Armed with ample management experience, years of industry
knowledge and a vast array of contacts, corporate executives are
leaving their corner offices-whether by choice or by force-to start
their own businesses. Despite the decidedly different working
conditions, the rewards, they say, are vast.
While Solow estimates most executives who are laid off land
their next jobs at salary levels about
15 percent lower, the earnings potential for entrepreneurs is
much higher. Plus, owning a business allows ex-execs to use their
existing skills, remain in positions of authority, and work in an
environment free of the fear that today's the day they'll
be handed a pink slip.
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Even so, after deciding to jump off the corporate track,
executives who don entrepreneurial hats often have their work cut
out for them, say experts. One of the biggest hurdles they must
learn to overcome? Moving from a narrowly defined job focus into
that all-encompassing role of entrepreneur.
"The people who are really good at working in corporate
life are going to have trouble adjusting to being on their
own," says Darr. "They have to get used to being
responsible for doing everything themselves because most
[entrepreneurs] start out on their own or with very few
[employees]."
David Keillor can vouch for the adversity that comes with
emerging from the corporate cocoon. After 30 years working for IBM
in Rochester, Minnesota, the senior engineer says he "saw the
writing on the wall" and accepted a buyout package in July
1993. Less than a week later, he and his wife, Ina, 57, and two
other ex-IBMers started Technology Concepts Inc., a software
company that develops multiple listings software for the real
estate industry. While starting a business in the computer industry
was a natural move for him, Keillor says, juggling such a vast
array of responsibilities, frankly, wasn't.
"In a small company, you truly wear a lot of hats,"
admits Keillor, 56, whose company brought in $180,000 in 1995.
"Everything from business plans to purchasing a telephone
system to stocking supply cabinets and ordering furniture was
challenging. It was something I initially wasn't used
to."
Rather than calling someone to fix problems or purchase
equipment the way he had at IBM, Keillor says he was stuck dealing
with "1,001 little things that added up to big stuff."
His strategy for coping? Jump in feet first. In the start-up phase,
Keillor chose to assume much of the burden of daily operations,
while the other founders handled the technical and human resources
aspects of the business. Thankfully, now that the company is on
more solid ground, Keillor is slowly beginning to delegate.
"At least I don't have to vacuum the floor
anymore," Keillor laughs. "We just hired
someone."
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