Just over halfway through a troubling 12 months in which tens of hundreds of staff have been laid off, big tech corporations are experiencing a monster surge in market capitalization. But Silicon Valley shows no signs that a hiring or rehiring frenzy is on the horizon.
MThanks to this variation, the laid-off staff were actually able to take a different direction in life—one that may lead them to start their own business?
The data shows that this may increasingly indeed be the case.
The employment numbers alone are spine-chilling: Meta has made cuts 21,000 jobs since November, or about a quarter of the workforce. In total, Alphabet, Amazon and Microsoft have laid off greater than 50,000 staff since October. According to it, from the starting of 2023 Layoffs.fyi900 tech corporations laid off almost 223,000 staff.
But if you are in the tech industry, it should not be all doom and gloom. In fact, if you end up among those laid off now, it may very well be the perfect time to strike out on your own and create your next great company.
Technical workers-turned-entrepreneurs are uniquely qualified to start a business given their experience in programming, engineering, and software development, in addition to other analytical skills.
Christopher Fong, former Google worker, he told Reuters experience in Big Tech gives founders “a strong brand that can be leveraged to meet with investors, potential customers and recruit team members.”
Many people do not start their own business because they are afraid to leave their corporate (and normally well-paid) job.
But right away, not only do you not have a job holding you back, but you may even receive a significant severance package that can allow you to support you and your family as you start a business or turn your existing side hustle into something greater.
While it’s never good to see so many people out of labor, a huge amount of creative and technical potential is bubbling to the surface right away.
How ABC News put it succinctly: “Mark Cuban was fired from a computer store because all he wanted to do was sell and work on computers as an alternative of sweeping the floor like the owner wanted. Today he is an web billionaire and the owner of the Dallas Mavericks team.
There is a market or product just waiting to be disrupted. Will you be the one to do it?
Steps to take to start a business
So how exactly do people go about starting their own business? You can find much more Here AND Herebut there are three easy rules you may start with right away:
- First, make sure there are no conflicts or non-competition clauses with your previous employer.
- Check your idea and prepare a business plan.
- Consider starting “virtually” at a very low price – hire other freelance tech colleagues who can contribute and reward you with limited money compensation and focus on equity sharing as an incentive.
Securing funds
Once you are ready to finance, consider special funding sources for laid-off technology staff. According to data from the research company PitchBook, last 12 months in the so-called Seed rounds raised $37.4 billion, matching the record level seen in 2021.
In 2015, the previously mentioned Fong was launched Strong, a project aimed at helping former employees who want to start their own business. Currently, the group has over 11,000 members.
The fear is getting fired or being unemployed, but what you do next is crucial.
“Leaders are constantly in the spotlight, whether facing the fear of bankruptcy, securing an upcoming proposal, or a merger/acquisition.” says business coach Ratish Pandey. “That’s why it’s crucial to accept your fear and understand how to approach it. It’s not about appearing fearless, but about turning fear into a catalyst.