Midlife Crisis: Lessons from a Failed Entrepreneur
This article dissects the common pitfalls faced by middle-aged individuals after losing their jobs, drawing insights from a man's experience shared on Douyin (TikTok). The man, 39, recounted his five years of cross-industry entrepreneurial failures after being laid off from a real estate company. His calm demeanor despite the setbacks highlighted the despair many feel after a lifetime of perceived success. This article aims to help others avoid similar mistakes.
The Sample Experience: A Cautionary Tale
From Corporate Middle Management to Joblessness
The man, formerly a middle manager at a listed real estate company, foresaw his layoff in 2019 amidst the industry's downturn. Understanding that older, higher-paid employees were vulnerable, he accepted the company's offer without hesitation. He had savings and severance pay.
The Initial Job Search and Frustration
Initially, he sought new employment, but his applications were rejected except for sales positions at insurance companies and training institutions. Accustomed to a higher social status and income, he refused to take what he viewed as lower-level work and stopped applying.
Ill-Prepared Entrepreneurial Ventures
He then used his savings to pursue entrepreneurial ventures, lacking a clear understanding of the inherent risks. His ventures included:
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Opening a hot pot restaurant.
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Leasing a fish pond to raise fish.
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Raising chickens and ducks.
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Trading in jeans.
All of which resulted in significant financial losses, wiping out his savings.
The Hot Pot Restaurant Debacle
Two months after losing his job, he took over a 900-square-meter shop, previously a successful barbecue restaurant, from a relative. Partnering with two college friends, they invested 1.4 million yuan in renovations, franchise fees, and supplies for a hot pot restaurant. While the first two months saw a daily turnover of over 10,000 yuan, it quickly dwindled to a few thousand, insufficient to cover the daily operating costs of over 3,000 yuan. The business shuttered when the COVID-19 pandemic hit.
The Unfortunate Fish Farming Venture
Three months after closing the hot pot restaurant, he and one of his partners invested 500,000 yuan in a 40-mu (approximately 6.6 acres) fishpond in Lishui, Nanjing, to raise bass. In the summer of 2012, a drought and disease killed dozens of fish daily. The price of bass also plummeted to 13 yuan per jin (approximately 0.5 kg) due to increased competition, and the yield was only 1,000 jin per mu. This was far below his initial expectations of 25-30 yuan per jin with a yield of 2,000 jin per mu. The venture resulted in further losses.
A Pattern of Failure and Resignation
The pattern continued with subsequent ventures, leading to significant financial and emotional distress. He shared his experiences with the public in hopes that others could learn from his mistakes.
Lessons for the Middle-Aged Unemployed
The speaker stresses the importance of caution and humility when facing unemployment in midlife.
Questioning Common Advice
The speaker disagrees with the man's first conclusion which is: "During this period of national economic transformation, do not start a business across industries." Instead, he argues that even during prosperous times, the success rate for entrepreneurs is minimal. Therefore, the rate of failures is far higher than success.
The Perils of Overconfidence
Many middle-aged individuals, fresh from high-level positions, overestimate their capabilities and underestimate the challenges of starting a business. They need to understand they most likely will never achieve their previous status or income.
The Importance of Damage Control
The primary goal should be to stop the financial bleeding and prevent a rapid decline in their standard of living. Focus on preventing loss, not immediately seeking to regain lost ground.
Recognizing Incomplete Experience
Having spent their careers working within the structured environment of a company, they lack the complete experience of independently navigating the complexities of the business world. People who have not started a business do not understand how cruel the world is.
The Illusion of Applicability
Management and marketing knowledge gained in large corporations may not be directly applicable to small-scale entrepreneurship.
A Humbling Reset
Adopting a learner's mindset and being willing to start from the bottom is crucial. The speaker suggests humbling themselves by acknowledging that their previous achievements were due to the platform and not their personal skillset. The experience of running a small business requires direct engagement with finances and power, exposing the realities of the business world.
Practical Steps for Potential Entrepreneurs
Start Small and Learn the Ropes
The failed entrepreneur should have gained experience working in a restaurant before opening a large-scale operation. This hands-on experience would have provided invaluable insights into the industry.
Avoid Franchises
Franchise businesses are often more interested in extracting fees from franchisees than ensuring their success. Focus on building your own brand.
Gradual Expansion
After establishing a stable and profitable small business, gradually expand, focusing on building a solid foundation of talent, supply chains, and systems.
Cultivate Financial Intelligence
Develop financial literacy (financial quotient). Most people don't have financial quotient and lose all their money from the start.
A Realistic Perspective on Success
Avoid being misled by the stories of wildly successful entrepreneurs. Learn from people who are only a step or two ahead, as their experiences are more relevant and applicable.
Alternative Paths and Strategies
Accepting a Different Future
If entrepreneurship is not viable, accept the possibility of a simpler life.
Sharing Expertise
Share your experience and knowledge with younger generations, potentially receiving future returns in the form of assistance or gratitude.
Developing Practical Skills
Acquire a trade that guarantees a basic income, such as hairdressing, massage, gardening, baking, electrical work, or mobile phone repair.
Pursuing Hobbies
Monetize your hobbies through platforms like self-media to generate income.
Managing Finances Wisely
Save money and reduce spending to prepare for potential future challenges, such as health issues or unexpected expenses.
Guarding Against Scams
Be wary of get-rich-quick schemes and scams that target vulnerable individuals.
A Final Word of Caution
Midlife is a vulnerable period marked by declining health, economic uncertainty, and social pressures. Taking care of yourself, both physically and mentally, is crucial. Avoid reckless decisions.
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