Small Business Startup News

Some Things To Consider Before Becoming An Entrepreneur

Written by James Conroy
Published: 5/29/2009

One freelancer says potential small business owners must consider the possibility of not taking a paycheck to up to three years.

Mounting layoffs around the country have caused many Americans to consider working for themselves and starting a small business, but one expert says there are many things to consider before taking that jump.

Entrepreneur Startup Team

In a blog post for NWjobs, freelance writer and author of the book The Anti 9-to-5 Guide Michelle Goodman says that there are a number of factors that many people don't think of before jumping into the world of entrepreneurship - like not drawing a paycheck for up to three years.

"If you're selling a product or your operating costs are more than $15,000 a year, don't expect to pay yourself right away," she writes. "You'll probably want (or need) to put everything you make back into the business for a while."

But Goodman notes that without overhead it's likely that a freelancer or consultant could start making money in as little as a few months.

However, there is good news for entrepreneurs planning to start a business as Goodman says there are a number of positives in starting a small business like being your own boss and having flexibility.

Last year Thomas Frey, a senior futurist at the DaVinci Institute, told USA Today that an average of 7 percent of the recently laid off workforce attempts to start their own business.

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