Possibly getting laid off...thinking of going into business for myself. Any tips?
 

After working for a major broadcasting company in the Atlanta area for over 12 1/2 years, my position (and that of some of my colleagues) is being eliminated at the end of the calendar year. I have a strong loyalty to this company as it's one of the best in the business, they have many opportunities (hoping to land one before the year is out), the pay is appropriate and the benefits are good. Since I've worked for the company for so long, I'll have a severance package that will keep me "afloat" for awhile (six months of pay with benefits).

So unless something changes, I'll be paid through the end of June, 2013.

In the interest of (nearly) full disclosure, I'll be 37 come late December. With my "Christmas bonus", I will have made about $75K this year. I have a wife who also works for this same company and makes slightly more than I do. We have a 2 1/2-year old daughter.

I have upwards of $100K in my 401K plan. I have nearly $20K saved in a high interest savings account. I also have about $15K in a TD Ameritrade account. I "cashed out" on about $14K worth of stock (luckily just days ago before the market took a big hit).

I have ZERO credit card debt. My car is paid off. I have no student loan debt.

My wife and I have wanted to have a second child, but when I heard the news about my job being eventually eliminated, we have since put such plans on hold.

All this being said, I've pondered going into business for myself. It would probably be in the field of videography and/or editing (i.e. weddings). I've also had ideas for multiple different websites (including a potential competitor to SlickDeals), TV shows, iPhone apps, etc.

Has anybody here gone into business for themselves? What would you recommend as the first step?

My best advice is to start as a side-hustle and grow it from there. Unfortunately that might not be the case for you. The things you mentioned (other than TV shows) have fairly low startup-costs. A website won't typically turn into an overnight success. Start building a few now and see what happens.

Find a replacement job, either at your current company or a new one. Work on the side while at the new job, since most of what you describe could be done in off-time or scheduled.

It's going to be tough starting out. And while you may be afloat until June, it could take much longer than that before you make a livable wage. If you augment a full time job with side work, then you can get a feel for it without taking a huge risk.

Whats the competition like in your area for such a venture? What do they charge? How busy are they? Etc.


As for websites and iPhone apps, I assume you are doing them yourself, again a side-work kind of thing. If you're hiring someone to do them for you, keep in mind the cost for them to be developed. Also look at similar sites / apps. Unless you get a LOT of users, you aren't going to make a livable wage very quickly.

A lot of people want to work for themselves, unfortunately most businesses fail because of poor management. IE, poor implementation, saturated market, too small of a market, high startup costs with long term ROI that isn't affordable, etc. If you're emotionally involved in a business, you will make poor decisions.

Edit:
Also, Can you live off of just your wife's income if you cut back, and without dipping into savings? Can you continue to contribute to retirement off one income if you cut back?

What kind of hit would your career take if you stepped out for 2 years right now? IE, are you in a fast-growth period, or can you afford to step away for a couple years and return if needed?

If your career can take the hiatus, and your wife makes enough to live off of without touching savings, then go for it, you don't have a lot to lose.

If it's a financial hardship, then you need to work at least part time so it isn't. If your in a growth phase then you should keep working until you are at a good point to put your career on pause, should things not work out.

Video/editing for weddings are tough. People choose to pay for photography before videography. I have 2-3 friends in this field. Most do it part time in addition to their day job. One does it full time; however, he does not support a family.

As a videographer, be willing to accept photography jobs. Also i hear to set your prices high. People who low ball you will probably make you hate going into business on your own. Weddings vendors rely highly on recommendations. If someone hears that they booked you for 2000$, they will expect all their friends to pay 2000$. If you feel your work is worth 3000$ start there. Set the bar high. Your work will speak for itself and people will feel the value of 3000$.

You also need to build a portfolio. Start shooting birthday parties, engagement shoots, etc etc. anything that allows you to collect footage. Shoot at all parties occasions etc. spread the word, share your work. Hopefully someone will want to pick you up to do their wedding.

Photography/videography is not just about shooting and editing. Its about business relations. How well you understand the couple, the guest, the host. Talk to them, be warm, dont be arrogant.

If we took our daughter out of daycare, we could manage with little to no dipping into our savings. However, my wife wants to keep her in daycare...at least for the six months that I'm getting paid severance. If I'm still jobless at that point, we'll have to re-evaluate. Even if I took care of her, the ~$1000/month we would save would just be a fraction of what I'd be out due to no income.

I felt like I was on the verge of a promotion, but...as I've held my current position for eight years, I would think that I could "step away" and still return to my "career" should I desire to two years from now.

Thanks for the tip(s). $2000 sounds a bit higher than where I planned to start -- especially since I figured a lower initial fee would welcome more clients and help me to establish a bigger/broader portfolio.

I have shot a few weddings -- including one with a professional quality TV camera. Authored a DVD with menu(s), etc. It was a few years ago, but I have at least one sample of work. It was for a friend, but I always told myself that if "crap hit the fan", I could do this as a side business (or full-time business) to supplement my income (or become my income). I have some additional skills that I'm guessing many other videographers don't and some additional "tweaks" that others might not implement. I think I could really stand apart once I established myself.

When my wife and I were married in 2004, we were able to get VERY basic videography for $300 to $400. He shot our wedding and reception and gave us the mini DV tapes. I edited them myself and created DVDs. I have basic photography skills but wouldn't feel comfortable just yet having that be one of my "packages" for clients. I would think that if it's cheap enough (i.e. $1000 -- trust me, I'd make the package worth it), they could have the best of both worlds -- the photographer of their choice PLUS video coverage of their big day -- as handled by yours truly. Once I've established a strong network, I foresee it running around $1250 - $1500 (depending on what they wanted in their package).

There is one other thing I've pondered doing for weddings to include in a package (as an upsell). I highly doubt anybody in the country is doing it -- however, I'm still debating if the demand for the product would justify the investment for it.

I think your best shot would be videography for the short term. When we looked into getting a videographer a couple years ago, we found that many were still shooting in SD, with DVDs as the only option of getting the video. We found a couple that were HD but one charged a huge fee for Blu-rays while the other was younger and more reasonably priced. We ended up going with him and he did a great job. I think many other couples out there are looking for HD quality like us, and if you make that a selling point, you could steal some potential clients away from the existing videographers in your region.

If you truly have talent in shooting and editing video, then with the right equipment, and a couple smart marketing decisions, you could probably start hitting 10 or 15 weddings next year and then grow from there. The key would be finding something to do outside of wedding season.

Bwahahaha, check this out when this thread tops the forum . . .

http://slickdeals.net/forums/foru...ay.php?f=6

Most videographers in the southern california region use a Digital SLR to capture HD video. HD is almost a must.

Its been a recent trend to make the video almost like a music video. They are actually pretty awesome. 3-4 staff members and maybe even someone ready to edit day of footage right before the reception.

muahahahhaa :lmao:

That is one of the things that I feel that I could offer that few others could -- HD-sourced video with the final product delivered via Blu-Ray.

If you don't mind me asking, what price range did you end up paying? If you're not comfortable sharing with the public, a private message would still give me an idea of what price range is tempting for some people.

Thanks.

Perhaps I should edit the title to say "PROBABLY"... :bounce:

I think it was around $1200 or so for our videographer.

:rofl2:

Umm, that's a poor real bad idea financially to keep her in daycare if you are not working. Why should we try to help you if you can't even do the obvious.

Actually, it's not so obvious. Just because I might not be holding down a paying job doesn't mean I wouldn't be working -- or working towards securing my career.

There are a lot of things I could be doing that wouldn't allow me to watch my daughter.

1) Job hunting.
2) Interviewing.
3) Working for free at the company I currently work for. Why, you ask? I can't get paid or it would negate my severance. I'd get experience that would hopefully lead to a full-time position eventually and if nothing else, it'd be experience I could put on my resume to help land a job somewhere else -- or with the company later down the road.
4) Taking steps to start a business for myself. I might not be pulling in a paycheck -- and might actually be making investments in equipment, etc. -- but you can't work towards starting a business if you're tending to a toddler all day.

Beyond these, my wife strongly believes that her having the social interaction and educational experience from her daycare/school would be very beneficial.

Does that help clear things up?

As a long-time, dyed-in-the-wool entrepreneur I applaud your consideration of becoming one yourself. It takes courage to make that step and I admire you're considering making that step.

First and foremost, have you written a business plan? A business plan will show you many things you didn't and couldn't know before you wrote the plan as well as help you gain much better advice from others.

Second, go see a counselor at SCORE [score.org]. You can get free advice from fellow and former entrepreneurs who volunteer their time to help others who want to become entrepreneurs such as yourself. They can help you develop a business plan as well as review it and strengthen it once its written. You can gain some very valuable information from them.

Third, now - in a down economy - is the very best time to start a business because everything you need to start it costs less.

Becoming a successful entrepreneur requires a completely different mindset than that of an employee. There are many potential pitfalls, much more responsibility, much more risk . . . but, all of that is balanced with the potential for much more reward.

Any questions in particular?

Daycare on one income makes no sense for several reasons:

(1) you can interview and job hunt with her at home. Schedule phone interviews, search for jobs, etc during her naps. If you live near family, drop her off at a willing family members home during your in person interview.

(2) You can work on your start up with her home. You set a schedule with her and work within the schedule.

(3) Your daughter is better at home than daycare. Social interaction yes but teaching no. That is not the job of daycare. That is school. My son stayed home until 2nd grade. He tested above average and his maturity is above his classmates. There are tons of studies that show kids who stay home fare better than those in daycare; it is the one on one with the parent (s). I see it with my sons friends who are forced into after school.

Have you stockpiled? Are you prepared to take care of your daughters needs for at least a year should you not secure employment? If not, I would take the money from daycare and move it towards preparing for long term unemployment. The last thing you want to find is both of you unemployed and kicking yourself for paying for that daycare. If you think it can't happen, think again. I've seen it over and over in this economy. You've been given a generous package and notice. Most were not given these gifts when they lost their jobs.

deleted

Nearest family is over 1,000 miles away. And technically, it would still be on two incomes as I'd be on severance. We said we'd "reevaluate" if I'm still without a job when my severance dries up.

I must be a horrible parent. I find it very difficult to get much productive stuff done during her 90 minute nap. My wife always says "job hunting is a full time job". Not sure 90 minutes per day will suffice.

In some regards, it IS the job of the daycare...they have a curriculum that is tops in the country (yes, even as an infant/toddler). At 2 1/2, she's already counting to 20, reciting the entire alphabet, carries on conversations (not just babble or random words). Some of that might be genetics, some of it might be her upbringing at home, but...

By the time my severance runs out, I'd have another six months of pay saved up...so yes, I should be good through the end of 2013...and that's assuming I find no part-time work or any other method of income between now and then.

Brian,

Thanks for your reply -- I have a feeling you / your feedback will be a great resource.

First, I haven't written a business plan yet. My first question for you would have been: "What's the first step?". Now I know. Not sure what all goes into a "business plan" (if there is a strict format), but I guess that's step 1.

Second, I'll check out the website -- thanks for pointing me in that direction.

"There are many potential pitfalls, much more responsibility, much more risk..."

Therein lies a bit of hesitancy. I've never gone into business for myself before (naturally). I've worked for this company almost since I graduated from college, so I've had a great career infrastructure supporting me almost my entire professional life. It's hard to ponder how one can live (work successfully) without that.

Other questions would be best way to market/promote your business? How to grow it? How you make sure the investments you make won't just be money flushed down the drain?

I definitely need to start with "Step 1", though. I'll try to get started on that this weekend.

Theedge, my family lives 1,000 miles away. Sounds like you need to be honest to yourself and maybe this will make you rethink about that second child. No offense meant but I am pointing out what you are indirectly saying .

:iagree:

That and the whole keeping your kid in childcare should be a no brainier. If you are unemployed you don't have an extra $1000/month t0 throw away like that! If unemployed you have to figure on it potentially being long term so you might really need the money at some point.

Yeah, my wife and I both agree that until I find something, our daughter will be an only child.

We have pondered moving "back home" eventually as I know my parents and in-laws would love to be closer to their granddaughter...and I might have a career opportunity with the university I went to. It just needs to materialize. Even then, though, we'd have to find something for my wife.

just to clarify, your wife, despite being in the same company that is laying off employees such as yourself, is expected to keep her job in the future?

Correct. She's in a totally different division of the company.

My husband and I have been self-employed for 25 years, basically our whole working careers. There's nothing quite like that feeling when the economy goes in the crapper and suddenly the work isn't pouring in like it used to. We got used to living a certain way. At least you will have your wife's paycheck, and I'm assuming she will cover you under her health insurance. We are insurance poor, it never ends when your self-employed. I'm glad when times were high we saved, saved, saved and paid all our debt down. We're not digging through dumpsters yet. Good luck with your venture.

Only clicked this thread to see the "Probably getting laid..."

disappointed. Carry on.

me too :D

It's completely understandable that you are perplexed as to how some can thrive without the "structure" some get from being an employee. Don't let this worry or concern you. It's just like anything else: you'll learn, you'll adapt, and, before long, it will become natural to you. And, after years of being an entrepreneur, you'll think back to how you used to look at the world and realize that it's completely different than your old way of thinking - a huge paradigm shift. It'll be gradual, so you won't notice it as much along the way. But, down the road, you'll realize just how big of a paradigm shift you're having and will continue to have.

How's your business plan going? Two fantastic sources for step-by-step guidance on how to write a business plan are the guys over at SCORE and the book Writing Winning Business Plans: How to Prepare a Business Plan that Investors Will Want to Read and Invest In [amazon.com] by Garrett Sutton [amazon.com]. This book is a very easy-to-understand, simply written, but extremely thorough and effective guide on how to write a successful business plan. I'd get this book even if you do go visit with a counselor over at SCORE - it's that good.

As far as how to market and grow your business, I can't help you with specifics on that yet until you know exactly what your business will be. Again, as you said, your first step is to write your business plan. So much information will be garnered from that plan and so much will be learned from it as well. It will answer many of your questions you have now and will have in the future.

As far as how to make sure your (and potentially others') money is "flushed down the drain", you guessed it, your business plan will be the best thing you can do to help guard against this. Here's why: Many, many business-owners-to-be don't write a business plan. They come up with how much money they need to start their business in their head or maybe on a sheet of paper. They figure out how much they'll need in upstart capital to open the doors and, once they've got that amount of money, they think they're ready to go. All they've got to do is open the doors and customers will start coming and all will be well. Well, it almost never works like that. Just because the doors are open doesn't mean people will come. We have to do more than just open the doors and it takes more time than just a few days or weeks for our customer base to grow to the point that the income can support our expenses, much less make a profit. Right here is where many new business owners fail. They fail because they didn't figure out how much money they'd need to not only open the doors, but to keep the doors open even if no customers walk through the door for 6 months, or even if they don't turn a profit for 2 years. This is exactly why a business plan is so vitally important. Because it will show you just how much (reasonably speaking - it won't be to the penny, but you'll have a far better idea than if you didn't write the business plan at all) it will cost to not only open your doors, but to keep your doors open for 6 months, 1 year, 2 years, 3 years, 5 years, and beyond. It will show you all (again, reasonably speaking) of the expenses you might not have thought of otherwise that would have been painful surprises. It will force you run different what-if scenarios with regards to how much income your business takes in at different stages of its life. Ultimately, it will help you become prepared - and that is a huge key to being successful in business.

Please don't let all of this overwhelm you. It's not as challenging as it may seem. Just take it step-by-step. Yes, it involves more work (upfront, but hopefully this will decrease dramatically over time if you wish for it to - that's one of the blessings a business can offer you: as your money increases, your work load can decrease). Yes, it takes more courage. Yes, it involves more risk. But . . . it also can reward you with a level of time, money, options, and freedom you can never find from a job.

To be brutally honest, I didn't have a chance to start this weekend. Did other job hunting, LinkedIn networking/updating. I applied for a job via LinkedIn that is a GM position that doesn't pay a ton, but seems like it'd be a strong career move -- and it was started by somebody who wanted to go into business for himself. It's got a solid groundwork and is profitable in New York and Atlanta. So it'd perhaps "ease the transition". No, I wouldn't be in business for myself, but it would be a business in its infancy that I would be part of the "building process" and could learn a lot along the way and gain a ton of valuable career experience.

Sunday I barely had a moment for myself. Worked on my "day off" from the moment I got home from church until I went to bed at about 1 AM Monday. One more week of "really busy", then I have a week off before one more week of "really busy" and then I'll have nearly a month with little to nothing to do for my job. A perfect time to network/job hunt/work up the business plan.

I might not post much over the next few days...but when I do have time, I'll start at square 1 using the site you recommended.

In the meantime, thanks for all of your feedback and support.

OP may want to change title.... if you click on "Forums" and this thread is the first one in the Finance forum, it says "Possibly getting laid...."

I feel everyone should a) have a business plan and b) have their own business, I don't care if it's counting toothpicks.

If nothing else, a business plan just helps you focus on what's really important and then break it all down into the what, when, how, where, why, etc. And I hate to say it, but if you're really passionate about your choice of "job" then the money will come as a bonus.

Do what you can to keep everything on the DL and work for straight $$$. I mean it. It's income, you earned it and you should keep it. All of it. If the entrepreneurial spirit wasn't crushed by red tape and ridiculous State bureaucracy, this nation might actually have jobs and that GDP thing. /rant.

This is the idea I have.

I have 6 nieces/nephews and attend way too many pee-wee sports events. I've wondered if I videoed the entire "game" I was at and captured a fair amount of time on camera for each kid if I could sell them to the moms. I have thought of adding in some commentary or scrolling some comments.

Or compose the season into highlights DVD for each kid.

In a more positive economy, this is an idea. However, when 3 out of 10 households can not afford enough food to avoid hunger, I would be wary.

Stop watching Faux News you nutjob, and spreading their bullcrap wherever you go.

If they can afford to put their kid in peewee football, they can afford to buy a DVD of highlights of their kid.

And this is another reason not to put more then matching into a 401k account.

It's restricted until they tell you you can touch it at the age of 62.

What if you want to use it for investments like real estate, stocks, dividend growth, startup businesses, online businesses, some future tech business like apps but 10 years in the future?

To me 401k's are like Social Security Taxes. They gladly take and take while you work and work and work, wondering what you are working for, then they tax you either upon death or when you reach the age restriction they set.

I cringe every time I hear someone give advice to new entrepreneurs to write a business plan.

if you didn't put $100k into a 401k, then you could have 25 dividend growing stock positions, paying out about 6% in dividends and growing each year, or $500 a month, that would be helpful coming up (no matter what the fluctuations of the markets are) and/or support you as you develop a business startup a few times.

I don't see why people lock up there money for someone else to play with all their lives, but that's another topic.

For now, you are doing well! Pat yourself on the back because only a handful of people make it this far. Welcome to the 1% of Creditors, while 99% are debtitors in the world.

Continue to save money and put your efforts into creating something awesome like a business, websites, inventions, apps, websites, estores, product combinations, etc when your freetime is given back to you. Turn many hobbies and skills into full time passive incomes. Be your own Boss of your limited Time here on Earth! Be frugal and be happy! Have as many children as you desire, don't let other's scare you off or put fear into your head, and say " You must work for me slave and have no children!" all because they say you cant "afford" a child. Even caveman had as many children as they desired with their cavewoman, and they made it just fine!

Please explain how doing all of the active work required to start a business, develop websites, etc etc somehow equates in your mind to passivity.

Another poster mentioned videoing pee wee games. That might be a good idea. You could find out when pee wee tournament games are happening, then go to each team's practice and advertise with flyers, talk to parents. If there is enough interest that it is worth your time, then do that. Also dance recitals, gym meets, etc. Call up local dance studios and gymnastics places, high school tournament games.

Most importantly, make sure someone is willing to buy your video before you invest the time in making one.

I am cringing at some of the "advice" in this thread.

If you are going to do photography/videography, I wouldn't start with weddings. Screwing up the wrong wedding can get you sued, and insurance for that is expensive. If you are interested in photography, senior portraits are a good way to start out, there will be many parents looking for cheap senior portraits in this economy. Do shoots at a park during the day and you can keep your startup costs low (you wouldn't have to invest in lighting right away).

Good luck OP with your job hunt. Do you work at CNN?

You're in a great market for this line of work. Lots of people are moving to Atlanta now, many of which are, or should soon be in the market for services you are offering.
I have a good friend who struck out on her own in the DMV area doing videography/photos for weddings and such. After advertising her biggest issue was credentials. ie Proving she knows what she is doing and is good at it. In your case, the credentials are rock solid. Facebook page, business cards and promo flyers should help you get started. At your age you must have a few married friends coming up on anniversaries. Offer to take their shots to build a quick portfolio.
Personally, I think you should use your weatlth of contacts and reach out to other industry professionals and line up a new job before June rolls around.
Good luck.

job hunting is not a full time job for me. It's a draw of luck because I have only 5 years of working experience and so a lot relies on my education background. 2 hours a day is all you need to write a cover letter and apply for jobs online. Yes I have spent past year looking for a job and recently got one which is even better (the nature of the work and the compensation) than I expected. I say just have the mentality that you are a job seeker and it's something you want to do every day like a job but not taking all day to do it.

Meanwhile you can take care of your daughter, take online classes (credited if you want a degree), start doing research on your business, and be a house-husband and handyman. It will be a big change but at least you get to spend time on things that's good to learn and otherwise you don't have the time to do.

Even with tough employment market out there, I still believe something good will eventually come along if you pay attention long enough, kinda like spotting SD deals. Even a part-time job is good if you just want to get out of the house and earn some money but I don't think the severance payment will continue if you start to have an income from a part-time job.

So everyone should have their own business and commit tax fraud? Got it.

Business plans are not a bad idea, but I'd put more emphasis on actually getting customers instead of figuring out the business aspects.

You could have a brilliantly written plan for a business that customers simply aren't interested in. It's easy to convince yourself that what you have in mind will work; it's also easy for your friends and family to say "that's not a bad idea" (maybe just out of support) but the reality check comes when your customers are or aren't willing to pay for what you have to offer.

Once you have regular customers and sales are rolling in, it becomes a much more solid foundation for you to figure out what to do. Need to figure out accounting? Hire an accountant. Hire a lawyer. Hire employees. But not before you have your first sale.