Many people want to start or expand their businesses, but feel that “it’s just not the right time.” Business coach Sean Castrina explains why common excuses should be used as motivation to become your own boss.
A CSD Staff Report
Do any of these scenarios hit home?
• Rumors abound that your company is for sale and you are not exactly sure where you will fit in with a new, larger organization.
• A lot of pink slips have been showing up within your company recently. And you’re afraid one of the next ones will land on your desk.
• Or finally, after decades on the 9 a.m.-5 p.m. treadmill, you’re ready to retire—but a little worried about how far your bank account will stretch.
In any of these scenarios, you might find yourself thinking, “Gee, it would be nice to start that business I’ve always dreamed about. Then I’d feel like I have more control over not just my finances but my life right now.”
If you’re like most people, though, that wish is followed by a “but”: But right now, I should save every cent I have instead of investing it in a business that may or may not succeed. But starting a business is really stressful, and I already have enough on my plate. But it’s too risky. But I don’t have enough time. And so on and so forth.
Business coach and consultant Sean Castrina has another “but” for you to consider.
“All of these justifications for not wanting to become an entrepreneur at an uncertain time in your life are sound, but if you’re smart about it, these milestones can be the perfect time to start your own business,” said Castrina, author of 8 Unbreakable Rules for Business Start-Up Success. “When you follow a specific set of rules, there’s less risk involved than you might think.”
Castrina speaks from extensive experience. He has started over 15 companies in industries, including retail, direct mail, property management and more—the first while he was working 9 a.m.-5 p.m., and one of the most recent in order to fund his daughter’s college education.
Minimizing Risk
Specifically, Castrina recommended starting a service business in order to minimize risk, as well as the amount of time, money and energy you’ll need to put into your fledgling company.
“Service businesses require minimal money to start. In fact, I’ve never started a service business with more than $10,000 and many with less than $3,000—including businesses that have made me millions,” Castrina said. “Plus, many service businesses don’t require a prior work history in the field or particular qualifications, so you can get one off the ground fairly quickly.
“Best of all, since you can hire others to perform the actual work while you handle the key behind-the-scenes management tasks (like hiring, supervising, speaking with customers and wholesalers, marketing, etc.), service businesses are a great source of passive income,” Castrina added. “For instance, I started a mobile car detailing business in my 20s. I hired an employee to do the work, charged $95 for a full detail inside and out, and gave my worker 50%. All I did was make the phone ring and schedule the jobs. I didn’t get rich, but I did make an extra $25,000 a year—not bad for 3-5 hours of work a week during my downtime.”
In his book, Castrina explained exactly how, with roughly 20 hours a week of organized and focused time, you can build a solid foundation for small-business success.
Here, he pointed out five major life events that, despite what you might think, are actually great times to start a business:
1. In the midst of the college crunch. Nothing can prepare a student better for the real world than starting and operating a business. And a college town is full of opportunities for starting a service business: tutoring, sports specialty training, babysitting services, home cleaning companies and more. To start, you can do some of the work yourself and enlist fellow cash-strapped students to help.
“I will never forget how broke I was going through college, or all the terrible jobs I did to stay solvent,” Castrina recalled.
“I wish I’d known then what I know now about entrepreneurship. Then I wouldn’t have fallen asleep in my 9 a.m. literature class because I’d been working all night in a convenience store to try to learn the retail industry…and I definitely wouldn’t have had to clean toilets in the gym following athletic events, a job that still gives me
horrifying visions to this day,” he said.
2. Before you get downsized. Castrina said he’s often sought out by individuals who have just lost their jobs (often after working at the same organization for years, or even decades), asking how they can start over as business owners.
“At this point, though—after the pink slips have already been handed out—people are at their lowest value, unfortunately,” he said. “Their self-esteem and motivation are shot, and their financial reserves are being diminished because they have no other income. That’s not a good place for a prospective business owner to be in. Instead, start your business when the downsizing rumors are just starting—or even better, when business is still good.”
3. Three years before your first child moves into a dorm. If you’re like many parents, you’ve been worrying about the rising cost of college tuition since your child graduated from preschool. Take a deep breath: As long as furnishing a dorm room isn’t imminent, you’ll be fine.
After years of teaching others to start their own companies, Castrina said it’s very rare for a new service business not to be profiting within a year. And by year three, those businesses are normally rolling along quite well.
“For me, ‘rolling along quite well’ means earning a minimum of $3,000 per month, passively,” he explained. “Again, a passive business is one in which you’re in a management role, not spending your own time and money performing the service you offer. You can keep your day job while funding your child’s education on the side. After all, most states offer many great educational options for less than the $3,000 per month your new business will be generating.”
4. When wedding bells are in the air. When wedding bells are in the air. Traditionally, brides’ parents have been expected to pay for their daughters’ weddings. According to The New York Times, though, this division of expenses has largely fallen by the wayside. Both families, as well as the couple themselves, are now chipping in. So whether you have a son or a daughter headed to the altar (or will be planning a wedding for yourself), it’s a good idea to allow a small business to foot the bill.
“Again, I’m going on the confidence that a well-run small business based on a profitable idea will bring its owner a minimum of $3,000 per month within a few years,” Castrina said. “That ‘special someone’ may not have entered your child’s life yet, but if he or she is ready for a relationship, why not start saving for an eventual wedding?
5. When retirement is on the horizon. You may be looking forward to retirement because finally you’ll have no boss breathing down your neck and no set schedule. You’ll be free to travel, pursue your hobbies, sleep in and more. But before you know it, you might miss feeling challenged and purposeful.
Moreover, you might be constrained by a tighter-than-anticipated budget. The solution: Start a business in your off hours while you’re still working and carry on running it after you’re ready to leave your old job. The key here is to work on your own time and not jeopardize the quality of the working you are doing at your current company. If you budget your time properly and have an employee or partner, you should be able to operate in your current job at a high level and still grow your own business.
“Once again, it’s best if you can get the small business ball rolling three years from your walk-away date,” Castrina said. “But what if you’re planning on moving somewhere new to spend your retirement? In that case, I recommend living off of your retirement income, whether it’s a pension, savings or Social Security until you can set something up in your new location. Even before you move, you can start researching your future home to see what types of services might be needed there.”
With the right preparation, you can use your natural strengths and passions, never work more than 20 hours per week and enjoy the retirement you’ve always dreamed about.
“Believe me, I know that the idea of becoming an entrepreneur is intimidating—especially if something big is looming in your life,” Castrina concluded. “But if you’re smart about it, set up a business that fills a need in your area and follow a specific set of rules, your company can be the solution to your problem instead of causing you more stress. So stop procrastinating. There’s no time like the present to start becoming your own boss.”
