Yesterday afternoon I was interviewed by a franchise related magazine and was asked my opinion on why so many people were starting businesses now since being let go from their regular work.
I was also asked what advice I would give to a new entrepreneur in these tough economic times. I thought I would share my thoughts with you as well.
Why are so many people starting businesses now after being let go from work?
1. Control Your Own Destiny.
When you work for someone else you don’t have control over your destiny. You’re always tied to the success of the organization and when the company has problems you could be let go for no fault of your own. When you run your own business you make the decisions and your hard work is in return rewarded with profits.
2. Young Workers Want Opportunity.
Many of today’s young workers were hired during the boom times and haven’t seen an economic recession. Now they are realizing that life isn’t always so great working at a big company. They know they are still young and are using the chance to start off in a new area by doing their own business. If not now then when?
3. Necessity Is The Mother of Invention.
Many people cannot find work anywhere else so they start their own business more out of a necessity to survive than out of a desire to be an entrepreneur. There is nothing so powerful as the need to put food on the table when your back is up against the wall.
What top 2 tips would you give to new entrepreneurs starting out?
1. Build Around A Customer.
Find someone to buy what you are selling and get the cash coming in right away. Do not waste time thinking and planning endlessly. Find a problem and solve it. Many people have found that their old employer is actually a good potential customer if you can solve their critical needs.
2. Do Not Spend Until You Earn.
Especially if you have been let go from work, you do not want to get into anything that will require a large capital outlay. Find ways to get profitable and start filing up your bank account. This may mean starting with a service where you are trading your time for money and eventually moving into a product based company once you have the capital to expand.
Why do you think people are rushing to start new businesses? What advice would you give them?
