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10 Keys To Get Through A Career Crisis

10 Keys To Get Through A Career Crisis

Dealing with a career crisis is a topic that has a very personal application to me. It is very real because I experienced one, and it had a profound impact on me. So much so that I literally wrote a book about it.

I had to deal with a major crisis early on in my career as a corporate lawyer. The crisis was simple: I found myself very discouraged and depressed at the prospect of doing law for the rest of my life. I truly disliked it, and I wanted to make a career change to something that brought me fulfillment.

The problem was that I initially didn’t know what to do. I had spent almost a decade obtaining the necessary education to become a lawyer, not to mention well over several hundred thousand dollars in real and opportunity costs to get my education. I had to really soul search and redefine what I believed about myself and what I wanted to accomplish in my career. The result was a tremendously empowering process, and in this article I will share 10 of the insights I learned in leaving law to find empowerment as an entrepreneur, consultant and writer.

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1. First, determine if it is a real crisis or simply a trying experience.

Not everything is a career crisis, and all careers have challenging times, even careers that are “right.” Just because your career is engaging, generally enjoyable, and personally meaningful doesn’t mean that it won’t have its challenging times. That’s life. Life is about change and challenge. So before we look at major changes, we should determine if this is a “crisis” or if it is simply a challenge. The answer will determine the steps we take next. A crisis could very likely lead to a career change. A challenge is an opportunity to dig in and develop grit, courage and persistence. It is a character moment.

2. If it’s just a challenge then remember your why.

It’s just a challenge if you still love the career and you want to get better at it and progress to the point of mastery. If you find yourself in a career “challenge” but you don’t want to leave the career, then simply remember your “why.” Why did you get in this career in the first place? Expanding on that, what have you yet to accomplish in this career? What have you yet to learn? How can you improve and grow? What does success in this field mean to you? Go back to the fundamentals of your why. When you do this you’ll gain resolve and courage to move forward beyond the present challenge.

3. If it’s a crisis don’t get discouraged, but know you’ll need to make a change eventually.

It may not be simply a challenge. It may be a full-blown crisis. That’s what happened to me in law. I knew without a doubt that law was not right for me, and I needed to do something else with my life. If you find yourself in the same position, don’t get discouraged. No one said you had to get it right on the first go (although it can feel discouraging to have to change, especially after you have educated yourself for a certain path). Stay positive: you can make a change, but know that the change is inevitable.

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4. It’s a crisis if your values are not aligned with what you are doing.

What do you truly value? What is unique about you? Do you like to create? Do you value teaching? Are you a contributor? Do you uniquely value freedom? Does your current career align with your unique values? If no, then you’re on a dangerous path. I realized that the things I valued most were freedom, communication, contribution, and adventure. Law didn’t provide that for me. Entrepreneurship was a better path. Do a values analysis and compare it to your current career.

5. Take full responsibility, only you can create a solution.

I can’t stress this point enough. Resist the urge to blame. Don’t blame your boss, your current employer, your parents. You are where you are because you made choices. You can get to a new place if you simply make new choices. You are the solution. If you blame someone for where you are, you are actually giving away your power. You are giving away the solution. If someone is to blame, then you have no power to change. But you do have power to change, and to accept the responsibility.

6. Change is never easy, take courage.

If you are in a full-blown career crisis you’ll have to do things that require courage. However, each action that you take that requires courage builds your courage a little. The first step might just be to admit to yourself that you are not happy and that you need to make a change.

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7. Keep composed and remain calm, good things will come.

Action holds anxiety at bay. I know from personal experience that a career crisis can be terribly stressful. Try your best to stay calm, and when you feel the anxiety, just take more action. Keep yourself healthy, move and breathe, take care of yourself. Stay composed because your actions will be most effective when you are calm in your mindset.

8. Be realistic in your expectations.

Being real is very empowering. It is realistic to suppose that all careers, even ones that are aligned with your values, will have their challenging moments. It is realistic to suppose that if you make a change you may not initially make as much money as you were making in the career that you hated. If you’re leaving a secure pay check to build a business, it is realistic that the business may take a little longer than you think to get going. But that doesn’t mean that you should quit. It just means that businesses often take a little while to get going. Be realistic in your expectations.

9. Take the long view.

This is a powerful strategy. If you take the long view, then little challenges won’t get you down. This is another test for whether you are in a career that is right for you. Do you want to master this field? Are you willing to work for years and years to become great at this? If you choose a career where the answer to these questions is yes, then you are on a good path. If you’re only concerned about the short term and the pay raises, you should seriously consider whether or not you need to make a dramatic change.

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10. Your work matters, so find work that is personally meaningful, independent of money or status.

Your work matters. Work gives us self-confidence and a sense of purpose. Don’t discount the intrinsic value of doing work that is personally meaningful. So much of our world is focused on getting more money and being recognized for our success, but these conquests are often hollow victories and they don’t have the depth of meaning that doing personally satisfying work does. When you find that career in which your actions are intrinsically meaningful, you are on the path to a lifetime of empowerment and fulfillment.

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Published on December 13, 2018

How to Start a Company from Scratch (A Step-By-Step Guide)

How to Start a Company from Scratch (A Step-By-Step Guide)

If you’ve ever thought about starting and running your own business, you’re not alone. Being your own boss, having flexibility with your schedule and keeping more of the financial rewards that come with business ownership are all good reasons to own your own company.

But as you might expect, it’s not all vacations and fat bank accounts. According to the SBA, 2/3 of businesses survive at least 2 years and approximately 50% survive 5 years.[1] So why is the failure rate so high? At least for the businesses that fail early on, lack of, or poor planning can be a major factor.

So how to start a company?

Starting a business from scratch doesn’t have to be hard or complicated, but it does take planning and work. Here are the first and most important 9 steps to take when your are starting a company from scratch.

1. Do an Honest Evaluation of Yourself

Do you work better in a structured or unstructured environment? Does a daily routine reduce your anxiety? What kinds of things are you good at? Does public speaking or making presentations make you nervous? Are you good at accounting and numbers? Can you handle the rejections you’re bound to get when selling or cold calling?

These are all important questions to ask yourself, in fact it’s a good idea to get other peoples opinion about their perception of you in each of these situations.

Whatever the answers you come up with for your evaluation, remember that’s all it is, an evaluation of where you are now. Think of it as a way to identify both your areas of strength and weaknesses.

You maybe good at public speaking which can help when raising money, but bad at accounting which just means that you’ll need to find some kind of help with that area of the business.

2. Evaluate Your Idea

If your business idea involves a new product or service (or even an enhancement to an existing product or service), it needs to be evaluated. This is technically called market research.

There are firms that specialize in doing market research for new products, but if you are on a tight budget, you can do this yourself.

First, if you can build a prototype for people to use, touch and look at that’s the best option. If a prototype is not possible or it’s a service business, then offer a highly descriptive presentation of the business plan complete with it’s unique benefits and how it’s different from the competition.

Then listen! Remember that this is not about others liking your product, this is not your baby that they are talking about. You want honest market research that gives you the best chance for a successful business. Take notes, when someone tells you that they didn’t like a feature or some aspect of your idea tell them ‘Thank you”.

After several rounds of market research with different groups of people, you should see patterns emerging about things that they both liked and didn’t like. Use this information to tweak your product or service and do another round of market research.

Keep in mind that you’ll never come up with a universally loved product, your job is to produce a product or service that appeals to the broadest range of your target market.

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3. Make a Business Plan

I know, I know this isn’t the “fun” part of starting your own business, but it is an very important step in creating a successful business!

Basically, you can think of a business plan as an outline or blueprint of your business. A good business plan should have the following elements:

  • Executive Summary – This should lay out the businesses product or service and the problem that it solves for the consumer.
  • Market Evaluation – This should talk about the market you are serving. Is it an expanding market, and how does your product better fulfill the consumers in that market.
  • Market Strategies – How are you going to penetrate the market and sell your product.
  • Operational Plan – How will the company run from day to day? Who are the key employees and what are their specific rolls. Do your key players have specific goals set for them in advance?

A final word on making a business plan: while lying is never acceptable especially when you are using the business plan to raise money, it is acceptable to “put your best foot forward”.

Playing up the positives while minimizing the negatives is almost expected in a business plan.

Besides, banks as well as professional investors will both do a more in-depth analysis before investing any money into your idea.

4. Decide on a Business Structure

You have many options here, and discussing them with your accountant or financial adviser is really the only way to know what’s right for you. But just to give you a quick rundown of the types of business entities and their pros and cons we will briefly go through them:

Sole Proprietorship

This is a common way for small businesses to get started.

The pros being:

Relatively low costs to set up (usually a business license and sales tax license).Owners normally do not have to set up a special bank account, they are allowed to use their personal one. Any income earned can be offset by other losses (check with your state!). You as the sole proprietor have complete control over all decision making. 

Finally, sole proprietorship’s are relative easy to dissolve.

The cons of using a sole proprietorship include:

You as the sole proprietor can be held personally responsible for the debts and liabilities of the company. Some benefits, such as health insurance premiums, are not directly deductible from business income.

If you need to raise money, you are not allowed to sell an equity stake in the company. In that same vein, hiring key people maybe more difficult because you cannot offer them an equity stake in the company.

Partnership

A partnership is formed when two or more people decide to start a business. Although there is no legal requirement for any documentation to form a partnership, it is my advice that you never enter into a partnership without having a partnership agreement. (Remember, spending $1500 now can save you $150,000 in legal fees later!).

The pros of a partnership include:

Being relatively easy and inexpensive to start. Hiring key employees can be easier as you are allowed to give equity ownership to as many partners as you want.

For tax purposes, partnerships are relative simple as any income is treated as “pass through” meaning that each partner pays tax on their individual portion of the partnerships income (As of this writing, always check with your tax adviser).

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As far as the cons go:

It can be difficult for some general partnerships to raise capitol. Because it is a partnership, the actions of one of the partners can obligate the entire organisation. All profits must be shared according to the partnership agreement regardless of the amount of work done by any single partner.

Some employee benefits may not be able to be deducted on income tax returns.

Limited Liability Company (LLC)

This is a very popular business entity for small to medium sized businesses. The reason for this is the cost of set up is not prohibitive and there is a separation between the owners and the company.

The pros of an LLC include:

Limited liability for the partners, unlike sole proprietorship’s and partnerships where the owners are held responsible for all of the companies debts and liabilities, an LLC provides some protection against certain debts and liabilities that are solely the companies.

Simple taxation, just like the sole proprietorship and partnerships, income is considered “pass through” and is only taxed once on an individual level.

There is no limit on the number of shareholders in an LLC. An LLC requires fewer fillings and administrative requirements than a corporation.

Corporation

A corporation is much more complex and expensive to set up. And a corporation is legally considered an independent entity that is separate from its owners.

The pros of a corporation include:

Complete separation between the owners and the company. Because the corporation is considered its own legal entity, owners can not be held personally responsible for any debts or liabilities of the company.

A corporation can raise capital much easier just by selling more shares in the company.

Cons of corporations include:

Much higher administrative costs than any other business entity. Corporations generally have a higher tax rate. Dividends are not tax deductible for corporations. Income paid in dividends is taxed twice, once by the corporation and again by the shareholder.

Again, this is just a short summary of the pros and cons, always check with your tax adviser about what will work best in your situation.

5. Address Finances

Again, not one of the “Sexier” parts of starting your business from scratch, but very important nonetheless.

So, you’ve done your business plan and an estimate of your start up funding should be included. It should include the amount of funding you’ll need to get you through your first full year of operations.

Now, how do you get that money?

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Self Funding

If possible, self funding is the easiest. You won’t have to go to banks and investors with hat in hand, or give up ownership or control of your company. But as we know, this is not a reality for most people. But don’t worry, there are still plenty of options available.

Friends and Family

They can be a good source of funding your business if they can see and understand your vision.

Remember that business plan? Pass them out to everyone you know. Then follow up, be prepared to tell them the total amount of money you expect to raise, the minimum investment you are looking for and what you will give in return for the investment.

For example, you give a friend your business plan and follow up with him/her a few days later. You can explain that you have secured funding for $80,000 of the $100,000 you need. You are selling a 2% share in the company for every $2,000 investment. How many shares would he like?

And when he/she tells you no, thank him/her and ask if he/she can think of anyone off the top of his head who might be interested? Tell him/her you really appreciate his/her time and if he/she does come across someone who might be interested to let you know.

Banks

These guys are happy to lend you money when you don’t need it, but all of the sudden they get stingy when you actually need a loan! This is where preparation comes in.

It’s a good idea to go over your business plan with an expert and maybe even have it rewritten by an expert before you approach either a bank or professional investor. Both will want to go over your business plan with a fine tooth comb, verifying all the numbers and data you provide.

You should also brush up on everything in the plan so that you can answer any questions they have with authority.

Crowdfunding

Finally, there is crowdfunding through sites like Kickstarter or GoFundMe. Crowdfunding helps to build interest, community spirit, and a customer base. It’s also an efficient way to raise funds. You can take a look at these tips to find out more:

6 Crowdfunding Tips To Get Your Project 100 Percent Funded

6. Register with the Government

As stated earlier, different types of business entities have different filling and administrative requirements. At the very least, you’ll probably need a business license as well as a state sales tax license.

Unless you are forming a corporation, there are many good resources on the web that will do everything for you at a minimal cost.

7. Assemble Your Team

Remember when we evaluated your strengths and weaknesses? Here is where we fill in the gaps!

Do you hate sales and cold calling? Great! There are people who love selling and wouldn’t want to do anything else.

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Bored to death with accounting? There are a ton of small accounting firms out there that will take care of that for you.

What about marketing? You can hire someone in-house or out-source that too.

Your job is to keep on top of all the different aspects of the business to make sure they are all running smoothly and getting the results you need. If not, it’s your job to figure out the problem and implement a solution.

Check out this guide and learn how to delegate effectively:

How to Delegate Work (the Definitive Guide for Successful Leaders)

8. Buy Insurance

No matter what kind of business you start, you need insurance! Yes, I know, no one likes to buy insurance, but it can literally be the difference between having a minor inconvenience and declaring bankruptcy.

We live in a very litigious time, even a minor slip and fall at your place of business could bankrupt you without insurance. If you need help finding a good agent, check with your local trade organizations or fellow business owners.

9. Start Branding Yourself

Has anyone ever ask you for a Kleenex or a QTip? We all know what they are because of branding, Kleenex is just a brand of tissue and QTip is just a brand of cotton swab. It doesn’t have to be as widely known as Kleenex or QTip, but you can make your brand a common name within your niche.

I once owned a manufacturing company that developed a product that was so popular that my competitors started co-opting my brand name for their products.

If you aren’t sure how to kickstart branding yourself, check out these ways:

5 Ways to Build your Personal Brand & Make More Money

The Bottom Line

Starting a business from scratch can be one of the most rewarding experiences a person can have.

But do you know what’s even more rewarding? Having a business that succeeds, is profitable and provides a good source of income for you, your employees and their family’s.

More Resources About Entrepreneurship

Featured photo credit: Tyler Franta via unsplash.com

Reference

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