Redundancy: the start of something big?

Nov 19 2008 by Jane Gallagher, Liverpool Daily Post

Jane Gallagher looks at why losing your job could be the best thing that ever happened to you

IN CHINA, the same symbol is used for both crisis and opportunity. The same could be said of another word we are hearing about more and more every day – redundancy. Although it may be hard to imagine when you are facing the loss of your livelihood, there may never be a better time to take the initiative and start your own business.

Today is Women’s Enterprise Day, and local enterprise agency Train 2000 says that, despite the recession, it is finding record numbers of women enquiring about setting up their own business after taking redundancy.

“With increased job losses, redundancy is often the kick- start that many women need to bring their idea to market, and while financing your business may be more difficult there is business finance available if you know where to look,” says Maggie O’Carroll, Train 2000’s executive director.

“The other positive thing about starting a business now is that, if your business is viable in tough economic conditions, it will blossom in economic growth and you will be established in the market ahead of the game.”

Maggie points out that the big difference between now and when the last recession came is that the business world is geared up to help, support and nurture new business with free advice available for everyone.

One woman who saw the glimmer of opportunity in a dark crisis is Sue Doherty. For seven years, the mother-of-three from Chester was employed as a counsellor by a local college but suddenly found herself out of work this summer.

She says: “I was very happy in the job and I must admit it was quite a shock when out of the blue I was made redundant in July.

“I thought about what I could do and realised that my experience and training meant there was no reason why I couldn’t set up my own business as a counsellor.”

Sue, who trained as a general counsellor but through her work developed an expertise in dealing with young people and workplace issues, decided to investigate the possibilities.

“I must admit, I had never really thought about setting up my own business until redundancy came but then it became the obvious choice,” she says.

“I was put in touch with Train 2000, which had begun working in the Cheshire area. A business adviser helped me through setting up a business plan and researching the services I could provide. I also attended a number of free courses which boosted my confidence and was provided with a free website (www.suedohertycounsellor.com).

“I am optimistic about the future. I feel as though I am in a very different place now than when I heard about the redundancy in July.”

Mike Marsden has helped hundreds of people set up businesses over the past 10 years.

He is a former business manager with NatWest Bank and The Prince’s Trust, as well as an ex-lecturer in enterprise.

“You could say I have seen enterprise working from every perspective and in my experience redundancy can be a great opportunity, but you have to make sure you research and plan very carefully.

“It’s not the best idea to spend your redundancy money on something associated with one of your hobbies.

“We all know the house building firms are taking a hit at the moment so if you are a joiner who has just been made redundant, and at weekends you enjoy nothing more than fishing, think long and hard before setting up your own local fishing supplies shop.

“It would be ideal if your local area needs one desperately but, if not, look at what you can do and what opportunities you can pursue.

“You need to carry out thorough research and plan, plan and then plan some more.”

And Mike doesn’t just talk the talk. As an entrepreneur himself, he is already thinking of the future – a vision he shares with his clients. “As we climb out of this credit crunch, many opportunities will present themselves. In the area where I live, two major estate agents have closed. I fully intend to open an agency when the property market picks up.

“In fact, I have just completed my mortgage qualifications to do the buyer’s mortgage as well.

“The banks will start lending again so, even if now is not the right time to start your business, prepare yourself for when the economy starts to improve again.”

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