One in four workers who are now unemployed are considering launching their own small business according to a recent CareerBuilder.com survey. Roughly seven million people have lost their job since the start of the current recession and many of them are now thinking of starting their own business.
The Miami Herald documented this trend in a recent article profiling a young couple who decided to start their own eco-design firm after being laid off. The article also includes information from Kauffman Foundation economist Tim Kane who says many under-capitalized small firms quickly go out of business. However, he also points out that half of the companies on the 2009 Fortune-500 list were launched during a recession or Bear Market (a period when the stock market continuously goes down).
The young couple documented in the Herald story are quick to point out that they have developed a solid business plan and have even secured a small business loan with help from a friend. They also mention their early success is as a result of their decision to start a business based on a skill set they already know, which can make the difference between early success or failure for any small business.
All small businesses and entrepreneurs must take calculated risks when launching a business. Even more daunting is the notion that you must try to learn all aspects of running your business, including areas like taxes, accounting, finances, legal, sales, marketing, social media and even HR. The UnderstandingMarketing.com creators have developed a weekly chat, called #smbiz and hosted each Tuesday night on Twitter, that offers access to experts in lots of these areas so that small business owners can network, share ideas and gain insight. Speaking of Twitter, anyone interested in starting their own small business should follow Kim Fenolio (@kfenolio on Twitter). She offers great daily tips on everything small business.
Here are a few good resources to check out if you’re thinking of starting your own small business:
Escape from Cubicle Nation: From Corporate Prisoner to Thriving Entrepreneur
The One Minute Entrepreneur
Entrepreneur magazine
Are you thinking of starting your own small business? If you have already launched, what kind of hurdles have you faced and how did you overcome them. Your comments are encouraged.
