18 Aug Why You Should Sell Your Annuity To Start Your Own Business
Becoming an entrepreneur is a dream for many people. Owning a business can have so many rewards both financially and personally. Unfortunately, having a good idea is just one thing you need when developing a strategy to start a new business. One of the other important factors is, of course, capital. According to the Kauffman Foundation, the average amount used to start a business in 2009 was about $30,000. Which is why selling a structured settlement, lottery, or any other type of annuity is the perfect way to get your business off the ground.
Don’t be discouraged if you don’t have quite that much, or you don’t want to put the entirety of it into establishing a business. Businesses that start in a home as opposed to a full brick-and-mortar establishment can get going with as little as $1,000! Considering in-home structures account for 52% of all small businesses, this is a great way to go if you don’t necessarily need extra space. In fact, a recent Census reported that the number of small businesses that started with less than $5,000 was over 40%. An Intuit survey put that number at 64% when the amount is raised to $10,000.
Fortunately, no matter how much you decide to initially invest in your business, you can write off a lot of these costs on your taxes. Up to $5,000 can be deductible in year one. Take advantage of these incentives early, because hopefully your only tax concerns in the future will be moving up brackets. A study by the Census Bureau in 2007 of 3.7 million small businesses with one to four employees found that their average annual sales were over $385,000.
Small businesses are the backbone to our society in many ways. They have created over 65% of the net new jobs in this country since 1995, and are always a source of pride for communities small and large. If you have an annuity and have dreamt of starting a business, the time to act is now. Not only do you get to be your own boss, but you get to inspire others to join you on a mission to succeed and advance in whatever industry/service you choose to embark.