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Dear ABCs,

The company I've been working for during the past 8 years has just been acquired. We're hearing rumors of layoffs coming and I'm afraid I'll be on the list. I know that I do good work, but it's not really visible to our new management and my boss isn't good at sticking up for his people. I've been thinking about starting my own business for a while. Where do you think is a good place to start?

Signed,
Layoff at the OK Corral

Dear OK,

Unfortunately, the threat of losing your job is a real one these days. Although it's scary, you'll do much better if you prepare instead of panicking. What should you do if you are suddenly laid off before you expect it?

Well, remember that time when you found the big boss alone, late at night in the office except for the pizza delivery guy and the two sumo wrestlers? Alas, blackmail's probably not the way to go if you want to live with yourself next week. Remember the motto of the Mystery Writers of America: Crime Does Not Pay. Enough. Put aside the revenge fantasies.

You've got some housekeeping to do when you get a pink slip. Even if you're expecting it, you're bound to be under some stress. Remember the basics:

• Don't sign anything without reading it
• Take your time reading it
• Negotiate a better deal. Perhaps you can get more money, an extension on medical plan, extra years of service for your pension, outplacement counseling or an office you can use.
• Use the guilt to get a great letter of recommendation (maybe you can write it yourself!)
• Activate your reference network - and find out what they really think of you.

Here at ABCs, we've seen people rush into business opportunities too quickly after leaving a job. Start smart! This could be the biggest decision you'll ever make in terms of money and time.

Evaluate yourself and your family. Businesses truly do affect the entire family. How are you set financially? How much money do you have available, or can you make available to buy or start a business? How much money do you need to meet your bills and live on? If you've got a high level of bills and not a lot of money, you may want to find a job with a regular paycheck for now.

What kind of business should you get into?

• We usually suggest one that makes money. That should be obvious, eh? It doesn't always happen that way. In fact, most businesses do not survive ten years. That doesn't necessarily mean they fail.
• At ABCs, we encourage our clients to get into businesses that they can love for the long term. Now, that doesn't mean "crazy in love with" in most cases. Choose something you can look forward to doing and take pride in accomplishing.

We suggest our clients pick up a pocket notebook and start noting down things they notice that bother them. If you are looking at retail or providing services, what is inconvenient for you to do? You can shampoo your own carpets, for example, but a van-mounted steam cleaner has more power. So people are willing to pay a lot for carpet cleaning services. It saves their time. Ditto on maid service, lawn service, etc. Fast oil change locations save people time. Ordering things from Amazon will get them to you promptly. These are just on the retail side - you probably have some pet peeves from your recent job that need solving, too. Where do you see a problem that you can solve?

There are a couple of basic ways of getting into business. Start one up. Buy a franchise. Join a partnership. Buy an operating business. Usually, it's best to buy a business that already has customers and is making money if you can get it for a good price. Be wary of franchises. Make sure that what you are getting from them is worth what you are paying them. Recently, we had the opportunity to listen to a local sub sandwich franchise owner trying to sell another shop in his territory. His quality is excellent, but he's paying the parent company $2,000 a month plus an 8% royalty on all sales. They are based in another area, so he gets very little recognition from potential customers and his help from the parent company's advertising is limited to having their campaigns and graphics available. He might be doing a lot better with his own, high quality concept. However, if he were in their main territory, their TV, radio and print would bring in more customers.

If the business you find most attractive is something you have never done before, we strongly suggest working in someone else's similar business until you are familiar with it. You may find that you want to buy into the business as a partner or buy the particular one you're working. The important thing with this, though, is that you're learning on someone else's payroll. It may not pay you what you'd get at your old job, but you may be able to get income and benefits while you learn. It will also make it easier for you to borrow money if you have a successful track record. It's also a lot easier to walk out of a business you don't like if you don't own it!

Are you sure you want to own your own business? If you've followed our suggestions, you now know what it takes in terms of money, time and other resources. You will also know if you can turn a profit. Ready?

Now…Go Make Money!

Kris and Cindy
The ABCs Start up Moms