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Experiencing a professional blow like a bad performance review or getting fired is never fun. However, you can seize this opportunity to make a positive change—like finally becoming your own boss by starting a business. Here are a few valuable resources to help you get started. Discover how to become an entrepreneur after a setback below.
Prepare yourself mentally for the path to entrepreneurship
Before you start your own business, it’s important to work through the pain of your professional setback. Instances where you feel you were wrongfully terminated—for example, due to discrimination—can be especially difficult to process. Take the time to work through your feelings and grieve the loss. Then, focus on moving forward.
Recognize the silver lining of your loss: You’re free to pursue entrepreneurship. At the same time, prepare yourself for the psychological hurdles of becoming a business owner, such as uncertainty and imposter syndrome. Determine how to tackle them.
Consider what type of venture you want to pursue
The key to long-term success in entrepreneurship is advanced planning. For example, you want to research products and services beforehand to determine market demand. Also, look for ways to minimize your overall risk. A home-based business is a great option, for example, because you spare the significant expense of commercial rent.
Not sure what kind of venture you want to start? Shopify offers a list of many low-cost and low-risk business ideas. Examples include starting a membership program, pet sitting, and ecommerce businesses. Further, consider your personal skills. What talents do you already have that you can monetize? Leveraging existing abilities will improve the odds of success.
Put your entrepreneurship plan into action
Once you know what kind of business you want to start, it’s time to get organized. Begin by drafting a business plan. This is a comprehensive guidebook detailing how your business will be structured and run. It should include everything from a description of your products and services to a management overview, financial projections, marketing plan, and more.
Once your business plan is sketched out, it’s time to consider financials. Most businesses require some investment to start, even if they are low-cost. You might need to buy technology like computers, for example. Make a list of all your foreseeable overhead expenses to come up with a grand total of how much cash you will need.
Once you know how much money you’ll need, you can look into funding options. Even if you have substantial savings, you probably don’t want to put them all into your business venture. The U.S. Small Business Administration provides a guide to funding options, including venture capitalists, crowdfunding platforms, and government loans.
With your funding secured, you can start investing in your business. Certain tools can help streamline operations and make your day-to-day life as an entrepreneur easier. Look into tools to enhance communication, collaboration, and productivity. There are also task-specific technologies for things like marketing and accounting.
Finally, consider how you can gear up personally for business ownership. You might sharpen your business skills via an online degree. Gaining expertise can also ramp up your confidence, which is important after a career setback.
A career setback isn’t the end of the world. In fact, it can free up your time and open new opportunities to pursue what you really love. Consult the guide above to get started.