On career switching, I have considered some options to my current situation and believe, based on many years of working for others and myself, I believe the best decision is owning your own business regardless of what it is. At this stage of our careers, assuming you have 15-20 years of sales experience, the case can be made to stake your claim and make it happen for yourself.
I'll let CloserQ do the research, however, I have read and been told that the only way a person will make the money they want, build personal wealth and live the life they want is by owning your own business. CloserQ, what are your thoughts? Ryan
Ryan, great follow up question, to my post on http://closerq.blogspot.com/2009/04/wednesday-april-29th-2008-career-switch.html. The answer is very complex and very personal. At a high-level, I agree the best way to personal and financial freedom is owning your business. At the same time, if owning a business was easy, didn’t require risk, time, nor capital; Walmart wouldn’t have one and half million employees. When evaluating owning your own business, below is a risk matrix with three broad categories (Personal, Financial, Management), to assist with your decision making:
Personal Risk:
There is a major personal commitment to owning and running your business.
· Time: Do you have 60 hours a week for years to start or learn your business? Malcolm Gladwell in his book Outliers, (http://www.amazon.com/Outliers-Story-Success-Malcolm-Gladwell/dp/0316017922) says it takes 10,000 hours (5 years) to master a subject.
· Mind Share: In addition to the physical hours, do you have mental focus to think about the business on weekends and evenings.
· Family: Family is extremely important and you will need the supp
ort of your family
· Spouse: Is your spouse committed to the ups, downs, and sideways of owning your own business. Without your spouse’s support, your challenges will be magnified.
· Stress: This stress will come in many forms: making payroll, firing an employee, competitors, legal, etc. How do you handle stress?
Financial Risk:
In addition to the time, owning a business will take financial capital or lack of income while you build your business
· What is your current monthly burn rate?
o How much can you cut back on your expenses
o How long can you go without making money
· Do you need to raise capital?
· Are you risking your nest egg
Management Risk:
What is your management style
· Have you been a manager?
· What is your experience and lack of experience?
o Sales, Marketing, Operations, Finance
· Have you had P&L responsibilities
· Self Awareness, what you are strengths and weaknesses
o Can you afford to hire to backfill your weaknesses
No one said it would be easy, however, as you stated in your question, there are also many benefits to owning a successful business. Once you get the business running and stabilized you will have more time for your family, more financial independence, and managers to run your business. Personally, I have been involved one start-up and two early stage companies.
Comment on Building Wealth: There is another way to building wealth in addition to owning a business. Living below your means, saving money, and then investing your money in accordance with your personal risk tolerance.
‘Good Business Owning’. Reader Feedback, please click the comments below to give ‘Ryan' additional recommendations and I want your feedback on my response. Shaun Priest at shaun@closerq.com.
I'll let CloserQ do the research, however, I have read and been told that the only way a person will make the money they want, build personal wealth and live the life they want is by owning your own business. CloserQ, what are your thoughts? Ryan
Ryan, great follow up question, to my post on http://closerq.blogspot.com/2009/04/wednesday-april-29th-2008-career-switch.html. The answer is very complex and very personal. At a high-level, I agree the best way to personal and financial freedom is owning your business. At the same time, if owning a business was easy, didn’t require risk, time, nor capital; Walmart wouldn’t have one and half million employees. When evaluating owning your own business, below is a risk matrix with three broad categories (Personal, Financial, Management), to assist with your decision making:
Personal Risk:
There is a major personal commitment to owning and running your business.
· Time: Do you have 60 hours a week for years to start or learn your business? Malcolm Gladwell in his book Outliers, (http://www.amazon.com/Outliers-Story-Success-Malcolm-Gladwell/dp/0316017922) says it takes 10,000 hours (5 years) to master a subject.
· Mind Share: In addition to the physical hours, do you have mental focus to think about the business on weekends and evenings.
· Family: Family is extremely important and you will need the supp
ort of your family· Spouse: Is your spouse committed to the ups, downs, and sideways of owning your own business. Without your spouse’s support, your challenges will be magnified.
· Stress: This stress will come in many forms: making payroll, firing an employee, competitors, legal, etc. How do you handle stress?
Financial Risk:
In addition to the time, owning a business will take financial capital or lack of income while you build your business
· What is your current monthly burn rate?
o How much can you cut back on your expenses
o How long can you go without making money
· Do you need to raise capital?
· Are you risking your nest egg
Management Risk:
What is your management style
· Have you been a manager?
· What is your experience and lack of experience?
o Sales, Marketing, Operations, Finance
· Have you had P&L responsibilities
· Self Awareness, what you are strengths and weaknesses
o Can you afford to hire to backfill your weaknesses
No one said it would be easy, however, as you stated in your question, there are also many benefits to owning a successful business. Once you get the business running and stabilized you will have more time for your family, more financial independence, and managers to run your business. Personally, I have been involved one start-up and two early stage companies.
Comment on Building Wealth: There is another way to building wealth in addition to owning a business. Living below your means, saving money, and then investing your money in accordance with your personal risk tolerance.
‘Good Business Owning’. Reader Feedback, please click the comments below to give ‘Ryan' additional recommendations and I want your feedback on my response. Shaun Priest at shaun@closerq.com.
Comments