August 2 marked the thirtieth anniversary of my quitting a steady, secure job to become the sole proprietor of a risky business in the educational services sector. The U.S. Bureau of Labor Statistics shows that 19% of such businesses fail within their first year, 46% fail within five years, and 61% after ten years. I'm not a big-time gambler, so I sometimes shake my head in bewilderment that I decided to go solo. Why would I take such a big risk at age 42 with a mortgage and two daughters, ages 14 and 11, meaning a quarter million dollars in college bills ahead of me, to walk away from a job with a reasonable salary, pension, health benefits, a company car, and good friends?
I had a long time to answer this question. For seven years, I prepared myself to walk away from a role that I ultimately spend 19 years doing by calculating my potential income across the expanse of industry changes, learning whatever I could about the operational side of the business I wanted to enter, and honing my skills to succeed at it. I would have been happy with an equivalent income since I was fortunate to have a wife who had healthcare benefits from her work as a public-school teacher. Throughout those seven years, I continually weighed the pluses and minuses of going into business for myself.
It turns out that my predicted disadvantages and advantages, as well as my ultimate decision, were spot on.
Starting with the downside, I would never again get a paid vacation, holiday, or sick day. I would work for billable time. I would lose the company car and the healthcare benefit. I would sit on a frozen abysmally low pension from my job, not payable for another 23 years, and I would no longer be able to contribute to a 403B plan reserved for nonprofit employees. I would have to surrender the company car, so I would now have to buy one of my own. Although I did not belong to a union, I enjoyed job security in an autonomous, specialized role. I would also miss the camaraderie of several friends.
On the upside was the possibility of earning more income, but that was not a guarantee. I would have greater control of my time, even though I never shied from 75- to 90-hour workweeks. Important to me was the constant challenge of finding creative solutions to my clients' problems. I love learning, and surviving in this business depended on obtaining a great deal of self-education to stay at the top of my game. Without a boss, I would feel independent to make choices that mattered to me. I would never again argue with management. I would have only myself to blame for making poor decisions, holding on to bad clients, and partnering with ineffective collaborators.
It all has worked out. Despite formidable challenges, including recessions, natural disasters, an epidemic, and clients' strategic changes, I have earned far more than I expected, so my daughters went to colleges I would not have otherwise been able to afford, and my financial future is more secure. I traveled for work to China, India, and throughout the United States. I worked for some of the largest companies and municipalities in the world, and I have worked with brilliant, diligent people who have made me smarter. I remain close to my friends from my old job 30 years later.
Yes, risks arise in leaving a dependable job for an unknown future in a private business. I would not recommend it for everyone, but the ride continues to be worth it for me.
