Redundancy Advice

 

We might be in the midst of an economic catastrophe, but that won’t stop an estimated half a million post-redundancy start-ups this year, a rise of 30 per cent since 2009.
They’ll be joining the five million entrepreneurs now working for themselves since being made redundant. And the good news is that 75 per cent of those going it alone say that life is better than when they were employees, according to the latest studies.

Transferable skills

In fact, the way redundancy victims are bouncing back after getting the chop doesn’t surprise the experts. “If someone is made redundant now it can be a good time to start on their own,” states the Federation of Small Businesses. “This is because, unlike the last recession, many people who have been made redundant have transferable skills that can be put to good use in their own enterprises.”
Indeed, starting your own business is the ideal antidote to being made redundant because it gives you back control over your life, according to Emma Jones of Enterprise Nation, the small business website. She says: “When you become your own boss you take control of your destiny. There is nobody to decide whether you still have a job and people really are relishing the fact that they are taking control back.”
Emma points out that starting a business from scratch can be surprisingly inexpensive, especially if you run it from home. First-timers can take advantage of services like Skype for free phone calls and Google Apps for free business software and free website packages.
A word of warning: starting a business requires a far bigger commitment than just getting another job after redundancy, says Keith Hunt, managing partner of business adviser Results International.
“Starting a business needs your full attention and the full support of your family,” he says. “If you’re planning to do it on a part-time basis or just at weekends, it’s probably not going to work. Also, stick with what you know, rather than jumping into a business you know very little about. And if you don’t know it, learn before you dive in. There is nothing wrong with taking six months off to work out what you are really going to be good at.”

If you need encouragement to go on your own when you’ve suffered the trauma of redundancy, take a look at these case histories.
Nicola Brown started a small business design service in her garden shed after being made redundant from her job as a photographic marketing manager - and has never regretted it.
“I never really enjoyed working for other people because although it feels secure to have a job, I have learned that it isn’t,” she says. “I love the fact I can work at my own pace. I now want to build up the business for the long term.”
Jason Young was 38 when he was made redundant as a director of a house building firm. He started his own building business using fellow workers who had also been laid off. Now the thriving business is reaping unexpected benefits.

Jason says: “I do the school run several times a week and see loads more of my children. So in that respect it has been really positive.”
Jean Parker lost her job as manager of an estate agents two years ago and went into business specialising in finding accommodation for the elderly and disabled. “There was a real gap in the market and I’ve now been able to take on three staff, all of whom had been made redundant,” she explains. “Things are going really well and I hope to open another office next year.”
“There’s a very different mindset involved in starting and running your own business, compared with being employed by someone else,” observes Alan Adamson of corporate adviser Green Square. “There is no safety net and to be successful you have to be very proactive.”

Expert advice

So how do you improve your chances of success when going on your own after redundancy? Here are some tips from the experts:
• Make sure you have the support of your family for any post-redundancy venture. Things will be a lot harder if you don’t.
• Strike a good balance between work and leisure. Home-based Salisbury architect Gerry Butcher, made redundant in 2009, says: “I tell my family that if I work more than eight hours non-stop they have my permission to come into my office and turn the lights off.”
• Make sure you know what will make your product or service stand out from the opposition. If you’re not sure, don’t go ahead until you are.
• After redundancy, go into something you know about and understand. Now is not the time to plunge into the unknown.
• Don’t be in too much of a rush. Taking six months to consider your options may stop you making big mistakes.
• Don’t try to keep your options open by applying for jobs at the same time as attempting to get a new venture off the ground. Chances are you’ll end up doing both things badly.
• Work out how much cash you are going to need to finance your post-redundancy plans - and then double it.
• Consider starting up a venture with a partner who can share the workload - and the stress - and help you stay motivated.
• Analyse your motivation. Ask yourself why you want to start your own business and exactly what you hope to get out of it.
• Boost your self image. It’s not your fault you were made redundant. Think of specific qualities you appreciate about yourself, while still being aware that there are ways in which you need to develop.
• Don’t automatically assume that friends and colleagues who said they will support any new venture actually will. It’s easy to talk.
• Simple but realistic targets will help you get things moving and will also chart your progress. Break down big projects into small, achievable targets.
• Develop a sense of purpose. Work out what’s more important to you. What rewards, apart from money, did you get from the job you’ve just lost? Where else can you find those rewards and what outlets can you find for your talents?
• Look after yourself. You’ll need all the energy you can get to start a new career. Take care with healthy eating, rest and exercise. Be kind to yourself. Do things that make you feel good and raise your spirits.
• Work out your long-term goals and stick to them. Don’t just focus on short-term necessities. Ask yourself where you want to be when the economy fires up again. Try to maintain your own sense of purpose and vision.
• Don’t turn down any offers of help. A growing number of redundancy victims are being helped by a new breed of specialist outplacement counsellors.
“Believe in yourself. If you don’t, no one else will,” says Tim Coleman, who speaks from experience. Made redundant in 1998, it took him over a year to get backing for an executive car hire company and was advised by his bank manager to look for a job as an employee.
Today the firm has 300 cars, grosses over £8 million and employs Tim’s former boss. “I knew I could do it,” he says. “After that, it was just the small matter of convincing everyone else.”

 

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