Forums: Discussions for entrepreneurs and small business.

I`ve been hearing about this for the past five years or so, as Kathy and I have struggled to bootstrap our business into a solid revenue stream. "My job is about to be shut down, but I need an income! What can I do to start a small business?"

A couple of variables to consider: In many cases, corporate employees are earning many times more than they`ll be able to get either in the small business sector, or in the first few years of a startup venture. Additionally, many people facing loss of career also have a family to support, so it`s not themselves alone.

What advice do you have for people about to become "Incentivized Entrepreneurs?" :-)

Perhaps you`ve had to go through this directly, where you`ve had your job outsourced? What did you do first? What did you forget to do?

What sort of denial were you in to?

If you had to do it all over again, and you knew 1 year in advance that you were about to lose your job (and/or career), what would you do differently?

As someone who has been laid-off multiple times (and could be again shortly!), I`ll never forget being told, perhaps a decade ago:

Whether they know it or not, everyone today is an independent contractor

All workers, from the lowest burger-slinger to the highest CEO, should always always be on the lookout for other opportunities.

Realizing this has helped a lot when my time(s) have come to do something else.



-------------------------

Find out what a business plan is all about and get started on your plan with this introduction. FREE!
Business Plan Basics!

You wouldn`t build a house without a blueprint.
Why build a business without a plan?
Build Your Business Plan!

Craig,

Although I cannot give advice from experience, I thought I would spell out steps I am currently taking in preparation.

#1) Reduction of debt - Should I face an earlier layoff than expected, reducing my obligations is first and foremost. Although I a big fan of Dave Ramsey and am following many of his plan points, I am focusing my attention on paying off my vehicles first rather than `smallest debt first` as Dave suggests. The credit card companies are not going to affect my life as much as a repossession should I become unemployed.

#2) Start living frugally -  Reducing your debt and reducing your standard of living will greatly increase your chances of success in the coming storm. Frugality does not mean dumpster diving and an all `rice and beans` diet, but we do now seek greater value out of everything we buy and use.

#3) Seek opportunities - I carry a small notepad everywhere I go and try to keep myself in an opportunity aware state. I`m always looking for situations which could use improvement, and keeping track of my emotions. When something frustrates me or angers me, I think "how can I capitalize on this and find a better/easier/cheaper way to do it".

#4) I`ve drawn out a vague visual timeline of my life from now until death. It has several forks. the topmost one is the scenario which would usually play out - I get laid off, find a new job, rinse and repeat until I can hope to retire with enough to survive. The other forks lay out possibilities should I start a new business or come up with the next million dollar idea. To be honest, I`m torn between the fear of the monotony of the topmost `employee` timeline, and all the question marks in the other timelines, which I cannot fill in since I have not developed a business, or million dollar idea.

It is truly a exiting and horrifying juncture right now, but once I stop second guessing myself, I`m hoping to make a bit more progress. ;)

Alright, so far there`s the "reaction" approach to the decreasing security of future employment. I`ll reiterate TheNewEric`s point of paying off the car, that`s for sure! Even if you default on credit cards and end up in serious debt trouble, with a horrible credit report, you at least can drive you a job interview or a job if you own your car. Same with the roof over your head.

In today`s world, as opposed to back when we actually could hunt for food, we need three absolutes:

1. A base address to get mail and where we can be contacted for work,
2. A phone in order to be contacted by voice,
3. A vehicle in which to travel to work.

But going beyond reacting to the uncertainty of employment, taking a sort of defensive position, what`s the opposite---the going on the offensive side of things?

Isn`t starting some sort of business an important strategic plan? If we can see the downward spiral of employment security, doesn`t it make sense to switch from being an employee....to being an employer?