[campbellcj]

Take it from someone who has BTDT (several times), it is not pretty being on the handle end of the axe either.

For almost 15 years I have worked for (and now run) a family-controlled software business. It is a tiny niche firm that has varied from 2 people to 29 over the years.

But we have survived, and over that time a number of people (and their families) have had 5-10-15 years of gainful employment.

Many, many smallish companies caught in a down-cycle, or a specific large transaction going sour, will easily collapse inwards when financial pressure gets too great. Total liquidation on behalf of creditors (chapter 7), in other words...

We "choose" to not let it get that far -- which takes forward cash flow planning/visibility and also unfortunately does require "variable expenses" to be varied downwards once in a while.

I am always truly sorry to hear when hard-working, competent folks lose their jobs suddenly. But it is a tough world out there and if it comes down to feeding my family or somebody else's...it is basic instinct.

As for seeking "job security" in self-employment...ROFLMAO! Before cutting pay, benefits, or headcounts in bad times I and the other top earners have always gone to 0 - 50% pay while still working more than fulltime. Some have even "loaned" the company money. And with no guarantees... Such is the life of an entrepeneur; the rewards far outweigh the risks for many of us, otherwise we would all work for Walmart or GE by now.