Layoffs have started a scary year for Silicon Valley tech workers. B.This may actually lay the groundwork for these laid-off workers to take a different turn in life—What could lead them to own their own business?
The data show that this may indeed be the case.
The tech giants, which saw massive share price gains in the first two years of the COVID-19 pandemic, have been making a comeback in the past 12 months. Falling stock prices have caused many of the world’s largest companies to start shrinking.
In the past week alone, Google and Microsoft laid off about 5-6% of their workforce. This equates to more than 22,000 jobs. This comes just weeks after the likes of Amazon (18,000) and Facebook parent company Meta (11,000) announced their own cuts. West Coast businesses were hit hardest, with Midwest layoffs accounting for just 1.4% of his total layoffs.
But if you’re a tech worker, it shouldn’t be all that pessimistic.
Technology workers turned entrepreneurs are uniquely qualified to start a business given their background in programming, engineering, software development, and other analytical skills.
Former Google employee Christopher Fong recently told Reuters That experience in big tech gives founders “a strong brand that they can leverage to reach investors, potential customers, and recruit team members.”
Many people don’t start their own businesses because they are afraid to quit their company’s job.
But at the moment, not only are there no jobs to hold you back, you may also need a substantial retirement fund to support you and your family while you start your business.
It’s never a good thing that so many people are out of work, but a huge amount of creative and technological possibilities are now surfacing.
As ABC News succinctly summarized: “Mark Cuban got fired from a computer store because he only wanted to sell and work computers, not clean the floors like the owner wanted. Billionaire and owner of the Dallas Mavericks.”
There are markets and products waiting to be destroyed. Will you be the one to do it?
Steps to start a business
So how do people start their own businesses? You can find out more here When hereBut there are three simple principles to get you started right now.
- First, make sure you have no conflicts of interest or non-compete clauses with your previous employers.
- scrutinize your ideas, make a business plan.
- Consider starting “virtually” at a very low cost. You can hire other laid-off tech colleagues as freelancers to contribute, reward them with limited cash rewards, and focus on sharing equity as an incentive.
When funding is ready, consider special funding sources for laid-off tech workers. Reuters reports that $37.4 billion was raised in so-called angel or seed rounds last year, reaching levels recorded in 2021, according to data from research firm Pitchbook.
In 2015, the aforementioned Fong was launched xgoogler, a project designed to help former employees who want to start their own business. The group now has over 11,000 members of his.
Getting fired or losing your job is scary, but what you do next matters.
“Executives face constant fear headlights, whether it be bankruptcy, securing the next offer, or the threat of a merger/acquisition.” Business Coach Ratish Pandey said:“So it’s important to embrace your fear and understand how to approach it. Rather than appearing fearless, it’s meant to turn your fear into a catalyst.”