Creating Your Own Employment Security
"Well, it's happening. My employer, the County Health and
Welfare System, is buying me out. I leave in April, 2002. Seems
like a long time from now, but I know it's really just around
the corner. So how do I evaluate my skills? And how do I begin a
new career? And how do I deal with the fear of the unknown, of
the lack of income (other than the retirement check), of maybe
working alone out of this office?"
This is an extract of an email I received this week from an
AHBBO subscriber, Cecily. Just Friday, driving home from work, I
heard that Ford was about to lay off between 4,000 and 5,000
employees from its U.S. operation. So nothing unusual about
Cecily's situation, unfortunately. Seems like every day we hear
of more and more businesses being "forced" to downsize their
workforces. What we don't hear about every day is what happens
to all those displaced workers.
Many people just look for another job, find one and get back
into the ratrace, all the while anxiously monitoring the
financial performance of their new employer, hoping they won't
get laid off again. For many, this is just the way the world
works. And it always will be as long as they continue to work
for someone else. Do you really want to live like this? Well,
you don't have to. The solution, albeit not for everyone, is
self-employment.
In this article, we look at how to determine whether
self-employment could be for you and how to turn that dream into
reality.
PERSONAL INVENTORY
As Cecily correctly identified, a personal skills analysis is an
important early step. Your personal skills inventory is only one
factor to take into account when considering whether
self-employment may be for you, however. Equally important are
your strengths and weaknesses, interests, resources, attitude
and other personal qualities.
Your personal inventory should encompass at least the following:
=> Skills Assessment
Just because you're good at something does not mean that you
necessarily enjoy it. If you're good at something that bores you
to tears, then don't use that skill as the basis for your new
business. You'll be miserable! But, if what you're good at is
something you also happen to enjoy, then there's a HUGE clue
about what your business should be all about.
When thinking about your skills, think also in terms of skills
you don't presently possess but which you could acquire with a
reasonable investment in training. If acquiring a new skill
would equip you to enter a business that you think you could
make succeed, then by all means acquire that skill.
To come up with an inventory of your particular skills, pull out
all of your old resumes (or create them if you don't have them)
and recall what you did in every job you had. Make a list of
your activities and the skills that were necessary to perform
them effectively.
Here's some broad categories to start organizing your thoughts:
* Communication - speaking and writing effectively; listening;
expressing thoughts and ideas; negotiating; persuading;
interviewing; editing; facilitating; responding appropriately.
* Human Relations - motivating; delegating; dispute resolution;
assertiveness; giving credit where due; developing team
cohesiveness and rapport; sensitivity; listening skills;
supportiveness; cooperation; cooperation; developing others.
* Leadership - coordinating and motivating; coaching;
counseling; change agent; conflict resolution; decision making;
teaching; managing groups; multitasking; initiating new ideas
and programs.
* Planning - forecasting and predicing; information gathering;
needs analysis; evaluation strategies; acquiring important
information; idea generation; problem identification;
brainstorming; problem solving.
* Effectiveness - implementation of decisions; cooperation;
policy enforcement; accepting responsibility; organizing; making
decisions; punctuality; time management; attention to detail;
goal attainment; meeting deadlines.
=> Strengths
When considering what strengths you possess that you could draw
and build upon in a business of your own, think in terms not
only of personal qualities such as determination, commitment and
dedication but also to tangibles such as educational
qualifications and financial reserves.
=> Weaknessses
Just as you did with your strengths, focus on the tangible as
well as the intangible. Examples include zero financial
resources, lack of personal discipline; and poor health.
=> Values
Values are the things that are important to you and are divided
into two types: intrinsic and extrinsic. Intrinsic values relate
to what you will be doing in a day to day sense and how valuable
an activity you perceive that to be in the overall scheme of
things. For example, if your business provides a service to your
community's elders and you perceive this as being of high
importance to society, then your business meets your intrinsic
values.
Extrinsic values, on the other hand, refer to the external
features of your business such as your physical environment and
profit potential.
By identifying those intrinsic and extrinsic values that are
important to you, and identifying the types of businesses that
will satisfy those values, is an important step in deciding
whether a business of your own is something worth pursuing. For
YOU.
=> Personality
Various personality tests have been devised to determine your
personality "type" with the idea that people belonging to
certain types do particularly well in certain careers and
businesses. Perhaps the most prolific basis of personality tests
is Jung's Personality Theory, dividing people into eight
personality types: extroverts, introverts, thinking, feeling,
sensing, intuitive, judging and perceptive.
If this interests you, you'll find no end of information online
about the types of occupations and businesses suited to each
personality type. Don't let the results of such a test play a
disproportionate role in your decision-making process, though.
Just use it as one of several factors you take into account.
=> Interests and Hobbies
This one's a real no-brainer but it bears stating. Try and
create a business around something that you're interested in.
Although not a certain rule, you tend to perform better at what
you enjoy and to enjoy what you're good at.
Be sure to look at the other side of the coin too and inventory
what you're NOT interested in. Sometimes knowing what you DON'T
want to do makes it easier to see what you DO want to do.
=> Resources
These include not only financial resources but others such as
your personal relationship network (who do you know who could
help you in your new venture), office equipment and other
facilities.
=> Attitude
Do you have a "can do", optimistic attitude? Are you determined
to succeed whatever it takes? Do you believe you control your
own destiny or is life a series of random events that happen to
you no matter what you may have planned?
=> Other Personal Qualities
Finally, think about the personal qualities that make you, you.
Are you energetic and motivated, are you resourceful, are you
resilient, realistic and practical, a hard worker?
Once you have completed your personal inventory, sit down and
rank your positives from highest to lowest. Then do the same
thing with your negatives. Once you've ranked your strengths and
weaknesses in this way, you'll have something of a framework
within which any prospective business idea must fit. If your
idea requires great strength in an area where you're weak, toss
it. If it requires strength in an area where you're strong, keep
it. This is not a black and white exercise. Any idea you have
will require any combination of skills and strengths. You must
evaluate objectively whether your particular combination of
skills and strengths is enough to compensate for your particular
weaknesses and make a success of the venture.
IDEA GENERATION
So, where are you to get the ideas against which to measure your
skills and strengths? First off, bear in mind there are a number
of approaches to starting a business of your own. You may
provide a service; you may manufacture a product; you may
distribute a product manufactured by someone else.
A well-known schematic which sets out all the possible
combinations is as follows:
1. Existing products/services and existing markets. 2. New
products/services and existing markets. 3. Existing
products/services and new markets. 4. New products/services and
new markets.
If you focus on option 1. you face stiff competition. If you
focus on option 4. you have to invent the wheel first. So pay
most attention to options 2. and 3.
Take your skills inventory. What do you know and enjoy the most?
Are you a specialist? Think about what you know. What do people
buy? What do people want but can't buy? What do people buy but
don't like? What are people buying more of? Where do they buy
and when and how?
When you've considered that, look at how you can change existing
products or services to meet an unmet need, to meet a need in a
different, more convenient way, to improve the quality or
service. Be particularly observant and on the lookout for
emerging trends (an aging population, an increasing number of
people working from home etc.) and expanding market niches
(e.g., increased reliance by businesses on outsourced services).
During this process, employ any technique you can think of
including brainstorming, asking people (novel but effective!),
read trade magazines and directories. Focus on your consumer and
market, not on your product. After all, there's no point in
building a better mousetrap if no-one needs or wants one.
By the way, don't forget, when you think in terms of your own
business, self-employment includes independent contracting and
consulting. Perfect outlets for what you know if what you know
is in high demand.
IDEA ASSESSMENT
Once you have a shortlist of business ideas to play with, start
assessing them as viable business opportunities. This means
devoting time and effort to assessment, research, development
and planning.
Examples of the types of activities you should be engaging in
here include:
=> Talk about your product or service with prospective
customers. Is there really demand for your offerings? If so, how
strong? How price sensitive? What sets you apart from your
competition?
=> Research
Find out everything you can about your target market and your
competition already servicing that market. Are price wars
common? If so, you have too much competition. Are there only one
or two big players and no little ones? If so, the barriers to
entry are too high. Look for markets where there is healthy
competition between product/service providers but where profit
margins are reasonable.
=> Analyze your Competition Who are they, how are they
structured, how long have they been in business, what are their
respective market shares, what sets you apart?
=> Strategize
How would you start out? Can you start out part-time before you
leave your paid job? Can you work from home? Will you start from
scratch or buy and existing business or franchise? How will you
market your business?
=> Prepare Projections
Work out what your expenses are likely to be and how much
revenue you need to be able to generate to break even. Then work
out roughly how much revenue you need to make a predetermined
amount of profit (remembering to factor in the cost of your time
and finance expenses such as loan repayments).
How realistic are your revenue objectives? Are they attainable?
Over what timeframe?
PLANNING AND LAUNCH
Finally, once you've identified an idea that makes it past the
first cut (i.e. everything you've done to date), do the whole
idea assessment routine again but this time being much more
detailed and specific. At the end of this process you need to be
able to produce a solid business plan, one you can take to the
bank if necessary. Even if you're not going to need outside
financing, do your formal business plan anyway. It will help you
ensure you've covered all the bases and left nothing out. By the
time you finish your business plan, you should know your
business inside out.
All that's left is to put your plan into action and launch!
Not surprisingly, the whole process from personal inventory to
launch is not something you can do in a week. Ideally, it's
something you will be able to start BEFORE you lose your job
since it will likely take you several months. But the returns on
your investment can be substantial. Do it right and do it well
and you will create for yourself your own employment, never
again to be at the mercy of someone else to determine your fate.
But it's not an easy road. Self-employment is not a safe route.
It rewards the risk-takers and the resilient. You may not
succeed on your first attempt. But, as with anything in life,
where there's a will there's a way. If you are truly determined
to create your own security, nothing compares to putting your
destiny back where it belongs - in your own two hands.