A layoff can force you to think about your career in ways you never expected. Maybe you’ve spent 15, 20, or even 30 years building a career in one organization or industry, and suddenly you’re asking yourself a very different question: What do I want to do next? For some, starting a business after a layoff is the ideal next step. That could look like consulting, launching a business from the ground up, buying an existing company, or investing in a franchise.
At Transition Solutions, we support clients at all steps in their career transition. Some have a clear idea of what they could offer as a consultant. Others know they want to work for themselves but aren’t sure what that actually means. And some are exploring business ownership because they aren’t finding the traditional employment opportunities they’re seeking. All of these possibilities are worth exploring. The goal is to first determine if business ownership is for you. What it shouldn’t be is a way to avoid looking for a job.
Start With a Question: Do You Actually Want to Be a Business Owner?
It’s easy to feel enthusiastic about entrepreneurship after a layoff. The idea of being your own boss can sound pretty appealing after you’ve just lost a job you didn’t choose to leave. But before you start designing a logo or registering an LLC, take a step back and ask yourself what you actually want from your next career chapter.
- Do you want more control over your schedule?
- More flexibility?
- The ability to choose the work you do?
- Greater earning potential?
- The opportunity to build something of your own?
- Or do you simply want to continue doing the work you’re good at but in a different environment?
There’s nothing wrong with realizing that you prefer employment. The work world needs entrepreneurs and employees, and both paths can be rewarding and successful. Just because you make delicious chocolate-chip cookies doesn’t mean you need to (or will be successful if you do) start a company selling them. The desire to own a business requires a different set of motivations and skills than simply being excellent at your profession.
Consider the difference between doing the work and running the business that sells the work. As a consultant or business owner, you’ll likely spend time on sales, marketing, business development, pricing, contracts, finances, operations, and customer relationships in addition to delivering your actual service. If that sounds exciting, great. If it sounds exhausting, that’s useful information too.
You Don’t Have to Know the Answer Yet
One of the most interesting things we’ve seen with clients exploring entrepreneurship is that they don’t always start with a business idea. Sometimes, they’re simply exploring options as they navigate this transition.
You don’t necessarily need to know what you’re going to sell before you begin exploring business ownership. In fact, assuming you need to immediately turn your previous job into a consulting practice can unnecessarily narrow your options. A good place to start is with what you know about yourself.
- What skills do you enjoy using?
- What problems do you enjoy solving?
- What type of work gives you energy?
- What kind of lifestyle do you want?
- What are you good at that other people might be willing to pay for?
Armed with that information, start exploring. You may discover that consulting makes sense. Or you may uncover an entirely different business opportunity. You may find an existing business for sale that aligns with your skills and interests. Or you may discover a franchise model you never knew existed.
The goal isn’t to find a business; it’s to find the best next step for yourself.
Consulting: Turn Your Expertise into a Business
Consulting is often the most obvious option for experienced professionals because you’re starting with something you already possess in abundance: expertise.
Perhaps you’ve spent years in HR, marketing, finance, technology, operations, project management, sales, or another specialized field. Organizations may have a need for that expertise without needing—or wanting—to hire a full-time employee. But here’s where many aspiring consultants get stuck. They know what they know, yet they don’t necessarily know what people will buy, and there’s a big difference between those two.
You may have 20 years of experience in human resources, but “20 years of HR experience” isn’t necessarily a consulting business. You need to identify a problem that a specific customer is willing to pay you to solve. Instead of asking, “What can I do?”, start asking: “What problem can I solve, for whom, and why would they pay me to solve it?” That’s where market research becomes so important.
The U.S. Small Business Administration (SBA) recommends conducting market research and competitive analysis as foundational steps in determining whether a business idea has an opportunity and how it can differentiate itself. Your experience gives you credibility, but your understanding of a customer’s problem gives you a business. It’s imperative to put them together.
Starting a Business Isn’t the Only Path to Ownership
If consulting doesn’t feel right, consider broadening your thinking. In fact, you have several options: You could start a business from scratch, buy an existing business, or explore franchise ownership.
Buying an existing business can provide an established operation, customer base, and revenue history to evaluate. Franchising offers another path, typically built around an established business model and brand. The SBA specifically includes both purchasing an existing business and buying a franchise among the options entrepreneurs should consider.
Purchasing a business is an area where professional guidance can be particularly useful, as there are opportunities you may never encounter through your normal professional network. For example, The Entrepreneur’s Source offers free consultations with career ownership coaches who help people explore business ownership and franchise possibilities. Their online materials emphasize how coaches help potential business owners explore options and gain clarity before deciding what comes next.
Exploration is key. Learn all you can before you jump. You may discover a business model you never considered—or realize that business ownership isn’t for you at all. Both are successful outcomes of the exploration process.
Do Your Homework Before You Launch
Once you identify a potential business direction, resist the temptation to jump immediately into the fun stuff. Yes, you will eventually need a name, website, business structure, bank account, marketing materials, and perhaps a logo. But those aren’t the first questions. First, determine if there’s a viable business—and market—underneath the idea.
Your best bet is to start with market research and then develop a business plan, estimate startup costs, and consider funding before moving into the operational and legal steps of launching a business. At a minimum, you should understand:
- Who your potential customers are.
- What problem you’re solving.
- What alternatives customers have (competitive analysis).
- What competitors are charging.
- How you’ll reach customers (marketing plan).
- What it will cost to operate the business (business plan).
- How long it may take to become profitable.
- How much money you’ll need to support yourself while the business gets established.
Don’t skip the financial piece simply because you’re excited about the idea. Calculating startup costs enables you to estimate profitability, understand funding needs, and forecast when you might reach break-even.
Your business idea may be fantastic, but the numbers still need to work.
Don’t Go It Alone
You don’t need to become an expert in accounting, legal structure, marketing, sales, and business operations before you start exploring entrepreneurship. You do, however, need to know where to find people who can help you understand what you don’t know.
That’s why we encourage clients considering business ownership to take advantage of resources designed specifically for entrepreneurs. While our consultants can support you in the process, there are additional coaches and choices you can consider as well:
- SCORE provides free business mentoring, workshops, and resources, including one-on-one mentoring from experienced business professionals.
- Small Business Development Centers (SBDCs) provide individualized advising and training for entrepreneurs and existing small businesses, including help with business planning, strategy, operations, financial management, marketing, sales, and access to capital.
- The U.S. Small Business Administration (SBA) offers extensive planning and launch resources, including guidance on market research, business plans, funding, startup costs, business structures, and buying existing businesses or franchises.
- And don’t overlook your local Chamber of Commerce. Chambers can be valuable sources of local connections and information as you begin learning about the business community in your area. The U.S. Chamber maintains a directory to help people find chambers across the country.
The point is that you don’t have to figure out this next step in your career journey by yourself. Support is abundant.
Your Network Can Help You Find the Business
Networking is just as important when you’re exploring entrepreneurship as it is when you’re looking for a job. In fact, the two strategies can overlap beautifully.
One of our clients is exploring launching an HR consulting practice after moving to a new area. Rather than waiting until the business is fully formed to begin networking, he’s connecting with people through SHRM and building relationships in his new community. That’s smart because those conversations could lead to a consulting client—or a new job. All networking could lead to an introduction to someone else. And one thing he’ll definitely get a better handle on is the market in his new location.
The relationship is valuable regardless of the outcome.
Referral networking groups can also be useful once you have a clearer idea of what you’re offering. BNI, for example, is specifically structured around building professional relationships and exchanging referrals among members.
The key is to tell people what you’re exploring. Don’t say: “I’m thinking about starting a business.” Instead, once you’ve developed a direction, be specific: “I’m exploring an HR consulting practice focused on helping small businesses build their HR infrastructure as they grow.”
When you share that, people know what you do, whom you help, and what kinds of connections might be useful.
You Can Job Search and Build a Business at the Same Time
This may be one of the most important messages for someone considering entrepreneurship after a layoff: You don’t have to choose today. You can continue looking for the right full-time role while simultaneously exploring a consulting practice, developing a business idea, or researching ownership opportunities. In fact, many professionals do exactly that.
You might apply for jobs during the week while taking a SCORE workshop, conducting market research, or meeting with potential clients. And you might reconnect with your professional network for both employment opportunities and business opportunities. One conversation can potentially lead to either.
That’s not indecision; it’s building options.
A consulting engagement might eventually become your business. It might also introduce you to an organization that becomes your next employer. A networking conversation with a business owner could lead to a referral, a job opportunity, or an entirely new business idea. The good thing is that you don’t have to put your career on hold while you figure it out.
Give Yourself Permission to Explore
A layoff can make the future feel like it needs to be solved immediately. It doesn’t. You have time to explore. You can:
- Ask questions
- Talk to business owners.
- Meet with mentors.
- Research franchises.
- Investigate buying an existing business.
- Test a consulting idea.
- Continue your job search at the same time.
Importantly, it’s okay to change your mind at any point. The outcome you settle on may not look anything like what you did before your layoff—or it could look exactly the same. Either outcome is okay.
Your Next Career Chapter Doesn’t Have to Look Like Your Last One
Entrepreneurship can be an exciting path after a layoff, but it isn’t the right path for everyone. Some professionals will discover that consulting allows them to use their expertise in a way that gives them more flexibility and control. Others may find a business or franchise that better aligns with their goals. Still others will explore entrepreneurship and decide that they really do want to return to an organization and focus on doing the work they love.
There is no wrong answer. The goal isn’t to become an entrepreneur because you’ve been laid off. The goal is to make a thoughtful decision about what comes next.
At Transition Solutions, we help clients explore these possibilities as part of their broader career transition. Whether your next step is a new position, a consulting practice, business ownership, or something you haven’t even considered yet, taking the time to understand your options can help you move forward with greater confidence.
Your next chapter may look different from the one you planned. That doesn’t mean it can’t be a great one.
About Transition Solutions
For more than 35 years, Transition Solutions has helped individuals navigate career change through personalized coaching, innovative technology, and practical strategies for today’s job market. Our experienced career consultants help clients explore their options, develop a strategy, and move forward with confidence—whether that means finding a new role, changing career direction, or exploring an entirely new path.
To learn more about our services, visit Transition Solutions, call 888-424-0003, or email info@transitionsolutions.com. Follow Transition Solutions on LinkedIn for additional career advice, job-search strategies, and workforce insights