Posted By 
By Devin Partida
Special to Financial Independence Hub
Many people seek the life Findependence [aka Financial Independence] can bring. While there are many ways to achieve this status, one great way is to start a business.
Building a company can be daunting, but it’s vital to consider if it’s something you really want to do.
How does starting a Business help you reach Findependence?
Many business owners trying to obtain findependence implement an exit strategy. This is where the company still operates normally but doesn’t rely on the person who started it to do the work. In other words, the company is automated to function without intervention from the owner. Other people prefer to sell their organization and live on the profit they get from it.
Instead of selling the enterprise, another route is to invest the capital in different areas. Some entrepreneurs use the profit their business generates to create additional passive-income streams.
You can invest your money in many different areas to reach findependence. Here’s a summary of a few popular avenues:
● Roth IRA: This individual retirement account [in the U.S.; similar to Canada’s TFSA] offers the investor tax-free growth and withdrawals. To withdraw money from an IRA, the owner must own the account for at least five years and exceed the age of 59 and six months.
● Property: Many entrepreneurs decide to invest their capital into real estate to sell or rent it again. Buying property could be an excellent chance to obtain passive income, which can aid with the end goal of reaching findependence. However, real estate might have additional costs, such as hiring someone to manage the investment for you.
● The stock market: You can’t talk about investing and not mention stocks. Most people are already familiar with this option, where someone purchases a portion of a company and receives shared ownership. Stocks can also generate monthly passive income via dividends, but many consider them high-risk investments.
If investing company profits to reach financial goals is something you’re interested in, there are other opportunities to look out for. Consider researching bonds and index funds to determine if they’re something you want to invest in.
What kind of Business should you start?
The type of organization you should start comes down to personal preference. Consider looking at your interests and what excites you. Many entrepreneurs create a company around what they already know. For example, if they have coding experience, they could build a business offering customers web development services. Whichever idea you choose, ensure you conduct sufficient research to know what it will take to make it a success.
Here are a few popular business ideas:
● An e-commerce drop-shipping store
● A blogging website utilizing affiliate marketing
● A print-on-demand apparel business
The Steps of Building a Company
Building a successful company takes time and requires a mindset where you see failure as an opportunity to learn. The steps to starting a business will differ for every enterprise, but here’s a general summary of how to do so:
1. Choose an idea: The first step is to determine the type of organization you want to begin. For example, you could sell products or offer lawn-care services to clients.
2. Research your prospect: See if there’s a market for your business idea. Additionally, examine who your competition is to make this venture a success.
3. Devise a business plan: Plan all the essential aspects of the business and how you will handle each of them. For example, determine how you want to fund the company, where customers will find it, the marketing strategy you’ll use, how it separates itself from competitors and what the startup costs are.
4. Start the business: Invest the capital and get all the required documents to open the organization. At this point, you’re likely ready to hire someone to design the company’s website or obtain the necessary equipment.
5. Register the company: This step is where you choose the business structure and legally register it. Depending on the organization, there are many licenses you’ll need to obtain. After collecting all the licenses and registering the brand, most people recommend getting business insurance.
6. Market and scale: The last thing to do is to advertise and scale the company. You can either teach yourself marketing or hire a digital marketer to do it for you. Growing a business takes time and requires creating a strong brand that consumers trust. Remember to adapt to changes in the market and fine tune what’s working.
Breaking Out into Findependence
While the road to findependence is filled with many challenges, it’s worth the effort. However, there’s more than one way to reach this goal. Ensure you’ve done extensive research on all the options available to you before starting a business.
Devin Partida is the Editor-in-Chief of ReHack.com, and a personal finance writer. Though she is interested in all kinds of topics, she has steadily increased her knowledge of the intersection of finance and technology. Devin’s work has been featured on Entrepreneur, Due and Nasdaq.
