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Giving up Work When You Have a Family

 

Many would be entrepreneurs wanting to start a small business are held back by the prospect of losing the steady income they currently receive from their employment. The mortgage, school fees and the general standard of living which they have come accustomed to are all at risk if their business does not flourish they way they hope it will.

Many people in their thirties and forties find themselves in this position where the heart points to business start-up and being master of ones destiny but the brain and voices of caution whisper a message of staying put.

They thus accept that they are no longer free to jaunt in to new careers in the same way they could when they were twenty and must accept their obligations and responsibilities to their family.

Cutting Back

Starting a new business need not mean that the comfort of the usual life is sacrificed in its entirety and with the emphasis becomes one of finding a way to navigate through the initial start-up period. Searching for a plan geared at maintaining some degree of continuity in the lives of those who depend on the monthly salary becomes one more factor in the business plan.

The extent and capacity to which it is possible to cut back on monthly and annual household expenditure is often greater than can that which can be gleaned from a first glance.

A more detailed analysis of what is purchased and how money is pent can reveal a great deal of unnecessary expenses and payments which can be structured in a different way.

Some obvious and quite common examples are the mortgage where the period over which it is paid can be extended and thus reduce the amount which has to be paid monthly.

Public versus private education for children is another area where costs can be reduced. Due to several recent Government initiatives the standards in some public schools are now on par and sometimes exceed those found in some fee paying schools.

Depending on the seriousness and commitment that exists towards giving up work and starting a new business, making sacrifices so that this can happen might be judged as worth it.

What Your Partner Thinks

The decision on giving up work and the ensuing cutting back exercises can not be made alone if a person has a wife, husband and children. What your partner thinks, and for that matter, the opinions of your children will be paramount in any considerations.

During the business start-up phase there will probably be considerable anxiety, stress and concern without adding resentment and disenchantment from the family quarters.

Having all concerned and affected parties on board from the beginning is essential and provided they understand the reasons, the changes that are likely to take place and think that there is a chance of a viable business at the end of it, this will make this aspect of the process smoother.

Transition from Work to Running a Business

Depending on the business and the nature of the current job, it is always advisable to look at ways in the transition from one to the other can happen smoothly. Many of those in employment but who plan to run a business try to at least get the essentials of the new entity in place before they give up work.

Some phases of the new business which are simple to enact whilst remaining in employment are preparing a solid business plan and forming a company or choosing another type of business entity or vehicle.

It is sometimes possible to go further and actually start trading under the new business whilst still being employed and provided the time is available to carry this out, this is by far the best means of testing the initial idea and gaining an understanding as to the feasibility of eventually giving up work.

Risk Will Always be There

Regardless on how the transition of giving up work and starting a new business occurs, there will always be some element of risk.

The perfect scenario of replacing employment income pound for pound with profit earned from a start-up rarely happens and in most cases there will be a drop in the money being brought in.

Knowing and accepting that this will happen and making some estimate of how long the deficit will have to be tolerated is important and the information should be communicated clearly to family members.

Both the entrepreneur and those who rely on them should know and accept the risks before any movement towards the new business is attempted. Risk, in itself is not a bad thing. Unfortunately, it is one of the components involved in finding a better, more fulfilling existence within the realms of giving up work and working fro yourself.

 
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