Are You Facing a Midlife Business Crisis?
If you're not satisfied with your current career path, and have toyed with the idea of starting your own business, here are some things to think about.
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PrintEarlier this month I turned 40.
That once seemed like a pretty big milestone. But there were no tears. Instead of trying to ignore the day, I embraced it.
I realized I'm not just at peace with myself and my age; I'm actually happy. And yes, I have my health and a fabulous family (including a newborn to keep me more than occupied!), but another key thing to aging more than gracefully is I love being an entrepreneur, I love my business, and I love what I do.
This milestone got me thinking about the traditional "trade in the minivan for a sports car" midlife crisis. And I wonder how many workers are hitting a midlife crisis in their own careers today.
Our economy has been on rocky ground since 2007 (and that’s being generous) and the toll on the 14 million unemployed workers and their families is tragic. Beyond this, there’s the untold number of unhappy and disenchanted workers who feel compelled to stay in their current job until the economy turns around.
According to the Bureau of National Affairs, only 0.5 percent of the American workforce voluntarily left their jobs at the height of the recession in 2009. That number rose to 0.7 percent in 2010 and Q1 2011, but it’s still below the 1.1 percent rate reported each year from 2005-2007.
Do you find yourself in this category? Do you have dreams to start your own business but aren’t quite ready to take the leap in this economy?
It’s one thing to voluntarily leave your job when a headhunter calls or you land a great new offer. But the idea of starting on your own when the economic picture is uncertain is quite scary. I wonder just how many brilliant entrepreneurs are waiting on the sidelines until something turns around.
If you’re not satisfied with your current career path, and have toyed with the idea of starting your own business, here are a few things to think about:
Face Your Worst-Case Scenario. Is It as Scary as You Think?
All too often, people underestimate their ability to recover from a worst-case scenario. If you start a business and fall flat on your face, how long would it take you to recover? How hard would it be to find another job or start another business venture? Would you be down for a few months or even a few years? Could you handle that risk?
Before you answer, ask yourself another question: How great is that risk compared to a lifetime of regret over never chasing your dream?
You, along with your family, will best know your situation and your ability to assume risk. But for many, the monster under the bed (i.e. business failure) is not as bad as you envisioned. You can also make the necessary preparations to minimize the downside of failure. For example, you can structure your new business in such a way to minimize your personal liability, and you can build up your emergency fund first.
Consider the Benefits of Starting Up in a Down Economy
When the nightly news paints such a gloomy picture of the economy, it’s no wonder people want to play it safe. But did you know that many experts believe an economic downturn is the perfect time to start a business? Some costs will be lower (like real estate), and it’s an opportunity to get the wheels in motion so your product/service/website are ready to go once the economy turns around and people start buying. If you wait for the economy to be in full swing, you’ll be too late.
Understand Your Funding Situation
Okay, let’s be honest: Small business lending isn’t in such great shape right now. We are seeing some VC capital coming back, but for Main Street and for small businesses, traditional funding from banks is still tight. This means you may have to self-finance or start small at the beginning.
Along with the American Jobs Act, President Obama plans to ask the SEC for ways to reduce the "regulatory burdens on small business capital formation," perhaps via crowd-funding and mini-offerings. But that could take time to happen. If you don’t have access to tons of capital, you probably shouldn’t consider launching a manufacturing company with lots of overhead and expensive product inventory. However, it’s more than possible to start many other businesses with just a small investment.
I know that starting a business can be a scary endeavor, particularly when you’ve already got a solid job and the economy is far from stable. But think of it this way: Never taking a chance on your dreams can be scariest outcome of all.
