Life can often throw you a curve that can turn your career upside down. Things like getting laid off, a more challenging job market, dislike for your boss or employer, or dissatisfaction with your current job can make you consider a career pivot.
Some people want to control their fate. Others are motivated by no salary limit. If they work hard, they’ll be financially rewarded for that effort. Many things can get you thinking about opening a business or professional services company. But should you take the plunge and do it?
Opening a business was never part of Jenna Rumberger’s career plan. This Seattle social worker had a very stressful job. As a case manager, she could have 120 cases of older adults and disabled people to serve and help with home healthcare. It often was disheartening to try to provide the care needed with the very limited resources that the city had to offer, compounded by a shortage of home health aides and caregivers.
Her life changed on a dime, and so did her career. At age 32, Jenna had a sudden cardiac arrest where she stopped breathing and was clinically dead for a few minutes. The paramedics shocked her heart and sent her to the hospital for surgery. She would remain in the ICU in a medically induced coma for several days. After months of recovery, Jenna knew she had to make changes, explaining, “I had to reduce my stress level—a lot—and at the same time make a difference in helping people.”
Opening a geriatric counseling practice could be the right choice. She did a lot of market research reviewing how other counselors ran their private practice. She considered the logistics, pricing, marketing, policies, location, and how to find clients and worried about taking on the financial risks. After much consideration, Jenna launched Aging with a Plan, her private practice. Jenna now offers compassionate individual psychotherapy and consultation services for geriatric clients impacted by chronic illness and dementia. She advises families on living options, home healthcare, the laws, medical resources, and the patient’s rights. Her insights and guidance make it much easier for families and caregivers to help their loved ones, especially when the family no longer lives nearby. “Nothing could be more rewarding than what I am doing now,” said Jenna.
While owning your own business and controlling your fate can seem like a great idea, it is not for the faint of heart. Data from the Small Business Administration shows that approximately 20% of new businesses fail during the first two years of being open, and 47% within the first five years. On the plus side they report that 33 million small businesses are operating in the United States. According to Yahoo Finance, depending on the business and industry, the average small owner takes home an average salary of $83,000-$126,000. Many owners make significantly more than that.
Is becoming your own boss your next career move? Start by taking this business ownership quiz.
- Are you a self-starter? It will be up to you, not someone else, to develop and manage the business. You will be the engine that makes it go and responsible for everything to propel it forward. Business ownership is a lot of work. Can you face 12-hour workdays, six or seven days a week, every week, to get this going?
- Can you handle the uncertain financial risk? You will not earn any income as you launch the business. You’ll need to get your operations going and keep it running. For some, there is a significant financial investment to get the business off the ground. Plus, you’ll have taxes, overhead, operational expenses, staff wages, and possibly startup loans to repay before you get paid. You are unlikely to get a salary during the first year or two since most of the income must be reinvested into building the business. You must prepare for the inevitable rainy day to avoid a financial crisis. There can be long spells where you are underwater or only breaking even. Will you be able to tough it out?
- Do you have good business skills in sales, marketing, accounting, business planning, operations, and customer service? You must have or learn these business skills to survive and succeed or have the money to hire people to do these for you. You’ll require a solid business plan. Landing new and repeat customers is your business’s lifeblood. That means the correct pricing and product or service offerings. Marketing is costly and never stops. You must use effective strategies to source, advertise, and retain those hard-to-get customers. Are you up to handle that challenge?
- Are you driven? To build a profitable business, that passion must burn within you. Your company’s success comes from your internal motivation and push for achievement. Many entrepreneurs are “doers” who want to derive the benefits and financial rewards from their efforts and labor. They are unlikely to get burned out or worn down by carrying all the responsibilities of the business on their shoulders. They are successful because they want to be. Will you be able to push yourself?
- Are you a good decision maker? Business owners must make decisions constantly, quickly, under pressure, and independently. Some can change the trajectory of the business; others can hurt it. Do your research and examine all options for important decisions to minimize risk before you decide to go forward. Will you seek out the pros and get advice from other owners and colleagues to help you make the right choices?
- How will the business affect your family? Balancing work and family demands during the first few years after opening a new business is challenging. Work weeks are no longer 40 hours. Sixty is more common. There will be no paid vacations, no sick days, no 401K employer contributions, and you’ll take on high premiums for your medical insurance. Your take-home income comes after you have first paid all your business expenses. How will you adjust to that lack of income, financial strain, time demands, and those lean years until the business becomes profitable?
Expect surprises along the way. Jenna said, “I knew it would take a lot of time and patience to find clients and start making an income. It was much harder than I imagined. I wear a lot of hats, handling management systems, marketing, networking, billing, and managing the finances—all non-client tasks—that are all very time-consuming. But for me, having control over my work has been worth it. When the day is done, even when it’s been a long one, I know I am making a difference helping older people and their families, which has made this unexpected move a very rewarding one.”