When layoffs happen, people consider starting a business. The outplacement firm, Challenger, Gray and Christmas once told me that about one-third of all these people stop looking for work and start their own business. As a person rises in the management ladder that percentage increases. The reasons are many but usually stem from a need to take more control over their destiny, support their family, tiredness of corporate mediocrity, and the belief that they can do it better.
The reality is that a lot of hiring managers feel they are too experienced and expect too much money so will not stick around. The executive feels “unhirable” and sees no other solution but start a company.
There are many similarities in the preparation of looking for a new job and looking for a new business to start. You are looking for an industry and people to convince to take a risk on you. You will have to repeatedly sell yourself and experience failure.
There are obviously many differences; most notably, that starting a business will require sales that will include multiple episodes of many fails with a success.
Some people do both: look for a job and at the same time look to start a business. They see the similarities and in their own words, “hedging their bets”.
An investor, however, wants to see a commitment. They do not want the entrepreneur to take a job and quit the startup. They do not want the entrepreneur to even take a part-time job, or make the business the part-time job. Investors expect the commitment.
As someone is looking for a job they can try to start a business. At some point, most people are going to have to take that leap of faith and focus entirely on the business to make it work. The challenge is to find that jumping off point to make the commitment to the business. The entrepreneur needs to say, “I’m not going to look anymore, but I am going to make my business work.”
Over the last two months, several of my good friends contacted me looking for a position. I gave them a lot of advice, and I realized there are many similarities between preparations for looking for a job and for seeking investment. The process points to consider are: research (what books to read), resume, cover letter, pitch, online search sites, social networking, and marketing collateral (cards and a website). There are also the Do Nots.
A person looking for both a job and a startup idea can also seek a job at a startup.
The next series of posts will look at the tasks needed to find a job and how they can also be used for a startup.
