I wanted to touch base this week on a very common mistake I have seen so many people make. "Shotgun self-employment"
It's almost a symptom of a midlife crisis, work has been grinding you down for years, you feel stuck in a rut working for "the man" so you decide to break free of the mold and become your own boss.
This might seem like a great idea, and with the proper advice, research and coaching it can be a very clever move.
However the reality more often than not is You work yourself up into a frenzy of excitement, the more you think about it the better the idea sounds and then you have the proximity issue with your partner, that is where you both start to feed off each other's excitement, you may start with one of you being the objector or the grounder but the more you talk about it the more you massage the same information around to fill in all of the objections.
This process is what keeps the hospitality suppliers of the country in business, I cannot count the amount of clients and friends that i have seen slam the door closed on their careers and boldly throw themselves into the world of table service and deep fryers with the dream of creating a self-sufficient life style where they only need to work 10 hours a week with a team of ninjas working for them and 50% more per year then their current income.
The brutal reality that i have seen is that they work an extra 20 hours on top of the 40 they used to work, they can’t afford enough staff to cover the hours let alone a ninja, the venture ends 2 years later in a divorce and a couple of hundred thousand dollars of debt.
Statistically hospitality has the worst success rate of almost any business start-up in the country and i would say that there is a correlation between the midlife crisis operators and the fact that all of the stock you purchase goes moldy if you do not sell it, at least with a tee shirt store you can discount it or sell it in a bag or rags.
I am definitely not saying do not start your own business, quite the opposite if you have ready any of my coaching tips on my Instagram @shaunfox_raic , for the average working class human if you want any chance of breaking out of the rat race and retiring before you die or turn 72 and get the pension then you must start diversifying your current strategy.
What you need to do is do the right research about the type of business you are going into, try and do something related to your current occupation if you can, always get some advice from an industry professional, the price you pay for a consultant might seem high upfront but could save you hundreds of thousands of dollars and keep you out of divorce court.
Try and spread the risk, get a collection of people together 4 is a good number, and keep your day job until the business can support you full time, or better yet invest in 4 more enterprises with that same investor group before you leave your current job.
Be mindful friends and have a plan, set aside the time to take stock of your 10 year, 5 year and 2 year plan, see where you are at in your life and if the things you spend time on in your 2 year plan are helping to build solid foundations for your 10 year plan.
Thank you for reading friends, and take care