NEW YORK (Reuters) - At times like these, with Wall Street in upheaval, the thoughts of many executives turn towards setting up their own firm.
The perceived attractions are many: freedom, no bureaucracy -- and the satisfaction and rewards that can come from creating a company out of nothing.
As the financial system reels from a global credit crisis, many talented executives are expected to leave big financial firms in the coming months -- and some will be planning to go it alone.
For those who are, two Wall Street executives with experience of starting from scratch offered some advice at the Reuters Finance Summit in New York this week.
Jimmy Dunne quit Bear Stearns in 1988 to become a co-founder of Sandler O'Neill & Partners, which has since grown to become a prominent boutique investment bank and a major player in financial firm merger advice.
Dunne agreed that right now is an attractive time for some to consider setting up on their own.
"I think it is for sure," said Dunne. "I think you are going to see more and more deals being done by talented people that are tired of the bureaucracy and tired of being less in control of their fate than they'd like to be."
While Dunne understands and applauds what drives people to set up their own shop, he also had words of wisdom for the process that lies ahead.
"It's not easy," said Dunne. "It sounds good. It's hard. It's an all-consuming, brick-by-brick thing.
"It's attractive. It's more. It's more pain, it's more joy. It's more risk, it's more money. It is more, but you have got to want more.
"It is not for everyone."
SCARY
While Dunne chose his own path, the route to a start-up business comes to others after they lose their job.
Former Citigroup (C.N: Quote, Profile, Research, Stock Buzz) Chief Financial Officer Todd Thomson was forced out of the bank in January after a tussle with former CEO Charles Prince.
Thomson then set up private equity firm Headwaters Capital LLC, and he told the Reuters Finance Summit he is relishing the freedom. Continued...
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