Launching Own Home Business
Assessing Your Responses
In this section of the article, you learn what your answers to the preceding questions tell you about your likelihood of success in launching your own home business. For each of the preceding questions, the following assessment indicates the basic skill set the question tests and the criteria for scoring your response. Based on your answers and the evaluation criteria listed in this section of the article, you will award yourself one of three scores for each of the questions you just answered:
A plus + for answers that fully meet or exceed the criteria
A check √ for answers that adequately (though not completely) meet the criteria
A minus – for answers that fail to meet the criteria and indicate that you need improvement.
Any question that receives a minus is likely to indicate issues that will add to your budget in the
. Note the “How To Improve” solution, and plan for meeting these additional costs.
1. Asset: Financial Resources
Scoring:
+ Give yourself extra credit if you have 6 to 12 months’ worth of living expenses in the bank.
√ You pass if you have at least three months’ worth of living expenses in the bank.
– You fail this question if you have less than three months’ worth of living expenses in the bank, or if you cannot tell what you spend over an average month.
You also fail this question if you have more than 12 months’ savings in your account. Why? Because the extra money should be earning a higher yield for you than what you get on your savings account. Plus, having all that money at your disposal increases the chance that you will waste it.
How To Improve:
• If you have less than three months’ worth of living expenses in the bank, you need to work on saving money right now. Although it is risky to start a business with such a small amount in the bank, having an inadequate financial cushion is just as risky when you work for someone else. As you work through this website, you will probably find that you need at least six months’ worth of living
expenses (at a minimum) in order to start your business, and possibly as much as one year’s worth.
• You can either a) accept the higher level of risk, b) cut back on spending and wait to start your business until you save more, or c) start your business on the side while maintaining a regular job.
• If you have more than 12 months’ savings in your account, consider moving the additional money in to your retirement fund or investment accounts.
Stay tuned for more about work from home jobs.
Tags: home based business, home business, Make Money Online
October 10th, 2008 at 7:00 pm
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