Others – sometimes called reluctant entrepreneurs – get pushed into entrepreneurship. That is, they lose a job, and find that starting up and running their own business might be a better option than again working for someone else.
In the current tough economy, it can be a difficult decision. Once laid off, does it make sense to try to find another job, when businesses overall are shedding employees, or should one take the plunge into the entrepreneurial waters during a time of economic uncertainty and worry.
The April 27 New York Daily News ran a brief, but interesting piece on a few individuals choosing the small business ownership route, and served up some insights. In part, the Daily News reported:
It took being laid off twice in six months for Judy Goss to decide to launch her own business… Her career moves are what many people who’ve been shown the door think about: Is it better to look for a new job when few companies are hiring, or is now the right time to be your own boss?
Making the best decision will depend largely on your finances, risk tolerance, the type of business you want to launch and your drive…
Having a cash cushion is critical, said certified financial planner Scott Brewster of Park Slope, Brooklyn, because cash flow can be so unpredictable. “You might need two years of living expenses, not to mention business capital,” Brewster said. “Some businesses, like restaurants, have a highly volatile revenue stream.”
Not an easy choice. But when entrepreneurship calls, is it wise not to answer? That depends on each individual, and their particular circumstances and skills.
Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council
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