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

Research a Company Before You Accept Their Offer.

Why are 68% of employees disengaged with their current work? One reason is a lack of alignment between their company and individual values. The other is a misalignment between people's work and their capabilities. When your values don't align with your organization, and your role does not match your capabilities, you risk being bored, frustrated, and under-utilized. The antidote for this problem is finding an organization that aligns with your values and provides challenging yet achievable work. But how do you find the right role and organization?

Before you accept the offer, take these 3 steps.

• Step one: reflect on who you are, what you value, and how you can uniquely add value to the world.

• Step two: research companies to understand who they are, what they do, and how they do it.

• Step three: compare your capabilities and values with the organization's values and needs to identify alignment.

Taking time to research companies before you accept a job offer will provide you with better insight into

• the type of organizational culture you are joining

• the organization's financial health

• how you will be able to add value

• what it takes to be successful

These insights will allow you to select a company that fits your skills, personality, and professional goals well.

What to research:

There are several different ways to research a company. Even if you are short on time, it is wise to execute each of these research methods so that you have diverse sources of information to base your job acceptance decision on.

Methods of research:

• Check the company website. Most companies have a dedicated page on their website that explains their values, history, and vision for the future. This is a good place to start your research. Remember, this is like a Tinder profile. The company is only showing you what it believes are its best features. Review information critically, but know it provides a view of the company's aspirational goals.

• Read the company's social media pages. This can give you insight into how the company's marketing arm thinks and wants to be viewed by society.

• Talk to current and former employees. It is helpful to get first-hand feedback on what it is like to work within the company, what is necessary to be successful, and what people like and dislike about the company. It is best to get multiple points of view. Organizations are complex and dynamic. The more perspectives you can hear, the better your assessment will be.

• Read news articles and reviews about the company. This is easiest when joining a large publicly traded company, but even small or privately held companies are covered in the news. Look for news related to financial performance, new growth strategies, capital investments, and other events that can give you insight into the health of the organization and its priorities for the future.

What to look for:

When you're researching a company, look for things that are important to you. For example, if you're passionate about social justice, you might want to look for a company with a strong commitment to diversity and inclusion. Or, if you're interested in sustainability, you might want to look for a company that is working to reduce its environmental impact. Like-minded people are attracted to and tend to work better with others who think and value similar things. For this reason, seek out opportunities where you can be authentic at work.

Try to understand the growth stage the company is in. Startups tend to be dynamic and constantly evolving. Emerging companies focus on processes and growth; mature companies focus on quality and consistency; declining companies are looking to reinvent themselves. The better you understand the company's growth stage and its current needs, the better you will understand the organizational culture. Business needs and goals have much to do with leadership practices and company culture. The better you understand both, the better you will understand what it will be like to work for the company.

Benefits of researching a company before accepting an offer:

1. It will help you determine if you're a good fit for the company. By understanding the company's culture and values, you can decide if it's a place where you would thrive.

2. It will help you ask better questions in job interviews. You can use your knowledge of the company to ask questions about its culture, values, and vision. This will show the interviewer that you're genuinely interested in the company and the position and allow you to gain more information about the company.

3. You can prepare for onboarding into the company. No situation is 100% perfect, but the more aware you are of what you are walking into, the better you will be able to handle challenges that arise.

Summary:

Researching a company is an important step in finding the right job. You spend too much time at work, to not enjoy what you do. Your potential is unlocked when you find an organization that aligns with your values and leverages your capabilities. Life is short. Don't waste time working for organizations that are the wrong fit for you. Do your research, consider what you need and what you want, and pursue opportunities that align with your long-term goals.

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Thank you for reading this blog

I am a father, husband, executive coach, and former retail executive. My coaching expertise comes from 21 years of leading operation, sales, and marketing teams. I understand what it is like to feel stuck, undervalued, and underappreciated.

I also know what it takes to invest in professional development, climb the corporate ladder, and find fulfillment at work.

Your career path is a scavenger hunt. Each opportunity prepares you for the next. Allow me the opportunity to help you clarify your path and accelerate your professional development.

Grow your career

Have Feedback Send me a note at

Email: dcunion@yourpathexecutivesolutions.com

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10 Things I Wish I Knew Before I Started My Career

Navigating your career can be exciting and daunting. There are so many things to learn and so many decisions to make. Over my 20-year retail, franchise, restaurant, and marketing career, I learned many lessons about myself and what it takes to advance and develop a fulfilling career. I believe many of the lessons I learned can help you chart your path to your ideal job.

If you could go back and give your younger self some advice, what would it be? I started with this prompt and came up with these answers. I hope this reflection adds value to you as you look to achieve your professional goals.

Here are 10 things I wish I knew before I started my career:

Relocating would accelerate my career growth.

If you're willing to move to a new city or state, you'll have a much better chance of advancing your career. Most people want to stay where they live. Your willingness to relocate can be a differentiator within a competitive labor market.

In the first ten years of my career, I was promoted twice. In the second 10 years, I was promoted five times. One of the big differences was my willingness to relocate for growth opportunities.

Where you get a degree from is less important than having a degree.

While getting a college degree is still important, the specific school you attend doesn't matter as much as you might think. What matters more is your skills and experience.

I graduated from a small liberal arts college named Randolph-Macon College in Ashland, Virginia.

I had similar or more career growth than people who graduated from large and better-known universities. Big-name colleges can help with your personal branding and provide you with a larger alumni network, but there are other ways to build your personal brand, and a small, strong network is all most people need to achieve their professional goals.

Use leverage to guide decision-making.

When you're faced with a decision, think about the potential consequences of each option. What are the risks and rewards? How will your decision affect your career?

I became a more effective leader once I started making decisions based on return on time, money, and effort. All are limited resources; how you use them will determine your potential and options.

Scale your influence by empowering others.

One of the best ways to grow your career is to help others grow theirs. When you empower others, you create a ripple effect that can benefit you in the long run.

In the early days of my career, I believed that I needed to control everything. This made me the bottleneck in my team's potential. Only when I began to delegate tasks and extend more trust did I start to unlock the potential of my teams.

Praise more than you criticize.

We are conditioned from a young age to focus on what is wrong and to fix it. While this is vital for survival, criticizing small and insignificant details erodes morale, creates extra work, and causes unproductive stress.

One of the most effective programs I ever participated in was the SMILE program. It required managers to write a small note to employees whenever we noticed them do something that put a smile on a customer's face. We saw morale and productivity improvements by creating more moments where leadership praised employees.

"I don't know, but I will find out" is a great answer.

It's okay not to know everything. In fact, more harm is done by giving a bad answer than no answer at all. Being humble enough to state that you do not know something but diligent enough to go find the answer and report back will help you build creditability.

This is one of the first lessons my first district manager taught me when I started my career in retail. This lesson served me my entire career. People want more than the answer: they want the right answer.

Hire people for potential and build competency.

When you're hiring, look for people who have the potential to learn and grow. Teaching a smart and ambitious person a skill is easier than motivating a well-trained but complacent person.

I had a lot of success working with individuals that others had written off. I would identify what they were good at and position them to do work that aligned with their skills, interests, and aptitudes. Leadership matters: Sometimes, a different management approach can unlock an employee's potential.

Most decisions are made outside of meetings.

Every opportunity you have with someone is an opportunity to gain new information and influence. Constantly seek opportunities to expand your next, form relationships, and get to know the needs, expectations, and wants of the people you work with. By helping others accomplish their goals, you will increase your influence.

I gained more information and influence from informal discussions than any meeting I ever attended. The time you spend networking, building relationships, building alliances, and managing stakeholders will make the difference when pursuing a new role, a raise in salary, additional resources, or a special project.

Performance ratings are biased.

Don't put too much stock in your performance ratings. They're often subjective and based on factors that are beyond your control. Focus more on building your competency and a reputation that aligns with your strengths.

I earned my first big promotion in the same year that I missed budgeting earnings for my subgroup of stores. I was promoted because leadership recognized that my lack of hitting my numbers reflected more on the complexity of my assignment than on my skills, knowledge, or potential. Numbers matter, but good leadership looks beyond numbers to understand the story that numbers tell. Focus on building great stories.

There are tradeoffs to moving up the corporate ladder.

As you move up the corporate ladder, you will be asked to do things you have never done before. Some of these things will help you grow, and some will go against your values and damage your personal relationships.

To gain power, money, and influence, you will be asked to support decisions you will not agree with. This is a cost of being a mid-level leader within an organization. As you climb the ladder, you must determine what you will give up in exchange for all of the perks of being a senior leader.

Summary:

The last 20 years have taught me a lot about what it takes to get ahead within Corporate America. Working hard and being smart will only take you so far. You must have political acumen, strategy, strength of character, and a process from continuous learning. If you want to grow your career, I encourage you to invest time in building a clear picture of who you want to be, and what you want to do. This can help you stay motivated, centered, and focused on growing into the person you are meant to be.

I hope you have gained some value from reading the ten things I wish I had known before I started my career.

If you have read this far, I would love to hear from you on what you wish you knew before starting your career.

Sharing your comments could be of value to other professionals as they progress on their journey.

Thank you for reading this blog

I am a father, husband, executive coach, and former retail executive. My coaching expertise comes from 21 years of leading operation, sales, and marketing teams. I understand what it is like to feel stuck, undervalued, and underappreciated.

I also know what it takes to invest in professional development, climb the corporate ladder, and find fulfillment at work.

Your career path is a scavenger hunt. Each opportunity prepares you for the next. Allow me the opportunity to help you clarify your path and accelerate your professional development.

Grow your career

Have Feedback Send me a note at

Email: dcunion@yourpathexecutivesolutions.com

For daily tips on leadership and professional development, follow me:

LinkedIn

Facebook

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Youtube