At a Loss?

Entrepreneur, July, 2001 by Barry Farber

Never fear. Here's all the pumping, priming and know-how you need to lift yourself from the pink-slipped masses and turn the loss of your job into a business even your former employer will envy.

ALL THE NEWSPAPERS SCREAM that another company has laid off thousands of workers. You never thought it could happen, but suddenly, there you are--one of those thousands.

Your first impulse: panic. What will happen now? To your family, your future? Maybe you're angry, or even relieved. Whatever your reaction, it's perfectly natural to be unsettled. We like to believe we have control over our lives, and when that control is taken away, we're uncertain and insecure. But if you've ever dreamed of running your own business, now is the time to take control and do it. Here are four steps to prime you for a business of your own:

1. Turn Rejection Into Motivation.

Did your former employers appreciate your talents and work ethic? Probably not. Don't stew in anger or self-pity. Show them what you're made of.

Once, in an important meeting, I announced I'd sell 100,000 books in one year. Someone let out a short, high-pitched laugh. That laugh echoed in my mind every time I picked up the phone. The larger the company I was trying to sell to, the louder the laugh would resonate, and the harder I'd try to make the sale. I sold 100,000 books in eight months.

2. Embrace Change.

The secret of change is to focus on the new path, not on the comfort of a worn trail. The new path is often where you'll find the most fertile ground. Of course, you can expect to encounter adversity, but, as the Roman philosopher Seneca said, "Adversity introduces a man to himself." Instead of thinking about all you've lost, focus on the possibilities ahead.

3. Design Your Life.

Success is the ability to design the life you want to live. Now's your chance to do something you're passionate about. What do you care about more than anything else? What would make you look forward to going to work each day? A passionate love of your product or service will drive you on your new path.

4. Develop a Strategy.

Having a clear purpose, setting realistic goals and thinking strategically can help you get past even the greatest adversity in the battle for success.

Author Caroline Schroeder once said, "Some people change their ways when they see the light; others when they feel the heat." In the heat of a layoff, you can die or live. The only way to live is to make a change. Why not make it the start of your own business?

Look Inside

A PERFECT BUSINESS IS WHATEVER'S PERFECT FOR YOU.

So YOU'D LIKE TO START YOUR OWN business, but you're not sure what kind of business to start. How do you get an idea? Begin by assessing yourself.

Get out a piece of paper and list five to seven things you enjoy doing and are good at--anything from "I'm good at computer spreadsheets" to "I love kids." Then list five to seven things you dislike doing or aren't good at. Next, ask yourself, "If there were three to five products or services that would make my personal life better, what would they be?" Ask the same question about your work life. Then consider what you liked and disliked about your former job. Finally, ask yourself what you expect to gain by starting a business. (Are you looking for lots of money? Freedom to set your hours? A chance to express your creativity?)

When you're done, look at your notes and try to find a pattern. Is there a need for a business doing one of the things you like or are good at?

You need to look outside as well as inside to come up with a good idea. Books, magazines, newspapers and Web sites are excellent sources of ideas. In addition to business magazines, look at other types of publications for trends that could suggest good business ideas.

Get opinions from other people. Ask your friends and neighbors what products or services would make their lives easier. Think about your neighborhood and the neighborhoods where your friends and family live and work. Chances are, you'll find a need for a product or service you could provide. For example, one office worker noticed there were very few restaurants near his office park, so it was hard for employees to find food on their lunch hours. He started a company delivering restaurant food to offices in the area

When you've got what you think is a great idea, carefully assess its potential in your city. Note what kinds of businesses already exist in your area and what kinds of people live there. You may have a fantastic idea for an upscale catering business, for example, but if most residents in your city are retired people on a budget, you won't find many customers.

As you ponder your business idea, keep in mind that you don't have to reinvent the wheel. Starting a successful business is a matter not of coming up with something completely new, but of asking, "How can I do something better?" or "How can I do it differently than the other person?" By assessing your abilities and your market, you'll be able to answer that question profitably.

10 Steps to Start-Up