Making lemonade out of lemons: Turn unemployment into entrepreneurship

As a member of the Career Collective, a blogging community of resume writers and career coaches, this article is one of many in support of Quintessential Careers' 2nd annual “Job Action Day”. I encourage you to follow our hash tag: #careercollective on Twitter and visit my colleagues’ responses posted at the end of this article.



Have you been struggling with unemployment for longer than you'd wish?  Are you starting to crave intellectual stimulation or a sense of completion? Is money starting to become tight?

I’ve written before about volunteering. Volunteering can be a great option for newly found free time, but without a paycheck, it’s not the perfect panacea. Several of my clients have taken the opportunity to pursue entrepreneurial interests during extended periods of unemployment. They’re not alone. The Kauffman Index of Entrepreneurial Activity reported an uptick in new business formation in 2008 over 2007, and the New York Times discussed the trend in this article.

Thought about it?  Debated ideas but then slept on it and reconsidered? Nervous to put yourself out there? I’ll share my three top reasons why I advise clients to move forward with their ideas.

  1. Show me the money – First and foremost, the financial considerations need to make sense. I’m in no way recommending you invest a sizeable amount of money into a franchise or take out a loan to purchase a preexisting business. But what does make sense is to turn your past skill set into a consulting opportunity or to start a business with low start-up costs. In today’s changed economy, periods of unemployment between salaried positions can unfortunately be longer than anyone would prefer. If you have a skill that can earn you money, why not take advantage of it? 
  2. Keep Sharp – By taking on consulting projects, speaking with customers, and staying abreast of your competitors’ products and services, you’re staying in tune with your industry. Running your business will inherently provide you with a way to stay in touch with your profession, will give you something to discuss during interviews, and will expand your network to include people who may lead you to new opportunities.  
  3. Looks Smart – A gap of a couple months is no longer the taboo it once was, but as that period in between positions grows longer, hiring managers start to question how you spent that time. By establishing a consulting business or your own start-up, you’re creating an instant stop-gap. You’re showing potential employers that you made lemonade out of lemons and took advantage of the time on your hands to keep busy, stay connected, and earn money. An added benefit is that your consulting experience may even introduce you to new situations, new technologies, or new processes.



To be fair, while there are many benefits of starting your own company or consultancy – flexibility and control topping most people’s lists, there are negatives to consider: long hours, inconsistent revenue stream, and a lack of insurance and retirement benefits. These are just more reasons why testing the entrepreneurial waters during a period of unemployment may make sense for you as a calculated risk. And since no one can predict the future, you may surprise yourself. If you give it roots, your late-night idea or far-off daydream may turn into a full-time way of making a living as you join the ranks of successful solopreneurs.

Looking for some ideas? 

  • Crafty? Talented? Paint, photograph, jewelry, woodwork, new idea for a child’s item, sell your wares on etsy.com or through your own website
  • B2C consulting ideas: Coaching, ghostwriting, editing, personal shopping, event and party planning
  • B2B consulting options: Human resources, engineering, public relations, editing, virtual assistant, corporate gift baskets
  • Love to shop? Good at snagging deals? Buy things and resell items on ebay.com for a profit
  • Good writer or do you enjoy voicing your opinion? Create a blog related to your industry.

Some online resources to get you started:



Career Collective Members' Posts:

Meg Montford:  Job Action Day: Finding Your “MOJO” After Layoff http://coachmeg.typepad.com/career_chaos/2009/10/job-action-day-finding-your-mojo-after-layoff.html

Debra Wheatman: Plan B from outer space; or what do you have in case your first plan doesn’t work out? http://resumesdonewrite.blogspot.com/2009/10/plan-b-from-outer-space-or-what-do-you.html

Heather Mundell: Green Jobs – What They Are and How to Find Them, http://dbcs.typepad.com/lifeatwork/2009/10/green-jobs-what-they-are-and-how-to-find-them.html

Erin Kennedy: Cutting Edge Job Search Blueprint
http://exclusive-executive-resumes.com/resumes/job-search-blueprint/

Grace Kutney: Securing Your Career While Navigating the Winds of Change http://sweetcareers.blogspot.com/2009/10/securing-your-career-while-navigating.html

Hannah Morgan: Why Our Job Search Advice is the Same but Different 
http://hannahmorgan.typepad.com/hannah_morgan/2009/10/why-our-job-search-advice-is-the-same-but-different.html

Gayle Howard: The Enlightened Jobseeker
http://www.theexecutivebrand.com/?p=500

Jacqui Barrett-Poindexter: You Can Thrive In, Not Just Survive, an Economic Slogging http://careertrend.wordpress.com/2009/10/30/you-can-thrive-not-just-survive-an-economic-slogging/

Rosalind Joffe: Preparedness: It’s Not Just for Boyscouts http://workingwithchronicillness.com/2009/10/preparedness-its-not-just-for-boy-scouts/

Rosa E. Vargas: Are You Evolving Into The In-Demand Professional of Tomorrow?
http://resume-writing.typepad.com/resume_writing_and_job_se/2009/10/furture-careers.html

Dawn Bugni: Your network IS your net worth
http://thewritesolution.wordpress.com/2009/10/30/your-network-is-your-net-worth/

Miriam Salpeter: Optimize your job hunt for today’s economy http://www.keppiecareers.com/2009/10/30/optimize-your-job-hunt-for-todays-ecomony/

GL Hoffman: The Life of An Entrepreneur: Is It for You?
http://blogs.jobdig.com/wwds/2009/10/30/the-life-of-an-entrepreneur-is-it-for-you/

Katharine Hansen: Job Action Day 09: His Resume Savvy Helped New Career Rise from Layoff Ashes http://resumesandcoverletters.com/tips_blog/2009/11/job-action-day-09-his-resume-s.html

Martin Buckland: Job Search–The Key to Securing Your Future Career. 
http://aneliteresume.com/job-search/the-key-to-securing-your-future-career/

Chandlee Bryan: Where the Green Jobs Are: http://emergingprofessional.typepad.com/the_emerging_professional/2009/11/where-the-green-jobs-are.html

Heather R. Huhman, Take Action: 10 Steps for Landing an Entry-Level Job, http://www.heatherhuhman.com/2009/10/take-action/

Barbara Safani: Where the Jobs Are 2009 and Beyond:
http://www.careersolvers.com/blog/2009/10/31/where-the-jobs-are-2009-and-beyond/

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Posted by Laurie Berenson CPRW at October 30, 2009
Categories: Job Search,Employment

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  • October 31, 2009 Gayle Howard wrote:
    Terrific post Laurie and so true. A great success story demonstrating this sort of approach is Jason Alba--the person behind the successful Jibber Jobber initiative. A former CIO, he did everything to find a job and through that process, realized what was lacking in the job hunt. He went on to leverage that knowledge by developing a jobseeker database, followed by a book, and now does speaking engagements. I think his job search ended quite some time ago now as he found new purpose through entrepreneurship. It can certainly work not just as a stop gap arrangement, but creating a whole new career! Great post!
    Reply to this
    1. October 31, 2009 Laurie Berenson CPRW wrote:
      Gayle, you are so right! Jason Alba is the perfect example of taking an entrepreneurial spin and crafting an entire career out of it. Thank you for the parallel.  Many readers will know Jason for his JibberJobber site and his book, I'm on LinkedIn, Now What?.


      Reply to this
  • October 31, 2009 GL Hoffman wrote:
    Laurie--nice article and helpful too. Too many biz writers leave out these important and practical tips. Well done.
    Reply to this
    1. October 31, 2009 Laurie Berenson CPRW wrote:
      Thanks, GL.  In honor of 'Job Action Day,' I felt it was important to not only discuss the idea, but to provide resources to get people started.
      Reply to this
  • October 31, 2009 Barbara Safani wrote:
    Laurie,

    You know what they say...Necessity is the mother of invention...I think many people dream about launching a business of their own but don't do it until they feel they have to. Nice post.
    Reply to this
    1. November 1, 2009 Laurie Berenson CPRW wrote:
      Very true, Barbara!  Critical timing can help minimize the leap of faith. 
      Reply to this
  • November 2, 2009 Dawn Bugni wrote:
    Laurie -

    Great advice. As a entrepreneur who launched not one, but two businesses during a period of uncertainty in my own career, I can personally attest to the importance of trying something new and keeping skills sharp. The change in thinking opens doors to new opportunities -- were it not for the "lemons", those opps may have never have surfaced.
    Reply to this
    1. November 2, 2009 Laurie Berenson CPRW wrote:
      So true, Dawn!  Thanks for commenting.
      Reply to this
  • November 3, 2009 JT O'Donnell wrote:
    This as a truly inspiring post Laurie. Starting a business, even a small one, shows great initiative and helps a job seeker execute so many of the daunting tasks of job search in the process(networking, etc.) Thanks for creating a clear action plan for readers!

    JT
    CAREEREALISM.com
    Reply to this
    1. November 3, 2009 Laurie Berenson CPRW wrote:
      I agree, JT.   My recent clients who developed consulting businesses had only positive results.
      Reply to this
  • November 5, 2009 Executive Resume Writer wrote:
    Hi Laurie,

    Cute post name!

    I love your list of ideas on different things to do. That is bound to get the creative juices flowing for jobseekers out there!

    Good ideas!

    Erin
    Reply to this
    1. November 5, 2009 Laurie Berenson CPRW wrote:
      Thanks, Erin!  I wanted job seekers to think outside of the box and beyond the obvious consulting ideas.
      Reply to this
  • November 10, 2009 Jacqui Barrett-Poindexter wrote:
    A thoughtful article, Laurie, particularly to stimulate ideas of job seekers who may not have considered entrepreneurship an option.

    You not only planted seeds as to the types of businesses one may consider, you also provided encouraging words.

    In particular, I like this line: "If you give it roots, your late-night idea or far-off daydream may turn into a full-time way of making a living as you join the ranks of successful solopreneurs."

    So true! It's about planting those seeds, nurturing them, watching them sprout and before you know it, the roots of a real, income-generating business have formed.

    Great job, Laurie!

    Jacqui
    Reply to this
  • November 10, 2009 Jacqui Barrett-Poindexter wrote:
    A thoughtful article, Laurie, particularly to stimulate ideas of job seekers who may not have considered entrepreneurship an option.

    You not only planted seeds as to the types of businesses one may consider, you also provided encouraging words.

    In particular, I like this line: "If you give it roots, your late-night idea or far-off daydream may turn into a full-time way of making a living as you join the ranks of successful solopreneurs."

    So true! It's about planting those seeds, nurturing them, watching them sprout and before you know it, the roots of a real, income-generating business have formed.

    Great job, Laurie!

    Jacqui
    Reply to this
    1. November 10, 2009 Laurie Berenson CPRW wrote:
      Thanks, Jacqui -- and thank you for taking the time to organize the Career Collective with Miriam.  Such a great idea!
      Reply to this
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