The BizFilings blog covering business tips and trends.
Turning a Severance Check into an Entrepreneurial Venture
Published on Jan 6, 2011
Read 'Turning a Severance Check into an Entrepreneurial Venture' at 'Time to Start Up,' the small business blog by BizFilings.
The economy is gradually beginning to improve; consumer spending rose dramatically in December, manufacturing activity is up, small business borrowing is increasing and the availability of credit is improving.
Nonetheless, unemployment remains high and is expected to be so through 2011. But even as companies across every sector continue to lay-off top talent, many recently fired professionals are using those hefty severance checks as fuel to launch their own business.
For these entrepreneurs, it is important to be certain that their business idea is actually a lucrative prospect, especially in a slow economy. Do your research, speak to industry experts and consult friends or even former colleagues.
Although research is important, it is still critical to move quickly if you want to start a business. Severance checks are usually meant to be a source to live off of - not a startup investment fund, so don't delay.
"I could have invested [my severance] earlier instead of living off of it," Lou Warren, former manager of a Kansas City plastics company, told Entrepreneur magazine. "We would have had more money to play with and could have considered different options. We could be twice as profitable as we are now."