Perception of future employers if small business fails.

[sheepdreams]

Hi all

I wondered if anyone had experience of setting up a business that was not successful and had to seek paid employment. How did you explain on applications? At interview? Could this be perceived as positive if you were able to outline new skills learned? despite failure of business? Would it be helpful to highlight that you had previously had 20 years continuous full time employment in another career?

It would be so helpful to hear of others perceptions/experiences.

No experience, I'm afraid, but bumping this for others who might.

I don't think most employers will see this as an issue - small businesses fail all the time!

A lot would depend on what the business was, how long your break in paid employment was etc.

I think your CV would highlight your 20+ years of experience so you wouldn't need to highlight it as such, nor explain too much why your business failed. As with all job applications, you need to tailor your application to the role they are trying to fill, so matching your skills to what they are looking for. If you write a good application you'd get an interview.

At interview you might need to expand a bit more on it - if, for instance, you left a career to start a business in something completely unrelated and were now trying to go back to that old career, did it mean you were disillusioned with the industry before? If so, what has changed to make you now an enthusiastic employee? That's the sort of thing you might need to think through.

But in my sort of work people have side gigs and paid jobs and often move between freelance and contract and permanent etc and it is not an issue.

As I say, a lot depends on the exact situation. I think you'd find it harder to explain a MLM type of business or franchise than some others?

I know my dh felt boxed into a corner when he found himself running his business alone after his partner did a runner. He didn't want to run a business himself - it's a lonely place but he couldn't think of a narrative that he could spin to make an early exit look like a success. Fortunately he has started to enjoy running it himself and it's been successful.

I'm the director of a small business.

If it fails, I will be looking for a position that doesn't match my current role - I'd like to work more with my skill set than as a manager, and I'd emphasise that I didn't enjoy the responsibilities that were more matched to my capabilities than my interests.

We interview lots of people who come to our company for a complete change of pace - the only thing we judge on is whether a) they're a good fit for the role, and b) the role is a good fit for them.

Biggest PITAs are those who don't really want to be there.

Hi,I have been in this situation and do not have much positive advice,as in my job applications most employers could not care less that i worked 110 hours a week for 20 years ,also a problem with references - if you were the boss - there is no one who can provide a reference for you.
The only advice i can think off is to get some business friends to stand in as a personal reference,if this is possible ? - the issue with most businesses is one only has rivals not friends .
Otherwise i have found other small biz owners are more understanding ,thou less jobs going .A lot of big companies automatically reject anyone who lives too far away,25 miles seems to be the cut off ,so all your many positive points will not be read .

It must also depend on what kind of role you would be going for after running your own business - how long you had run it and whether it looks like you could be managed again - some people find it hard to work for someone else again.

Dear all thank you for your comments, greatly appreciated. Given me a lot to think about.