Quitting Self Employment: The Pros And Cons

Quitting self employment just may be the right decision. There are many factors we’ll look at to determine if this is the right decision for you.

 

This is a very emotional fight within yourself. You’ll go from having feelings of failure to realizing you’ve gained some valuable experience. Are you letting yourself down, or saving yourself? You determine your outcome by your thoughts. Look at the positive that came from self employment.

 

 

 

Why Quit Your Dream?

 

You’ve always wanted to be your own boss and be the decision maker. After-all, you always thought you had better ways of running your old boss’s business. So what went wrong?

 

There can be many different scenarios, so I of course can’t know your’s specifically. What I do know, is this may be a very tough time for you right now. As tough as it may be, you need to dive deep into the reasons your business is failing.

 

Not just because you need to take a lesson from the failure (which you do), but we want to know for certain what the real issue or issues are, so a proper evaluation can be made. Most businesses fail, so you’re not alone. The question is, did they actually have to fail?

 

 

Possible Reasons

 

• Started without proper funding put in place.
• The revenue was misallocated, leaving a shortfall for bills.
• Disagreement between partners.
• Didn’t register as a separate entity and got sued. Lost everything including personal assets
• Poor customer service.
• Inferior product line.
• Low or no marketing.
• Miscalculated time to profitability.
• Poor leadership.
• Pick the wrong employees, contractors, or suppliers.

 

Knowing and admitting to the “real” reasons for a business failure, can lead to a very successful business for your next venture. Just the simple fact that you can own the reason for failure, makes you a candidate for future success.

 

 

Is It Really Over?

 

Letting the emotions of “possibly” quitting self employment blur your “business vision”, just may be the biggest cause of businesses fully failing. A business owner should see problems early on, and find ways to correct those issues. However not many new business owners have the “businessman maturity” to reach out for help early enough.

 

If you haven’t closed the doors completely on your business yet, seek out professional help. Be mature enough to ask other successful business owners for advice. Most of them are going to be more than willing to sit down for a cup of coffee and try to help you. Just remember, you’re not there to ask for a loan. You just need unbiased advice.

 

Guidance is what you are looking for, but it’s possible you could end up with a new business partner and a business that becomes wildly successful. If you don’t see a way of reviving your business on your own, you’re left with no options. However, if your business can be saved by having another entrepreneur step in and provide what’s needed to redirect the business, they can become a great friend or possibly a business partner.

 

A successful partner stepping in with their knowledge, vision and resources, can ultimately not just save you, but make you lots of money. Just remember, you’re asking for advice. You are not asking for a specific favor. Let the experienced entrepreneur guide the conversation toward a good solution.

 

 

It’s Rarely Just A Money Problem

 

Money alone, usually isn’t the only issue. People can get so excited about becoming self employed that they make miscalculations in the amount of funding needed to support the business until profitability. However, as the business is building, you should be comparing actual results with your business plan. (You did write a business plan, right?)

 

When you see discrepancy between what’s actually happening and that of which was your plan, that’s the time to take action and find a solution. The business plan that you designed to prove your business concept, is your road map/instruction manual. If you’re following your own instructions and something isn’t working, it just may be time to seek out someone with a better set of instructions.

 

Every problem can’t be fixed by throwing money at it. In business, the idea is to be able to make more money than you put in, at some point in the future!

 

However, if you can clearly see, within the results of your business operations, that a fixed amount of money will carry you to the point of profitability, then you should be able to show that map to an investor or lender. If they can see the whole picture and see the outcome the way you do, you’ll get the money and save your business.

 

Even if you find that an infusion of money will carry you until you become profitable, that doesn’t mean you don’t have an underlying problem. This is where you should be seeking advice from mentors regularly. There are always going to be better business people than yourself. So why not make friends with them and meet for advice once in a while. Swallow your pride a little and you’ll grow bigger as a person and as a business.

 

 

What’s Going To Be Worse?

 

I know for myself, having to ask for a job would be far worse than having to ask for help with my business. I can’t imagine quitting self employment, as I am a die-hard entrepreneur. However everyone is different and some people do try to become entrepreneurs when they aren’t prepared for what it takes.

 

Being an entrepreneur means you are going to have the GRIT to stick out the worst of times in order to gain the freedom that comes with having built a successful business. Not many businesses (almost none) hit success right from the start. There are going to be struggles, and some of them are going to feel like the end.

 

I certainly don’t think that everyone who starts a business, should be in business. Just because someone had the thought or vision of having freedom from employment, doesn’t mean that is the right choice for their personality or character. What I do think is that everyone who took the leap to build something of their own, needs to do everything possible to make that business a success.

 

Even after they get advice from mentors and save the business from failure, they may still be better off returning to the employment world. The difference in making that decision is that a failed business strips the confidence right out of them. However, saving their business, and then selling it off, can create a basis for great confidence. In this case quitting self employment, comes from a position of success, not failure.

 

 

Confidence Is Everything (Almost)

 

Imagine the process of getting a job after quitting self employment because of a failure.

 

• Feeling that you’re going back to employment with your tail between your legs.
• Worried that others are going to view you as a failure.
• Putting on your resume that you spent time trying to run a business that you let fail.
• Interviewing with a potential employer having to explain the details about your failure.
• Feeling the employer has a stronger hold on you because you can’t make it on your own.
• Low confidence that you can perform the work needed after failing on your own.
• Thinking that you have few options for work and need to take the first offer.

 

Now how about finding a job after saving and selling your business?

 

• You know that if things go bad on the job, you can always create another business.
• Having saved a business, you know you can find a way to solve most any problem at work.
• Your resume reads with creating a business, selling, and profiting. SUCCESS!
• Telling your potential employer in an interview about your success of building a business, with confidence.
• The new boss knows your value and that you have the ability to take your skills elsewhere.
• Knowing you have the respect of the other employees for having broke free and you can do it again.
• You’re a candidate for moving up the corporate ladder because of what you’ve done. You’re worthy of advancement over time if you keep proving yourself.

 

 

Life After Quitting Self Employment

 

I just want to state again, that quitting self employment would be incredibly difficult for me. I don’t really see a scenario where that would be my move. However people are all different and there situations are different. One thing for sure is that no move has to be a permanent move.

 

Taking a step back to the employment world could be just the break you need to regroup and reevaluate what you want out of life. Nobody says you can never go another direction. Use this time to gather yourself and see what the next move is for you. You’ll be getting paid enough to get by, until you decide to work on building your next dream that will have unlimited possibilities.

 

It’s also possible that going back to the employment world could create a false sense of security. Getting comfortable as an employee is a mistake for anyone, but after struggling with a business, it should be clear that your boss could have the same problems.

 

Who says the boss won’t have struggles. He sure won’t be consulting with you, or even letting you know for that matter. Actually, they may let you know, but it will be at the same point they are firing you.

 

Sure, your employer could be large and stable right now, but we’ve all seen economic changes that have wiped out ungodly amounts of businesses. Not just big firms like Lehman Brothers, but small to medium businesses also.

 

Investopedia states “The financial crisis forced many small companies to go out of business. Between December 2008 and December 2010, about ***1.8 million*** small businesses went under”!

 

At the time of this writing, we’re currently high in the cycle again and we could potentially see another crisis soon. Don’t be fooled with a false sense of security.

 

 

This Could Be A Phase

 

After taking up life as an employee again, you may come to realize that you don’t care for the restrictive lifestyle. But, becoming an employee again, may have been exactly what you needed. If after going through building a business and learning how difficult it can be, you feel the need to try again. You may be learning something incredible about yourself.

 

Going through experiences is what really teaches us the deepest lessons. You may have just taken a beating with your past business, but you learned many valuable lessons. Some to improve on and some to completely avoid.

 

Having been a business owner and an employee, you’re able to clearly see the potential of both, from the restrictions to the freedoms. If you find yourself as an employee, looking back again at the potential benefits of business ownership, then take your lessons and explore that option again.

 

 

This Time Around, Prepare Better

 

• Create a well designed business plan. Don’t just “think you can do it”! Know you can do it! Your business plan almost proves it.
• Use your mentors. Take your business plan to them for advice.
• Utilize your local businessman’s association.
• Consider the possibility of partnering with another experienced entrepreneur if it’s right for you.
• Be certain you’re properly funded and have a backup plan. (Also have a backup plan to the backup plan)

 

With the lessons you learned, along with the research you’ll be doing, your chances of success are fantastic.

 

You’re learning something big about yourself right now. Think about this for a second. If you’ve gone through all the struggles with your former business and you see clearly that you want to build another business, YOU NEED TO BE SELF EMPLOYED. It’s who you are. We have to live life to it’s fullest, because we only get one round.

 

 

What If I Prefer Life As An Employee

 

Look, there’s nothing wrong with being an employee (for people who want to be employees). Employees have specific skills to complete a task very well. They’re efficient from repetition and training. Most of the time, an employee can perform the task for which they were hired to do, much faster and more accurate than their boss could.

 

What the heck would we do if there were no employees? It’s incredibly limiting/impossible to expand your business, if you can’t leverage the time and effort of other people. I personally think employees are great! Actually, I should rephrase that. “I think employees who like being an employee, are great”.

 

As much as I am pro-entrepreneur, many people are pro-employee. There are pros and cons to both. So if you tried owning a business and you actually want to be an employee, then the transition back to employment should be exciting.

 

It’s very common to worry how others will view you in the workplace after having failed at business. Here’s the reality. Those other employees never even had the guts to try and break free from employment. If any of them had, then clearly they failed as well.

 

Another reality is, you’re actually the strongest of the group, because you did have the guts to try self employment. They’re the week ones (except for those who actually want to be employees). But if most of them are honest, they would admit to also wanting to try self employment and be back in control of ALL of their time.

 

 

Go With Confidence

 

If quitting self employment is your final decision, then you need to write your new resume and do your interviews with full confidence. Be proud that you made the attempt at owning a business. Use the that as an asset when communicating with potential employers. Make them know you have guts, and you now have experience in starting a business. This can be viewed as a great experience for your application.

 

 

Wrap It Up

 

I read a lot from others on the process of getting back into the corporate world. For me, it’s tough to recommend people to get back into the politics, groveling, and ass kissing. Seriously, this is the recommendations of many (so called) experts. Yet those are the biggest, degrading reasons why people don’t like being an employee!

 

I just can’t recommend that behavior. If you can’t have a quality work environment by being friendly and doing your job, then keep looking. Listen, you’re the one selling a portion of your time , knowledge, and experience. This is the portion of time that you’ll no longer control after your new employer owns it. So be sure that you are getting a good environment to do your time in.

 

You need to look for the right buyer. You are in control, so don’t discount your value. Keep your confidence strong, knowing you have value beyond what you will be paid, and that’s OK because the boss needs to make a profit off his purchase.

 

I know that if I am hiring an employee, they better be confident, because I am counting on them. Many hiring agents within a company like to make the potential employee feel week, so they get the best buy they can, but that’s incorrect thinking in the long run. Employees need to be confident as long as they are respectful to the employer.

 

Hold your ground for the right buyer.