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Small Office/Home Office Expert Expert: Steven Strauss
Starting a business after being laid off
Q: I've recently been laid off. Instead of looking for a new job in this weak economy, I want to work for myself, at home. What do I do to start my own business in this market?
A: According to the Small Business Administration, in the last recession, circa 1990–92, although business generally shrunk, the number of new small business start–ups actually grew in relation to the two years before that. The reason is that when people are laid off, they can either find a similar job (not easy), find a lesser job (not desirable), or start their own business. So you are not alone.
The first step is to pick a business that you will be passionate about — something you love. That way, when long hours and hard work become necessary, you will want to put in the time necessary to make your business a success.
Second, I would seriously consider starting out as a home–based business. Doing so will enable you to cut down on your overhead, and that can be critical to your success, especially in the beginning phase of your business. It might also help to know that many a business has started out in the home, including Hewlett Packard, Amazon, and Lillian Vernon.
Finally, make sure to have at least three months of income in the bank before you get started. Starting a new business is never easy, and doing so in a weak economy is even more of a challenge. If you have some savings put aside, you will be less likely to make the sorts of mistakes that can come from feeling desperate.
Good luck. Staring a business is the adventure of a lifetime. If you do what you love, work hard, and offer goods or services that beat the competition, success will be yours, no matter what state the economy is in.
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