When to Quit Being an Employee and Focus on Your Business.

The American economy is undergoing a metamorphosis. A confluence of various factors is leading workers to explore entrepreneurship. Smallbiztrends.com reports that women-owned businesses have grown at a rate 2.5x faster than the national average, leading to 1.5x more women starting businesses than men.  Many women are shifting to self-employment because they aspire to have better flexibility in their schedules, more compensation for their work, and better alignment with their purpose.

A similar acceleration in launching small businesses is seen among people of color. Many BIPOC individuals are pursuing self-employment to have more control over their careers, greater advancement opportunities, and more earning potential. Over the last decade, there has been a 35% increase in minority-owned businesses, which might be causing you to ask yourself, “Should I leave my full-time job and go all in on my business idea?”  

The pandemic created a momentous shift in the relationship between employees and employers. 

The COVID-19 pandemic fundamentally altered the economic landscape, prompting employees to reevaluate the meaning of work-life balance and redefine career aspirations.

• CNBC reported that employees emboldened by a tight labor market in 2022, launched the “Great Resignation,” in which about 50 million people quit their jobs in pursuit of greater flexibility and more competitive pay.

• Forbes reports that many employees who decided not to leave work began “Quiet Quitting,” where they decreased their effort to the minimum required to maintain employment.

• The Economist reports that companies have reversed remote and hybrid work policies to reduce turnover, improve worker productivity, gain more control over how and when employees work.

• Under pressure to cut costs, Business Insider reports a 31% increase in job cuts among middle managers in 2023. Many of these cuts resulted from productivity improvements generated by the growth of AI and organization design flattening promoted by companies like McKinsey.

The convergence of all these changes has nurtured a class of workers who are experienced, disenchanted with their current working conditions, hungry for autonomy, and willing to venture into self-employment. Many are launching side businesses with the hopes that those businesses will eventually give them the wealth and freedom necessary to step away from their government or corporate jobs and be their own boss.  

Making money beyond the traditional 9 to 5.

Over the last five years, there has been significant growth in three types of entrepreneurial ventures.

• Rise of the Gig Economy: CNN reports that over 1 Million Americans are working in the “gig economy.” This includes freelance workers with companies like Uber, Lyft, Doordash, Upwork, and Instacart. These opportunities provide workers with great flexibility, autonomy, and the ability to generate additional income.

• Service-based Job: Forbes reports that professional and business services are two of the fastest-growing industries in America. As more companies look to outsource marketing, recruiting, employee development, and consulting, middle managers have more opportunities to leave W2 employee roles and establish 1099 and small business relationships with corporations, government entities, and non-profit organizations.

• Growth in Property Rentals: After a sluggish 2023, the National Association of Realtors predicts a rise in short-term rentals. Companies like Airbnb and VRBO make it easier for homeowners to rent out their homes, providing property owners additional income.

Recent shifts in the economy and business ecosystem have provided mid-level professionals with specialized skills, wealth, a home, or a vehicle the opportunity to generate income for themselves outside of the traditional 9-5. We are seeing the emergence of portfolio careers where workers have more than one stream of income, which, over time, allows them to make career decisions based more on personal fulfillment than financial survival.  

Taking the Leap: Planning for Success

Leaving the security of a salaried position demands a well-defined plan. The cornerstone of this plan should be a budget that outlines how much money you need to make to cover your personal expenses. In addition, you need to define the amount of money you need to invest to meet your business goals. The U.S. Chamber of Commerce cites inflation, lack of access to credit, rising interest rates, employee hiring and retention, and supply chain disruptions as the most significant challenges small business owners face today. These challenges should be accounted for in your budgeting and planning process.

Most small businesses fail because they do not have the capital or people resources needed to bring their company value proposition to life. A detailed business plan, with clarity on the key partners, activities, resources, customer segments, channels, and relationships, will help you clarify what is needed to thrive. The 10% of new companies that last more than ten years do so because they clarify

1. Who they are?

2. What they do best?

3. Secure the talent and resources needed to establish a sustainable business model.

Prelaunch Check List:

There are 7 actions you should take before quitting your current job and pursuing your business full-time.

1. Leverage Company Training Programs: Participate in company-sponsored training programs to cultivate skills that contribute to your professional development.

2. Access Free Resources: Organizations like SCORE, SBDC, and many local economic development centers offer training, workshops, and mentorship that can help you develop plans and acquire the knowledge you need to launch and scale your business successfully.

3. Develop a Business Canvas: This is a one-page business plan to guide your strategy.

4. Personal Budget: Define how much money you need personally, assuming your business generates no income for the first six months of operations.

5. Business Forecast: Create an 18-month financial forecast, including projected revenue and expenses. Include a best-case and worst-case scenario.

6. Develop a Contingency Plan: Prepare for unforeseen circumstances by outlining what you will do if the worst-case scenario occurs—for example, securing a loan, borrowing from family or friends, or taking on part-time freelance work.

7. Build Your Support System: Develop a network of advisors, mentors, and peers who can provide guidance, support, and motivation throughout your entrepreneurial journey.
   

The Entrepreneur's Journey: Rewards and Challenges

Entrepreneurship is not for the faint of heart. Many people start on the entrepreneurial journey only to later decide that they prefer being employees. If you try entrepreneurialism and it does not work out, you can always re-enter the labor market. Every new experience is an opportunity for growth, self-discovery, and self-mastery. The best way to determine if you are ready to leave your current job and go all in on your own business is to do the prep work listed above. It will help you look at things from a big-picture perspective and consider the essential factors for success.

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As an executive coach and small business consultant, I guide small business owners and business professionals in achieving their professional and business goals.

Whether you want to start, transform, or improve your business or career, I can help you magnify your strengths, minimize weaknesses, identify threats, and take advantage of opportunities.

Let's talk about your goals.

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Email: dcunion@yourpathexecutivesolutions.com

How to Make New Year's Resolutions that Stick: 3 Questions to Ask Yourself.

Are you planning on making New Year’s resolutions? Around 37% of Americans typically say they make New Year’s resolutions. This year, Forbes reported that fitness is the most common goal, with improving mental health and finances being the second and third most common resolutions. If you are looking to change jobs or start a business, there are a few questions you should ask yourself before making a New Year’s Resolution.

Why is this resolution important? 

The first question you should ask yourself is why this resolution is important.  In Simon Sinek’s book Start with Why, he explains how tapping into your why can help you find the motivation to do difficult things. Around 8% of people typically give up on their New Year’s resolutions within the first month of making them. Being grounded on why making a change is important can help you keep your resolution. I recently worked with a retail business owner looking to establish better boundaries with his employees. We discussed how establishing better boundaries would help him improve his relationships at home and give him more time to do things he enjoyed. He could push past discomfort and set better workplace boundaries by grounding himself in the anticipated benefits.

 

Who will support you in making this change?

The second question you should ask yourself is who will support you in making this change. In Professor Kay Milkman’s book How to Change, she talks about how important it is to have the right people around you when you are trying to change. One of the first questions I ask business owners looking to improve their business is who around them challenges them to evolve and grow. The people we interact with influence our expectations, thinking, and actions. When you spend time with peers, mentors, advisors, consultants, or coaches who can provide insight, guidance, role modeling, and support, you increase the likelihood of achieving your goals.

How will you position yourself for success? 

The third question you should ask yourself is how will you position yourself for success? In management consultant Jim Collins’ book Great by Choice, he tells of the importance of pacing yourself. He shares the wisdom of moderating effort to ensure that you can make consistent progress towards your goal. For example, last year, I worked with a consultant looking to increase their business through social media marketing. They were putting so much pressure on themselves to post every day that they hated to think about social media and would hardly ever post. We redefined the definition of good. Instead of setting the standard of good as posting 7 days a week, we aligned that posting at least once a week for a month would be good. By establishing a more realistic goal, he was able to reduce the stress related to social media posting. Eventually, he was able to work up to posting 3 to 4 times a week.  

Committing to resolutions can be challenging.  Applied Neuroscience Psychologist Dr. Hela Boschi states that our brains are wired to love routines and avoid uncertainty. Whenever you try to establish a new habit or make a life transition, you fight against learned behaviors, emotional triggers, and inertia. To overcome this, it is essential to start small, be grounded in why change is important, and seek out help from others. So, make your resolution, but also take the time to develop a plan and seek the support you need to achieve your resolution goal.

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Research a Company Before You Accept Their Offer.

Why are 68% of employees disengaged with their current work? One reason is a lack of alignment between their company and individual values. The other is a misalignment between people's work and their capabilities. When your values don't align with your organization, and your role does not match your capabilities, you risk being bored, frustrated, and under-utilized. The antidote for this problem is finding an organization that aligns with your values and provides challenging yet achievable work. But how do you find the right role and organization?

Before you accept the offer, take these 3 steps.

• Step one: reflect on who you are, what you value, and how you can uniquely add value to the world.

• Step two: research companies to understand who they are, what they do, and how they do it.

• Step three: compare your capabilities and values with the organization's values and needs to identify alignment.

Taking time to research companies before you accept a job offer will provide you with better insight into

• the type of organizational culture you are joining

• the organization's financial health

• how you will be able to add value

• what it takes to be successful

These insights will allow you to select a company that fits your skills, personality, and professional goals well.

What to research:

There are several different ways to research a company. Even if you are short on time, it is wise to execute each of these research methods so that you have diverse sources of information to base your job acceptance decision on.

Methods of research:

• Check the company website. Most companies have a dedicated page on their website that explains their values, history, and vision for the future. This is a good place to start your research. Remember, this is like a Tinder profile. The company is only showing you what it believes are its best features. Review information critically, but know it provides a view of the company's aspirational goals.

• Read the company's social media pages. This can give you insight into how the company's marketing arm thinks and wants to be viewed by society.

• Talk to current and former employees. It is helpful to get first-hand feedback on what it is like to work within the company, what is necessary to be successful, and what people like and dislike about the company. It is best to get multiple points of view. Organizations are complex and dynamic. The more perspectives you can hear, the better your assessment will be.

• Read news articles and reviews about the company. This is easiest when joining a large publicly traded company, but even small or privately held companies are covered in the news. Look for news related to financial performance, new growth strategies, capital investments, and other events that can give you insight into the health of the organization and its priorities for the future.

What to look for:

When you're researching a company, look for things that are important to you. For example, if you're passionate about social justice, you might want to look for a company with a strong commitment to diversity and inclusion. Or, if you're interested in sustainability, you might want to look for a company that is working to reduce its environmental impact. Like-minded people are attracted to and tend to work better with others who think and value similar things. For this reason, seek out opportunities where you can be authentic at work.

Try to understand the growth stage the company is in. Startups tend to be dynamic and constantly evolving. Emerging companies focus on processes and growth; mature companies focus on quality and consistency; declining companies are looking to reinvent themselves. The better you understand the company's growth stage and its current needs, the better you will understand the organizational culture. Business needs and goals have much to do with leadership practices and company culture. The better you understand both, the better you will understand what it will be like to work for the company.

Benefits of researching a company before accepting an offer:

1. It will help you determine if you're a good fit for the company. By understanding the company's culture and values, you can decide if it's a place where you would thrive.

2. It will help you ask better questions in job interviews. You can use your knowledge of the company to ask questions about its culture, values, and vision. This will show the interviewer that you're genuinely interested in the company and the position and allow you to gain more information about the company.

3. You can prepare for onboarding into the company. No situation is 100% perfect, but the more aware you are of what you are walking into, the better you will be able to handle challenges that arise.

Summary:

Researching a company is an important step in finding the right job. You spend too much time at work, to not enjoy what you do. Your potential is unlocked when you find an organization that aligns with your values and leverages your capabilities. Life is short. Don't waste time working for organizations that are the wrong fit for you. Do your research, consider what you need and what you want, and pursue opportunities that align with your long-term goals.

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Thank you for reading this blog

I am a father, husband, executive coach, and former retail executive. My coaching expertise comes from 21 years of leading operation, sales, and marketing teams. I understand what it is like to feel stuck, undervalued, and underappreciated.

I also know what it takes to invest in professional development, climb the corporate ladder, and find fulfillment at work.

Your career path is a scavenger hunt. Each opportunity prepares you for the next. Allow me the opportunity to help you clarify your path and accelerate your professional development.

Grow your career

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Email: dcunion@yourpathexecutivesolutions.com

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