12/01/2014

Guiding Individuals through Exploring Entrepreneurship as a Career Path

By Alicia Kramer Durham

How many individuals do you know started small businesses after a dramatic career transition? Consistently, I hear stories from successful business owners who feel the field of business ownership choose them. Some lost their jobs due to bankruptcy, or downsizing, or they are transitioning from active duty. Others had a real dissatisfaction with opportunities within a company or disagreed with the company’s direction or management. Still others had a change in family structure that influenced their decision to re-think their work schedule. This instability and lack of control during a career transition can open doors to entrepreneurship. Whether new mother wants more flexible work hours or a mid-career professional wants more control of the company’s direction or a retired army colonel seeks to apply skills in a new arena, entrepreneurship allows individuals to take total responsibility for their future success and failure.  

As a Career Counselor, suggesting business ownership may be the “out of the box” idea that motivates clients struggling to decide on their next career steps. Yet this decision should not be taken lightly. Small business ownership is REALLY challenging. In all my conversations with business owners, I have never heard anyone say “I just had an idea and the rest was easy.”  When I wrote “Entrepreneurship allows an individual to take total responsibility,” the meaning is more than responsibility for oneself. It means responsibility for the company’s vision, leadership, and direction.  Responsibility also means taking care of customers and their expectations and for employees and their actions. As Career Counselors, how do we encourage business ownership while not sugar coating the challenges small business owners face?  

1. Clarify the business idea in extreme detail, while focusing on the “meaning”.  
“I just want to make lots of money” is not a business idea! You would be surprised at how many service members in our Entrepreneur workshops that just want to learn how to make lots of money.  Some potential entrepreneurs start thinking about how they are going to convince customers to part with their money.  In our “Boots to Business” curriculum, Guy Kawasaki states it best: “companies started to make meaning, often make money, while companies started to make money do not make meaning nor money.” If your product or service does not make meaning for customers then customers will not give up their hard earned money to your business.  

2.  Research, Research.
Yes, entrepreneurs can be considered risk-takers, however successful business owners mitigate as much risk as possible. First, many small business owners are very familiar with the environment in which they will be operating. The key is convincing future small business owners to properly identify their customer and make sure they plan beyond the product or service and consider operations, marketing, insurance, employees, and of course, taxes. In order to meet operational needs and ensure survival, writing a business plan is a huge benefit.  A well-researched business plan forces owners to consider all aspects of  the business.  

3.  What is the bottom line?  
Remember a great business idea may be a bad economic idea. Individuals can have a revolutionary idea, but will they earn money for the survival of the business? One of the most discouraging mistakes I have seen in the small business world is owners under valuing their time.   This can be the toughest issue to navigate when advising clients about small business ownership because many new business owners sacrifice personal income and work long hours during startup. However, most entrepreneurs expect their early sacrifices to translate into future financial gains. Therefore, I often have a serious discussion about minimum salary requirements and financial expectations. In my experience, military retirees have a start-up advantage.  They can depend on retirement benefits while sacrificing personal income. A good tool to help clients visualize a business idea’s financial health is the Break Even Analysis. Potential entrepreneurs use research to calculate expenses and estimated gross profit.  This can help future owners determine realistic volumes and project potential profits or deficits.  

4. Use ALL your resources.
I would recommend starting at the Small Business Administration’s (SBA) website.  If future owners are interested in federal or state contracting opportunities, attending workshops in government contracting and government set-asides for veterans, minorities, and women owned businesses are imperative.   I also like the SBA’s Permit Me tool.  It helps individuals determine federal, state, and local permits based on zip code and type of business.   

Next, I encourage them to find the local SCORE office. It is staffed with retired Entrepreneurs who volunteer to guide new Entrepreneurs.

Another valuable resource will be your local community college’s or university’s small business center.  Our local community college offers workshops on writing a business plan, social media, gorilla marketing, and designing flyers.

If your client is a veteran or spouse of a veteran, try to find a local “Boots to Business” workshop.  It consists of a two day overview of entrepreneurship and then an eight week online workshop taught by Syracuse University.

Even after all the research and some risks mitigated, there is still a sense of leaping off a cliff not knowing exactly how you are going to land. This leap is especially difficult for an individual dependent on a regular paycheck. But for an individual in transition, there is no better time to try something new.  It can be the most rewarding, challenging, frustrating, self-fulfilling experience.  




Alicia Kramer DurhamAlicia Kramer Durham, M.Ed., M.A.,  is a Personal and Professional Development Advisor for the Marine Corps at MCAS Cherry Point, NC.  She holds a MEd in Adult Education from Park University and a MA Anthropology from East Carolina University.  She served as adjunct faculty for 13 years except for a hiatus to assist her husband to start a small business.  Alicia can be contacted at Alicia.k.Durham@usmc-mccs.org or www.aliciakramerdurham.weebly.com
 

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