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Is Starting A Business Safer Than Your Job?

of IS STARTING A BUSINESS SAFER THAN YOUR JOB? OVERVIEW EMPLOYMENT SELF-EMPLOYMENT 9.1% UNEMPLOYED SELF-EMPLOYED 44% 9.1% 44% CONSIDERING SELF-EMPLOYMENT 44% In 2008, on average Their combined ventures accounted for 2,356 78% of U.S. business. people went into business for themselves every day. WHAT ARE THE OPTIONS? THERE ARE ONLY 4 PATHS TOWARDS BUSINESS OWNERSHIP BUY A NON-FRANCHISE BUY A START A BUSINESS BECOME A FRANCHISE FROM SCRATCH CONSULTANT BUSINESS BUSINESS* *the most secure choice WEB SEARCH PORTALS 41.2% NAIL SALONS 18% INTERNET SERVICE PROVIDERS 16.6% RECREATIONAL VEHICLES DEALERS 12.1% ELECTRONIC SHOPPING AND MAIL-ORDER HOUSES 12% LANDSCAPING SERVICES 11.1% WEIGHTING THE RISKS EMPLOYMENT SELF-EMPLOYMENT working for somebody else is like renting an apartment working for yourself is like owning your home the self-employed has potentially several revenue streams (clients, product lines, business offshoots, etc.) an employee has only one revenue stream (the employer) with X number of clients a self-employed person could job stability is never guaranteed lose Y number of clients and still have a stable business JOB DISPLACEMENT Out of 15.4 million displaced short- and long-tenured jobs 35% FAIL IN TWO YRS (from 2007 through 2009): Third of new businesses that have at least one employee, 6.9 MILLION 8.5 MILLION last for two years PERSONS WERE DISPLACED PERSONS WERE DISPLACED from jobs they had held for from jobs they had held for AT LEAST 3 YEARS (long-tenured) 35% FAIL IN FIVE YRS LESS THAN 3 YEARS (short-tenured) Third of new businesses that have at least one employee, last for five years 44.8% 55.2% 6 YEARS is the time new NON-FRANCHISED businesses last on average with 62% FAILURE RATE RE-EMPLOYMENT FIGURES 60% of displaced workers were re-employed in January 2008 60% 10+ YEARS 50% of displaced workers were 50% re-employed in January 2010 is the time new FRANCHISED businesses are in operation with 31% of the re-employed's jobs end in less than a year 31% 90% SUCCESS RATE 65% percent of the re-employed's jobs end in fewer than 5 years 65% Before you quit your job, make sure: You have at least three months of You will be able to 4 "security money" for personal bills. borrow money if needed. Loo! You have secured 2 To plan to do only what you can afford. first clients before. INCOME EMPLOYMENT SELF-EMPLOYMENT $26 difference* median yearly earnings $30,986 $31,012 median yearly earnings in corporate environment, providing twice as much value doesn't necessarily mean getting twice as much reward reward proportional to effort - direct contact with market means that any extra effort is more likely to be rewarded slow annual earnings growth for the first few years grow faster after a critical time period with franchise, the time frame to reach profitability is shorter than it would be with a non-franchised business *according to 2008 Current Population Survey AGE while 16 is the minimum age for most non-farm work, minors aged 14 and 15 may work outside of school hours in certain occupations under certain conditions SELF-EMPLOYMENT BY AGE (2009) 16 TO 19 YRS older job seekers are having a significantly harder time re-entering the workforce than younger adults 20 TO 24 YRS 25 TO 34 YRS 35 TO 44 YRS self-employed workers tend to stay in the labor force longer than wage-and-salary workers 45 TO 54 YRS 55 TO 64 YRs 65+ YRS more wage-and-salary workers switch into self-employment later in life than vice versa I UNINCORPORATED SELF-EMPLOYED I INCORPORATED SELF-EMPLOYED GOVERNMENT PROGRAMS EMPLOYMENT SELF-EMPLOYMENT Programs aimed at the long-term unemployed, usually established in periods when the economy is strong are effective Self-employment allowances are the same weekly amounts as the worker's regular unemployment insurance benefits. Participants work full-time on starting their business instead of looking for wage and salary jobs. Some economically disadvantaged demographic groups' prospects in the labor market are lackluster There are programs to encourage entrepreneurship. In many instances, these programs target economically disadvantaged demographic groups. Training programs should not be used as a panacea for reducing unemployment- it usually doesn't work, especially if the economy is not growing One third of program assisted businesses are short lived, typically one year lendio SOURCES:;;;;;;;;;;;;;;;;;;;;; REDUCING THE RISK FASTEST GROWING INDUSTRIES

Is Starting A Business Safer Than Your Job?

shared by rmmojado on Dec 28
With a slow economy, many people have turned to entrepreneurship as a means to pay the bills. Which begs the question, what’s better today — getting a job or starting a business? We dug deep to...



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