When to Quit Being an Employee and Focus on Your Business.

The American economy is undergoing a metamorphosis. A confluence of various factors is leading workers to explore entrepreneurship. Smallbiztrends.com reports that women-owned businesses have grown at a rate 2.5x faster than the national average, leading to 1.5x more women starting businesses than men.  Many women are shifting to self-employment because they aspire to have better flexibility in their schedules, more compensation for their work, and better alignment with their purpose.

A similar acceleration in launching small businesses is seen among people of color. Many BIPOC individuals are pursuing self-employment to have more control over their careers, greater advancement opportunities, and more earning potential. Over the last decade, there has been a 35% increase in minority-owned businesses, which might be causing you to ask yourself, “Should I leave my full-time job and go all in on my business idea?”  

The pandemic created a momentous shift in the relationship between employees and employers. 

The COVID-19 pandemic fundamentally altered the economic landscape, prompting employees to reevaluate the meaning of work-life balance and redefine career aspirations.

• CNBC reported that employees emboldened by a tight labor market in 2022, launched the “Great Resignation,” in which about 50 million people quit their jobs in pursuit of greater flexibility and more competitive pay.

• Forbes reports that many employees who decided not to leave work began “Quiet Quitting,” where they decreased their effort to the minimum required to maintain employment.

• The Economist reports that companies have reversed remote and hybrid work policies to reduce turnover, improve worker productivity, gain more control over how and when employees work.

• Under pressure to cut costs, Business Insider reports a 31% increase in job cuts among middle managers in 2023. Many of these cuts resulted from productivity improvements generated by the growth of AI and organization design flattening promoted by companies like McKinsey.

The convergence of all these changes has nurtured a class of workers who are experienced, disenchanted with their current working conditions, hungry for autonomy, and willing to venture into self-employment. Many are launching side businesses with the hopes that those businesses will eventually give them the wealth and freedom necessary to step away from their government or corporate jobs and be their own boss.  

Making money beyond the traditional 9 to 5.

Over the last five years, there has been significant growth in three types of entrepreneurial ventures.

• Rise of the Gig Economy: CNN reports that over 1 Million Americans are working in the “gig economy.” This includes freelance workers with companies like Uber, Lyft, Doordash, Upwork, and Instacart. These opportunities provide workers with great flexibility, autonomy, and the ability to generate additional income.

• Service-based Job: Forbes reports that professional and business services are two of the fastest-growing industries in America. As more companies look to outsource marketing, recruiting, employee development, and consulting, middle managers have more opportunities to leave W2 employee roles and establish 1099 and small business relationships with corporations, government entities, and non-profit organizations.

• Growth in Property Rentals: After a sluggish 2023, the National Association of Realtors predicts a rise in short-term rentals. Companies like Airbnb and VRBO make it easier for homeowners to rent out their homes, providing property owners additional income.

Recent shifts in the economy and business ecosystem have provided mid-level professionals with specialized skills, wealth, a home, or a vehicle the opportunity to generate income for themselves outside of the traditional 9-5. We are seeing the emergence of portfolio careers where workers have more than one stream of income, which, over time, allows them to make career decisions based more on personal fulfillment than financial survival.  

Taking the Leap: Planning for Success

Leaving the security of a salaried position demands a well-defined plan. The cornerstone of this plan should be a budget that outlines how much money you need to make to cover your personal expenses. In addition, you need to define the amount of money you need to invest to meet your business goals. The U.S. Chamber of Commerce cites inflation, lack of access to credit, rising interest rates, employee hiring and retention, and supply chain disruptions as the most significant challenges small business owners face today. These challenges should be accounted for in your budgeting and planning process.

Most small businesses fail because they do not have the capital or people resources needed to bring their company value proposition to life. A detailed business plan, with clarity on the key partners, activities, resources, customer segments, channels, and relationships, will help you clarify what is needed to thrive. The 10% of new companies that last more than ten years do so because they clarify

1. Who they are?

2. What they do best?

3. Secure the talent and resources needed to establish a sustainable business model.

Prelaunch Check List:

There are 7 actions you should take before quitting your current job and pursuing your business full-time.

1. Leverage Company Training Programs: Participate in company-sponsored training programs to cultivate skills that contribute to your professional development.

2. Access Free Resources: Organizations like SCORE, SBDC, and many local economic development centers offer training, workshops, and mentorship that can help you develop plans and acquire the knowledge you need to launch and scale your business successfully.

3. Develop a Business Canvas: This is a one-page business plan to guide your strategy.

4. Personal Budget: Define how much money you need personally, assuming your business generates no income for the first six months of operations.

5. Business Forecast: Create an 18-month financial forecast, including projected revenue and expenses. Include a best-case and worst-case scenario.

6. Develop a Contingency Plan: Prepare for unforeseen circumstances by outlining what you will do if the worst-case scenario occurs—for example, securing a loan, borrowing from family or friends, or taking on part-time freelance work.

7. Build Your Support System: Develop a network of advisors, mentors, and peers who can provide guidance, support, and motivation throughout your entrepreneurial journey.
   

The Entrepreneur's Journey: Rewards and Challenges

Entrepreneurship is not for the faint of heart. Many people start on the entrepreneurial journey only to later decide that they prefer being employees. If you try entrepreneurialism and it does not work out, you can always re-enter the labor market. Every new experience is an opportunity for growth, self-discovery, and self-mastery. The best way to determine if you are ready to leave your current job and go all in on your own business is to do the prep work listed above. It will help you look at things from a big-picture perspective and consider the essential factors for success.

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As an executive coach and small business consultant, I guide small business owners and business professionals in achieving their professional and business goals.

Whether you want to start, transform, or improve your business or career, I can help you magnify your strengths, minimize weaknesses, identify threats, and take advantage of opportunities.

Let's talk about your goals.

Have Feedback  Send me a note at

Email: dcunion@yourpathexecutivesolutions.com

Delegate More and Worry Less with the Leaders Intent Process.

Leader's intent has gained popularity as an approach to leading teams. Although it originated in the military, it has been adapted for the business world through executive leadership training programs and books. The concept of this approach is simple: instead of leaders trying to plan for every possible outcome and process, they

• Set business objectives

• Communicate why they are important

• Outline guiding principles

• Define key deliverables 

• Request brief back from the team

• Empower their teams to make decisions and take action to achieve goals. 

This approach allows flexibility, creativity, and innovation, enabling everyone to leverage their strengths to solve business problems.

Delegate more with the leader's intent process.

I recently helped a client set a new approach with his office team around how they would attract more customers. The business owner's objective was to establish a set customer outreach process. He told me this was important because he wants to increase his employees' wages this year and needs the extra revenue to cover the added expense. We outlined guiding principles such as budget and key deliverables such as developing a new sales script. By the end of our discussion, he had a good framework to introduce to employees and gain their buy-in for transforming their approach to attracting new customers. 

One of the biggest challenges that most business leaders have is ensuring employees understand their vision. The leader's intent process calls for leaders to

• Slow down

• Articulate their vision

• Put it on paper

• Communicate it to their team

Once leaders communicate their intent to their team, they must provide time for employees to ask questions and provide feedback. After all questions have been answered and concerns addressed, it is crucial for the leader to request a brief back. This will help ensure that employees understand what you want from them, and you can confidently empower the team, knowing they have the information they need to execute the business objective.

Verify understanding with a brief back.

A brief back is a simple yet effective way for a leader to confirm that those working with them understand their vision and the parameters associated with the task they are delegating to employees. The brief back starts with a simple question:

" Tell me what you heard?"

This question allows the employee to share their interpretation of the conversation so that the leader can validate that they are on the same page.

Key call out: you must ensure your team understands what you communicate. 

In many cases, the brief back process allows the leader to clarify their ask and to ensure alignment with their employees. It is common for leaders not to have complete clarity about what they want until they can discuss it with others. The brief back process allows everyone involved to confirm their understanding of the business objective, its importance, guiding principles, and key deliverables.

Summary 

In conclusion, the leader's intent approach is a powerful tool that can help improve business performance. It encourages leaders to communicate better and confirm understanding. This approach unlocks motivation, innovation, and creativity by eliminating micro-managing and allowing employees to be more involved with the planning process. The brief back step can help ensure the leader and employees are on the same page. As businesses evolve and grow more complex, leaders must change their approach to leading teams. The leader's intent approach is the solution for positioning yourself to delegate more and worry less.

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Thank you for reading this blog

As an executive coach and small business consultant, I guide small business owners and business professionals in achieving their professional and business goals.

Whether you want to start, transform, or improve your business or career, I can help you magnify your strengths, minimize weaknesses, identify threats, and take advantage of opportunities.

Let's talk about your goals.

Have Feedback  Send me a note at

Email: dcunion@yourpathexecutivesolutions.com

The Secret Weapon of Retail Store Success: Healthy Store Culture and Happier Employees

Last year, a client came to me with a problem. He was frustrated because his retail store was not performing as well as he wanted. Despite his efforts to drive higher levels of accountability within his retail stores, he felt that little progress was being made around improving cleanliness, organization, and customer service. He would often have conversations with employees about job assignments. They would address the items he talked with them about but put in no extra effort to address other problems in the store that were visible and impacting customer satisfaction. He came to me seeking a way to transform the culture within his stores.

We spent some time talking about his current approach. On a typical day, he would walk into the store, observe job assignments that had not been completed, and challenge the employees on why they were not getting more done. He would do this before saying hello, asking employees how they were doing, or acknowledging any progress they made since his last visit.

This conversation prompted me to ask the store owner, 

"How do you want your employees to feel when interacting with you?". 

After some thought, the owner said he would like them to feel motivated after interacting with him. He talked about his previous experience as an employee and how he worked hardest when he had a good relationship with his boss. He shared that his relationship with his boss was based on trust earned over time because his boss genuinely showed care and respect for him and the rest of his teammates. With this insight, we crafted a new approach to engaging with employees.

Four actions to improve retail store culture.

1. He brought civility to the workplace. Instead of the owner coming in and jumping straight into business, I encouraged him to take things slower. He began to say hello to employees, ask them how their days were going, and about their families and life outside of work.

2. He began to recognize small wins. Instead of focusing on all of the things the employees did not get done, he started to thank them for the small improvements they were making. The employees began to feel more appreciated and took more pride in completing tasks.

3. He started to delegate more responsibilities to his manager. Instead of being the primary person holding employees accountable, he began to have more conversations with his manager about store performance and the manager's role in ensuring that employees were completing tasks.

4. He invested time in training employees how to execute tasks to his expectations. When he observed that job assignments were not being completed to his expectations, he would check with the employees to understand if they knew the best way to complete the task. He would teach them how to complete the task efficiently and effectively if they did not.

The impact of happier employees.

These simple behavioral changes lead to cultural change within the store. Over the course of four months, the owner reported that the overall feel of the store changed. Employees seemed

• happier to come into work

• improved their execution of job duties

• began to greet the owner by showing him what they had accomplished while he was gone

This change happened without the owner having to fire any employees or implement special incentives. He was able to start store culture change by

• treating the employees with more dignity and respect

• demonstrating appreciation for small wins

• empowering his employees to take more responsibility for store conditions

• ensuring they were adequately trained

By changing how he interacted with his employees, the owner was able to transform the culture within the store, which led to improved customer experience and higher sales.

Summary

Being a store owner is challenging. It is especially difficult when the employees who work for you are not motivated to perform at a high level. One of the secrets to success as a business owner is to manage your employees based on their potential. Your employees are capable of exceeding your expectations when you provide the resources and environment they need to thrive. Just like a rose will not grow with proper water, soil, and sunlight, your employees need direction, training, and positive reinforcement if they are going to reach their potential. The time you dedicate to building a great organizational culture will unlock the potential of your employees and organization.

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Thank you for reading this blog

As an executive coach and small business consultant, I guide small business owners and business professionals in achieving their professional and business goals.

Whether you want to start, transform, or improve your business or career, I can help you magnify your strengths, minimize weaknesses, identify threats, and take advantage of opportunities.

Let's talk about your goals.

Have Feedback  Send me a note at

Email: dcunion@yourpathexecutivesolutions.com