There are plenty of articles waxing lyrical about the upside of entrepreneurship but what happens when things go wrong?
Often, all we hear about are the large investment funds and the unicorns but what happens when an entrepreneur risks it all, executes perfectly and still everything goes belly-up?
As the saying goes, “Everyone is just two pay checks away from homelessness”. Even if you have a stable job to prop you up, you could be made redundant tomorrow.
In this article, we look at how we can avoid the most challenging aspects of running a business, failure.
Here goes…
The Stats
Unfortunately, the stats are not great. Globally, it’s estimated that about 150 million people are homeless, and 1.6 billion people lack adequate housing.
Youth homelessness is significant, with 4.2 million youth experiencing homelessness in the U.S. each year.
Latest reports estimate that around 271,000 people in the UK are homeless, including those sleeping rough and those in temporary accommodation.
London has the highest number of homeless people in the UK. In 2023, London accounted for 54% of all people in temporary accommodation in England.
Plan For Failure
OK, your idea is all singing and all dancing. You’re sure you’ll receive those investment funds and bag a huge salary or sell for six figures in five years but what if that doesn’t happen?
If your plan fails to materialise for any reason, you could find yourself running out of cash fast and facing eviction from your home.
You should have a plan to execute should things not work out with your venture.
Yes, you should be positive about your start-up but be realistic. 90% of start-ups fail in the first few years. What’s worst is, that world events could cause even successful thriving businesses to close overnight -the 2020 lockdowns, for example.
Solutions
You should aim to put aside a ‘rainy day fund’, that consists of at least 3-6 months of money. The fund can consist of cash or a tangible asset that you can sell to raise cash quickly at short notice in distressed times.
Build a list of family or friends that you can rely on should hard times hit. Be prepared that when hard times actually do hit, some may reject you in your time of need.
Be prepared to pivot and utilise your unique entrepreneurial skills to keep yourself afloat during hard times.
Ask for Help
When times are hard it’s easy to become isolated and to forget to reach out and get help. There are many organisations that are set up specifically to give help in difficult times for free.
In the UK, we have organisations, like Shelter, Crisis, The Big Issue, and the Samaritans who can all help if you hit hard times.
In the US, there are organisations such as National Association to End Homelessness, National Coalition for the Homeless and Streetwise.
If the worst should happen, there are organisations that can assist.
Connect with Support Services
The sooner you apply for support the better. State benefits can sometimes take weeks or months to materialise, so the sooner you can apply for assistance the better.
Steps you can take:
- Case Management: Engage with a case manager who can help you navigate available resources, from housing to healthcare.
- Local Non-profits: Contact organisations like United Way, Salvation Army, or local housing authorities for assistance.
- Government Programs: Apply for government programs such as Temporary Assistance for Needy Families (TANF), Medicaid, and Social Security benefits if eligible.
Find Temporary and Permanent Housing
Securing stable housing is a critical step towards regaining independence.
Steps you can take:
- Transitional Housing Programs: Look into transitional housing programs that offer temporary housing while you work towards self-sufficiency.
- Subsidised Housing: Apply for subsidised housing options like Section 8, which provides rental assistance based on income. In the UK, apply for Universal Credit and Housing Benefit.
- Shared Housing: Consider shared housing arrangements to reduce costs and access affordable living spaces.
Seek Employment Opportunities
Gaining employment provides financial stability and a pathway out of homelessness.
Steps you can take:
- Update Your CV: Ensure your CV (resume) is up-to-date and concise. It should be no longer than one or two pages maximum. Ensure it is algorithm and AI-friendly by including relevant keywords to the industry you are applying for.
- Temporary Work: Consider temporary or gig work to earn immediate income while searching for permanent employment.
- Job Training Programs: Enrol in job training programs offered by organisations such as Goodwill, which provide skills development and job placement services.
- Employment Centres: Utilise employment centres and job fairs that often provide free access to job listings, resume writing assistance and interview preparation.
- Local libraries – Utilise local libraries to access free internet access and other self-help services.
Final thoughts
With the ever-growing cost of living crisis and worldwide economic challenges, the pressure on the public at large and entrepreneurs has never been greater.
Before you embark on your entrepreneurial journey be sure to plan for the downside of entrepreneurship.
Try not to be seduced by the intoxicating lure of success at the expense of realistic and level-headed thinking.
Yes, entrepreneurs should take risks but plan to ensure you do not risk it all to fall in between the cracks of an overloaded system.
Good luck!
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Step 3. When you pass a homeless person in the street give them the Homeless Card with your contribution. Walk away and spread the word!
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***Disclaimer: This article is not financial advice and is given for informational and entertainment purposes only. Readers should conduct their own research and not invest more than they can afford to lose. Crypto is extremely volatile, and as such can drop in value considerably without notice. Pop Up World has a global presence and is not specifically targeting any jurisdiction with its content. Any crypto references are not intended for UK businesses or consumers. You should always seek legal advice to understand if the use or investment in crypto is allowed in your jurisdiction.
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