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The Great Resignation is getting a lot of press at the moment. This is the international movement in which workers are quitting their jobs in their droves. Many drivers are contributing to this. Chief among these is that many companies are failing to provide their talent with fair salaries, benefits, and support.
Some of those joining the movement are choosing not to simply move to a new employer. Rather, they’re treating this as an opportunity to start their own organizations. The accessibility of entrepreneurism also makes this a practical option for more people.
If you’re among those keen to move into entrepreneurship, it’s important to consider this carefully. There may be benefits, but there are risks involved. So let’s take a closer look at the idea. Is now the right time for you to join the Great Resignation and start a business?
Considering the Current Climate
Timing can play an important role in starting and sustaining a company. Economic issues, available infrastructure, and social change can all contribute here. The Great Resignation is not the only thing happening at the moment. It’s worth looking at how other elements should factor into your decision-making.
The most obvious issue to look at is the impact of the COVID-19 pandemic. The economy and population are still very much feeling the effects of the period. Unemployment is still high as a result of businesses that couldn’t survive the pandemic, meaning consumers may be more hesitant to spend. Supply chain issues and rising consumer demand have also contributed to higher rates of inflation.
The upshot of this isn’t just how new businesses started at this point might struggle to gain a profitable foothold. It could also affect your ability to gain the capital you need to get through your first few years of business. If your income projections based on current engagement are low, banks or investors could be less willing to fund you. Not to mention that inflation can mean your business loans come with higher interest rates.
It’s also worth considering the effect of the Great Resignation and pandemic unemployment driving people to become entrepreneurs. This could create a significant amount of additional competition in your intended field. This isn’t necessarily a negative thing. After all, competition can push you to be more innovative and help your industry become more dynamic. But you do need to assess whether you can stand out in a rapidly saturating field.
Identifying Personal Benefits and Challenges
Becoming an entrepreneur is a chance to create a business with your individual touch. Your insights, values, and perspectives will be key influencers. When considering whether now is the right time to start a business, it’s important to look at yourself. How could you personally benefit and be challenged by the prospect?
One potential benefit of starting a business now is it can provide you with an element of financial stability. There’s certainly no guarantee entrepreneurism can help you escape poverty. Nevertheless, you need to look realistically at how running a new business compares to your current salary. Your research may show it’ll take a year or so before you’re exceeding your present pay level. This doesn’t necessarily mean it’s not worth starting a business. Rather, you may be able to address this challenge by working part-time at your current job until you can break free entirely.
Another element to consider is your ability to think long-term. Twenty percent of businesses fail in their first 2 years often as a result of poor planning or scaling too rapidly. Does your personal temperament present a potential challenge here? Is now the right time to engage or do you need to learn more about strategizing business growth. You may benefit from taking courses or seeking out mentors first.
Remember, building your long-term business savvy has the potential to benefit you and your employees. Small business entrepreneurs need to be able to establish effective retirement strategies for themselves and their workers. This includes using profits to diversify your investment portfolio and building effective 401(k) plans. You’ll also need to develop an eventual exit plan for your business so you can get a good return from the sale of the business and ensure your employees are taken care of.
Your industry choice can influence success. You may feel you could be a skilled potential entrepreneur and the economic conditions are right. But each industry has its own issues that contribute to whether it’s the best time to engage as a business owner.
For instance, the COVID-19 pandemic is still having a particularly challenging impact on eCommerce. Certainly, the need to maintain social distance has caused a rise in sales for some online companies. Those that are well established have been able to leverage the loyalty of their consumers to some extent. Businesses offering essential services also continue to be in demand. However, it remains the case that this industry continues to be disrupted by supply chain issues and changes in customer behavior.
Your decisions here have to be based on solid research. In some ways, this is more in-depth than before the Great Resignation. You not only have to understand the general challenges of your industry but also how changes can impact operations. What is currently driving employee disengagement in your target field and how do you mitigate this? What challenges are likely to be coming down the pipeline? It may be worth seeking out internship or management opportunities in related business first so you can gain practical, first-hand insights.
Becoming an entrepreneur can be a fulfilling experience and the Great Resignation can seem like a great opportunity to try it. However, it’s important to weigh up the potential challenges alongside the benefits. Consider how the current economic climate may affect profitability. Take an honest look at yourself and whether there is room for professional growth before starting your business. Remember to also research the hurdles specific to the industry you’re targeting. You shouldn’t be put off by the difficult elements, but it’s important to consider what you might need to navigate.