Whether you’re terminated, laid off, or tired of being passed over for promotions, career setbacks are frustrating and stressful. Typically, people who experience a career setback take a reflective look at their goals and ambitions, and some of them decide to get back on the workhorse, but in a different saddle – the entrepreneur saddle. If you’ve recently experienced a career setback, you may want to consider starting your own business. While there are some disadvantages, there are also many benefits, and you can get started using the tips below.
When trying to decide which type of business you should start, it can be overwhelming because there are so many options. “You should conceive a plan that puts your knowledge, experience, and expertise to use in the most profitable way possible,” suggests Investopedia. You can offer services, such as writing, dog walking, and cleaning. You can sell goods, such as jewelry, clothing, and candles. Perhaps you can turn a hobby you enjoy into a business opportunity.
You can also provide help using a skill set that you possess, such as preparing taxes, providing music lessons, or repairing electronics. Some of these possibilities may require special training if you don’t already have experience. For example, becoming a real estate agent is a viable option that requires specific steps. First, you’ll need to obtain a real estate license by taking courses and passing an exam. Once you’re licensed, you’ll need to join a brokerage. A career setback is viewed negatively, but this is your time to try something new, expand your horizons, and experience the fulfillment you’ve sought after for so long.
If you have a significant other or children, prepare your family for the changes that will come when you start a business. For example, if your family is accustomed to you working 40 hours a week, it can a be a shock when you start pulling 75 or 80 hours per week, which is common for new entrepreneurs. Sometimes families can have a negative response to the concept of entrepreneurship, so spend time addressing any concerns. [G1] Work-life balance is crucial, and now that you are your own boss, it can seem impossible to step away. Remember that you are only one person, and seeking perfection is an endless pursuit. Your entrepreneurial role thrusts you into a leadership position, but with it comes to the flexibility to cultivate other important areas of your life too such as relationships, health, and hobbies.
You’ll need to prepare a workspace. For a home-based business, find a dedicated, private area that’s free of noise and distraction. Also, bear in mind that your house is still your family’s home; it’s not a meeting place for clients or a warehouse for your goods. You family may resent your business if they’re constantly fighting for living space amongst your business space. You’ll also find it easier to focus on a singular dedicated space.
Once you have chosen a business idea, talked with your family, and found a workspace, it’s time to research the market. Research can help you learn information about potential customers and tell you how similar businesses have performed in your market. All of this information helps you discover the opportunity for your business idea to succeed.
Poor planning is a major reason that new businesses don’t succeed. In order to start a business, you need a business plan. It not only guides you like a roadmap, but it also convinces people to work with you and invest in your business. A good business plan includes a mission statement, target market, marketing plan, industry and competitive analysis, and more.
Most businesses require startup income, and it’s not always easy to gather the funds. Because successful businesses can remain in debt for the first year and even the first few years, you should have at least a year’s worth of fixed living expenses set aside. While you can tap into your personal savings to fund your business, it’s best to leave that money alone.
You can also borrow money from friends and family, apply for a small business loan from a bank or credit union, apply for a grant, take advantage of economic development programs or corporate programs, use crowdfunding sites, or use angel investors and venture capital firms. Try to avoid using credit cards, as they typically have high-interest ra[G6] tes.
With solid planning and some startup money, you can successfully start your own business. From real estate to running a restaurant to selling jewelry, the sky’s the limit. There’s no reason to let a career setback hold you back from moving forward. Use this hurdle as an opportunity to try something new in your career like starting your own business.