Losing your job could be stressful and distressing, especially during a pandemic. However, this is also an excellent opportunity for a lot of people to go after their dream of being an entrepreneur.
If you are intent on having a renewable energy business franchise, hair salon, or some other kind of business while you’re receiving unemployment benefits, you need to consider some vital things and certain unemployment requirements. Fortunately, having a concrete plan in place that factors in the current economy will help.
Can I Still Receive Unemployment Benefits If I Start a Business?
Yes, but it might impact how much weekly benefit you stand to receive. Your benefits could also be affected when the time comes for you to look for full-time employment.
When receiving unemployment benefits, there are usually requirements for looking for work. For instance, you should be proactively searching for available jobs and be ready to work right away once you’re offered a suitable position. In turn, this might require you to step away from your business once you’re offered a job or minimize the time you need to work on your business.
Depending on your state’s rules, job-search provisions could take a lot of time. This means that you should factor in the time you will need to look for work and going to interviews to meet the state’s requirements. Failing to meet them might result in losing your unemployment benefits.
Additionally, unemployment benefits normally require individuals to be ready to work once they are offered a job. And although there are legitimate reasons for turning down an offer, failing to accept a job that you’re qualified for would most likely lead to the termination of unemployment benefits.
Requirements differ from one state to another, so make sure to check yours. In a nutshell, as long as you satisfy the job hunt requirements of your state, you will continue receiving your unemployment benefits.
But take note that your income will matter. Specifically, you will need to report your business’s earnings once it starts earning money. Consequently, this will reduce the benefits you can collect.
How You Can Start a Business and Still Receive Unemployment
During economic crises, the key to starting a successful business is choosing the right kind of business. Certain businesses like anything related to food, tutoring, auto repair, delivery, shipping, and online business opportunities will most likely thrive in this pandemic. You should likewise make choices according to how much capital you can use.
For example, when offering professional services, home-based operations, virtual assistants, and freelancers rather than hiring employees could greatly minimize your costs. You will also need to decide when you should stop collecting your benefits. Your state’s job hunt provisions might distract you from your business, for instance.
Overall, the choice to become an entrepreneur is a very personal and life-changing decision. Specific reasons to start a business and financial circumstances will vary from one person to another person. So take the necessary time to think and do your homework before taking the plunge.