2 April 2009

Pinto's Point

Quit your job, become an entrepreneur

By Jim Pinto

If you have been fired, laid-off, made redundant, or are part of a reduction-in-force, it should be not a complete surprise. Surely, you had to see it coming. The blogs are filled with complaints from people, many of whom are still employed accepting they may be the next to go from cost-cutting and offshoring. More and more “head counts” will shrink as companies scramble to meet shrinking budgets. This is a signal that serious change is here.

This is a wake-up call from illusions of “the good old days.” If you are one of the growing numbers of people who have lost their jobs, or can clearly see the writing on the wall, what are you going to do? Where will you look for another job?

The old question, “How much experience do you have?” does not apply anymore. Indeed long “experience” in a large company is a liability in the new economy.

Being out of work destroys your self-respect and makes you cynical. Do not simply fall into that “poor me” mindset. If you are out of a job, count yourself lucky to get an early signal that change has come. Instead of just looking for work and finally accepting some stupid low-paid job to make ends meet, think of something different.

Hey, why wait? Why not just use this opportunity to be your own boss, start your own company? Become a self-motivated entrepreneur. Take the quiz “Should you quit your job?” (web link below). Make your move.

Look for good chemistry with others who are in similar positions, with complementary skills, and start something. Necessity is the “mother of invention.” Find good, growing needs and fill them.

Think outside the old box. Look at the kid who wrote software that shows beer slopping inside the Apple iPhone; they’re selling millions at $1 each. Now, why can’t you think of something?

You do not need big capital to start—money goes primarily for big salaries and facilities. Work from home to begin with. Pay yourself and the founders drastically cutback living expenses, and share the ownership—stock in your new startup. Be your own boss. Work hard to build something for yourself. You will be happy you did.

Hey, I have been an angel-investor for over a decade. Send me a (non-confidential) one-page summary of your idea; at the very least, I will give you my opinion.

Related links:

• Take this Quiz: Should You Quit Your Job?
  http://tinyurl.com/dcb2jv
• Top Ten Reasons to Quit Your Job:
  http://humanresources.about.com/od/whenemploymentends/a/quit_job.htm
• Knowing it’s Time to Quit Your Day Job:
  http://www.startupnation.com/articles/1287/1/quit-your-day-job.asp
• Advice for the laid-off engineer – There’s no better time to become an entrepreneur:
  http://www.forbes.com/2009/01/08/mitra-laidoff-engineers-tech-enter-cx_sm_0109mitra.html?partner=alerts

Behind the byline

Jim Pinto is an industry analyst and founder of Action Instruments. You can e-mail him at jim@jimpinto.com or view his writings at www.JimPinto.com. Read the Table of Contents of his book, Pinto’s Points, at www.jimpinto.com/writings/points.html.