Lesson 1: Before You Start
Lost your job - start a small business
Lots of people start their own business when they lose their jobs. While you still have a well-paying job, it is very difficult to just quit and start something new with no money coming in. Once you've lost your job, however, you're forced to make a decision and, in most cases, you've received some severance pay you can now work with.
Once you've lost your job, you can make one of three decisions. You can decide to try to get another one as soon as possible; you can decide to start a business; or you can decide that you're not going to make a final decision just yet.
When my department was disbanded and I lost my job, I was very reluctant to abandon the security of a good salary. Although the evaluations I completed and the studies I did all pointed me towards starting my own business, I didn't want to make a final decision. While I decided what kind of business would be best for me to start and run, I continued to work on my resume and go to job interviews. Even after I got my first orders I followed up a couple of job leads. What that did was convince me 100% that starting my own business was the right thing for me.
Even before you decide, there are a few things you have to do right away if you haven't yet done so. These will help you no matter what you decide.
1. Organize all your business cards, lists and contact information. Write down any additional information and contacts from memory. Add your private contacts, friends, relatives and acquaintances. These are all people who can help you with your new business or to get another job.
2. Build bridges to your previous employer. Call your old boss to say hello and tell him what you're doing. Keep contact with old colleagues and keep them informed. They'll feel badly that you've lost your job and many will be pleased to hear from you. Often, they'll give you leads, references and tips about contracts, jobs or work.
3. Make sure everyone knows you're looking for something new. The tendency is to hide that you haven't got a job now but that's exactly the wrong thing to do. People you know run companies, do business and hire. They can't help you if they don't know you're available. You should be throwing, "You know I'm not working for ? anymore." into every conversation and be prepared to give details on what you now want to do.
4. Don't be negative about your former employer. Telling people negative things about your old company just reflects on you and hurts you. If you harbour resentment, let it go - it just wastes your energy and distracts your focus. What happened, happened. Your relationship with your former employer no longer produced tha results that both of you required and you therefore parted company. That's all.
Once you've done these things and decided to go ahead or at least explore starting your own business, you're ready to take the next step.
