So you had a great job, great pay, great reputation in the company, even a nice career path…Then your company decided to REORG! And you were affected…ARGH!…This is a common story, might have happened to you and might have happened to a colleague.
The fact is, the corporate world is unpredictable and good performance won’t necessarily mean stability. Companies are always being acquired and changing strategic direction, that leading to cuts in costs and jobs.
For those who are employed, it is important to always save and invest money on the side (in stocks, funds, real estate and businesses), to create new streams of income. With that, if you end up being affected by corporate layoffs, you have a good financial foundation, and the lack of a paycheck won’t be as critical. For those who lost a job, becoming a business owner can be a good path to build a new revenue stream, and a foundation for the future, that would allow you not to depend on corporate jobs for good! And guess what? Many businesses might enable you to make more money than your corporate job would, and even give you a better lifestyle, with more flexible time for your family and what you love to do!
Here are some tips on how to make the transition:
Leverage your severance package and 401K
Most companies, when they let you go, provide a good severance package. Instead of just burning these resources while searching for a new job, why not consider using part of it to start a business? Even if you find another job, now you have created a foundation to create a new revenue stream that will only help you grow your overall income.
You can also use your past employer(s) 401K to fund your new franchise, through a program called the ROBS or 401K rollover (to learn more, click here).
Work with a Consultant to help define what type of business is best for you
If you have decided that starting a business might be the best path for you, the next big question is…what type of business? A consultant can definitely help you define that. A Franchise Consultant, for example, is well versed on the different business models out in the market, and understands what types of businesses best match your background, skills, budget and goals. A Franchise consultant does not charge for this service!
As you would likely become a business owner for the first time in your life, you might want to consider franchising. Owning a franchise is a great way to start as a business owner, due to many reasons:
- Leverage a roadmap for success: franchises have created, optimized and established a business model. They have already replicated the model several times and proven it works, before they setup their franchise system. So instead of dealing with a lot of trial and error, you can leverage all the learnings from the franchisor.
- Receive training and support: franchises will provide training so you know exactly what to do and how to setup and grow your business. They also provide ongoing support.
- Leverage systems: franchises have setup operational systems and they are made available to franchisees as a fraction of the price you would pay if you would purchase them as an independent owner.
- Leverage supplier agreements: franchises lock on large supplier agreements, ensuring their franchisees can buy supplies at a cheaper price them a typical independent business owner, due to the economy of scale the system has.
For everything there is a silver lining…If you lost your job maybe the silver lining is that now you can look at other opportunities and that was the push you received to try something new, that can potentially lead you to a better lifestyle and financial position!