What do you do when there is no time or money to plan an exit strategy? So you’ve been thrown off the corporate mother ship– your company is downsizing or right sizing or moving business to India, whatever the case may be, you’re being told that you only have a couple of weeks or maybe a couple of months before you will no longer have a job with your current company. You’ve got to come up with a new plan to make money. So you’ve been thinking about starting your own business…would this be the perfect time to do it?
Well, I say that really depends on your circumstances. If you live on your own, you’ve got a bit of cash saved up to float you for a several months and you’re going to get a rather decent severance package on your way out the door then maybe this is the perfect time. Or if you can move in with a relative while you live on your severance package and you’re willing to make some serious sacrifices, you’re in a good position to consider taking the leap.
On the other hand, if you’re a single parent with a couple of dependents, very little savings and the corporate severance package is MIA then maybe you want to re-consider going it on your own for the moment. “But” you say, “I’ve got enough money for at least 3 or 4 months and I will get unemployment”. My response is that you have no idea how long it’s really going to take to launch the new venture nor do you really know how much it might cost to get the puppy to the launch pad. In other words, for a successful launch, you will still need to put money into the business (even if it’s just for marketing—you know, telling people you’re in business) as well as maintain your regular bills. So in essence, you’re going to be ADDING a bill to the monthly outflow. It could take 3 months, or it could take 10. If you’re only prepared for 3 months and it takes you more than 3 months to launch then you’re going to start having a whole lot of sleepless nights and create a whirl wind of frustration for you and your family if you don’t plan responsibly. (Can you say bankruptcy and financial ruin?) I would recommend getting a job for the short term and then began to properly plan your exit strategy. You may experience frustration for doing a job you don’t really want to do, but the idea is to leave the corporate world without having to return.
Once you’ve tasted the fresh taste of corporate liberation it becomes difficult to blend back in again, even when you have to. There have been many of us who have returned to the corporate world for one reason or the other, but most of the ones I know that have done it, including myself experience even higher levels of frustration than in the beginning because the two cultures are so extreme.
So a word to the wise…really think about how you leave the corporate ranks. As I always say, create a plan. Plan to leave when it’s convenient for you. Plan the new concept. Plan, to have some resources saved. That’s money saved for the venture and money saved for the household expenses. And a resounding YES to Christian entrepreneurs…even Christian entrepreneurs should plan to have some money banked for the journey—it’s just good business sense and shows responsible planning towards and for the family and it eliminates a certain level of anxiety. Use this time to really put your feet on the ground and create a solid plan so you won’t be forced to go back if it’s not really what you want to do. Sure it may take a little longer, but in the end you will feel much better about your venture if you can launch it without unnecessary financial frustration. Just keep your eye on the prize, you shall soon arrive.
Rhonda Novak