Maybe I’ve read one too many of these stories, but the New York Times just had another story about a corporate type who followed her passion and started her own company. When I read stuff like this, I find myself asking, “What about the of the other side of the coin? What happens when your passions don’t turn into profits?“
Yes, Cinde Dolphin might make it big in her new endeavor, chronicled in that NY Times article, The Job You Make. But, what happens to those entrepreneurs, store owners, consultants, speakers, inventors and other risk takers when they don’t make it big – and have to (ugh) get a job again?
Yesterday I got a text message from an old friend who is nearing retirement. After working in corporate America for about 13 centuries, he told me he’s now ready to branch out on his own and “find my passion.” My response was simply, “I’d rather find my paycheck again.”
It’s in the Water
What happens when you follow your dream, and then find out that your dream didn’t follow you back? Too often (and these stories never make the New York Times), you squander your 401K, max-out your impossibly high interest rate credit cards and pay millions of dollars supporting your health care coverage habit. Don’t ask us how we know.
I don’t know if he invented the term, but UC Santa Cruz professor Robert W. Fairlie points out that there are a lot more “necessity entrepreneurs” when the economy is bad. (Dr. Fairlie sort of wrote the book (or at least the PDF) about individuals creating businesses in his “Kauffman Index of Entrepreneurial Activity.”)
“Necessity entrepreneurs,” then, are those folks who get laid off of often high-paying jobs and then decide to try speaking, consulting, stand-up comedy or other death-defying gambits.
But, as you can see in the screen shot above, some necessity entrepreneurs now find themselves looking longingly at those regular paychecks of yore.
Who You Gonna’ Call?
You know what comes next, right? Yes, we thought we’d do a little research, send some emails and place a few phone calls to try to find out what’s going on – and then report it faithfully here.
We thought we’d follow some current job searchers and report on their tactics, strategies and mental breakdowns. Our interview line-up looks something like this (we reserve the right to change it without notification):
- New Job Searchers
- Frustrated Job Searchers
- Internet Job Experts
- Old-Fashioned Job Experts
- A Recruiter (or two)
- Some HR Big Wigs
- And anyone else we choose….
Where You Gonna’ Look?
Along the way, we’ll reach out and try to separate the truth from the bunk about how Internet and social networking sites can help your job search, what kinds of strategies are best and what you can do to keep from jumping off a bridge if you don’t find employment right away.
We won’t, of course, be able to resist showing you a few Internet research tricks that might help:
But, that’s just what we do. It’s called Internet research and we’re pretty sure it will lead us to some interesting people and great ideas along the way.
25 comments ↓
Well, a toast to someone who is reminding us all to take a reality check.
The overused example in the wine biz is “know how to make a small fortune making wine? start with a large fortune.”
I look forward to following your posts… right now I’m paying myself minimum wage and some of my salary is paid in cases of wine.
Cheers!
Cinde
Now we are really kicking ourselves. If we had thought to pay ourselves in wine (cases of wine, no less!), we’d long ago declared our speaking business a success. Why didn’t we think of that?
Thanks so much for the comment, Cinde – we’ll follow your success back – that will be much more edifying.
You couldn’t have said it better! I am passionate about many things but have yet to earn a nickel from any of them! Many of the reinvention stories I’ve read contained a hefty upfront fee which entailed cashing out of an already highly lucrative job! I’m not saying it can’t be done, it just hasn’t happened yet for me! I am looking forward to re-entry into the corporate world where I can see the immediate benefits of my work.
Very cool categories & sites list (I might have to mimic your template a bit
I’d limit the Twitter follows feature to only one person-just my take.
Did Prof. Fairlie define “Necessity entrepreneurs?” Because I wouldn’t say getting laid off is necessarily a bad thing (invokes change) or that speaking and consulting are seen as death-defying gambits either.
Thanks Cathy and Stepanie,
Cathy, there are just so few people who are willing to point out that the road to starting your own business is much, much harder than the boosters pretend it is. Barbara Ehrenreich is one of the exceptions in her wonderfully hilarious and sad book, Bait and Switch.
Stephanie, it’s not getting laid off that is the issue for most people, it’s getting snookered into any of the thousands of “make money fast” schemes and dreams that really depletes people’s pocketbooks. But, you are right – just about everything can be seen as a good thing, which is a triumph of the human spirit. And, true, “death-defying gambits” should only be used for people like Evel Knievel.
Thanks to both of you.
Another great, and insightful, post Michael and Sheryl. There are a lot of necessity entrepreneurs. There are also a lot of entrepreneurs out there who need to get back in the work force, part- or full-time. As you know, Internet research can be very important in a job search–I equate the job search to the most important sales call you’ll ever go on in your life, and you know how I feel about research and preparation prior to the Sales Call.
Anyhow, I thought you and your readers might like to know about a program I put together with Harvey Mackay. Call it shameless promotion however, it’s FREE. Just go to http://www.harveymackay.com and register. Once on the site, you’ll get a ton of free resources to help in the job search, including a custom toolbar I created that includes job tips but more important, it includes direct access to my favorite sites for researching companies, industries, and people.
Just go to http://www.harveymackay.com
I hope it helps some folks.
For someone used to having someone else pick up the tab, or a large part thereof, on a lot of life’s necessities – 401Ks, health insurance, etc. The reality of spending several hundred if not thousand dollars a month for the privilege of having a $5,000 annual deductible, per insured, for basic, no frills health insurance – no prescription benefit, no eye care, no dental – can be seen as death defying … assuming you can afford to die.
My wife and I have been self-employed for more years than I care to count and the one thing I’ve learned is that self-employment ain’t for sissies although being slightly (or not so) nuts helps.
Michael, this is a brilliantly conceived series and I think will be a home run in the blogosphere.
Thanks to two of the smartest guys I know, Sam and Tom.
I’d probably block most messages that pitched the way Sam does above in his comment. But, what you need to know is that Sam’s the real deal. Do a search of this blog and you’ll find we’ve written about him quite often. We’ve also tried to get him to write guest posts – but that’s another story! Anyway, we’ll try to interview Sam and Harvey for one of our articles on job searching, but in the meantime just do what Sam says.
Tom, I love the health care comment – and without getting political, this has to be one of the biggest challenges any entrepreneur faces in trying to put up his own shingle. The series you need to write, sir, is the one called “How to Start Your Own Business Without Being a Sissy, but Still Remaining Slightly Nuts.” It would cruise, baby.
Great post as always! One of the many reasons I decided to start up on my own was due to 3 rounds of layoffs at my full time job. I survived each one but the last one (last February) took two of my dear friends who were both fantastic at what they do. Made me realize that I could be next.
So, I started Purple Star with the idea that I could do both that and the full time job for a year, and then slowly ease out of working for someone else. Well, we are close to a year from when I began and well er, hmm, let’s just say, I am WAY off from making anywhere near what I need to. It’s tough. I work with small business owners mostly, and they don’t have the money to pay what I really should be making. So, I keep working away on my business and full time. I am lucky that my husband works for a local college and so we get great health insurance there. But I can only imagine the worry and cost that can cause for others.
I am happiest when working on all things Purple but happier still to continue getting a pay check that I can live on.
Hi Megan,
So very honest – and it’s just another reason why so many people say, “Don’t give up your day job.” Of course, your story tells of the many people who don’t have a choice. They get the pink slip and become “necessity entrepreneurs.” Always a character building experience, just not always a pocketbook building experience. Thanks for the inside scoop.
This is a tough one, for sure! Many of the entrepreneurs who are in the “necessity” boat come into their business with expectations that everything will fall into place. One theme I hear a lot is that it takes so much time. I even blogged about this, “It’s Not a Hill, It’s a Mountain” – http://www.abilitysuccessgrowth.com/entrpreneurship/its-not-a-hill-its-a-mountain/
It can take a long time, it is hard work, and it isn’t glamorous. This is tough to take when you see people around you who seem to have succeeded where it feels like you are failing.
This may seem like a shameless plug but here it is. Find a coach, mentor, networking group, mastermind group, something where you spend time with people who will both support and challenge you to grow your business or return to working for an established organization. I even had a client who decided that entrepreneurship was just too much work. Well, good for her! It isn’t about right or wrong. It’s about knowing your strengths, your tolerances, and managing expectations.
As usual Elli is the voice of reason – fair and balanced with perspective. Her link above is worth following and reading. You need some inspiration – and you need some down-earth-griping. We’re the latter. Hire her is probably your best move.
As always, thanks Elli
Michael,
Thank you so much for the recommendation! I deeply appreciate it.
~Elli
Michael,
Great article. I’m sure there are many who have followed their passion only to have to or want to return to the loving arms of corporate life.
I do think you may be missing some, though. I’ve branched out on my own and I have no interest on striking it big (that comes with a whole set of problems) – I’m interested in simply having my corporate salary back – on my own terms.
So I’m not spending a fortune or my 401K, and I have no intention of doing so. I’m just trying to make a paycheck so I control my own time and don’t need to fill a chair. (Although I sort of miss filling a chair – sometimes)
I’m looking forward to learning more from you with this series.
Another voice of reason, Leanne,
My brother has effectively replaced his corporate salary with his own media training business (and reduced the number of hours he works). So, yes, it can be done. For some of us, though, even that is a huge mountain to climb – especially with costs escalating.
Leanne writes a great blog, by the way – so spend some time interacting with her, and your work/life balance will improve immeasurably.
Michael, A very interesting blog. I’m the Corporate Centurion Seeking Passion Michael references in his initial post. Comments by Elli and others made me realize I may need to find more than my passion. I may need to answer a very important question. Do I really want to work hard at anything anymore? “The Firm” demanded a high price for those golden handcuffs. Countless late nights and weekends, silver elite naps, small concessions which would not have been tolerated when in my 30’s, moved me slowly but inexorably to where I sit today. Looking at my guitar and thinking I’m going to play a David Wilcox song. That seems like enough for tonight.
Ah yes Gary,
But here’s how much times have changed. David Wilcox now Twitters at @mrdavidwilcox – and has a Facebook page at http://www.facebook.com/Davidwilcoxmusic – and who knows what else. But, you convinced me – and if you stay long enough in Colorado this summer to catch with his concerts in Lyons August 13-15, you’ll be able to hear those songs you play. Why do I say any of this? Simply because I don’t want you to hang it up after that corporate career. Even I think you still have another role to play.
What happens when your passions don’t turn into profits?“–I pondered on this question for a long while and it brings sadness because sometimes we confuse passion for the excitement of the latest fad in the market. Per example a couple of years, many people moved into real estate investment and soon those dreams were shattered by the bust of the housing market. On the other hand, real passion begins with a strong desire and a clear vision as to what I want to achieve in my life. It is more the journey than the achievement of material possessions. For me living my passion has nothing to do with profits; it is more about how will I be remembered.
Oh my Marisol,
I got chills when I read your comment. Do you mean to tell me that there is more to life than profits and paychecks? Heresy, woman!! I’m going to put your comment up on my bulletin board, just to remind me that there are still people out there who really understand what life is all about. Thanks for that – and for being you.
Hi Michael,
Thanks so much for letting me know about your blog and, in particular, this article with the comments including David Wilcox. ( I am his social media manager and have been part of the excellent team that has brought his career to the web 2.0 place of today-just got your DM @mrdavidwilcox. )
I am currently reading “Ignore Everybody” by Hugh MacLeod, and so this blog post resonates a lot with me. Hugh definitely speaks to the argument of keeping one’s day job for the sake of maintaining your passion separate from your money-making ventures.
My experience has been different from the norm as I started out as a singer-songwriter and never entered the “real workforce”. So now that I have a young family, and wish to be home at night to put my children to bed, I have built a social media and management business for musicians out of necessity.
Is it my favorite thing to do? No. I love being with my family and writing/recording my songs. But I am passionate and smart enough about it to do a great job for my clients, and I have learned finally that what feeds my mouth may not feed my soul, and even when that was the case, I almost lost the joy of it!
Ahh, the things we learn. . . I love the insight of your post!
Sincerely,
Heidi Howes
Hello Heidi,
I’m often pretty grumpy about the land of “social media” – mostly because of what I see as egregious abuses of what was supposed to be a “networking” platform. But, I have to admit, I get such a kick out of seeing someone like David Wilcox on Twitter and Facebook. I won’t go into what a “groupie” I am when it comes to his music, but think about it. Could such a message as yours have ever happened before this crazy Internet was invented? Yes, I guess there were fan letters – and some artists had the time to respond.
I saw David many years ago now at the Arvada Center (with Eliza Gilkyson), again at Chataqua and some other times I’ve forgotten. It’s just cool to know that a short Twitter message was all it took to let him know the enjoyment he provides.
Good luck on your music career, but don’t quit your day job. Mr. Wilcox should be thanking his lucky stars it hasn’t taken off quite yet.
Thanks.
Heidi is David Wilcox’s social media manager? Wow. I had no idea such a position existed. My exit plan from corporate America is take the last of this regular paid time to organize my future sling bag tools. The good stuff I’ve learned over the past 25 years. One thought for those following this blog, I think any entrepreneur today needs to truly excel at business finance. Personally I fall into the special needs business finance class but I’m learning quickly. I’m in sales. I’ve been very successful recently understanding my client’s strategies, understanding their balance sheet and finding ways to help them achieve their strategies and then measure the direct impact on their balance sheet. What I sell can impact a company’s assets in a positive way. I just finished Financial Intelligence by Karen Berman and Joe Knight. They do a great job of writing about business finance in a way people like me can understand. If you’re reading this, in business for yourself and rolling yours eyes at the thought of studying business finance, you should probably read the book. By the way Heidi, how does one become a social media manager. Wow.
Hi Gary,
Great question. How you become a social media manager I will leave in Heidi’s expert hands.
However, it is clear that if you simply study Twitter, Facebook and LinkedIn a little bit (or, attend almost any of the “How to Be Great at Social Media” classes given by hoards of pretenders out there) that it takes nothing at all to become a “Social Media Expert.” Maybe you should settle for that, huh?
Thanks for the book tip – as soon as I get done with the latest Michael Connelly mystery, maybe……
Yep (chuckle) the “new media” has generated quite a few positions. Fortunately for me, I saw a niche and started learning everything I could about it. The music business is a really hard one, but the internet has completely revolutionized it. David Wilcox, for example, has reconnected with many of his fans and has a much more accessible presence now than ever.
Because it has become imperative for artists to connect through social networking, it is obviously a time-consuming practice! It takes a lot of time to set up pertinent profiles, respond to inquiries, update calendars, etc, and who has more time for a completely new administrative task?! Hence, the social media manager was born. I manage twitter, facebook, youtube, myspace, reverbnation, eventful, lastfm, ilike, gmail, linkedin, and many more site profiles for David. It’s hard to keep up, but each site provides new opportunities. David has seen a lot of value in diving into the new media over the past year-album and ticket sales, promotion, gig inquiries, you name it.
My position allows for him to do what he does best which is write songs,perform, record . . . which is why we love him!
Thanks for askin’,
Heidi Howes
p.s. Gary, I am taking new clients
p.p.s. It also doesn’t hurt that my little brother (www.lewishowes.com) is a “social media guru” and wrote the book on LinkedIN.
What a wonderful conversation. Having started my business over a dozen years ago some of these comments even ring true. As a speaker, mentor and author I can tell you with certainty that I began this journey not knowing what I didn’t know and thinking what I did know was all that was needed to go to the head of the class.
So, you message is a good one. It should be titled “Eyes Wide Open”. That what the so called “necessity entrepreneurs” need to do. Consider before they leap and keep expectations real. The flip side is that there are many more benefits to self-employment than the 401K. Consider those as well.
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