A few weeks ago I went out for drinks after work to meetup with some local bloggers and entrepreneurs.  I had been debating back and forth whether or not to go out or not since I’ve been on the road so much lately and am usually completely zonked after being at the office all day.  In the end I downed a cup of coffee, grabbed my wallet, and headed out, which I’m super happy I ended up doing because I had a blast and met some very cool people.

One guy I had the pleasure of meeting is Ryan Ferrier of Bootstrap My Life, an entrepreneur who knows first hand that “radical professional (and personal) transformation is possible.“  Ferrier found ways to change his life completely around for the better and is a perfect example of how rewarding and fun it can be to have an untemplate lifestyle.  He went from being unemployed to becoming an internet executive in only four years without an MBA or an IT background!

Ryan Ferrier has hired hundreds of people in his experience as a startup operator and executive and did you know that he was a cofounder or early team member at 3 successful startup companies, AND that his companies were acquired by Microsoft and Zynga?  How sweet is that?!  Ryan is a wonderful inspiration and I’m happy I get to share some insights into his story with you this week.

Sydney: Did you always imagine you would become an entrepreneur growing up?  Why/why not?

Ryan: Not at all. I thought I was going to be a school teacher or a pastor. I never really thought of myself as the business type. I’ve always really liked connecting with people and communicating – whether it be through public speaking, writing, or leading groups.

Turns out, though, that all of those skills are *really* helpful in business – particularly connecting with people and being able to navigate complex interpersonal situations.

Sydney: What was the first thing you did after college? Did you jump into cofounding startups right away?

Ryan: Nope. I did an internship with a program called Mission Year.

As a part of the program, I moved into a low-income neighborhood in Oakland where I worked with a couple of non-profits. The purpose was to connect my new neighbors to existing services that they could benefit from.

I spent my time connecting with with teens and twenty somethings, most of whom were dealing drugs. I mainly just made friends with them and tried to help them find jobs off of the streets.

The two years I spent doing this work changed my worldview dramatically. I can’t say that I was the world’s best social worker, but I made a bunch of new friends who taught me a ton about life.

Sydney: What are some of the funniest stories or responses you’ve had in your recruiting experience?

Ryan: Some of my funniest, oddest conversations have been trying to convince an engineer’s spouse (not the engineer) why my startup was a good fit for their family.

Often an engineer will get excited about joining the company, but their spouse will wonder why the engineer doesn’t choose a bigger, more secure company.

I’ve had to read a spouse our company’s bank balance to prove that yes we had money in the bank for paychecks.

Sydney: What type of work experience is in the most demand at startups right now in Silicon Valley?  Entry level, 3-5 years experience, 5-10 years, MBAs, what type of undergrad degrees?

Ryan: Without question, engineers. There are new startups everyday, and they all fight for the best engineering talent.

As well, startups are beginning to do more email automation for their sales and marketing. So talented, metrics-oriented marketing people are also in demand.

Finally, I think there is a sort of “backdoor” into a Silicon Valley tech company for those that are on the non-technical side and don’t have an MBA.

Every startup needs someone to keep the company running and do all of the dirty work, from filing to setting up payroll and benefits, to coordinating between groups.

The position might be called Office Manager or Operations Manager or even Executive Assistant.

It’s a good way for a non-technical person to sneak into a startup and work their way up the business side of the company. In fact, that is the route that I took.

As far as years of experience, a lot of start ups skew towards those with less experience. People who are earlier in their career can usually afford more risk and are generally more willing to take a lower salary in exchange for equity in a company.

Sydney: When do you think a small business should hire contractors vs employees?

Ryan: My approach is to start with less commitment on the company’s part and increase that commitment both as the company develops and as you get to know someone better.

Given the option of filling a role with a consultant or an employee, I would start with a consultant if possible. If after a few months it is clear that this is a full time need then you could hire an employee – perhaps, even hire the person that has been consulting for you.

That said, be very careful of how you classify people. If someone is acting like an employee, but you are paying them as a consultant you can get in trouble with the IRS and the state because you are essentially avoiding paying taxes for that person.

Signs that someone might be classified as an employee:

- they work out of your office using your equipment
- they work only for your company
- they have little autonomy over the work they do and their schedule
- Here’s what the IRS has to say about it: www.irs.gov/pub/irs-pdf/p1779.pdf

Sydney: What are the most common fears people have in switching careers? How often do you think those fears actually happen?

Ryan: That they’ll never be able to find a job in their new career. Or if they are starting their own business, that they won’t be able to get their business off of the ground.

Honestly, I think both happen frequently. It is often difficult to get that first job in a new career, and it is certainly difficult to get a small business off of the ground.

Making a switch will be difficult. That is why people fear it.

That said, I think people over-dramatize the a worst case scenario. If you can’t find a job in a new career or can’t get your business off the ground, it is not the end of the world.

Normally, if people have to, they can jump back into their previous career in some form or another.

As well, people are far more resourceful than they give themselves credit for. I have noticed that the people who just continue to show up eventually break through and land a job or get their business to work.

And once people have a breakthrough, it’s off to the races. Often the outcome looks different than what was originally envisioned, but that’s part of the fun.

Sydney: Do you have any interest in working full time at a corporate job later on?  Why/why not?

Ryan: Timely question. I’ve actually recently entertained offers at a couple of companies, including a cool opportunity at Facebook.

In the end, though, I decided to keep going with my startup and small business coaching practice. I’m just too passionate about it, and I’m having too much fun building it.

The question that I asked myself that sealed the deal on my decision was actually one that I got from Marie Forleo:”In ten years will I regret not taking this opportunity?”

The answer was “Yes” when I thought about building a coaching practice, and “No” when I thought about joining another tech company.

Over the weekend as I was sipping some tea, I got to thinking about the relationships in my life and those that I’ve observed.  There are a lot of reoccurring themes that either make or break a partnership, and I bet you’ve experienced a bit of both.

What I’ve experienced is the more we learn about ourselves and those around us, the more healthy partnerships we have for the long term.  And the partnerships that we’re a part of that survive through thick and thin, adapt, grow, and get stronger with age are simply priceless.

The Binds Of Brotherly Bonds

Once when I was traveling, I happened to see a show by a band named Journey South.  If you haven’t heard of them before, Journey South is a pair of brothers hailing from a small town called Middelsbrough, England. They were a finalist on X Factor UK in 2005 and Simon Cowell signed them to a record contract! On March 26th, 2006, their debut album entered the UK Albums Chart at No 1, selling 216,000 albums in its first week.  …Unfortunately, that was the peak of their success.

Journey South is an excellent cover band, but I think their greatest opportunity has passed them by.  What’s the relevance?  Well when I saw them perform, I couldn’t help but wonder what they could have done differently to achieve greater success.  It seemed so obvious to me that Carl Pemberton, the younger, much better looking, more talented brother should have gone solo and rocket launched his career.

After all, Carl Pemberton is a stronger vocalist, plays the guitar, AND plays the piano! His older brother Andy also has a good voice, but it just isn’t as good, and Carl’s talents pretty much blow him out of the water.  However, because Andy Pemberton is the older brother, he takes charge as the lead singer and does all the talking.

Putting on my American Idol judge hat, I would have told them to at least switch things around, if not tell Carl he should consider going solo.  And I have to believe Simon and many other industry veterans told them the same thing. Yet, as any younger brother would do, Carl stayed loyal to his family and they continue to perform together.  Maybe Carl could have made it big if he went off on his own, but that wasn’t the path he wanted to take.

Making Sure Your Partnership Lasts For The Better

In any type of partnership, be it a band or a business, there has to be a clear delineation of each person’s strength’s and weaknesses. Ideally, all partners carry the same desire, ability, and work ethic, but we all know that this is seldom the case. I often get frustrated with partners who don’t pull their own weight, and I’m sure others have been frustrated with me as well.  What’s important is that we learn from our mistakes and find the best people for our needs and goals.  Here are 7 tips on creating a healthy partnership for the long term:

1. Align your visions.  If one partner wants to achieve a million bucks in revenue by year 3, and the other partner is happy making $200,000 a year by the same time, there is going to be an awful lot of disappointment. The first partner might work twice as hard and be that much more stressed than the more happy-go-lucky partner. Your objective: get on the same time-line and share the same goals.
2. Understand your strengths and weaknesses. Make a list of the three things each partner does well, as well as three things each partner does not do well. Create a task list where each partner focuses on his or her strengths. There will be areas where both partners do poorly, so handle those difficult tasks together as a team. 
3. Make sure work spent is commensurate with rewards earned. There’s nothing more deflating than doing all the work yourself and watching someone else get all the credit.  It’s happened to me before and it sucks.  Don’t let it happen to you!  Remember, work and rewards doesn’t have to split 50/50 either. If you know you can’t put in equal commitment, say so up front and therefore agree to a less than 50% reward. If you know your partner has limited time to work on your project, bring it up and discuss how you want to allocate the workload.  You’ve got to be honest with yourself and with your partner. Trust is tantamount.
4. Always keep your partner updated on what you are doing. It’s easy to assume someone is working hard or slacking off. Perception is reality. If you find you’ve been working overtime, make sure you keep your partner up to date on the hours you’ve put in and the details of what you’re doing. The last thing you want is to be taken for granted. If you have managers, keep them up to date with what you are doing and how you are helping your team.
5. Celebrate small wins. Starting a business, running a division, and trying to make it big in music are tough tasks. It’s way too easy to just give up, and fail. One way to make sure you keep the momentum going in whatever you do is celebrating small wins. If you managed to lock down a client after 3 months of trying, take your partner, or your friends out for drinks and celebrate! If you’ve managed to move up in the rankings, celebrate that too over some dinner! Take pride in your achievements and don’t dwell on your failures.
6. Have open conversations and recalibrate if necessary. Each quarter, sit down with your partner and discuss whether you guys are still on the same page. Do not let visions diverge too widely because that will only lead to dissension. Sometimes, however, things change and that’s just life. Your partner might get married and have two kids, limiting the time she has available to work on your joint venture. That’s OK, just recalibrate the reward if you still want to work together. And if your partner has had enough and is simply too burnt out to continue, that’s OK too, just recalibrate the reward by buying him/her out.  Don’t let someone who has lost their ability or interest to contribute drag you down and inhibit your ability to succeed.
7. Don’t lose sight of the big picture. If you’re working around the clock in a competitive market, it’s easy to get overwhelmed with insignificant details and lose sight of the big picture.  Those late nights and massive road bumps will get you down, oh how I know, but they also make you stronger. Remember you have more than you think and make the most of what you have in the moment!  Don’t give up, and always keep your end goal in mind. Put up a picture of a beautiful island, your daughter, or a bullseye on the image of your biggest competitor to remind yourself about how sweet things will be when you reach your end game.

You’re On Your Way To Healthy Long Term Partnerships

We will never know what we’re capable of unless we try. It’s hard enough to create your own success all by yourself.  But it can actually be even harder when you combine efforts with someone else, or a group of people, and you don’t work well together.  Even if you all start off with the same goals, things are guaranteed to change over time in one way or perhaps many ways. As a result, it’s important to always have open conversations and reassess accordingly.

Nobody will be upset if you are getting 10% of the reward if you are contributing 10% towards the initiative. But partnerships quickly break down when someone gets more than their fair share.  And sometimes you just have to recognize when a partner is holding you back.

Untemplaters, have you ever been in a relationship when your partner didn’t pull their weight? How have you dealt with troubles in your past and present partnerships? What tips do you have to make sure everybody participates and gets rewarded commensurate to their contribution?  Would you ever want to go into business with your sibling?

As of right now, I’m on sabbatical!  Yeah baby, yeah!  After some discussion with my various colleagues, I’ve decided to take a one month paid sabbatical to rest, rediscover, and go on an adventure.  I could have done longer, but the second month is only 80% paid, and the third month is even less at 60% of paid salary.

You thought I was kidding when I wrote, “Should I Take A Sabbatical: Fears, Preparation, and Execution!” didn’t you?  Now you know when I write lengthy posts about making a change and enjoying life that I’m not messing around!  I’ve spent 13 consecutive years working in my same job.  I’ve saved up a good chunk of change and I’ve been itching to do something new ever since I launched Financial Samurai three years ago.

Taking a sabbatical is the first step towards discovering whether or not I can take the leap of faith and do something fully on my own.  Do anything for a while, and it becomes increasingly harder to cut the chord.  Why do you think swans die when their mate passes?

One of my biggest fears is looking back on life and regretting not taking more chances.  Living in any developed country like the USA is easy compared to hundreds of other countries around the world.  I’m not afraid of dying, I’m just afraid of not living life to the fullest.

NEW FEARS AFTER OVERCOMING OLD FEARS

Fear of failure is what’s driven me to work hard, save, stop complaining, and invest aggressively for so long.  My target ever since college was to be somebody by age 30.  I had 8 years to either feel like a success, or know that I was at least heading in the right direction.  I didn’t want to be an unemployed 30 year old, living in momma’s basement with no woman, no savings, and no friends.

My fears made me get into work at 5:30am and leave after everyone else so long as I could still breathe the first two years out of college. My fears during the 2000-2003 downturn made me go back to school and get an MBA, even though that meant putting an additional 20-30 hours of studying and class on top of my already 65 hour work weeks.  My fears led me to go travel abroad every year for 13 years straight because if I died early from a heart attack, at least I would have seen Sugar Loaf and the Taj Mahal.

I have new fears now:

* Am I being too rash with my career as someone in their mid-30s?

* Will I discover during my sabbatical that I will never want to go back to working for someone else?

* Will I realize that working online is only fun because there’s no pressure to make any money since I’ve got a job?

* Will I miss my friends, clients, and colleagues?

* Could the value of freedom actually be worth less than the value of money?!

There’s no big fear about not having enough money because that’s what saving and investing for the first 13 years post college was for.  I knew after I got my ass repeatedly kicked by rough bosses for the first two years in NYC that I would need to save a boatload in order to extricate myself away from the 5:30am-to-7:30pm+ life.

When 9/11 occurred, all I wanted to do was become a fireman or some sort of public servant, rather than work in the private sector whose sole purpose is to make more profits.  When the terrorist attacks occurred in Mumbai in 2008 at the Oberoi and Taj Mahal Hotels, I wanted to give up again because I had just stayed at the Oberoi two weeks prior!  Yet, I continued on.

YOU DON’T KNOW WHAT YOU DON’T KNOW

Ignorance is bliss, but I tend not to be too ignorant.  I tend to analyze everything as thoroughly as possible and set up alternative scenarios to plan accordingly.  In most cases, thorough anticipation is a positive.  However, in other cases, I can see the over analysis of situations as completely debilitating.

Folks right out of college have it good (unless they are saddled in debt).  Recent grads aren’t making much money, don’t have anybody to support, and hopefully haven’t gotten into any sort of heavy consumer credit card debt yet.  When you’re young, you’re free to do anything! The world is your filet mignon sandwich.

As you get older, you see the world as it really is, a structure of mazes which may or may not lead you to what you really want.  You can choose one path, work your butt off, but end up getting sideswiped by an economic collapse or an evil nemesis at work.  The only person you can really count on is yourself, which is kind of scary!

Whatever chance you get, please speak to someone older, or someone whose gone through what you think you’ll be going through.  Having a mentor is a powerful, powerful asset that will help provide you a more fulfilling life.  They’ll help you overcome what you don’t know.

SO WHAT IN THE WORLD AM I GOING TO DO ON SABBATICAL?

One month is going to go by in a cheetah’s eye.  As a result, I’ve created a plan:

* Work on Financial Samurai Online Services (FSOS Consulting).  I recently launched my online services to help aspiring or frustrated bloggers “Get On The Map“.  I plan to launch new service offerings related to getting into b-school, career, and financial consulting.  It’s been hard work, but very rewarding.

* Hire a developer to rework Yakezie.com and add new features.  If you know anybody, please let me know as I have money to spend.

* Meet online advertisement or consulting clients face-to-face or connect over the phone to develop deeper relationships.

* Work on solidifying at least one premier client whom I plan to invest a good amount of money in who will be a pillar advertiser on Financial Samurai.

* Figure out how to maximize a chunk of savings that’s sitting around in a 0.3% money market account to increase my passive income.

* Look for any other job opportunities (in paradise) out there in various industries.

* Test out the real estate market and put my house on the market after Facebook goes public on May 18, 2012.

* Take a week off and go to Hawaii to boogie board, hike, golf, and eat.

Holy $(@#!  Out of the eight things I’ve listed, seven of them are work!  Furthermore, I have no doubt that when I’m in Hawaii I’ll work at least 2-3 hours a day every day.

Newest Fear:

* Not feeling recharged and ready to take on the world after my sabbatical.

PROBLEMS ON THE HORIZON POST SABBATICAL

The reason why I titled this post, “Taking A Sabbatical And Never Coming Back” is because one of the most likely scenarios I see is that I’ll get back to work for a couple weeks and decide to engineer my own layoff (70% chance).  Another scenario is that I ask to do something different within the firm from some other location (10% chance, what’s better than SF?).  And the final scenario is that I realize how lucky I am to make good money and have a job (20% chance)!

I already know how lucky I am to have a job that allows me to eat the occasional toro sashimi dinner.  These past 10 years have been brutal in the economy, and I’m sure I had more close calls than I know.  I distinctly remember losing hundreds of thousands of dollars in my net worth in early 2009, hence the cathartic birth of Financial Samurai!  That said, the past is in the past and I’m focused on now.

Stability and money is very hard to give up, especially if a family is on the way.  But, how much do we really need anyway?  Do I really need $15,000 a month in gross passive income to really feel secure?  Or, is that just a fun goal to challenge myself?  Some people say that people get addicted to money once they start making a lot.  I say people start getting sick of money once they have money.  Instead, people with financial security tend to work on other things such as charitable initiatives, hobbies, travel, and so forth.  What say you?

EXHILARATION FOR CHANGING

Change is stressful, but oh so exciting.  Being an entrepreneur is a completely different animal.  You never, ever feel like you can go on vacation or are on vacation.  I’ve tried many times over the past several years to change my state of mind, but I couldn’t.  There’s always someone asking you for something, and always something you can optimize and do more of.

All I know is that I’ve had the entrepreneurial bug in me the day I graduated from college.  I’ve told myself several times in the 13 years of work that I should quit and do something else, but didn’t.  Taking a sabbatical is that first step.  I just hope I don’t step on a landmine or fall off a cliff!

Untemplaters, what would you do if you had a one month sabbatical right now?  Would you completely go see the world, or would you work overtime on your own potential full-time business given you know the end might be near?

I’d love to hear some specific suggestions on what you would do, and what you would do if you were me.

Thanks!

Sam

A lot of people are too scared to start a business because they’re too afraid to fail and think they don’t have enough money.  I had those same fears myself for a long time, but thankfully I got over myself and stopped being afraid of taking chances.  Life is too short to waste it living a life you don’t enjoy and to never take any risks.  After all, being frozen by fear and self doubt is exactly what our competitors want us to believe!

The $100 Startup

Chris Guillebeau has a new book out today called The $100 Startup.  It talks about how to reinvent the way you make a living, do what you love, and create a new future.  I was fortunate to get my hands on an advance copy as I’m a big fan of Chris’s work and his eproducts, aka Unconventional Guides.  (If any of your want to be an author, check out my review on his latest guide on how to get published)

Now for those of you who haven’t heard of Chris Guillebeau before, he’s a young entrepreneur, writer, and traveler in his early 30′s who has trekked to ALL corners of the globe.  He has an uber cool goal of visiting every country in the world by April 2013, and I think he’ll get there!  He’s already at 183 out of 193 countries and counting.  Now how impressive is that?!

Turning Ideas Into Income

One of Chris’s strengths is his ability to turn ideas into income.  The $100 Startup gives you lots of insights on how to find more purpose in your life and turn your passion into a career.  There’s a simple drawing in the book that says it all: 1. Start today.  2. Deposit money tomorrow.  Too often we let life get in the way of being adventurous and getting off the couch.  We put off taking the most important first steps until tomorrow, and then the next day, and the next day…

Remember you don’t need to brainstorm some complex invention, or have a masters degree to become an entrepreneur!  What you DO need is drive, curiosity, guts, and something that people want.  Having some savings that stays siloed from your business venture for emergencies is always a good idea too though for the unexpected.

Real People, Real Success Stories

What I think is most cool about The $100 Startup are the real life stories of self made entrepreneurs that Chris weaves into each chapter.  He also talks about some of his own failures and successes, but it’s really fun getting to read about the unique experiences of so many other people, across all sorts of industries.  Before writing the book, Chris compiled data on 1,500 individuals in his research who each built $50,000+ businesses of their own from very little.  A lot of these entrepreneurs spent $100 or less when they first started, hence the book’s title, The $100 Startup.

The book covers tid bits on 50 of the most interesting entrepreneurs from Guillebeau’s study.  So if you think the only way to start a business for $100 or less is online, you’ll be happy and surprised to know that there are LOTS of other industries that people have succeeded breaking into on the cheap.  For example, some of the entrepreneurs in the book have their own businesses in furniture, fitness, food and wine, toy manufacturing, clothing, photography, and even a cowboy ranch!

The Road Map

The $100 Startup is divided into three parts:

1. Unexpected Entrepreneurs
2. Taking It To The Streets
3. Leverage And Next Steps

The book is comprised of fourteen chapters across 285 pages that are easy to follow and fun to read because of all the real life stories and tips you’ll learn.  At the end of each chapter you’ll find summaries of Key Points, and I also think you’ll enjoy the simple and effective illustrations by Mike Rohde throughout the book.  If you are ready to dive into a copy for yourself, the book is now available for purchase on Amazon here: The $100 Startup.

I’ll also be giving away a FREE COPY to a lucky Untemplater Newsletter subscriber this week!  You can sign up for the Newsletter using the blue form at the top right of our website where you’ll also find buttons to subscribe to our RSS feed, Twitter feed @untemplater, and FB page.

Untemplaters, have you ever started a business for $100 or less?  What is the biggest entrepreneurial hurdle you’re trying to overcome?  What’s your biggest fear or joy in starting a business?

If you enjoyed this post, you may also enjoy reading Be On The Lookout For Small Business Scams, and Would You Take A Steep Paycut To Live In Paradise?

With the digital revolution in full flow and economic growth looking more promising than it has for some time, opportunities are increasing for entrepreneurs and small businesses to flourish.

But businesses can’t afford to put goof up repeatedly in the early stages if they hope to establish themselves in their industry. Building an efficient business with low costs and high profit margins is the key to success at any stage of business development; but it is even more important during the start-up phase.

Below we take a look at some key areas to concentrate on if you are looking to build an efficient business that can grow.

Creating an efficient workplace

Connectivity and access to information are key to modern workplaces. Ensuring that employees can get in touch with one another as well as customers from anywhere in the world is vital to the efficient management of resources. Companies of all sizes are turning to cloud computing networks that allow employees to access information from all corners of the globe.

Local hosting is outdated and can create problems that prevent crucial tasks from being finished at vital times.  There are services like Hiscox’s Professional Indemnity Insurance designed to help businesses look at any holes in their connectivity that could have a negative effect on their business.

For any company, it is essential that information is hosted reliably as well. It is also important for businesses to make use of systems that allow a range of options for upgrades and improvements from the beginning.

Flexibility is key and choosing a credible server is crucial. Large companies tend to dedicate between two and four per cent of their ICT (information and communications technology) budgets to planning for recovery from crucial disasters, such as server failure and the downtime of websites*, and small companies should look to take similar precautions.

As companies grow, existing resources can become stretched very quickly.  So when it comes to server space it is important to plan ahead for when business is booming and having data at your fingertips becomes even more crucial. Businesses should look to the future and make their decisions based on projections and the likely pace of expansion.

Selection of Staff

If businesses can keep staff turnover to a minimum they tend to see benefits in a number of key areas. Selection of good staff is fundamental to the early success of any company. As in many aspects of life, a business is little more than the sum of its parts. Building a team of competent individuals who mesh well as a team is vital to the growth of any business.  It is far more cost-effective for a business to invest in a thorough recruitment process, rather than to face the difficulties of replacing staff continually at a later date.

On top of this, managers should be sure to consider the motives and overall sincerity of prospective hires interest in working within the industry and their plans for the future. Ensuring that employees share their principles and goals can be the key to establishing lengthy and mutually beneficial working relationships.

Ensuring a balanced team

A strong balance between innovation and adapting to new ways of working, combined with experience, is the key to building a successful team. Howard Catton from the Royal College of Nursing stresses this point, speaking in reference to the effects of cuts to the NHS:

“….having the right staff mix is essential . . . If too many middle or senior grades disappear, the numbers may be OK but the skill mix is diluted.”**

Even in big institutions it is important to have a mixture of talent. For a start-up operation where many employees may be new and inexperienced, ensuring that there are also experienced individuals with a grasp of how your business and your industry works is essential for success.

Listen

There is no quick “one size fits all” way to make your business more efficient. Following common sense steps such as reviewing your overhead, as well as looking at operational procedures will help make your business more efficient. But one of the best ways to find out where you can make necessary changes is by listening.

Listen to your staff and gauge their feedback on what aspects of the job they find difficult or unnecessarily time consuming. Additionally, listen to your clients and customers; they may tell you something that you haven’t thought of before!

*redstorlimited.articlealley.com/how-a-disaster-recovery-service-provide-business-continuity-during-critical-server-failure-2317462.html
**guardian.co.uk/public-leaders-network/2012/mar/27/loss-experienced-staff-skills-shortage

There are tons of things to think about and keep track of when you are starting a business.  Putting together a business plan, bringing ideas from the drawing board to the table, figuring out all sorts of logistics, researching, planning, raising capital, marketing, legal stuff, you name it.  The last thing you want to think about is being on the lookout for small business scams!  But if you’re not careful it’ll cost you.

Forms, Filing, and Fees

Each state has its own rules and requirements for corporations and the self employed, and a lot of the time counties and cities have their own additional terms that have to be met.  What a drag, right?!  California and San Francisco especially have a lot, which I’ve learned first hand, and all of the forms and licenses can be aggravating to understand and remember to file on time.

But with running a business, comes a lot of responsibility, and slacking off on filing official documents can get very expensive.  And even though you have more than enough on your plate with the incorporation process, getting your business off the ground, finding an accountant, a lawyer, employees, and suppliers, you must keep an eye out for small business scams.

Tricky, Dicky Traps

Whether we like it or not, a lot of information about us and our businesses is available for anyone to access through public records.  Sadly there are plenty of malicious companies just waiting to get a hold of your business address and contact information so they can set all sorts of nasty traps for you to step in.

I almost fell for one of these tricks recently and boy did it tick me off.  Here’s what happened…  I started getting some annual documents in the mail from the California EDD (Employment Development Department).  There’s nothing strange about this because the EDD is a vital part of legally operating a business in the state.  And the EDD sends out publications and forms to employers regularly on payroll taxes, unemployment, disability, paid family leave, notices, etc.

The EDD requires California employers by law to display certain posters and notices on these state mandated benefits (UI, SDI, PFL), and businesses can face fines and even face lawsuits by employees if they aren’t compliant.  I knew about these requirements though, so it wasn’t odd that I was getting mail from them.  But a few days after a bunch of EDD mail, I got an ugly FINAL NOTICE saying I owed a fee of $275 related to one of these mandatory labor notices that was NOW DUE.

What now?  Seriously?!

What?!  Final notice?  I never even got a first or second notice I thought to myself.  I was in a rush, so I stuffed the letter in my bag and went back to work, fuming at myself for missing the filing deadline and also for this ugly, expensive fee I was facing.  I was already irritated at the state for how much taxes suck and make me want to shut down my business, so this really got me fuming.

Later that night, I got out my checkbook and pulled the notice out of my bag ready to write more money away to the state.  I looked the letter over again since I was a little more calm, and got a bit puzzled that this Labor Compliance office was located in LA.  That’s kinda odd I thought to myself, since all the mail I’d received from the state prior to this letter came from SF or Sacramento.

Thank goodness this abnormality struck my curiosity and got me to start reading through the letter in much more detail.  There was a big wordy section about all sorts of state requirements, yada yada yada,

some more stuff about some labor law poster, and then BAM the truth behind the mask “This is not a bill.  This is a solicitation.  You are under no obligation to pay the amount stated above unless you accept this offer.”

The Beauty In the Fine Print

WOW.  I was thrilled I didn’t have to pay $275 bucks but boy did I swear like a sailor for several minutes at how much I wanted to smack the @$$3$ who put this deceptive notice together and tried to scam me into paying for something I didn’t need by disguising the letter to look like an official state notice.

Sadly I’m sure there are many small business owners out there who have fallen for these types of traps, and unfortunately what theses con artists are doing isn’t illegal.  That doesn’t however make them any less slimy, foul, or vile for what they are doing.  My advice – do NOT underestimate the importance of reading fine print before writing anyone a check or signing any type of document!

Other Small Business Scams

If you own a business, chances are you also own website which makes you even more of a target for deceptive notices like this.  There are many loathsome companies that send out misleading invoices and letters to small business owners that make it seem like you have to urgently reply in order not to lose your domain, when in fact they are trying to get you to sign up for their registrar service that you don’t need, or are tricking you into paying for a new domain name that you don’t own but looks very, very similar to the one you do own.

So if you’re an entrepreneur running your own company, be on the lookout for small business scams and always, always read the fine print!!!  You will save yourself a lot of money and headaches if you do your due diligence and listen to your gut when something seems even a little bit fishy.

Untemplaters, have you ever received a scammy notice before or know someone who did?  How did you react?  What steps are you taking to protect yourself from small business scams?

An interesting thing occurred to me today.  I’m here in Honolulu, Hawaii on vacation and I decided to Google the state manager of a major wealth management company one morning.  As a personal finance blogger, working as a financial advisor for a wealth management firm is about as synergistic a offline/online combo as can be!  Financial Advisers help clients in wealth accumulation, wealth preservation, and wealth transfer strategies through comprehensive financial planning.  The process includes asset allocation, portfolio management, liability management, tax minimization, and asset protection.  Hey, sounds exactly like what I write about on Financial Samurai!

To my surprise, the state branch manager responded the same day and mentioned he’d be happy to meet up over a cup of morning coffee.  I met up with Jack for one full hour and at the end of the conversation he asked me, “So what do you think Sam?  Are you interested in joining the firm?”  Wow, did I just get a job offer after just one hour and meeting someone for the first time? I thought to myself.

I told Jack I had to think things through, but I would love to meet up with him again when I return in late May.  Jack even invited me up to his offices to have a look around and meet his colleagues, but I had to decline due to the one hour parking meter limit!  Jack gave me his card and urged me to contact him to set up lunch when I return.

WOULD YOU TAKE A STEEP PAY CUT TO LIVE IN HAWAII?

I love Hawaii, and have been coming here for years.  I’ve written about Hawaii being the best place for online entrepreneurs to live and work, and I’ve always fantasized about one day moving back here myself.  The problem with Hawaii is opportunity and pay.  Furthermore, I don’t have my network of friends in Hawaii as I do in San Francisco.

After surveying five people who moved back to Honolulu from the mainland one night, I discovered that everybody comments on three things: 1) You’ll make 50% less here, but pay 50% more for everything, 2) You won’t be able to do a weekend jaunt to other parts of the country except for other islands, and 3) The lifestyle here truly is fantastic.

I’ve been slowly transitioning my life from the balls-to-the-wall type mentality, to the more balanced lifestyle approach for the past three years.  If you read my About page on Financial Samurai, one of the first things I wrote was no longer seeking to make the most amount of money anymore, but instead, seeking a more enjoyable lifestyle.  In three years, I’ve been able to build up my online properties to the point where I can live off my online income from anywhere in the world.  The income is much less than my day-job income, but nonetheless, it’s enough to survive and be happy.

STARTING ALL OVER SOUNDS PAINFUL

If I were to take this financial advisory job in Hawaii, I’d be starting at the bottom of the rung again.  The pay is about $50,000 a year, and I have to go through a 3 year training program where only 20% of trainees make it through.  I have full confidence that if I enter the program, I will be one of the 20% to make it.  However, there are no guarantees in life, and I might just get so bored that I’d just quit before making it through.  Worse yet, maybe I won’t be able to get along with my co-workers.

One of my goals is to get my Certified Financial Planner designation (the article shows you how).  Ever since getting my MBA, I’ve come to appreciate the value of education even more.  One of the ways to overcome the fact of having to start all over is by treating the 3 year training program like getting another Master’s Degree, but actually getting paid to do so!  In these three years, I plan to get my CFP license, develop a network of friends on the island, and learn about the company’s various products and services.

If I achieve the company’s asset accumulation and revenue generation targets, Jack said I would make about $120,000 a year and I’d either continue to build my own practice, or get recruited by a senior Financial Advisor to join his/her team.  $120,000 a year sounds damn good for living in Hawaii with no mortgage or rent.  But again, there’s no guarantee I’ll make it through.

It’s hard to leave friends behind, but it’s also exciting to meet new people as well.  I would get on Craigslist and try and join a USTA tennis league team.  Through Craigslist, I’ll also see if there’s an Outdoors Club.  Perhaps I would look into joining a golf club, or a social club of golfers as well.  Everything takes time, and it certainly feels like a lot of work to re-establish a network.

FOCUSING ON THE LONG RUN

My main goal is to work for myself so I can have as much freedom to do what I want, when I want.  That’s the entire Untemplater mantra.  With the combined passive income (click to see how much) that I spent 13 years developing + my current online income (which stays private), there’s no reason to ever have to work for anybody again.  However, I love the idea of working without having to work!  Grad school was incredibly rewarding because I didn’t have to worry about getting A’s.  I attended class for the pure benefit of learning.

Imagine doing something you enjoy doing without having the stress to do it well in order to make money.  Without this stress, you might very well do your job even better!  Of course, there is a risk you might get lazy and stop making that extra call, or going that extra mile for your client.  However, I bet that people who work because they enjoy the work do far better than those who have to work because they need the money in the long run.

A lot of things can happen in three years.  Perhaps Financial Samurai and the Yakezie Network will grow so big that I’ll need to dedicate my time, full-time.  Or perhaps Google will crush everything I’ve worked so hard for and I’ll be left with nothing.  What I do know is that after 3 years, at least I’ll have my CFP (you not only need to pass the courses, but need many relevant hours of work experience to get the designation) along with my MBA.  Only 20% of Jack’s Financial Advisers have their CFP’s, so it’s not necessary to do a great job in the FA business as many of them are making hundreds of thousands of dollars, if not millions a year.  I just think it’s a worthwhile designation to have anyway.

WOULD YOU MAKE THE MOVE?

There’s so much stuff I would have to do to make the move to paradise.  I’d have to sell my house that I just refinanced, engineer my own layoff, say goodbye to all my friends and clients, and get registered for the Series 66 and insurance designation to sell fee based products.  There are many more things I would need to do to make the transition smooth.

Taking a huge pay cut is psychologically difficult thing to overcome and there are no guarantees I will get along with my new co-workers and find a good network of friends to hang out with in Hawaii.  That said, I’m generally always a very optimistic and happy person, so I’m not too worried about not being happy in paradise.

Amazingly enough, I wouldn’t have to do anything as it relates to my online business thanks to the internet.  My recent “Get On The Map” product can be done just as easily here in Honolulu as in San Francisco.  Finally, being closer to close family is also a big bonus.  Ahhh, decisions indecisions.

Readers, what would you do if you were me?  Have you ever taken a huge pay cut and uprooted yourself and/or your family for a better lifestyle?  If so, what were your regrets and triumphs?    How much is too large of a pay cut?  If living in Hawaii is the goal, does it really matter how big the pay cut is and starting all over?

Regards,

Sam

If you want something done, give it to the BUSIEST person in the room.  Now how is that supposed to work?!  Improving efficiency and finding the time to do it all is tough.  But there’s a lot of truth in that saying about busy people being super efficient and boy do I know some insanely productive people who put my attempts at improving efficiency to shame.

Some people are just gifted with laser like focus and can pound things out without breaking a sweat.  Sadly I’m not one of them!  Don’t get me wrong, I’m a hard worker, but sometimes I feel like I’m trying to run through a tub of tar or have so much spinning around in my head that I can’t even think straight and totally forget what I’m doing!

What’s Wrong With Me?

I think I’m somewhat busier than the average person since I work a full time day job and am a part time entrepreneur, but I also know I’m also not the most efficient person out there either by far.  There are lots of people who work more than one job who blow past me with efficiency and that can get a bit frustrating and disheartening when I hear how much they’re accomplishing each day while I’m struggling to keep my head above water.

Sometimes I wonder if there’s something wrong with me when I’m buried up to my eyeballs and can’t seem to get even one step ahead!  But I know we’re all different with our own strengths and weaknesses, and I just have to work harder than some people to get the same amount done.  Perhaps you’re the same way.  I strongly believe in facing and overcoming obstacles though, and am actively finding new ways to improve my efficiency so I’m not giving up yet, and neither should you!

No Rest For The Weary

I’ve come to realize since I’ve started running my own business that it takes an incredible amount of endurance, perseverance, and sacrifice to be successful and accomplish goals when you’re your own boss.  When you work for someone else, you’re handed a set of guidelines to follow, deliverables to complete, you punch in and punch out, and there’s always someone there to answer questions and cover for you when you’re out sick or taking time off.

When you are your own boss though, nothing is handed to you!  And if you don’t have any employees, things pile up quick when you’re “out of the office.”  You have to find ways to juggle getting your business off the ground, keep up with day-to-day tasks, plan and prepare for events/clients/operational logistics/cash flow/inventory/industry changes/outages, etc., etc., and regularly give yourself motivational pep talks to keep going all at the same time.

I Never See You Anymore

Even with a heaping pile of business tasks to do, that’s not even the full picture that you could be facing since you also have to find quality time to spend with your current or soon to be significant other, family and friends, exercise, eat healthy, pay bills, and run personal errands.  It’s easy to get stretched thin and become isolated if you’re not careful.

Friends and family start giving you grief because they never see you anymore, and the people closest to you get tired of hearing you say “I’m too busy” all the time.  Even though you may not feel productive spending time with them because all you can think about is your to do list, it’s beneficial to take a break from work once in a while and support each other.

Early on in my career, I had terrible work life balance because I was so focused on moving up the ladder and being able to earn a better paycheck.  Now that I’m married, a proud aunt, working on a large list of 2012 goals, and am working even more hours than before, I have all sorts of places I want to be all at once and I have to really pay attention to my work life balance.

Fighting Workaholic Tendencies

I don’t think I’m a workaholic, but I’ve learned I have a strong stubborn streak in me.  I’d easily lock myself inside all weekend long on the computer, but fortunately my husband likes to be outdoors so he really helps get me out of the house so we can enjoy the days together and go on fun hikes in our funny looking Vibram Five Fingers.  As an entrepreneur it’s so easy to get caught up in crossing things off your to do list that the days, and even loved ones disappear because it’s so much fun working on your own business.  But forgetting to take a breather and not spending time with the people you care about can really backfire and cause some serious burn out.

Things are always going to be hectic in the beginning of starting your own venture, but don’t underestimate the importance of finding ways to automate tasks, outsource, and pace yourself.  Count your blessings when you’re healthy, educate yourself on personal finance, and have an outlet or two that help keep your stress levels in check.  My body just can’t function on four to five hours of sleep like it used to in college, so I’ve learned to turn the lights out when my eyes get heavy because sleep is way more beneficial to me now than trying to work on a fuzzy brain.

An Old Dog Can Still Learn New Tricks

It’s not easy for me to focus on things sometimes, which is one of my weaknesses.  My thoughts wander, I can’t gather my ideas together, I get stuck on the little things before attacking the big picture, I get tired easily, and I get easily distracted.  I’ve found some tricks that are improving efficiency in my life little by little though as I learn how to isolate tasks, and restrict the things around me.  Keeping the TV completely off, using full screen mode on the computer, wearing noise cancelling headphones, and working on a full but not overly stuffed stomach are helpful tips I encourage you to try.

Even if you feel like you’re facing an impossible uphill battle with so many things to do that don’t even know where to start, don’t give up!  Life happens and we’ve all had days when we felt like we hit a brick wall.  Taking a personal day to meditate, get a massage, or be with family can really give you a motivational boost and a chance to clear your head so you’ll be in better shape to attack your to do list the next day.  Efficiency can be developed and improved at any age if you give yourself a chance and keep at it.  I’m trucking right along there with ya!

Untemplaters, when was the last time you felt buried up to your eyeballs with things to do?  What did you do?  Do you have any advice on improving efficiency?

There’s no coincidence that the lifestyle design movement took off just as the economic downturn started picking up steam in the sumer of 2008. Those were some of the scariest times I’ve ever experienced, apart from when two planes hit the Twin Towers in NYC.  I vividly remember seeing the markets tumble by 5% a day on news that Lehman Brothers was not going to be rescued.  I had a friend at Lehman Brothers at the time say to me, “Why them (as in Bear Sterns) and not us?“  Who knows the whims of the government.

The youth of America were getting let go left and right and unemployment rates soared to above 50% for those within three to five years out of college.  Companies across all industries cut down excess and made the “survivors” do more with less pay.  I was one of the “survivors”, and that time period stunk to high heaven given: 1) We lived in fear that everyday we’d be next to lose our jobs, 2) Our friends and family were losing their jobs, 3) Managers always looked stressed and in despair, and 4) No matter what you invested in, everything was losing value.

The Empowered Generation

Truth be told, I had to lay some people off myself, and it was an incredibly depressing thing to do.  You never want to be put in a position to hurt anybody.  My co-manager and I were mandated from superiors above to let go of a percentage of our staff.  The problem was, we liked everybody working in the department at the time, and nobody was a bad performer.  Despite our feelings though, we still had to choose the relative worst performers.

The 2008-2009 downturn was a two sigma event that hopefully will never happen again.  If there ever was a time when there was no shame at being let go, that was the time.  Departments were closing and whole companies were shutting down.  It was impossible not to know of someone who got let go.  We all felt scared.

Different Paths

Some people decided to go to graduate school to wait out the storm.  As a result, business school applications surged by 30% YoY for two consecutive years.  Not a bad move if you could get into a great school and focus on studying something you like.  Not such a good move if you spent a fortune to attend a low ranked school, didn’t know what you wanted to do, came out with debt, and settled on a job you didn’t particularly like.

Then there are those who started blogs, like this one for those who wanted to take control of their own destiny.  We refused to let the economy bring us down.  Instead, we took the initiative to write online and connect with other like-minded individuals.  We wrote books, created products, traveled the world.  We used this time to nurture our creative abilities like never before!

We are the Untemplaters who decided to wait for no one.  There are some of us who were let go from our jobs through no fault of our own.  So be it!  There’s no shame in admitting an employment defeat.  Instead, we should harness the rejection to motivate us to do greater things.

We know that the internet has allowed us to live lifestyles that would be out of reach just 15 years ago.  We realize that sitting at a 9-to-5 job is a product of the 20th century.  There’s really no need to have a traditional day job if you don’t want to.  Now has never been a better time to start something of our own.

Don’t Be Afraid To Admit Defeat And Pursue Bigger And Better Things

Ever since the downturn, I’ve told myself to stop relying 100% on someone else’s corporation to live my life.  There’s no such thing as rock solid job security anymore, and the only destiny we can control is our own.  It’s important to expect the unexpected and find ways to diversify your income so that you aren’t left stranded if something bad happens.

Hopefully we’ll feature more and more entrepreneurial stories of people who decided to make it on their own.  From Ariana at Giggle Gourmet, who relocated from the US to Sydney, Australia for a finance job she later quit, to Mindy from Jade Chocolates, who started her company after splitting with her husband while pregnant, anything is possible!

If you have an entrepreneurial story you’d like to share on Untemplater, we’d love to hear from you through our Contact page.

Untemplaters, why do you think people aren’t willing to admit they were laid off?  If you’ve been laid off, what are the things you’ve done to better yourself since?