Business Opportunities Weblog

June 13, 2008 by Rich Whittle | 4 Comments

BusinessWeek:

Q: My husband and I are closing our business after many years, and we will be looking for jobs after the closure. Are we entitled to unemployment benefits, having been self-employed?

A: Business owners typically cannot file for unemployment benefits when they close their companies. This is because unemployment benefits are a form of insurance paid for by employers on behalf of their employees. The employers pay unemployment premiums to the state, not to a private insurance company.

For business owners who have been self-employed for many years, the transition into the job market can be quite difficult, says Nancy Fox, president of Fox Coaching Associates in Mamaroneck, N.Y. “Depending on your track record and relationships in the marketplace, your value as employees may be lower because people who are hiring worry about you making this transition to working for someone other than yourselves,” she notes. Of course, if you know someone who is a decision-maker at the company in question, and that person values your knowledge and expertise, your having been entrepreneurs could work to your advantage, Fox says.

Generally, however, you may do best if you position yourselves as advisers or consultants to companies in the same industry you’re leaving. The people you approach may have been your competitors, suppliers, or subcontractors in the past. “Throughout your careers as entrepreneurs, you typically create many valuable business relationships. These should be leveraged in pursuit of another opportunity,” Deo says. Work your network of professional contacts as you shut down your company. Let people know you’re closing your company, but you and your spouse still possess valuable information and experience.

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In Entrepreneurship, Retirement, Strategy | 4 Comments