Many people, especially those who have spent years struggling up the corporate ladder, dream of jumping ship and becoming an entrepreneur. But every job move is fraught with risk, and the move from employee to entrepreneur is on the high end of the risk curve. This is a big jump, especially in a down economy, so do your homework first on this one.
According to an article in the Harvard Business Review a while back, “Five Ways to Bungle a Job Change” there are at least five common missteps that professionals make when moving to a new job, and I will offer the comparable relevance for those of you contemplating leaving a company to initiate or join an entrepreneurial startup:
- Not doing enough research. In moving to a new company, the questions to ask are expectations, financial stability, cultural fit, and role responsibilities. All of these apply directly to starting your own company. Test your “dream” startup plans on some experienced entrepreneurs to get a reality check before you leave your current job.
- Leaving for money. Remember, the grass always look greener on the other side of the fence. More money in the short term is unlikely as an entrepreneur. In fact, most startup founders pay themselves no salary for the first year or two, and investor money is hard to find. I tell new entrepreneurs not to quit their “day job” until they have real revenue.
- Going “from” rather than “to”. If you are desperate to get out, you may just be lurching into entrepreneurship, only to find it more stressful and unsatisfying. People who feel competent but unsatisfied or bored in their current job make better entrepreneurs than people who feel overworked, under-appreciated, and over-stressed.
- Overestimating yourself. Search consultants say that many job seekers have an unrealistic view of their skills, their prospects, and their culpability. If you have had problems with several companies, you may be part of the problem. That part will be amplified in any startup, since you are now the company, so the blame stops with you.
- Thinking short term. Moving from an employee to an entrepreneur is a lifestyle change, as well as a career change. Don’t make the misstep of assuming it is a short-term move to riches, or an escape from a problem. Starting a business is hard work, requires a lot of learning, and only pays off in the long term.
These missteps are obviously inter-dependent. When people overvalue themselves, they are prone to stress from job performance feedback and dissatisfaction with compensation. This leads them to jump, without real consideration of the fit and opportunity, into the entrepreneurial world, where they could be even more unhappy.
Every employee needs to evaluate these challenges, since the average baby boomer will switch jobs 10 times, according to the U.S. Bureau of labour Statistics. The days are gone, when we commit early in life to a lifetime career with one company, or a lifetime of entrepreneurship. The business landscape is changing rapidly these days, so we need to be willing to change as well.
A good question to ask before finalising a change is “What if I’m wrong?” Be ready to cut your losses and move on. Jumping repeatedly to another bad situation is not the answer. In every case, take a hard look at your real strengths and weaknesses. Be willing to listen to an advisor or mentor on how others perceive you, and be willing to correct for those weaknesses.
The most important element is to understand for yourself what elements of a job role are the most satisfying to you, and what constitutes a healthy work-life balance for you. You spend most of your adult life at work. Life is too short to let career missteps make it unhappy.
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