Can You Really Afford to Launch? (Or Afford Not To?)

May 23, 2011 by Kevin Michael Gray

Questions to Riddle Before You Start a Business:

First, revisit your decision to pursue entrepreneurship, with the goal of weighing the opportunity costs realistically. Getting some solid numbers is a good way to clarify the risks and rewards of entrepreneurship, particularly in the startup phase, says Shawn Bercuson, a serial entrepreneur and angel investor who was one of Groupon's first employees.
 
"If you plan to leave your job for a year and go for entrepreneurship, you should spell out exactly what that will cost you. Then you can think about whether the risk is worth the potential for reward," says Bercuson, who is working on Prescreen.com, a new startup in San Francisco.
 
For instance, are you in a financial situation to give up a salary and make a risky move now, or should you wait until your children (if you have them) are older? If you are giving up a stable job to become a business owner, calculate how much you make now, including such benefits as insurance and a pension if you get them, and add it to the amount you will have to... READ THE FULL ARTICLE

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