You Were Laid-off and Now You Want to Become a Founder…Maybe Learn To Think Like An Investor First & Also Avoid Getting Scammed

MBHVIM Team

It can be painful to lose one’s job, and it can be more painful if you don’t have other means of financial support. For some lucky few they may receive support from their former employer and / or the government or friends & family.

And for some they realize what a bad position to be in a capitalist game. Where you had given years and sweat to a company and you own nothing. Add to that, is the fact that stable employment is becoming a luxury.

So now you are excited to be your own boss. And you will start any business as long as you’ll never feel that pain of being laid off again.  My friend, please do your own homework. Take courses on how to operate a business, take personal development courses. Join founders, investor & business communities. Learn how to think like the most successful investors and avoid the mistakes by others. Now is the time to put yourself on the path of financial freedom through business not just gig work???

FYI: The world of Business, entrepreneurship, ceo, president or founder isn’t any easier.

Not an advocate, endorsing or biggest fan of Grant Cardone (Real Estate Guy) but here is his view about starting a business.”

[Renowned real estate mogul Grant Cardone sparked controversy with his recent comments on entrepreneurship and business investments. On Feb. 5 2024, Cardone posted a video on Instagram where he expressed strong opinions about the pitfalls of starting a new business.]

[“I wouldn’t go start a business today. Dumbest, most selfish thing a person could do,” Cardone said, emphasizing the challenges and unrealistic expectations new entrepreneurs face. “You can’t work for somebody else. How are you going to work for yourself? You don’t even know what you’re doing. You can’t even pay rent.”]

In addition to criticizing the startup culture, Cardone advised against the common entrepreneurial aspiration of starting from scratch. He suggested an alternative route to business ownership: buying an existing business.”]

”Let’s Begin….

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The Current State of Things Pre / Post Layoff

• A lot more cities, nations are running a budget deficit
• Lack of affordable housing
• People are finding essential living cost are terrifying high
• Not all personal income source & jobs are keeping up with cost
• Every part of the world consumers are growing angry
• Law-makers are pushing for a variety of new taxes on the wealthy
• Some wealthy are gradually leaving areas that might not be as tax friendly
• Hiring freeze at some government institutions
• In some places housing advocates plan to push for increased tenant protections
• Tax break for developers but the high interest rate and not enough skilled man power or policy slowing things
• More and more cities could allow tenants the opportunity to pool their money and purchase their apartment building if a landlord attempted to sell
• Crimes seems up in public spaces and theft in retail
• More and more frequent scam attempts from communication methods
• Due to inflation and possibly “greedflation” food prices are up everywhere
• The rise of artificial intelligence is adding value in some areas but creating security vulnerability in others
• The demand for social connection, friendships, spirituality, community participation keeps growing
• At community level effort to improve social ties could help improve community ability to weather through tough economic times
• When it comes to health care the lower the socioeconomic position, the worse the health could be
• Even with push for renewable energy consumers are not sure they will see lower cost. Plus add to that EV & AI usage increasing.
• Air, Water, Land, space and the whole environment are in constant threat from humans and nature
• Some Institutional Education cost going up but alternatives are coming
• Democracy and transparency is under threat around the world
• Social exclusion either through racial/ sexual orientation / ethnicity can be the result of prejudice
• High child care cost can impact a societies ability to progress. Inflation and the cost-of-living doesn’t help
• One can assume since the global pandemic crisis, stress levels have gone up significantly
• Work is changing cause more humanoid robots and AI machines are coming for human jobs hopefully governments have a plan
• In some parts of the world, public transportation has become unsafe, funding unsustainable

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Making Some Money Pre / Post Layoff & Become Founder

• Choose the right business type and industry
• Tap your experience and skill set.
• See if you can help improve areas of a business
• Some businesses are easier to start than others maybe consider focusing on profitable businesses with low startup costs.
• Use your existing contacts when starting a post-layoff business
• Ask peers and friends for ideas on business problems
• Find mentors, join new networks and join entrepreneurship communities
• Turn your fears and instability into entrepreneurial motivation
• Turn your sadness to opportunity to seek personal growth
• Reevaluate your life and calibrate your path
• Sometimes you grow slowly and steadily, and sometimes crank it up
• Prepare to pivot

Entrepreneurship is whole lot of work and sacrifice

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Additional TIP:

If you want to know true issues or concerns of people there are various ways:

• Individual interviews
• Group interviews
• Focus groups
• Community meetings
• Informal conversations

Additional TIP:

You can get to success by starting small, with something you kn0w you could handle. Then take on something a bit more challenging, consolidated gains again and just keep going.

Additional TIP:

Nobody cares about the size of your previous impact and it’s much more to do with mindset and execution.

Additional TIP:

• Your inflated title from a big company can work against you
• What potential startups really care about is whether you’ve actually done hard things.
• Seeking out a role at a smaller tech company or private equity-owned business can help you grow, both in your career and as a person.
• Be comfortable with uncomfortable and uncertainty
• Most VCs fail to reach their goals and most VC-funded ventures are disastrous failures.
• Create substance so that VC funds is used for real growth, not for hyped up growth.
• Only work with the credible investors and VCs cause it’s a long partnership
• Many entrepreneurs and potential founders focus on the opportunity. When they should focus on skills first.
• Be finance and business smart. Get skills and experience.
• Do everything in your power to avoid or delay taking VC funds so to keep some control and grow into a leader
• More about skills development and less on perfecting pitch

Additional TIP:

Other ways to make money include…..

• Room Rentals
• Online Tutoring
• Virtual Assisting
• Freelance Writing
• Social Media Management
• In-Home Daycare
• Online Courses
• Pet Sitting
• Selling Homemade Crafts and Art
• Investing in a high-yield savings account or certificate of deposit (CD)
• Dividend stocks
• Affiliate marketing
• Peer-to-peer lending
• Real estate investment trusts (REITs)
• Rent out parking space
• Buying a profitable business
• Buying a franchise

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Thinking Like An Investor Pre / Post Layoff

Let’s start with how businesses make money and charge for their services / products. Business models, or income model or revenue model is all about how you go from goods & services to money in your bank account. Some might be the same but called a different name in different situations.

Common Business Models:

• The hourly model – get paid by the hour
• The monthly model – receive a monthly fee
• The retainer model – offer packages of hours
• The project model – work per project or deliverable
• The performance model – your rate depends on results
• Retailer model – just like Walmart or your local grocery store
• Manufacturer model – you take raw material and create a finish product
• Fee-for-service model – bank transaction fee
• Subscription model – SaaS, Netflix, Website hosting company
• Bundling model – Like combining Video Streaming, ISP, Wireless phone carriers
• Product-as-a-service model – Like the bike, scooter rental service
• Leasing model – You can buy a new car full cash or you can lease it like a space
• Franchise model – think McDonald. Every franchisee pays the franchiser a percentage of the profits. And other fees.
• Distribution model – Companies in this area don’t make anything just moving goods and services their infrastructure like warehouse or network
• Freemium model – Companies allow you to use some parts of offering for free but for advance features you pay.
• Advertising or affiliate marketing model – Companies here build their users and audiences then serve them adverts. E.g. podcasts
• Razor blades model – The razor is cheap but the blades are more expensive and likely have a recurring usage.

Some Questions To Ask About A Business….

• Who’s your target customer?
• Does your product or service solve a specific problem for a specific group?
• How big is your potential customer base?
• How will your product or service benefit those customers?
• What expenses will you have?
• What skills do you need?
• Do you know the difference between fixed and variable expenses?
• Do you know how to research other businesses?
• Do you have the desire to succeed?
• Do you have the opportunity that would encourage you to overcome adversity?
• Do you know if your business has a high potential for profitability?
• Can you decide when to walkaway?
• Do you have an opportunity that’s scalable?
• Do you know how to analyze risk and mitigate that risk?
• Do you know how to see things differently or unconventionally cause great ideas are never always obvious?
• How can you take the investor lens and use it to reshape your business plan when you’re writing it?
• Ability to find support for your claims?
• Do you know how to start when things are not perfect?
• Do you have realistic numbers and assumptions?
• Do you know how to discover and / or identify red flags?
• Do know difference between growth for growth sake and sustainable-profitable growth?
• Do you know not to be overly obsessive about your ideas, customers, products, etc?
• Did you know high performance firms usually have high standards which means they don’t embrace mediocre efforts?
• Did you know perfect efficiency can also be an hindrance to new ideas or new ways?
• Do you know great business opportunities grow gradually and fads are just boom & bust?
• Do you know how to identify traction and when you’re just spinning your wheels?
• Can you be disciplined with your spending?
• Can you prove that you have a competitive edge?
• Can you build a strong team?
• Can you develop a clear exit strategy?
• Do you know how to seek advice from experts?

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More Tips For Post Laid off and Want to Start a Business

[Starting a business after being laid off can be a daunting yet empowering journey filled with both challenges and opportunities. The emotional impact of losing a job can be significant, but it can also serve as a catalyst for exploring entrepreneurial ventures that align with your skills, passions, and market needs. In this article, we will delve into how to navigate the transition from employee to entrepreneur, from assessing your strengths and market opportunities to developing a solid business plan, seeking funding, building a support network, and embracing the risks and rewards of starting your own business.] – AI Content Generator

Understanding the Emotional Impact of Being Laid Off

Recognizing and Coping with Feelings of Loss and Uncertainty

[Getting laid off can feel like a punch in the gut, leaving you with a whirlwind of emotions – from shock and sadness to uncertainty about the future. It’s essential to acknowledge these feelings and give yourself time to process them. Remember, it’s okay not to be okay.] – AI Content Generator

Embracing Change and Shifting Mindset towards Entrepreneurship

[Instead of dwelling on the past, consider this layoff as an opportunity for a fresh start. Embrace change and shift your mindset towards entrepreneurship. Think of it as a chance to create something new and exciting, where you are in control of your destiny.] – AI Content Generator

Assessing Your Skills, Passions, and Market Opportunities

Evaluating Your Transferable Skills and Unique Strengths

[Take stock of your skills and strengths gained from your previous job. Identify transferable skills that can be valuable in starting your own business. Embrace your unique strengths and passions, as they will be the driving force behind your entrepreneurial journey.] – AI Content Generator

Researching Market Trends and Identifying Business Opportunities

[Research is key to identifying a viable business opportunity. Keep an eye on market trends, consumer needs, and gaps in the market. By understanding the landscape, you can carve out a niche for your business that aligns with your skills and passions.] – AI Content Generator

Developing a Business Plan and Setting Realistic Goals

Creating a Comprehensive Business Plan Outline

[A solid business plan is the roadmap to success. Outline your business idea, target market, competition, marketing strategy, and financial projections. A well-thought-out plan will guide you through the ups and downs of starting a business.] – AI Content Generator

Establishing SMART Goals and Milestones for Your Business

[Set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals for your business. Whether it’s reaching a certain revenue target or expanding your customer base, breaking down your goals into achievable milestones will keep you motivated and on track.] – AI Content Generator

Exploring Funding Options and Financial Considerations

Understanding Different Funding Sources for Startups

[There are various funding options available for startups, from bootstrapping and loans to angel investors and crowdfunding. Explore these options to find the best fit for your business idea and financial situation.] – AI Content Generator

Managing Budgeting and Cash Flow for Sustainable Growth

[Effective budgeting and cash flow management are essential for sustainable growth. Keep a close eye on your finances, create a realistic budget, and monitor your cash flow to ensure your business stays afloat and thrives in the long run.] – AI Content Generator

Building a Support Network and Seeking Mentorship

[So, you got laid off and want to dive into the wild world of entrepreneurship? Smart move! But hey, you don’t have to go it alone. Building a solid support network and finding a mentor can make all the difference.] – AI Content Generator

Networking Strategies to Connect with Industry Professionals

[Networking can feel like a necessary evil sometimes, but trust us, it’s worth it. Attend industry events (virtual or in-person), join online communities, and don’t be afraid to reach out to professionals in your field for advice. You never know where your next opportunity might come from.] – AI Content Generator

Finding and Engaging with a Mentor for Guidance and Advice

[Having a mentor is like having a business bestie who’s been there, done that, and is willing to share their wisdom. Look for someone whose experience aligns with your goals, reach out with a thoughtful message, and be open to learning from their insights. It’s like having a secret weapon in your entrepreneurial arsenal.] – AI Content Generator

Leveraging Online Resources and Tools for Starting a Business

[In this digital age, starting a business has never been more accessible. Embrace the online tools and platforms available to kickstart your entrepreneurial journey with a bang.] – AI Content Generator

Utilizing Online Platforms for Marketing and Branding

[From social media to website builders, there are endless online tools to help you showcase your brand and reach your target audience. Get creative, experiment with different platforms, and let your unique voice shine through.] – AI Content Generator

Exploring E-commerce Solutions and Digital Marketing Strategies

[E-commerce is a game-changer for budding entrepreneurs. Whether you’re selling products or services, diving into the world of online retail can open up a whole new world of possibilities. Get savvy with digital marketing techniques to drive traffic and convert leads like a pro.] – AI Content Generator

Navigating Legal and Regulatory Requirements

[Now, we know legal stuff can be a snooze-fest, but hey, it’s important. Understanding the ins and outs of business licensing, permits, taxes, and regulations can save you from headaches down the road.] – AI Content Generator

Understanding Business Licensing and Permits

[Before you dive headfirst into your business venture, make sure you have all the necessary licenses and permits in place. Research what’s required in your industry and location, and dot those i’s and cross those t’s to stay on the right side of the law.] – AI Content Generator

Complying with Tax Obligations and Employment Regulations

[Taxes and regulations might not be the most exciting part of entrepreneurship, but they’re crucial. Stay on top of your tax obligations, employment laws, and any other regulatory requirements to keep your business running smoothly and legally.] – AI Content Generator

Managing Risk and Embracing the Entrepreneurial Journey

[Starting a business is a rollercoaster ride, full of ups, downs, and unexpected twists. But hey, that’s all part of the adventure. Embrace the risks, stay resilient, and get ready for the ride of a lifetime.] – AI Content Generator

Identifying and Mitigating Potential Business Risks

[Every business venture comes with risks, but being aware of them is half the battle. Identify potential risks, create a plan to mitigate them, and stay agile in your decision-making to navigate any bumps in the road like a boss.] – AI Content Generator

Cultivating Resilience and Adaptability in the Startup Environment

[Flexibility is key in the fast-paced world of startups. Embrace change, learn from failures, and stay resilient in the face of challenges. Remember, every setback is just a stepping stone on your path to success.In conclusion, while being laid off may have been a setback, it can also be the starting point for a new chapter in your professional journey. By taking proactive steps to assess your potential, seek support, and navigate the practical aspects of starting a business, you can transform a challenging situation into a fulfilling and rewarding entrepreneurial venture. Embrace the opportunities ahead, stay resilient in the face of challenges, and let your journey from being laid off to starting a business be a testament to your determination and creativity.] – AI Content Generator

Part 2 Coming Soon…