Whether picking up freelance projects here and there as a kind of sole proprietor or doing something a bit more formal, setting up a company and running it, the current job market coupled with the difficulty of being “seen” by recruiters (even if you’ve got the experience, talent and skills required) are making more and more people choose to go it alone. Obviously deciding to work for yourself requires a kind of independence, confidence and belief in your skills and ideas that will give you the strength to persevere through lean times. The challenges of launching and marketing a new business – and the need to basically do at least two jobs at all times (the job/specialty you are selling and then the actual selling/marketing of those services) can be daunting. Never mind the bureaucracy and accounting work you will have to consider…
But going into business for yourself isn’t all risk, no reward – or people would not do it, keep doing it and loving it.
Beginning to see the light
The job search has been long and tough – very few interviews, or a lot of interviews that lead nowhere, and you start to think that maybe you would be better off – and much more in control of your professional destiny – if you strike out on your own. This initial “seeing the light” can be deceptive, of course, because on the surface it sounds a lot easier to just take matters into your own hands and go from there. If you’ve never started or run a business, though, you could be in for a few surprises in terms of how difficult it can be. Do your homework. But don’t let the challenges stop you. You will actually be a stronger person and may either become a successful businessperson, recognizing that this is where you belong – or you may just bolster yourself and gain insight and independence enough to know that you do belong in a regular job. But the experience of starting your own business and creating your own job has prepared you in whole new ways you could not even have imagined for the job you eventually seek. You are broadening your horizons no matter what road you take.
But first things first.
How did the “light” first come on that made you consider becoming your own boss?
The hard search – not being seen
The aforementioned “not being seen” in the job hunt is becoming more common. A recent, popular thread on LinkedIn discussed the increasing difficulty of differentiating yourself as a job candidate, particularly when you are something of a jack-of-all-trades. This inspired me to write on the subject of recruitment and HR and the foibles therein. A friend and former professor sent me another article about how HR has begun to embrace “big data” – and this is starting to influence hiring and retention decisions to, as the article points out, an almost creepy degree.
A true jack-of-all-trades, as many people pointed out in the comments to this post on LinkedIn, may be better off channeling all of those myriad skills into his or her own enterprise. If someone else cannot take in and appreciate the generalist, DIY, can-do approach to business, who better to benefit from your work than you – and the stable of clients you eventually cultivate?
When you have done your due diligence – and that means, really taking the time to tailor each application you submit (which may mean cutting back on the jack-of-all-trades theme to market yourself as a specialist in a few key areas, targeted for the specific job) – and you still find yourself getting nowhere, it might be time to apply the same efforts you make in the job search to assessing what kind of business you could do on your own using the skills in your toolbox that others have not seemed to cotton to. Do some market analysis – what needs exist that you can address?
This may be the best way to be seen and to make a mark.
The risk of self-employment
Most things really worth doing do not come without any risk.
The biggest risk – you might fail. Many small businesses fail. It’s par for the course. But is failure in this case really failure? It’s a mixed bag. You may lose your shirt, but you know that there is always another shirt where that one came from. You will never learn as much as fast as you do in starting and running your own business – succeed or fail. If you fail, you take away valuable lessons and experience. You can either apply these lessons to your next business venture (the entrepreneurial bug is strong once you start) or apply the lessons to your next job. You are richer for it. “..a recent survey of 1,000 small business owners (conducted by Deluxe Corp and reported in Business Insider) shows that the vast majority of them are confident in their endeavors and say they’d rather embrace potential failure than never try at all”. Once you make up your mind, you’re pretty sure that you can live with failure – and need to be optimistic about success, regardless of the statistics, or you would not be likely to give the business your all.
Some might argue that it is a risk to work for yourself because you are sort of taking yourself out of the workforce specifically in your field and thus might fall behind on new trends or technologies because you are not active in that field. I doubt this. If you’re leveraging your former experience, chances are, as a self-employed person in a similar field, you have to stay ahead of the curve on trends to be competitive. This is why companies will turn to you – as your own enterprise, you are expected to be on the cutting edge. You might ultimately end up ahead of the game.
Difficulties & hard times
Money, money, money
I think one of the major reasons that more people don’t go into business for themselves, which goes beyond the not knowing how or where to start is the cash flow situation. Not only do you not have start-up costs on hand, but you, like everyone else, have bills to pay. And many people are motivated in large part by the paycheck. A steady job, even one you hate, pays you and ensures that you keep a roof over your head and all the rest. But, while theory won’t keep the wolf from the door, the idea that you work just for a paycheck is the kind of mindset that you should work to change.
You have a lot of skills to apply to the work you eventually want to do in your business. But to get there, there’s a lot to learn about starting, operating and building a business. This kind of knowledge doesn’t come overnight, and you will have to work hard and be patient, embracing what may be a steep and possibly winding learning curve.
Overreaching & lack of planning
You might try to do too much, too fast and overreach. You can easily lose the plot by doing this – and burn yourself out. Be sure to have very specific goals – and don’t stray too far from these, even if you see opportunities to dabble in a bunch of different areas outside your core business. This can lead to trouble, especially in the early days when you struggle to find your footing. You need to have a good plan from the beginning and, while you can exhibit some flexibility, straying too far outside the guidelines can get you into trouble, mired in projects that you cannot fulfill your commitments to. The temptation to do this can be great, especially when money is tight in the beginning, but you’re better off in the long run if you stick to your guns and do not take on something you cannot handle. Does that mean you should not challenge yourself? No, but definitely evaluate whether a project is within the scope of what your business and your expertise can offer. You risk a big bundle of stress, financial losses and a potential hit to your reputation if you don’t manage yourself and your obligations carefully.
Further on the previous point, if you are careless about making delivery promises or careless in taking care of all the required aspects of establishing a business legally (especially where it concerns intellectual property), you can quickly find yourself in legal trouble. This is somewhere you definitely do not want to go. Failing in a small business is one thing – getting tangled up in lawsuits is entirely another. Always put in the time to make sure everything is above board and legal.
The rewards of self-employment
One of the biggest bonuses of working for yourself is the flexibility you can build into your work life. Sure, you will probably be working most of the time – but it’s your business and your time. When you need to run out and do an errand, no one is looking over your shoulder and asking you to punch a time clock. Your time is your own, and you know that you get what you put into whatever efforts you are making. For me, the home office has been a boon – I have discovered that unknown levels of productivity are possible for me when I am working at home, so the readjustment to office life has just not worked well. Sure, I need to be flexible as well – but having your own business buys you this kind of freedom.
If you are anything like me, one of the battles of working in a regular job is that many of them have an initial learning curve (new company, new project) but then once you have mastered a few things, there is not a lot of brain stretching going on. This is not always true – there is always something to learn but you’ve got to be proactive about seeking it out. Sometimes the traditional work environment, even if you are like a sponge, picking up new knowledge and skills, just wants to pigeonhole you into whatever role you are doing, and the lack of growth that results from your gusto to learn leaves the learning less than satisfying. This is never a problem in your own enterprise. You have to learn to keep going, and you will apply everything you learn all the time. For those for whom endless curiosity is a constant nag, self-employment is one salve for the soul.
Building your network, building your reputation
Don’t give yourself a bad reputation! Building up your network of clients is the best way to get more clients. In my own experience, I have tried various types of advertising and marketing, and the single best way – that keeps paying off after literally years – is word of mouth. Former/current clients are asked by friends and peers for recommendations, and even if eight years have gone by, they will remember the work I did and pass my name along.
This leads to the next point – working for yourself, you are the show, so you have to put your best foot forward and manage your reputation. Clearly building a solid reputation with clients makes you memorable, keeps them coming back and will grow your business even without you exerting effort. The effort you make today can pay dividends later.
You did it! Whether you stick with it forever and keep growing or just do the self-employed thing for a while, you did it. You stuck with it and now have this invaluable experience to show that you’ve got business experience, sense and acumen.
Seeing the signs – Do it alone
The way things are going – both in the job market as a whole and in specific industries, and perhaps just in your own field – you should be able to read the writing on the wall to assess whether the time has come to strike out on your own and make a go of it.
It’s not that I am a vocal advocate of starting one’s own business – I have done it because I found myself unemployed and with few options living in a new country. And if it seems like a bureaucratic rat maze navigating the vagaries of legal, financial and other considerations in starting a business in your own city, imagine doing it in a foreign country in a new language. But the fact that I managed means that pretty much anyone can do it if you have a solid plan, a target clientele, a way to market yourself and a lot of patience – and networking skills don’t hurt one bit. It is hard work – perhaps even harder and much more time consuming than going to a regular 9 to 5 job, but it can be a salvation and even an addiction once you start to see positive results and the fruits of your labor.