Corporate Throwaways and Runaways

Some time ago, I listened to a speaker discussing buying and selling businesses. He referenced two types of potential buyers as, Corporate Throwaways and Runaways.

I must admit that he got my attention, because in 2003, that was a pretty good description of me. 

I was probably more of a blend of the two. My employer of 21 years had done a reorganization, and my job no longer existed. I was eligible for (and received) a retirement package, plus a yearlong parachute. That was the Throwaway part.

I also had gotten pretty disillusioned with the company in the last couple of years. As we say, I was burned out. That was the Runaway part.

Throwaways tend to happen when the economy cools off (or turns freezing cold as it did around 2001 and 2010). Runaways happen a bit more regularly. 

It's not often that Corporate Throwaways have done the prep in advance of buying a business to become successful right out of the gate.

It's potentially a bit different for the Runaways if they realize far enough in advance that corporate life is not for them. In preparation for leaving, they probably have done some level of groundwork leading up to their departure.

I've subsequently had clients who fit both descriptions.

When I meet a potential Runaway (someone who hasn’t left their 9 to 5 yet), I always steer them towards reading books, hitting various websites (and YouTubes) about business ownership.

And yes, I steer them towards Brad Sugars’ books and videos.

It's a different story for the Throwaways. Their exit is usually sudden, unexpected, and often, undesired. That means, besides buying or starting a business, that they are dealing with processing the loss of career and identity. 

Going from being somewhere up the ladder in a corporate career, in a particular discipline, to starting a small business may often be akin to doing a Polar Bear Swim at New Year’s... in Maine!

It's really hard. Not everyone does well. No surprise, right?

And we haven't talked yet about the psychology that a successful small business owner must have versus someone who has been able to navigate a long career in one or more large corporations.

So, what's the message for this month, and anyone in one of these two situations?

1. If you are working in corporate life now and think there is ANY chance that you won't always be there, start taking jobs to gain experience and training that stretches and expands your knowledge and skill base.

2. If you are between gigs and considering buying a business (or starting one), do as much homework as possible FIRST before buying. Check your ego at the door and talk to as many people as possible for advice.

3. If you have already pulled the trigger and bought or started a business, kill your ego... build a support system of professional advisors, as they are absolutely essential for you to survive during the transition.

Last of all, remember that you aren’t alone...there are PLENTY of people who have walked the path that you are on now...SO REACH OUT...ASAP...