Turning Adversity into Success

23rd May 2024

A Wave of Tech Layoffs has Launched New Consulting Businesses

The last year has been a rocky ride for workers in the tech industry.  It seemed with each week came a new announcement of layoffs from some of the largest and most esteemed companies. As workers received their pink slips and severance packages some turned their misfortune into possibility by leveraging their business acumen and creating a new business.

From Lemons to Lemonade

Getting the news you’ve been laid off is never pleasant. It can cause financial hardship, psychological distress, and overarching insecurity. For some in this position it can create a re-evaluation of career path or cause an incentive to greater self-determination. It can be a catalyst to fulfilling a long-time dream of entrepreneurship.

Planning for the Future

To achieve success from these new endeavors it is important for people in this situation to create a plan for their business as well as for their financial stability and future retirement. This is where financial advisors can help but introducing them to retirement plans that specifically help small business owners and those with consulting businesses.

Immediate Costs and Long-term Savings

When starting a new business there are often a number of early startup costs. This can lead to new founders feeling stretched then and worried about savings. Focusing on retirement savings may seem unimportant at this juncture but it can be essential to helping clients save later on their taxes. Defined Benefit and Cash Balance plans can be ideal choices for business owners in this scenario.

The Long End of the Short Stick

While layoffs can create uncertainty and worry, they don’t have to be a detriment to workers overall financial stability. With some knowledge of plans specifically suited to the needs of independent consultants and small business owners, they can move to a new phase of their career with confidence about their economic well-being.

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