Urban Thought Collective

Joe (not his real name) lost his technology job and before he knew it his unemployment benefits ran out.

Unable to secure employment, he contemplated his options and decided to open a business and became what I would call a reluctant entrepreneur.

Are you a reluctant entrepreneur?

You are a reluctant entrepreneur if you:

* Have plans to only run your business until you find a new full-time position.

* Avoid planning for the growth or prepare basic business projections beyond six months or so.

* Fail to invest time or funds on professional advisors or visit small a business center’s for guidance in areas that you do not have expertise such as law or accounting.

* Use your credit cards instead of checking with bankers to see if you might qualify for a line or credit or small business loan to finance your business.

In order to weather the storms of self-employment, you will have to take some basic steps to increase the probability of success.

Economic uncertainties always exist and as many have experienced, no positions are beyond down-sizing. Sometimes it’s a good idea to have a side-line company just-in-case you have to make it your full-time gig.

It is what it is.

If you identify yourself as a reluctant entrepreneur consider that until you find full-time, permanent employment you will need to generate positive cash-flow in order to pay the bills.

You may not feel that you can carve out the time to establish a complex or formal strategic plan or have a meeting (with yourself if you are a solo-business owner) to establish the company’s mission.

Improve your chances of making it by implementing a basic action plan. Establish some quick basic plans in writing so you have a map.

If you put some of your plans in writing, it’s the first step towards successfully surviving, as shared in the excerpt from my latest book “Make the Leap: From Mom & Pop to Good Enough to Sell” (Infinity Publishing).

I fundamentally believe and have learned from experience that getting the right people is more important than strategy. The right people will literally point you in the direction of the right strategy.

In regards to strategies for companies, particularly for small companies, I think the following steps are key (again assuming that the right people are on board):

- Recognize the strengths of your competitors. What customers will they fight tooth and nail not to lose?

- Recognize that going after their prime customers may trigger a vicious response. Therefore, it may be better to pursue a market niche that competitors will not or cannot enter.

- Figure out what competitive advantage you have or what competitive advantage you could create.

- Think about what you would enjoy and what would be fun.

Eventually, a viable strategy will evolve from talking to customers, suppliers, competitors, and, most importantly, by listening to your employees.

You can get what you want!

Remember, whether you are just hanging in there until you find a job or running the business for the long-haul, utilize this opportunity to network, re-discover related industries and improve your skills.

Joe was able to leverage his business and find a permanent job, while bidding on a project. Last I heard he was making more than he did with his former employer and now feels more confident that he has a growing network and should not hit the unemployment line again. If he does, at least he has a great strategy!

Genevia Gee Fulbright, CPA is President & COO of Fulbright & Fulbright, CPA, PA, a business strategist, tax advisor and author of Make the Leap: Shift from Corporate Worker to Entrepreneur and most recent book Make the Leap: From Mom & Pop to Good Enough to Sell (Infinity Publishing). Her sound financial planning advice tips can be read regularly on www.urbanthoughtcollective.com. Visit Fulbright at www.makeleap.com.