Starting a new business is exciting, time-consuming, and expensive. You might think it requires all of your time and money, but take a step back from that train of thought. Keep in mind that some opportunities will actually do better if you keep your day job and diversify your current investments.
Starting a Franchise
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Opening a franchise is one way to become an entrepreneur. The best thing about franchising a business is that you don’t necessarily have to know anything about it. For example, a lot of people franchise hair salons or retail businesses even though they don’t specialize in hair or sales. Instead, they hire knowledgeable managers and employers to make their new business successful.
If you make smart choices, franchising has several advantages. Keeping your current job is the smartest move. That way, you’re making money while your new business establishes itself. You’re also protected if things don’t work out the way you’d hoped. If you open a franchise, it’s also the perfect time to diversify your investment portfolio. You’ll need plenty of capital and your investments help protect your new venture against unexpected losses.
Creating a Start-Up
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Creating a start-up company requires even more careful thought. Start-ups aren’t yet proven; there’s no guarantee of success. You just hope things will go well. While lots of entrepreneurs throw themselves into their new business full-throttle, that’s actually the biggest mistake they make. Your idea should only require part-time effort. If you fail, you’ll still have a valuable job.
That’s not to say you shouldn’t give your new idea all you’ve got. It simply makes more sense financially to keep your full-time job as a security. That’s also why you should go through your portfolio and pick new investments. That way, you have lots of capital and plenty of money to fall back on “just in case.”
Working for Yourself
If you decide to work for yourself as an artist, a graphic designer, or a freelance writer, you need a cushion. The security provided by a full-time job or a diverse, thriving portfolio is essential. Working from home is risky, just like opening a franchise or creating a start-up. When you work for yourself from home, you’re responsible for everything. In the long run, it pays to keep enjoying the insurance and other amenities offered by your full-time job. At the same time, making smart investments allows you to afford those things for yourself when the time is right.
Feeling Financially Secure
This sounds crazy, but the best time to diversify your investments or research information about gold investing and trading is when you think it’s unnecessary. Self-assurance, self-confidence, and security are all assets but they also cloud your judgment. If you’re feeling too cocky about your new business, it’s easier to make a mistake or outright fail. Until your new venture produces enough income to justify quitting your job, then you still need that position. Plus, investing all of your money in one stock or area is just bad business.
Never count your chickens before they’re hatched or put the cart before the horse: pick your cliché. While you’re doing so, remember that keeping your position now means you’ll be that much more secure when you finally write your job a Dear John letter.