Corporate refugees can make good small business owners

Q: I’ve been working in a large corporation for a long time and now have the opportunity to terminate with a severance package. I’m considering starting or buying a small business but how do I know if I can or should?


A: Many people in similar situations these days are wondering the same thing. Not only are the newly unemployed looking for business opportunities, others currently employed are seeing “the writing on the wall” or “just don’t like” what they observe going on in their workplace. They all need income replacement and seek investment opportunity. Going into business for themselves might just be what they need.

First, people coming out of corporate environments are usually better suited for small business ownership than they may think.

Many skills do travel from one environment to the next and experience working with big companies has some advantages. Training is an important one. Sales courses, budgeting classes, management seminars and other learning experiences are standard offerings at most large corporations.

Big-company employees may have industry-specific or technical experience that they can build a business around, if they can handle all of the other responsibilities of running a small business.

Corporate refugees normally have learned how to execute, plan and budget. If you’ve had management or supervisory background, then you’ve had the chance to develop organizational and time-management skills.

But refugees from big businesses could have some weaknesses. One is a desire or expectation to earn more than is realistic especially at the beginning. The monetary benefits of owning a privately-held business often arrive after the business is well established.

Some corporate employees are specialists--unable or unwilling to perform the kind of multitasking that is second nature to successful small business owners. Corporate executives sometimes are not ready to roll up their sleeves and do whatever is necessary to get the job done.

Most corporate employees don’t have experience managing cash. Someone else paid the bills and received the money. But in most cases small business cash management is much like managing your own personal bank account.

Risk taking is something some refugees can’t come to grips with. They’re used to a steady salary whatever the business conditions. Not having that guaranteed income can be uncomfortable.

So, if you’ve been “downsized for the last time” or are ready “to take control of your own destiny” speak to a SCORE counselor or attend a SCORE seminar for help in getting started.