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Starting Your Own Business After a Career Setback: Why the Decision is a Great Idea and How to Get Started

By Larry Mager

Common career setbacks include being fired or laid off, being demoted, being stagnant (no way to move up in current position or career), or becoming bored with your current position or career. Any of these situations can cause you to feel upset, angry, or full of self-doubt. Instead of moping about, focus on moving forward and consider making a change. While you can dive back into the same career in which you’ve been working, you can also take a leap and start your own business.

Coming Up with a Business Idea

Coming up with a business idea

Many successful entrepreneurs found a way to turn a hobby, side job, or passion into a career.

One of the most important (if not the most important) decisions involved in starting a business is coming up with a business idea and choosing the type of business to run. There are several ways you can come up with a business idea. For example, think of your biggest frustration and find a solution for it. You can also think bigger and try to imagine what the world’s biggest challenge will be in 15 years.

On the flipside, people who offer career advice often say to find something you enjoy doing and something that you’re good at doing. Your business is much more likely to succeed if you follow this advice. Think about what gives you fulfillment and satisfaction. Many successful entrepreneurs found a way to turn a hobby, side job, or passion into a career. Find a way to monetize what you love. For example, if you love dogs, start a dog walking business.

Don’t give up hope if your first brainstorming attempt yields no results. You may have to try several times. Sometimes you need a spark in creativity. Try to take a vacation or just take a day to do something new like hiking on a new trail or attending an art show. These new experiences can spark new ideas.

Planning and Financing

Now that you have your idea in place, you need to create a well-written business plan, which will serve as a guide through each stage of starting and managing your business. Think of it as a manual for how to structure, run, and grow your new business. Business plans are also important because they show investors and potential business partners why they should believe in your ideas.

When you start a business, it comes at a price. While many entrepreneurs put their own money into starting their business, they also typically need financial assistance. Although hard to obtain, you can get a commercial loan through a bank or a small business loan through the Small Business Administration (SBA) or an alternative lender. If you require a large amount of funding up front, you may want to consider an investor or a crowdfunding campaign.

Handling Legalities

Handling the legalities is critical. You must register with the government to become incorporated and trademark your company’s name, and you’ll need to obtain an employer identification number (EIN) from the IRS. Some businesses may also require federal or state licenses and permits in order to operate. Also, before you open your doors, you should purchase insurance for your business. “Dealing with incidents like property damage, theft or even a customer lawsuit can be costly, and you need to be sure that you’re properly protected,” says Business News Daily.

You’ll also need to build up your brand and get people intrigued about your product or service before you open your doors. For starters, create a logo so people can easily identify your brand. Social media is a vital promotional tool that can spread the word about your new business. Use it to offer coupons and discounts to your first customers, to share your story, to draw people to your site, and more. Be sure to keep social media pages up to date with relevant and interesting content about your business and industry.

Starting your own business requires a lot of time, effort, and hard work. But putting in the time to properly prepare helps increase your chance of success, and once you’ve experienced the rewards of being your own boss, you’ll see the effort was well worth it. Take your career setback and turn into a positive by becoming an entrepreneur.

Author Bio:  Larry Mager created ReadyBrain.net to help give people the mental workout they need to have a healthy brain.