Why You Need a Plan B
A“Plan B” is your next career after you get fired, laid off, down-sized, dislocated, or out-sourced. You may just quit because you are burned out and exhausted. This is happening all over. People are being laid off left and right. You must have a Plan B, or at least be thinking about it in today’s uncertain economy. Not only am I talking with people who know they are vulnerable, but I am also reaching out to people who think they are secure and bulletproof. They are the ones who are most traumatized when pink slips come.
This is a new day and we must adapt to the new reality. Many seemingly secure jobs, companies and retirement funds have been destroyed. If your company files for Chapter 11 bankruptcy, they could walk away from the pension and healthcare benefits you thought you had earned. One pilot I interviewed, after being forced to retire at age 65, found his pension payout was cut in half. Instead of easing into a nice retirement lifestyle, he was scrambling to find a new source of income.
Even government security is disappearing. An FBI agent told me they called their new pension plan, “The work until you die plan.” The United States Post Office stopped all pension funding in June 2012 when they hit their $15 billion debt limit. Cities are filing for bankruptcy and many are seeking to shed pension obligations. The State of Rhode Island, in an unprecedented step, not only cut sharply into the pension payout of future retirees, but also of current retirees.
Kiss ‘Plan A’ Goodbye
Plan A is working for the same company for 20, 30, even 40 years and getting a lifelong pension and benefits. Few will have that luxury in the future. Those in their 20’s and 30’s may never know job or career security. Expecting a traditional job to create enough wealth for a financially secure retirement is no longer a viable option. So you need a Plan B. Without one, you will have to work until you die. Future success will depend on your ability to be entrepreneurial instead of working long hard hours at a job. Now is the ideal time to take charge of your life and learn how to create your Plan B.
What are my Plan B Options?
The beauty of a Plan B is you get to leave behind bad bosses, discrimination and unfair employee practices. You get to write your own paycheck. You basically have four Plan B options: start a business, buy a business, buy a franchise, and network marketing (direct sales). Each one has its own levels of risk and reward. Each one will have its own pitfalls and hazards – what I call “rabbit holes.”
How do I get started?
There are three resources you must have. First, you must have a “Why” bigger than your “But.” Your motivation must be strong enough to ensure you will not be derailed by pesky irruptions or irritations. Second, you need time. You can start it full-time or part-time but not sometime. If it is sometime, meaning whenever you get around to it, you won’t do anything on a consistent basis. Like an ill-tended garden your Plan B won’t flourish. Finally, you must have money. Banks will not lend you money for a startup unless you can personally secure the loan by using the equity in your house, savings, or other assets.
Are you ready?
Kathleen Rich-New is “the accidental Plan B expert.” She is a speaker, trainer, executive coach and author of her latest book, Plan B. The Real Deal Guide to Creating Your Business. Contact her at (321) 452-7308, KRN@clarityworks.biz or visit www.PlanBCoach.com