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Layoff To Employment



Rules For Transitioning From A Layoff To Employment



Being unemployed due to a layoff is a dramatic life changing event. Being unemployed in a tight job market offers very few opportunities even for talented and educated individuals. One growing alternative for the newly unemployed is to start a business. The road to self employment is difficult at best even during good times. The road to home or small business ownership needs to be cautiously viewed with honesty and introspection.

  • Be Patient: The day you receive your release is often not the day to start a new business. The emotional state of being new to the unemployment scene is not a time for major decision-making. Being released often invokes feelings of resentment and anger. Take some time to adjust to your new circumstance and clear the emotion for some logical decisions of your life path.

  • Review Skills & Experience: Review your skills, experience, and passions to see if your business idea fits with your current situation. If the venture is in a new area where you have limited background, the learning curve and expenses will be greater. A job in your business industry may shorten the learning curve and save cash.

  • Evaluate Your Business Expertise: Transferring experience and skills to become an independent owner requires an honest look at the health of your industry. Corporations often rely on outsourcing work functions that are not a basic part of the business. Contact associations for your business to gauge the level of outsourcing activity.

  • Evaluate your Financial Situation: Separate a business and personal budget to see if you can live with a six to nine month loss of income. It is far better to bootstrap your operation with funds from a severance and savings. Next talk to family and friends for seed capital. A last resort is borrowing cash because of the increased risk. Many start-up businesses can be started with limited money especially service or consulting companies.

  • Develop A Schedule: Set a schedule to start your company. For people that tend to be planners, start before you have all the information and don't get caught up in paralysis analysis. For the take action types, don't run and start but spend more time in the planning phase.


Remember being part of a downsizing can often be a blessing in disguise. If these five tips overwhelm you, then the timing may not be right. If you feel strongly motivated, take this as an opportunity to set your own independence and do what you always wanted to do. The work may be longer and the pay will fluctuate, but in the end, the freedom is liberating.

If necessary contact your State Dislocated Worker Unit Coordinates for more information.

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