financial security your day job provides and the more creative outlet of learning the ropes and experimenting as a business owner allows you to get so much more out of life.
5 Questions to Ask Yourself as You Buy/Start a Business
- Have you thoroughly done your homework?
- Have you established a gradual plan for growth?
- Do you need to learn any more skills, or do you have all the skills you’ll need?
- Do you have sufficient savings (a nest egg)?
- Have you built a strong network of support to help you through your journey?
Buying or starting a business doesn’t mean you have to leave your day job behind right away, but eventually most entrepreneurs find they have to step away to truly focus on making their new venture successful.
Unsecured Funding Source’s loan advisors can help you find the loan that will work the best for you and your business needs to set you up for success. Contact us today to start a conversation!