Career and Job If you lost your job would you start your own business?
This article's content was gathered from a discussion on the Linking Raleigh, NC discussion board on LinkedIn.
Marc DeWalle made an interesting observation while attending the group's event on 11/3 to help job seekers improve their profile for a job search. Read it here: http://www.northcarolinastartups.com/2008/11/04/1740/ His observation was that there was no real interest shown from those attending to go out on their own to start their own business. What are your thoughts on starting your own business? What are your fears and can they be overcome? What kind of support do you need and do you know where to get it from?
Jacqui Harris
Graphic Designer - Self Employed
http://www.linkedin.com/in/jacquiharris
I moved to Raleigh in July and have been looking for a position in graphic design since. My focus is on print design so I am finding it hard to compete with all of the graphic designers in this area with print and web expertise. I have recently started thinking about striking out on my own to start my own business. My concern is that I am new to the area and don't really know many people. Making connections and getting the word out there is a major hurdle for any new business and the added piece of not knowing many in the area to begin with is a little worrisome.
This market and economy are scary for a job seeker and I wonder if I will have the same results in starting my own business as I did in searching for a job. Then not really knowing how to go about starting a business; the logistics and legal necessities, are something that I worry about but I know that many great businesses were started by people who didn't know the first thing about starting a business and were great successes.
The good news is that since I started to talk about this I have had better response as far as advice and suggestions and offers for free advertisement. I am at the beginning of this idea so when you ask:
"What kind of support do you need and do you know where to get it from?"
I have to answer no I am not sure of what kind of support I need or where to get it. I do know that I have begun to create a network by joining this group and another in the area and I do know that I have something to offer.
Marc DeWalle wrote; "I know we’re all nervous about an economy that doesn’t seem to have a bottom and how long it may be till things pick up again. But I happen to believe there is no bad time to start a business."
I agree.
Joshua Dembling
Competive Analyst / Project Manager - IBM
http://www.linkedin.com/pub/b/39b/98a
It seems that the inclination is to hibernate, but I think now, more than ever, is a prime time to start a business. Think of this as a spark to motivate innovation and that entrepreneurial spirit.
Susam Clark
Owner - Signs By Design
http://www.linkedin.com/in/signsbydesign
Starting a business no matter in what economy takes capital and being able to pay for your cost of living for at least 6 months-1 year and longer for some types of business. I am not trying to be negative, just realistic.
I love being a business owner and not being at the mercy of the corporation wondering will I or won't I have a job tomorrow, but there are a whole other set of worries that come with owning a business. I suggest having a plan of action maybe with the help of a coach and an accountant before you take that leap and rework that plan on a regular basis.
I see a great deal of new business open (we put up their signs), and unfortunately close simply due to lack of funds to keep the doors open.
Make sure you have the $$ to advertise. Sadly, marketing is one of the 1st things businesses cut out of their budget. I honestly think this is much like shooting yourself in the foot. A great idea, product or service is there but if nobody knows about it and where to find you then you just won't generate the revenues.
There's my 2 cents. I hope this helps!
Jason Pedone
Technical IT Business COnsultant - BB&T
http://www.linkedin.com/pub/0/427/79b
Given the challenging economic climate I would say its extremely difficult to go 'all-in' and execute on a business plan. Attaining capital on even the most sound business model is an enormous hurdle. This isn't a problem for those individuals that can 'self-fund' their business but is that really a good idea for those with a family to support (especially if you've already lost your job)? The risks are too great for most.
However, I think it IS a terrific time to start a lifestyle business - these can often evolve into something greater without putting your personal financial situation at risk. Not all business ideas require a ton of capital to get going. The most important investment is time. If you have a great idea and you're willing to invest the time and energy then you'd be foolish not to pursue it. Great ideas will always get attention regardless of the state of the economy.
Robert Johnson
Owner/Consultant - Triangle Public Strategies LLC
http://www.linkedin.com/pub/3/1b9/392
I agree with the above. Recently, I started my own consulting business assisting nonprofits and technology companies with fundraising, advocacy, and grant writing. Yes, it is a challenging time but I would encourage everybody to try and make it happen, especially, if you've always been interested in starting your own business.
Randy Mitchell
Business Coach, Owner - The Entrepreneur's Source
http://www.linkedin.com/in/randymitchell
There is never a 'best' time to start a business. One can always come up with excuses why it is not a right time. However, with the proper preparation and planning, one can start a successful business in any economy. Key stumbles I often see committed by those starting up an 'independent' business: (1) underestimating their capital needs and (2) failing to creat a system or process that will guide them in executing the business plan. But planning and preparing in both of these arenas, or investing in a proven system such as a franchise, can allow one to ramp up successfully.
John Perlin
System Test Engineer - Senus Metering Systems
http://www.linkedin.com/pub/1/4a5/b99
In this day and age I think every forward thinking professional would be wise to consider starting a business. Even if it's a part time type of situation or a family business that your spouse will be running. The job situation can be very turbulent and a business is a much better way to create wealth and stability. However it is important to note that a stable viable business does not happen over night. One needs to plan, get expertise, get proper coaching, and get way out of your comfort zone.
Good luck, and I'll see you at the top.
Thomas Bradshaw
Agency Owner - Tom Bradshaw Agency (Allstate)
http://www.linkedin.com/pub/7/373/775
When I sold my small business earlier this year.I swore I was not going to start another small business.I knew I sold my business at the top of the market, and things were going to get worse..My plan was to latch on to a local company, and do the employee thing...But after careful review, I noticed a need for a service I could provide in any economy.You have to have faith, a good plan..capital to survive, and surround yourself with excellent people.This is my fourth small business I have either started or co-founded.I have enjoyed every moment, stressful or not...Let me know if I can be of service to you...
Brian Wray
CEO/President - Wray Enterprises
http://www.linkedin.com/pub/5/47/b43
I own multiple business and to be honest, I would not start another one right now. I am actually trying to scale back. I have been in business for my self since 2002, and haveing to scale back is not my nature, as I am growth minded, but with out the free flow of capital it is hard to grow a business. I agree with Susan above, It takes capital to start something new. If you are going to jump in with both feet, then make sure you have at least 1 years worth of private expenses set aside and dont touch it...no matter what. Then make sure you have enough capital to find your business to get started. Us grass roots marketing at first (Meet and Greet methods) to get the word out there. If you can do all of the above and still keep your day job for the time being, then I would say do it.
With all of this said, if you can stay afloat....It is the best thing in the world!!
Eleanor Thorne
Loan Officer - Meridian Residential Mortgage
http://www.linkedin.com/in/eleanorthorne
The strategic question is do you have a service or product that is in demand, and do you have the skills to market and sell it. The critical part of almost all businesses (especially right now) is a staff that can sell the product/service - and a true demand for it. In the housing and mortgage business, there's very little demand... so we are having to sell people on the HOPE for the economy first!
Gary Brock
Investment Process Analyst Officer Level: Assistant VP - Fifth Third Bank
http://www.linkedin.com/in/garybrock
The common theme is that the job market is rotten, and none of us like having our income tied to an employer that could cut us loose tomorrow.
I've often thought about getting a second set of skills that are completely different from what I do now (essentially programming and analyst work). When industries/sectors go south, they typically take almost every company with them and it can be very difficult to find work in your sector after you are laid off.
I'm thinking about adding plumbing and/or auto mechanic skills, and working part-time (as I continue to work fulltime) until I get the needed experience before putting out my own shingle. People always need a good, honest mechanic or plumber, and those jobs pay fairly well.
Adding a second set of recession proof skills is a good idea these days, IMHO.
Don Crouse
Partner - Triangle Consulting Partners, L.L.C.
http://www.linkedin.com/in/doncrouse
I was let go a few months back and immediately made the decision to become self employed. My family and I have moved several times in recent years and now that we are in Raleigh we don't want to move. Starting my own business, while a challenge has given me freedom and happiness that I have not had in years. We are now in charge of our own ship and we are staying docked in Raleigh.
Here are a few of the key things I looked for in deciding what business to start: 1) Work that I can be passionate about 2) Recession proof industry 3) Work that can leverage my skills and network.
Jeff SanGeorge
Owner/Art Director - Connect Marketing and Design
http://www.linkedin.com/in/jeffsangeorge
After being laid-off last April my first inclination was to run (not walk) to the next steady paycheck. Since then my awareness has slowly been opened to the realities of the current business climate. How long will a steady paycheck remain "steady"?
I've always talked about opening my own business, but couldn't find the time, well now I do. A few months ago I had a job offer, and accepted it, only to have the offer pulled when the company lost its start-up funding. Within minutes of getting the news my resolve became crystallized and I began moving forward with my business plan.
I keep going back to something a Professor from NC State told me, "its much easier to find new business than it is to find a new job". I've found that particularly true in these days of downsizing and hiring freezes.
Marc DeWalle
Director, Channels & Partners - Critical Path, Inc.
http://www.linkedin.com/in/marcdewalle
Great comments and good to see that I was totally wrong when I suggested that I saw nobody at the LinkingRaleigh meeting who seemed to want to start for themselves after loosing their job.
I wrote about this discussion and quoted a few of you in a post earlier this evening: http://www.northcarolinastartups.com/2008/11/20/startup-easier-than-looking-for-a-job/
The North Carolina Startup Blog
www.northcarolinastartups.com
NCStartUpBlog@ gmail.com
Donna Ray Chmura
Attorney - Sands Anderson Marks & Miller, PC
http://www.linkedin.com/in/donnachmura
I am an attorney who works with many start-ups. I think the comments above on resources and funding are dead on. From my perspective, the businesses that succeed have business plans. They don't have to be fancy or formatted, but you need to figure out your costs, your market, how you will reach the market, how you will separate yourself from your competitors, when you will achieve profitability. You need to do some risk assessment and management: what can go wrong and how do you protect yourself?
Also, in my opinion, it is essential to have an attorney, an accountant, a banker and an insurance agent that you know and trust. It is also important to have a group of mentors/friends you can bounce things off of.
There are many, many resources in the Triangle for entrepreneurs and especially start-ups. Both Durham Tech and Wake Tech have small business centers that offer affordable classes (disclaimer: I teach one on Legal Issues Facing Small Businesses). There are Small Business and Technology Development Centers Associated with NC State, NCCU and UNC that provide free business services and consulting to residents of the state. SCORE has volunteers that work with small businesses -- these are retired executives with a lot of experience.
Owning your own business is the traditional way to build wealth in our country. There is a lot of opportunity out here, even now. But as with everything, there are plusses and minuses, and I encourage people to get as much knowledge, information and education as possible on the front end, so that you are more likely to succeed.
Yolanda Brown
Young Professionals President - Triangle Urban League
http://www.linkedin.com/in/yolandabrown
I second the previous poster. As one who has consulted many start-ups, many people I have heard from that wanted to start a business were either recently let go from their employers or were in a situation where they did not want to be employed by their specific employer anymore (or it's January when everyone wants to start a new business). There is never a "best time" to start a firm or you could say it's always a good time to start one. Only exception, it was already hard for start-ups to get bank loans, it's probably worse now. That said, depending on what type of firm you want to start, you may not need a great deal of capitalization up front, particularly if you are offering a service.
I would have given all of the above resources had I answered earlier, here are their websites:
www.durhamtech.edu
www.waketech.edu
www.sbtdc.org
www.score.org
These are all low to no cost resources. Given that, follow-up is key to getting the best service. These providers tend to become overwhelmed by people need support or wanting to partner.
Additional resources include:
www.ncimed.com (operates the NC Minority Business Enterprise Center and the Women's Business Center - I used to work there)
NC Leap - http://www.ncbar.org/public/ncLeap/index.aspx - free legal services for low wealth entrepreneurs
NC Business Servicenter - http://www.nccommerce.com/en/BusinessServices/StartYourBusiness
Marc DeWalle
Director, Channels & Partners - Critical Path, Inc.
http://www.linkedin.com/in/marcdewalle
From out of state, but equally applicable here, Alexander Muse of the Texas Startup blog talks about how the economic situation may spur (get it?) entrepreneurship.
http://www.texasstartupblog.com/2008/11/12/how-the-downturn-my-spur-entrepreneurs-into-action/
Its a bit of a silver lining to the the economic downturn.
BTW, it seems that the edit function for the group comments doesn't work.
Marc DeWalle
The North Carolina Startup Blog
www.northcarolinastartups.com
Gregg Miner
President & COO - SCORE Business Systems
http://www.linkedin.com/pub/a/9a7/274
I recently (Sept 2008) started my own consulting business. The business is developed around my core competencies of operational improvement, lean manufacturing and employee engagement. I have been a successful business leader and a division President or General Manager for over 7 years. The capital requirement is limited as I have the knowledge to execute the analysis and improvement techniques. The finnacial issue for me is lost income for now. Additionally, marketing is the main barrier. My product is not a commercial one, no store front, signage etc. Just word of mouth, networking and mailings.
I love the concept of not having corporate oversight as in the past this has hampered my ability to improve companies, but the change from wonder if you'll hav e a job tomorrow to wondering if you'll have any income or not tomorrow is difficult at best. I have the financial means to live for 6 - 12 months (lucky me) BUT, that means limited net worth in the end if nothing happens.
Today I'm excited and motivated by the opportunities I see, but with an uncertain economy and spending cutbacks at the corporate and indiviual levels only time will tell if this was a good decision.
Jeff LeFevre
Managing Partner - JTL Services, Inc.
http://www.linkedin.com/in/jtlservices
The key to starting your own business is to live within your means. Have a game plan and the confidence to know that you can! I started my own business in 1996 and did not need any money other than enough to pay my own personal bills. I had some money put away but I started small and built off of that responsibly. When you work for yourself and you are married it is important to have support, and what I mean by that is your spouse needs to understand that you will make it or die!
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