On the surface, taking a job when it seems that your business is failing is just about the worst outcome for anyone who is self-employed. It appears as if your ship has sunk, and the fact that you have to take a job to replace lost income serves as confirmation of the fact not only to you, but to everyone who learns of it.
But there are reasons why you should not view this outcome as a failure. In fact, all it may be confirming is that you have hit a bump in the road that needs to be surmounted, and taking a job is how you will do it.
A failing business is a blow to the ego - but don’t over-react
If you have ever lost a job that was important to you and most are you can imagine that the loss of a business is pretty hard on the ego. In fact, it can be even worse with a business failure than with the loss of a job.
You probably put your heart and soul into building your business, and if it seems as if it’s about to fail it can be the emotional equivalent of the loss of a loved one. It’s hard not to take such an event very personally.
In truth however you should do all that you can separate yourself emotionally from the fact. If you can, you may recognize the fact that the failure of the business is only apparent. If you approach the situation logically, you may determine that it’s mostly a temporary situation that you need overcome, rather than a major life’s failure.
Most businesses ebb and flow - you may not have failed
The TV image of self-employment is that you quit your job, start a business, and five years later you’re a millionaire living on easy street for the rest of your life. In reality, 99% of business ventures don’t come close to that image.
Most businesses ebb and flow and income will rise and fall. Sometimes those fluctuations occur because the business is cyclical. There are short cycles, such as seasonal businesses, and longer cycles depending upon the industry that you are in. Real estate, for example, tends to be a long cycle business that goes through regular periods of boom and bust, each of which lasting several years.
If your business is in a cyclical decline, particularly a short-term one, it may just be a matter of riding out a rough spot. If the cycles are longer-term, you may have to have a long-term plan for dealing with the drought.
How taking a job might save your business
If your business is cyclical, or if it is going through a rough patch, getting a job could be just what’s needed to save it. The Idea is to never quit on your business!
Taking a job to ride out an income decline may buy you the time you need to get through to better times. If you are going to be an entrepreneur, you’ll have to learn to ride the ups and downs of your business. Taking a job to replace lost cash flow from your business, until circumstances improve, could be a sign of strategic brilliance.
You could for example take a full-time job, and reduce your business to a sideline. The idea will be to keep the business going, and to do what you can to increase cash flow, while you hold a job to pay your bills. Figure the job is temporary, and continue to focus on keeping your business going. The purpose of the job then will be to complement your business and not to replace it.
Think of taking a job as another income source
As a self-employed person, your highest priority is always maintaining and increasing your cash flow. Sometimes you’ll have to step out of the normal routine in order to do this. Getting a full-time job on a temporary basis could be just such a way of doing this. Think of the job as merely another income source a temporary one and it will seem less like a failure, and more like a way forward.
Making a living is more important than any business venture
Though it’s hard not to attach emotion and ego to your business, it’s important to realize that any income producing venture is first and foremost about making a living. That’s more important than whether the income is from either a job or your own business. Sometimes you just have to do what you need to do, and everything else needs to be put aside. If taking a job to supplement your income during a business downturn is necessary, just accept it as part of the process and push forward to a better future.
Don’t wait until it’s too late
If your business income is declining it’s best that you face that reality as soon as possible. If you need a job to supplement or replace your income, don’t agonize over it go out and get it. Delay could be the difference between saving your business and watching it go down the drain!
Many businesses fail because the owner gets caught in the classic deer in the headlights syndrome. Don’t let that be you! Take action as soon as you begin to feel the solvency of your business is in question. If nothing else, the steady income from a job could be what keeps you out of panic mode, and prevent you from making big mistakes that could sink your business forever.
Have you ever been self-employed and forced to take a job?
Back in 2008, I worked with a guy who was the owner of his own mortgage company but had to get a second job because his business had declined.
You know, this was back when the economy had taken a down turn.
He would work at his company and then come to work at Nutra, where I was working.
On his first day, I remember the look on everyone’s face when he was asked where he worked beforehand - jaws dropped!
Then he was questioned about why he decide to take a job. He simply replied, “Business isn’t too good right now.”
What he did by putting his ego aside and applying for a job said a lot about his character and strength.
Honestly, this would be a hard reality for some business owners to face, but it’s better to be prepared mentally just in case.
This a much need post for every business owner.
Good read!
Marc Bell