When Entrepreneurs Become Job Seekers

We all know that the job market is really tough!

As if the competition from new college grads and the recently terminated isn't enough, here comes the competition from another, not so often talked about pool of job seekers - entrepreneurs.

Many small business owners are coming back into the job market and having a hard time connecting. Since the beginning of this year, I have talked to at least 10 business owners, who have had to seek out employment to either keep their own businesses going, closed their businesses all together, or thinking of closing their businesses.

Two of these entrepreneurs were in the construction business. One owned a painting company and the other a small general contracting company. Both have had to lay off workers and have become employees themselves for big box retailers. One owner of an adult day care facility is considering selling a building, at a loss no less, and operating his business from his home, where his teenage daughter can help with customers as he takes on a night job. Another, a property manager, is unable to find renters and need to now himself find a job to augment his investment property mortgage payments. These are a few. There are others and don't think this phenomenon is limited to sole proprietors either.

There is a lot of support out there for the unemployed who want to start a business. This is great news, because that is an excellent option for many. However, there is not much advice for the entrepreneur who has to return to work. Maybe because some see it as a failure? I don't. I see it as a reality.

Here are some of the tips that I have been sharing with entrepreneurs who have to become job seekers to support their families:

1. Sell your skills as a team player in the interview. Many successful entrepreneurs are "take-charge", mavericks who have been used to making all the decisions. Some employers might say they like that in a candidate, but it really is about balance.

2. Show your willingness to learn new things...quickly. As an entrepreneur, you may have become a master in a specific niche. Now that you are looking, you may find that your niche, although good for your business, doesn't have wide demand.

3. Look for opportunity and potential. You may not be able to make the same starting out, as you were when your business was up and running. Instead of looking at just the wages, consider the peace of mind for you and your family as well as benefits like health insurance and retirement accounts.

4. Talk with your vendors and suppliers. They may be able to help or certainly make recommendations. Network also with others in your professional groups such as your union. You may be able to collaborate on jobs.

5. Brush up on your job search strategy and skills. Get a resume together and become familiar with searching for jobs online or networking your way into a job. You networked to land clients before, you will now have to do the same to land a job. Only problem is that you may not have a marketing department to do it for you. Look for free job search resources. I actually met three entrepreneurs at a job search workshop I volunteered to do at my local library about 4 months ago. They were preparing for job search because their revenues were in the tank or heading there. One I am happy to say has landed a great opportunity in sales with a vendor. Two are still looking. Use free resume samples from here!

6. Use headhunters. Entrepreneurs are independent thinkers. No question about that. However, they may have to rely on the expertise of others in this situation.

7. Put yourself in the employer's shoes. Would you hire you? Remember what you looked for in an employee and think about the best way to sell that to potential employers. One of the things you thought about was - "will this employee stay?" Your new potential employer is thinking the same thing. What happens once his/her business picks up? Will I lose them as an employee? This is what the employer is thinking and so you have to prepare an answer.

8. Stay positive and bring your entrepreneurial spirit to the job search. Think creatively about meeting new people, personal branding and the numbers. The more connections you make the better qualified leads you can find. Those problem solving skills as an entrepreneur will serve you now better than ever.

No question that this is a difficult time to find a job.

If you or someone you know have been used to doing the hiring, but now have to be doing the looking, it could be a real challenge. Stay focused yet flexible!

This 20-Minute Assessment Can Improve Business Success

In career makeover workshops, I talk with many people who are laid off and looking for their next opportunity. Although the economy is bad, I am always impressed with the number of people who want to start a business. Many think it is a good time to capitalize on deals for exisiting businesses for sale, suppliers willing to give good discounts, lower rents and scooping up good employees at negotiable rates.

The fundamentals of starting a business like finding professional services such Accounting, Legal and Marketing can be found on every quick-start business checklist out there on the internet. However, too many people seem unaware of or uncomfortable discussing the necessary personal traits and success behaviors. By no means does it guarantee success, but it does help people think positively about traits they need.

This quick assessment, I developed a few years ago, albeit non-scientific, is one way to take inventory of personal and professional abilities necessary for business success. It is based on the well accepted principle used successfully in job interviews - Past behavior is the best indicator of future behavior.

Create a spreadsheet with five columns and label them as follows:

Column #1. Must-Have Traits.
List the following 20 traits in the column. Feel free to add others you think are important.
-Agility
-Confidence
-Courage
-Creativity
-Decisiveness
-Self discipline
-Good judgment
-Flexibility
-Hard Worker
-Leadership
-Multitask effectively
-Networking ability
-Objectivity
-Openness to new ideas
-Political Savvy
-Resilience
-Self-starter
-Interpersonal skills
-Risk tolerance
-Visionary

Column #2. Rating:
On a scale of 1-10, rate yourself on each of these traits - with "1" meaning you have concerns about your strengths and "10" meaning you have confidence your skills are strong in this area.

Column #3. Example:
Identify the best example in your past that demonstrates your strength with regard to this trait or skill.

Column #4. Strategy
Define a plan of action to address your shortcomings in any trait where your self score is less than a 6 - especially if you consider it important to your business.

Column #5. Sensitivity
To help focus and prioritize efforts, rank the skills and traits based on their relative significance to your potential business.

Column 3 is quite possibly the most important. It forces entrepreneurs to not just say how good we are, but to actually identify specific examples to demonstrate how we have acted in the past. If we score ourselve with a high rating (6 or higher) BUT cannot identify great examples in your past to support that ranking - rethink your self ratings.

Once you have completed the exercise yourself, ask someone whose opinion you value or potential business partners to complete a similar chart with their observations about you and each other. Compare the results should give you a good idea of skills you have mastered and those which are potential weak areas you might need to address to improve you or your team's chance of success.

Brainstorm potential solutions and be open to the fact that it might come in many forms. One entrepreneur might choose to join business clusters to share ideas, while another could decide to create a board of advisors. If on a team, you might choose to defer someone's strength in one area while they defer to yours in another. No one path will fit everyone or every start-up business model.

Facing our fears head on will significantly improve our chances of success as entrepreneurs. The last thing we want as our businesses begin to grow is to find out that doing this personal inventory is long overdue and our skills bank is close to running on empty. Begin taking stock today!

Get your Business off and Running - Map the Future

10. "Map" the future.

You have probably already heard the axiom, which says that people who write down their goals are much more likely to achieve them and people who visualize success have a better chance of actually being successful.

The success of your business depends on preparation, practice and planning. Create a vision for what your company should look like, and create a map to get there.

The great thing about the map is that although it doesn't guarantee where you'll end up, it gives you the courage to start the journey.

The Up Side of Being Laid Off...

Hearing CNN's Anderson Cooper report on 70,000 additional layoffs yesterday reminded me of conversations I have had recently with three pink slipped professionals.

These three mid career professionals were laid off from positions in pharmaceutical sales, home security and retail management.

Once the initial shock and anxiety dissipated, all three were actually seeing some of the upside of being laid off:

1. All three thought being laid off was giving them time to think and possibly execute a career makeover.

2. Two expressed less workplace stress once the pink slip actually arrived. The company wide anxiety and speculation pre lay off was more stressful.

3. All three were thinking about additional education and training; one in a related field and two in new careers.

4. Two want to start a business - one in property management and another in a home child care business. Both thought the unemployment payments would offer a financial buffer to start a business.

5. One felt that layoff forced her family to examine their personal spending habits and life choices. It seemed once they looked at their budget, they realized they could improve the situation with her as a stay-at-home parent. After child care and eating out expenses, she felt a work-at-home business might help them net more.

6. All three realized they needed to consider multiple income streams.

I know that times are tough, but as an optimist, I have a habit of encouraging people to consider the upside of being laid off. I think many people are staying positive about the future.

Can you see any upside of being laid off?

Get your Business off and Running - Chart your Performance

9. "Chart" your performance.

Keeping track of your individual successes and milestones is fundamental to your overall business success. So set goals for yourself and your business, and chart your progress.

Revisit your plans to make sure you're on target. If you're not, evaluate why and make corrections to get back on track or create a new track –if that is what you choose to do.

Many business owners forget the importance of setting measurable goals against which to benchmark progress and modifying those goals based on real-life performance.

Get Your Business off and Running - Align your Dreams wit Reality

8. Align your dreams with reality

Discovering and clarifying what you really want to do as an entrepreneur is key to your future success. If you don't know what you love to do, then your dreams should remain just that--dreams.

Successful people do what they love.

Dreaming about owning your own business but not exploring who you are and what you love to do won't help you move closer to the reality of successful entrepreneurship. Let's say your dream is to start an organizing business and you discover in your research that there are several competitors in your region.

This doesn't mean you should abandon the idea--it means you need to think creatively about your marketing plan and how you plan to differentiate your business from the competition.

Get your Business off and Running - Reshape your Perspective

7. "Reshape" your Perspective.

As you begin writing down your thoughts and ideas, don't give up just because you find you need to make changes to your original ideas. This is normal!

As a future successful entrepreneur, you can't afford to become functionally fixed on any one way of doing things. Factors influencing your decisions, including the environment, new technology, your budget or your time, are always shifting, and you might find you'll have to tweak your ideas to make them work.

It may be that you'd been looking at one market segment and now realize that for whatever reason, you might want to focus on a new target market. This does not mean giving up--it means reshaping your perspective.

Get your Business off and Running - Buff and Polish your Ideas

6. "Buff and polish" your ideas.

Like most of us, you've probably scribbled an idea down and then lost the paper or forgot where you wrote it, only to hear later about some other business owner executing "your" idea.

A great way to refine your great ideas and really flesh them out is to write them down in a place where you can find them at any given moment. PDA’s are great unless you take them accidentally into the Caribbean Sea with you while on vacation – like I did!

There's no time like the present to start your "startup journal." This can either be in the form of a good old spiral-bound notebook or something more sophisticated.

There are any number of tools on the market that will help you keep track of important notes and milestones as you move forward and develop your ideas. These ideas can eventually be rolled up into your business plan, which will become the roadmap for your business.

Get Your Business off and Running - Supplement Your Credentials

5. "Supplement" your credentials.
Work with advisors and small-business centers to add to your knowledge base and skill set. You might have an excellent idea and may be really skilled in some areas but, like all of us, you could have some blind spots. Although entrepreneurs are known to multitask really well, most will readily admit there are pieces of the business they hate - especially if they can't do it well.

Investigate your local community colleges to see if they offer entrepreneurship classes for starting a business. Connect with an old professor who might be able to point you in the right direction to get the help you need. Local organizations also sometimes schedule classes and workshops designed to help you supplement your credentials in the areas of marketing, budgeting, funding, technology, operations and financial management.

If you're not checking out new information on business blogs, social networking sites, journals, you are missing opportunities to increase your knowledge. Consider also forming a small business advisory group of experts with whom you can barter knowledge to supplement your own.

Check out the SCORE organization.

Get Your Business Off and Running - Flex your Creative Muscles

4. "Flex" your creative muscles.

Think creatively about how you'll get your products and/or services in front of people. Think about imaginative ways to tip the scales in your favor. Start a "Creativity Cluster" of others who are looking for new and innovative ideas to bring products and/or services to market or get their ideas out into the marketplace.

Get inspired by reading about creative and innovative companies and how they've succeeded. Learn about the practices that differentiate successful companies from others and pay close attention to mistakes they may have made.

Keep thinking about new ways to do things that will keep your organization efficient.

Get Your Business Off and Running - Firm up your Future

3."Firm" up your future.

Assess and mitigate the risks. Risks can only become surprises if you avoid honest self-evaluation up front. Keep in mind that risks can't be mitigated if they're not acknowledged. Do the required legwork to shore up your plans ahead of time.

As you create your future plans, consider both your short-term and long-term goals.

Think about business growth and all the ramifications such as your need for cash or talent to help you grow.

Contact an expert at your local Small Business Development Center (http:www.sba.gov/sbdc) to review your plans with you. Have someone help you with your pro-forma financials to make sure your cash flow will remain adequate to execute your dream.

Get Your Business Off and Running - Rejuvenate your Affiliations

2. "Rejuvenate" your affiliations.
Your goal is to connect with people who want to support, help and advise you as you work to establish and grow your business. Although you want to affiliate with others who are in similar stages of startup and are trying to build their own businesses, you also want to connect with already successful business owners from whom you can learn.

Find new alliances by joining professional and civic organizations and seek out successful people you want to model.

Locate organizations in your own community where other entrepreneurs get together and support each other--your local Chamber of Commerce is a great place to start. These affiliations can not only lead to advice and networking connections, but could be a great source of potential clients.

Get Your Business off and Running - Pump up your attitude

I came across a white paper today - Self-Employment Transitions among Older American Workers with Career Jobs which stated the following:

"Today, the ratio of workers to retirees is about three to one; by 2030, the ratio will be two to one. As fewer workers support a growing retiree population, policymakers may look for ways to encourage individuals to remain in the labor force."

My cynical side said, "So that was the rationale behind the unregulated Wall Street. Could all these portfolio losses be part of the policymakers' plan to keep Baby Boomers working longer?"

The paper addressed Baby Boomers who want to start a business as a way to stay working in retirement. I would share my 10 Tips to Get Your Business Off and Running as published in Entrepreneur.com two years ago. It is a pretty long article so I thought I would break it up into 10 parts.

Many Baby Boomers I know are asking for help to start a business to work in retirement.

Starting a business is very much like running a race: Preparation and practice are key success factors. The following 10 tips, framed in the context of getting physically prepared for a race, might help you overcome the hurdles that entrepreneurs are sure to encounter on the road to startup.

1. "Pump" up your attitude.
Be positive. Think of the optimistic outcomes and find a way to stay focused on your goal of starting a business. Put negative thoughts and self-doubt about your abilities and your potential aside, and surround yourself with energetic and supportive people.

Even without realizing it, you may be dampening your own enthusiasm, procrastinating and eventually sabotaging your own efforts because of your own self-doubts. Stop second-guessing yourself and, at all costs, stay away from negative people who are just waiting for you to trip or fall and watch your start-up fail.

Why Starting a Business at Retirement Could Be a Bad Idea

Before you think I am crazy, you should know that I already wrote Starting a Business at Retirement is a Good Idea. To be fair and balanced, however, I have to share what I think is bad about starting a business at retirement.

Starting a business is a challenging proposition no matter how old you are. It takes energy, passion and a committment to 24-7 work. That might not be what you planned to do after retirement. If you can't see yourself waking up everyday prepared to work hard then maybe a business start-up is not for you.

Some of the things you need to think about?

Energy
If you do not have the energy to get-up-and-go, for whatever reason, do not think you are alone. You do not have to have health issues to just not have the drive to do long days anymore. Think about working part time rather than building a business. Starting a franchise does not make it easier, despite what you may have heard. As my big brother, an extraordinary entrepreneur, would say - buying a franchise is buying a job.

No time to make errors
Starting a business earlier in life means you might have several opportunities to recover from business errors. Several successful entrepreneurs started many enterprises before finding the right mix to succeed.

Learning curve
This is not to say that older people cannot learn or stay vibrant much later into life. This is not the case. Read my post about Paul Newman's career where he was driving race cars at 70 and producing TV shows at 80. Also read about the 73 year old college junior. Keep in mind we also have a candidate running for the US President at 72 years old. However, having said that, starting a new business, means you must be open, willing and able to learn new things and get new skills.

Set in your ways
Flexibility and adaptability are two key personal ingredients when starting a business. Many older people may be set in their ways and unwilling to change. This is not a bad thing, just a real thing. This is not just a reality for older workers. Inflexibility is an issue for younger people also when starting a business.

If you are sincerely interested in starting a business at retirement, make sure you mitigate the risk of losing your investment and your dream, by proceeding cautiously and only after doing honest self evaluation.

Emerging Careers - Baby Coordinators

If you are thinking about career reentry, changing careers, working from home or starting a business, here is an option I came across recently - Baby Coordinators!

What is a Baby Coordinator you may be asking? To quickly get a sense of this emerging career, think Wedding Planner. As wedding planners are to weddings so are Baby Coordinators to babies. They help moms and families prepare for the arrival of the new family member.

Apparently the demand for baby-planning services has grown. It seems that many older, professional moms-to-be, with income to spare, are hiring Baby Coordinators. Per the article in the Wall Street Journal, rates for a baby registry consultation can be about $100 and about $500 for baby shower preparation.

The reviews are mixed and still coming in from Wall Street Journal readers.

"I could have used their advice to determine what NOT to buy. So many people told me what i ‘had’ to buy that I wasted a lot of money - I needed a baby planner to help me get to the bottom line!"
Comment by New Mom - September 16, 2008 at 2:57 pm

"This is what makes America great! I salute these entrepreneurs, even though I cannot imagine ever using such a service, even with all the money in the world."
Comment by TND - September 16, 2008 at 11:45 am

“Baby coordinator” = ridiculous
Comment by Native NYer - September 16, 2008 at 9:46 am

As with any new career or new job think carefully about:
- the marketplace
- the need
- your skills
- your ability to build a sustainable business doing something you enjoy.

There are many existing careers for work-at-home moms that years ago would not be considered possible. I personally know a Scrapbooker and a Virtual Assistant who are doing really well.

Additional Reading:
Baby Coordinators to the Rescue

Baby Coordinators - Useful or Indulgent?

Visit - The Baby Coordinator website
What's your idea?

Retirement is a Good Time to Start a Business

I found a really good article at the Spherion Career Blog with some tips and advice for mature women who are in the workplace.

One of the tips struck me:

If the changing marketplace does not support your current career, maturity is an excellent time to explore long-held dreams. Do you want to start your own business? More and more women (proportionately more than men) are doing just this. Do the work. A meaningful work life matters.

The concept of giving meaning to one's life through work is an old principle and starting a business at retirement can be a good idea.
There are definite advantages to starting a business later:

Capital - Although the job losses on Wall Street and the slide in 401K accounts might have people worried, older people will typically have more capital to leverage for starting a business.

Network - Imagine the list of contacts you could draw on as a mature person. You certainly have more than someone just starting out and that is a real advantage for starting and growing a business.

Skills and Self Knowledge- This one is key. I really feel that maturity brings a certain self knowledge and an understanding of strengths and weaknesses. Both are good personal attributes for starting a business.

So if you are retireing and still considering what your encore career should be, consider creating your own business.

Consider Becoming a Virtual Assistant

Virtual Assistants are administrative support staff that works out of their own offices and assist small business owners, telecommuters and executives. Virtual Assistants are independent contractors, and therefore are expected to provide their own office equipment and workspace. Typically, they are paid on 1099's and have to handle their own taxes. Through the use of modern technology, Virtual Assistants can provide many of the same services as in-house administrative assistants from remote locations.

Many small businesses with limited funds find that Virtual Assistants offer convenience and value for some of the following reasons:
- Lower costs because of no employee-related taxes, paperwork, insurance, or benefits
- Virtual Assistants have their own office space and equipment costs.
- Pay by project or hourly based on the time spent.
- Ability to add extra staff during seasonal or peak times.
- Support on as needed basis, with fast turn around time.
- Round-the-clock schedules available.

Read a comment from a reader at JibberJobber who offered these resources for those who want to consider becoming a Virtual Assistant.

Rat Race Rebellion
Wahboom

Here are some others:
AdminProf
Dc Virtual Office Solutions

As with all career options you explore when reentering the workforce, be careful and do the required due diligence. Be wary of services that are collecting up front fees.

Get Your Entreprenurship Juices Flowing

If you are going back to work and thinking about business ownership, you might be interested in this article, I wrote a few years ago which was published at Entrepreneur.com - Get Your Business Off the Starting Block.

Here are 10 ways to get your startup in shape and off to a great start in the race for entrepreneurial success.

Start a Business This Summer

Did you ever think of owning your own business? Teenagers and college students do it all the time.

Many of these young entrepreneurs are very inspiring and reading their stories could give you the courage you need to run a successful small business.

Here are some great websites to find out more about how you can become a successful "teenpreneur" too or start a business this summer.

1. Junior Achievements
Great resource created through a partnership between educators and businesses. Read bios of successful teen entrepreneurs, watch videos and find Junior Achievement offices near you.

2. US Small Business Administration - Teen Link
Use checklists to find out if your business ideas are solid and will work. Learn more about managing the financial and legal aspects of a business and find a terrific list of resources they call "Business Buddies".

3. Young Entrepreneurs of America
A non profit organization established to help young entrepreneurs make their ideas a reality.

4. Teen Entrepreneurial Network
T.E.N.'s mission is to help teenagers between the ages of 15 and 19 with with their preparation for the business world after they graduate from High School and College.

Read more about the personal character traits of successful entrepreneurs. Start your research now and spend your summer growing your client list.

Can People Make Money Online Part-Time?

You have probably heard that some people are making money online. In fact, some say that some risk takers can make a lot of money online.

Is it real? For many it is. For most the jury is probably still out.

As you consider whether you should leave your regular day job to make money online, these resources might help.

1. StartupNation
2. Rob Malon
3. Forbes - How to Make Money Online
4. Jay Levinson - Gorilla Marketing Association
5. Money Making Mommy