The Write Resume Career Strategies Weblog

Should "Out-of-Work" Job Seekers Start Their Own Business?

Many times I speak with clients who have been laid off and propose the idea of starting a business. While it may sound like a great idea, there are many things to consider before starting a company.

In this post, I will outline some lessons and provide a few pieces of advice that I have learned throughout my 23 years in business.

At the end of the post, I have included two organizations that can help with starting a business.

While this post will not be an "all-encompassing" guide to starting a company, it will provide you with a framework of very basic principles.

1. Be properly funded.

It takes capital to start a business. Most banks will not lend you money until you have been in business at least five years. So, you may have to tap into savings or borrow from family or friends. The rule of thumb is to have at least SIX months of business operating capital, along with funds to pay your household expenses.

2. Decide whether you will offer a product or service.

In my opinion, service businesses are less expensive to operate, as you will not have to carry inventory. Further, you can start out smaller and then add employees (or subcontractors) as you grow.

3. Will you start your own business or buy into a franchise?

There are pluses and minuses to each. Just make sure you read the fine print on any franchise contract and talk to other franchise owners. Often, franchisees are bound by a lot of rules, and can't use "out-of-the-box thinking" when it comes to marketing, as the "brand" needs to remain consistent. When you have your own business, you call all the shots.

4. Be realistic about whether your idea holds merit.

Conduct due diligence, which includes researching the competitive marketplace,  identifying your target demographic, and determining pricing. In addition, determine which licenses or permits you will need to run your business.

5. Build a business plan.

This is your road map to guide you.  Make sure that you identify EVERY cost you will incur. In fact, enter amounts that are MORE than you think something will cost. That way, you won't be stuck if prices change. However, make sure your business plan is a fluid document. If you find that something isn't working, change it.

6. Create a marketing plan.

This is one document which entrepreneurs typically neglect to formulate. Identify the "advertising" mediums that will bring you the most business for the least amount of money.

One thing to note. When you start your business, you will get calls from every kind of advertising company trying to sell you their service. Never sign on the dotted line until you have given yourself 24 hours to think about it.

7. Network and form alliances with businesses who can enhance your offerings.

For instance, I do not conduct career coaching. So, I have a network of colleagues to whom I can refer my clients.

Another example would be a plumbing company that establishes trusted relationships with heating / air conditioning companies and / or pest control services.

8. Be an expert in your industry.

Participate in continuing education in your industry. Keep up on emerging trends in your business and be ready to jump on those opportunities. However, carefully evaluate whether the trend is real based upon fact-based research or if it is made up by someone just to bilk money from customers.

9. Provide outstanding customer service and deliver a quality product / service!

There is a saying: People buy from people they like and trust. By providing exceptional customer service and delivering quality work, you will set yourself apart from your competition. Further, you will gain referrals. As your referral base grows, you can knock out advertising costs.

In the resume writing business, I have thousands of "competitors." Some of them charge less than I do and others charge more.

However, I have built a strong level of trust with my clients by consistently creating and delivering interview-winning resumes, selling them only what they need for their job search, and providing advice about the employment market. This has resulted in a 98% referral rate. Now, I spend very little money on advertising.

Where Can You Go For Help?

There are great resources available in your community which provide free counseling, including SCORE and Small Business Development Centers, which are funded by the Small Business Administration.

Remember though, just because someone gives you advice, it doesn't mean that it's the only way to run your business. Take the advice given and run it through your mind to determine whether it makes sense.

Live As If You’ll Be Found Out Because You Will! Don’t Lie About Your Career!

My dad has a saying: "Live as if you'll be found out because you will!" In this post, I will cover a story that plays right into that statement.

While I was browsing "updates" from friends on Facebook the other day, I noticed one of them had joined a "Fan Page" entitled, "Tim Martins is My Hero!"

I was a little perplexed; I hadn't heard of anyone by that name doing something heroic on the news. So, I clicked through to find out what all the fuss was about.

What I found was a page dedicated to someone, who, in the pursuit of his 15-minutes of fame, had made grievous errors in judgment. These errors will now follow him for the rest of his life.

The Beginning of End

It all started innocently enough. Tim Martins is a First Officer (co-pilot) for American Eagle Airlines (the regional carrier for American Airlines). He is also a member of the Airline Pilots Association (ALPA), which is the union representing thousands of professional pilots at several airlines.

In the wake of recent bad press surrounding the airline industry, ALPA decided to write articles in their member magazine featuring pilots who typified their Code of Ethics and set them up as "role models." Two of the tenents in the Code of Ethics include 'representing their airline with the utmost professionalism in both appearance and conduct ' and 'being a good citizen of the community'.

To be featured in an article, a pilot is nominated by a peer and then approved by top members of ALPA. Tim Martins was nominated, approved, and then interviewed by Jan Steenblik, a long-time technical editor for ALPA's magazine.

The article, entitled, "Mature Beyond His Years," was the cover story for the April 2010 issue. In the magazine, Tim Martins, who is approximately 25 years old, told the story of his "rise" through the aviation ranks.

Tim Martins claimed he had graduated from a flight school at 19, stated that he had worked at and was furloughed by Atlantic Coast Airlines (ACA - now defunct), started flying F-16s and was an active member of the NJ Air National Guard, and then was subsequently hired by American Eagle.

Further, in the article he claimed to be a FDNY firefighter / paramedic in his off time (quoted as saying he is carrying on a family tradition) as a member of Ladder Company 2 located in midtown Manhattan. He also stated he works in the food pantry at a church near his home and builds houses for Habitat for Humanity as part of his "community service."

Pretty impressive, right? The only problem is, about 90% of what he told the Steenblik wasn't true (a journalist not fact-checking a story is incomprehensible and unprofessional - but, that's another story).

"Outed" By His Peers

As thousands of ALPA members received the newest issue and began reading the article, there was no way to predict that this story would become a "runaway train" without any signs of stopping it.

First, you must understand that the aviation industry (both civilian and military) is a very tight-knit group, and pilots, like other true professionals, don't like individuals putting their chosen career in a bad light.

And, in my opinion, after working in the airline industry for many years, believe they have the right to expect that "one of their own" would not do something to put a "black eye" on an already struggling industry.

I belong to several aviation-related message boards where pilots discuss different aspects of the industry. One member started a thread about this article and Tim Martins, questioning the validity of the information.

What started as an innocent thread, giving Martins the benefit of the doubt (and questioning that perhaps he had been misquoted), turned into a real "fact-checking" mission.

After the thread was posted, several other pilots started to "chime in" with information to disprove what had been written about Martins regarding his airline career. He had never worked at ACA (verified through the seniority list from pilots who had worked there). He also never graduated from the aviation college he claimed in the article.

Then, other members questioned and found out from their military pilot counterparts that Martins had never been a member of the NJ Air National Guard. The military personnel were so incensed (they have every right to be) that Martins was purporting himself to be a military pilot that they called ALPA's national headquarters to bring this issue to light.

Further checking revealed that Martins also was not a member of FDNY Ladder Company 2 - not even as a volunteer.

But, it didn't end there. These pilots were now very upset. They Googled Tim Martins and found his Facebook page and LinkedIn profile.

On those pages, he claimed to be a pilot for Southwest Airlines, a Captain in the US Air Force, a Rescue Diver, and a US Air Force Academy graduate. His Facebook photo page showed pictures of him supposedly working at FDNY and in the cockpit of an F-16 (where he had given himself the name, "Timmy 'The Milkman' Martins").

The only fact that could be verified was that Martins was indeed a First Officer for American Eagle.

Opportunity to "Save Face"

In the true spirit of compassion, the aviation community gave every opportunity for Tim Martins to "come clean" and admit his mistakes.

However, Martins, even with all the facts staring him in the face, continued to deny that he had lied. He even made up "screen names" on these message boards to try to save his reputation by posing as "friends" who knew him and could verify his military background. It didn't work, and he finally "half-way" admitted he had stretched the truth a bit (that was putting it lightly).

But, by this time, it was too late. From there, the information went viral. Even the NY Post jumped on the bandwagon, as a freelance journalist, Christine Negroni, broke the story.

And now, Martins has the auspicious honor of having a "Facebook Fan Page" that doesn't shine a very pleasant light on him.

The Aftermath

Now, allegedly, Martins has been suspended from his job at American Eagle. If he gets fired, it will be unlikely that Martins will ever be hired into another job in aviation. He has shown that he cannot be honest, and trust is everything between flight crew members.

In addition, there may even be repercussions from Martins claiming to be a military service member under the "Stolen Valor Act." Further, I am certain that FDNY is not very happy with him either.

What Lessons Can Be Gleaned From This Story?

So, what can professionals and job seekers learn from this story?

First, live your life with integrity. Don't claim to be someone you're not. Be happy with who you are and what you have accomplished.

Second, don't post bogus information about yourself online or provide false information to a journalist.

Remember, every time you post something online, you leave a Digital Footprint that can be uncovered and used against you. Further, any comments you make to a journalist for an article will likely end up in print, and that information will never go away.

Third, know that if you do lie about your career, it WILL catch up to you. No one likes a "poser" and people will "out you;" it's just human nature.

Finally, if you do make a mistake, own up to it. Your co-workers will be more likely to forgive a mistake if you admit it and apologize.

Lessons Job Seekers Can Learn from Sears

This past weekend, I watched an interesting documentary surrounding the history of Sears. The story is fascinating, as it chronicled the rise, fall, and re-branding (several times) of the company since 1893.

The key theme throughout the history centered around meeting the market need through innovation and reinvention. However, there were times when the company believed it was unstoppable and ignored the competition.

As a resume writer and career strategist, I began to think about the relation of this story to job search candidates.

First, I believe it is important for readers to understand the history of Sears. Then, I will apply the lessons learned from Sears to job seekers.

The History of Sears

Richard Sears, the company's original founder, started his "career" as an agent of the Minneapolis and St. Louis railway station in North Redwood, Minnesota. He was delivering a shipment of watches that was refused by a local jeweler. Seizing the opportunity, he purchased the watches himself and sold them to other station agents, making a handsome profit. In 1886, Sears began the R.W. Sears Watch Company in Minneapolis.

He advertised for a local watchmaker to cut out the middleman. The person who answered the ad was Alvah C. Roebuck. From there, they entered a partnership, which ultimately became Sears & Roebuck.

Sears saw an opportunity to expand his newly formed company through the catalog ordering and delivery business, which was targeted to rural America. Through volume purchasing of every kind of merchandise possible, he met the needs of these customers who were getting upset with local merchants charging them double the wholesale price for everyday products.

Sears was not the best organizer of systems, and his catalog was so popular, he was having a hard time fulfilling the orders. So,  Julius Rosenwald, a Chicago clothing manufacturer bought into the company in 1895 and brought order out of chaos.

Sears & Roebuck grew exponentially over the years, and sold everything under the sun, including tools, bicycles (they made Schwinn a household name), violins, lumber, clothing, and home remedies. And, they guaranteed what they sold. However, some of the home remedies were "questionable" in nature, and the company decided to incorporate laboratories to test every product sold. This was the beginning of Sear's reputation as a quality retailer.

Innovation at Sears

Sears continued to be innovative, penetrating even more markets with the goods they sold or finding ways to boost sales. The most fascinating product to me was the "home kits." Individuals could purchase these kits and construct their own homes. This was Sear's answer to their lagging lumber sales. The largest order placed was by Standard Oil Company in a coal town and many of the homes are still standing today.

In 1924, Sear's opened the first retail store in Chicago to corner the market on "city dwellers" and it was an instant hit. The company expanded to numerous markets and became the largest retailer in the US, as they played on the theme of the "one-stop shopping experience." The company then decided to focus on the affluent customer. While it worked for several years, it eventually became the downfall of the company.

Complacency in the Marketplace

Sears had become very complacent, believing that no other company could topple their market dominance. However, K-Mart and Wal-Mart entered the picture, offering customers mass amounts of merchandise at a low price. Sears couldn't compete, lost market share, and went from #1 to #3 on the list of top retailers in the 1980s.

The Reinvention of Sears

Sears decided to reinvent itself by bringing on model Cheryl Tiegs to design a new line of clothes. They also opened AllState Insurance Company to meet the need for car insurance, and real estate and financial services and placed those offices in their retail stores. However, some of these ventures were short-lived.

Even though Sears tried to recapture the market dominance they once held, it was the opening of The Great Indoors, and the acquisition of K-Mart and Lands End specialty catalog, in addition to their quality products, including Craftsman Tools and Kenmore appliances, that proved to be most beneficial. Even though the retailer struggles today, the public still embraces the company as a trusted retailer.

Relevance to the Job Search

As a job seeker, there are many lessons that can be learned from Sears, as detailed below.

Find a need in the market and fill it.

Just as Richard Sears found a niche in the late 1800s,  job seekers need to look at the current job market and determine where their skills can best be utilized.

Be Innovative.

Sears continued to be innovative in their approach to attaining more business. Professionals need to be continually striving to either come up with new ideas to help their companies make money or meet a market need. Further, recommending and leading new projects that are on the cutting-edge of a particular industry are great ideas, as well.

Don't Get Complacent In Your Career.

Many individuals get complacent in their careers. They believe achievements or tenure with a company will be enough to keep their jobs. I have found this is not always the case with my clients. When it is time for downsizing at a company, there are typically two standards that are measured - performance and cost of the employee. Sometimes companies will cut the highest salaried employees to make it easier for them to reach the "bottom-line number" to achieve stability.

So, how can someone combat complacency? There are many ways to do this. Be indispensable to a company or industry by being a thought leader. Develop a blog focused on a particular industry. Invest in continuing education, sign up for extra projects, earn credentials, and build the "brand" of a person who is always abreast of the latest trends.

Always Be Ready for the "Unexpected."

Even if professionals follow the suggestions above, it doesn't mean they won't be replaced by a company with someone who is younger or less expensive. Watch company or industry trends. If it appears that jobs are at risk, be prepared.

Have an up-to-date resume with measurable accomplishments and the proper format depending on position level. Start connecting with people now through LinkedIn or other social media websites. That way, if downsized, time won't be wasted locating people who could assist in the job search.

Reinvent Yourself.

As mentioned above, if your industry is in turmoil, figure out a way to reinvent yourself so you won't be left behind. Whether it is training in a new field or determining how to exploit your old industry, such as being a consultant to companies in your field, put the skills you have gained throughout your career to good use.

Always Develop and Guard Your Reputation.

My dad always says that the only thing you really "own" in this life is your reputation. Guard it well! No matter what, Sears has always had the reputation as a retailer than can be counted on with quality products.

Develop and guard your reputation. Be the trusted source of information, help other people with their careers, always be willing to take on a task without complaining, don't gossip about others, and be pleasant in your work environment.

In conclusion, if you approach your career with tenacity, innovation, preparedness, reinvention, and a stellar reputation, the likelihood of landing on your feet, no matter what shape the economy is in, is greatly increased.