Businesses large and small enter the New Year with projected layoffs in banking, financial services and arts and science looming in 2015.
Media rumors abound reporting Bank of America expects to release 20,000 positions while JPMorgan and Citi forecast 10,000 eliminated positions this year respectively. American Express calculates 2,400 cuts, eBay plans to reduce 2,000 positions and DreamWorks corrected its projection to 500. IBM executives predict one third of its total workforce will face layoffs.
In the lives of career professionals, cuts, layoffs, downsizing, restricting and re-engineering is a fact. As Drone Technologies reach daily life, job automation will impact nearly 700 positions by 2020.
The transition from employee to small business owner entrepreneurship is neither a straight line nor an easy step to take. When professionals are trained to work for someone else most of their lives, taking an independent step involves a myriad of steps that even a savvy business owner may not be aware of.
The fastest path to failure is projecting oneself as a small business owner without the necessary assets in place like a business type, an employer identification number, capital resources and a business plan in place.
When resources are expended in areas that do not generate revenue, then the likelihood of failure is expected in the first three years of operation. If a small business can reach its fifth year, it is still at risk for failure in its tenth year.
In truth, a business can fail at any point in its lifecycle. The adage ‘time is money’ is one of the hardest lessons for a transitioning employee to learn. Some of the best business mentors, business coaches and business consultants in the world cannot identify for small business owners all the contingencies that lead to business failure.
There is no guaranteed path to success in building a business from the ground up. The only demand on small business owners that are effective for new businesses is dogged determination to outlive failure, learn from mistakes, teach others how to profit from failure and be distinctive in the products or services offered.
Be realistic about what is possible. Be careful in identifying what businesses to partner with. Ask copious questions and work with like or similar businesses with a proven track record. Not every business owner is out to commit fraud against an owner or the owner’s company. But each and every small business owner is duty bound to perform the due diligence required to build a successful enterprise.