Career Journal:
The Jungle
By Kris Maher
Page B10
IS NOW a good time for job seekers to start their own businesses?
Frustrated by the dearth of attractive openings, many Americans are going into business for themselves.
Deirdre Gilbert decided to strike out on her own after Merrill Lynch & Co. laid off the 42-year-old administrative assistant in December 2001. The waves of layoffs hitting numerous major companies helped persuade her to pursue that entrepreneurial dream. Having a corporate job "used to be safe, but everything's changing," she says.
Ms. Gilbert is developing a plan for a business making clothing patterns for petite-size women. She hopes also to open a store where an electronic body scanner will take customers' measurements so that they can order custom-made garments.
Fortunately, there are many resources for job hunters turned entrepreneurs. Ms. Gilbert asked Axxess Business Centers Inc. for assistance in writing a business plan, which she needs to get bank financing.
The small
Rosalind Resnick, founder and chief executive of Axxess Business Centers, says its current clients include layoff victims from big financial-services firms as well as dot-com refugees.
The Internet is one of best places for free guidance about launching an enterprise. A first stop: the U.S. Small Business Administration's Web site, which provides information on how to select the type of business to start and get it financed. The site also offers free online courses, a library of downloadable data on a range of topics and a hotline for small-business related queries.
About 600,000 small businesses with employees spring up each year, according to the SBA's Office of Advocacy. A cautionary note: While roughly two-thirds of start-ups survive at least two years, roughly 60% fail within six years.
You can greatly increase your business's chances for survival by finding a
mentor, says Larry Kesslin, president of Let's Talk
Business Network, a
Mr. Kesslin also advises budding entrepreneurs to consider buying an existing business. It's a potentially easier and cost-effective alternative to starting from scratch. Many people nearing retirement are willing to sell their businesses at low prices, he says.
But if your venture fails, will that hurt your prospects for becoming a
corporate employee again? There are pluses and minuses
to being perceived as a failed entrepreneur by future
employers, says Mick Quinn, founder of Direct Guidance Coaching, a career- and
life-planning firm in
Many big businesses see candidates with entrepreneurial experience as self-starters. If you managed to expand your business considerably before it failed, you can highlight the skills you used to build revenue and staff, for example.
The downside is that most employers don't expect a former entrepreneur to stay in one position for very long, Mr. Quinn says. As a result, they might be unwilling to spend money training you for a position that you will outgrow quickly. "The real entrepreneur is always looking for the next train out of town," Mr. Quinn adds.
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Please e-mail comments to Kris.Maher@wsj.com. To see previous Jungle columns, go to CareerJournal.com.
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Where to Start if You're Pondering a Start-Up
A selection of Web sites that provide resources for buddingentrepreneurs.
-- www.sba.gov The U.S. Small Business Administration's Web site offers resources on everything from loan programs to how to choose an effective sign for
your business.
-- www.ltbn.com Let's Talk Business Network's site provides information about thecompany's support networks.
-- www.entrepreneur.com Offers a range of small-business resources, including free onlineguides to starting up a variety of businesses.
-- www.abcbizhelp.net Axxess Business Centers' site offers information about its counselors and links to other resources.
-- www.franchise.org The International Franchise Association's site provides tips for
people considering buying a
franchise