Put a little more thought into it

Dear Dave,

I don’t like admitting this, but I absolutely hate my job. Last year I almost cashed out part of my 401(k) to start my own business or open a franchise, and doing something like this is still on my mind. Considering how I feel, do you think this would be a good idea?

Kurt

Dear Kurt,

In your current state of mind, this entire idea is a trap. Don’t misunderstand; I love the idea of someone living their dream and owning their own business. But you just mentioned starting your own business in the same breath with opening some sort of franchise. That tells me you don’t really know what you want to do.

Have you ever heard someone say they’re “going all in”? When you’re playing cards, that means you’re about to bet everything on a single hand. But here’s the deal, it’s never smart to go all in when it comes to small business. That’s a good way to turn a dream into a nightmare.

I’m urging you to really think about this before you take action. You didn’t mention anything about your financial situation, other than you have a 401(k). That’s a good thing, but if it’s all you have — and you don’t have any other savings set aside — you could be in real trouble.

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