When your Seed Money is Your Severance Pay

By Katelyn Smith • February 18, 2011 at 4:30 PM

With the recent downfall of the economy, more and more people are left with severance checks instead of a paycheck. For some this is a terrifying experience, but for others this is the opportunity to become their own boss. For those of you who have entrepreneurial dreams, here are a few tips to help you launch your dream business.

Firstly, and perhaps more importantly, plan. Severance is designed to help you live while you are unemployed, so make sure you have a firm grasp on your business as well as your personal finance plan. Make changes to insure that your severance will stretch as far as possible, and ultimately amplify your business and its earnings later on.

Furthermore answer such questions as: What is the start up cost? What are the anticipated revenues? Who is your customer? How will you reach your customer? When will you pay yourself a salary? Answering these questions will help you realize if there is actually a business opportunity here or just an idea.

If the answer to the above question is yes, then act now. The more time that you water not acting upon your venture the more money you spend out of your severance and the less you can invest in your business.

Finally when you are ready to begin, do not take your new job lightly. Set up an office in your home. This does not have to be an entire room dedicated to your business venture; it can be a corner of your kitchen or living room. Also, get dressed for work, we have all heard that we have to dress for the job we want, not the job we have, and this applies to your home business as well. Putting yourself in that mindset is an important step in getting in the correct mindset for success.

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