[Note to the grammar police: I know that the sign in the image should say "You're Fired." I don't care - I like the photo.]

One of the benefits that comes from writing about entrepreneurship is hearing from people who are making it happen. Some of the best stories are those where a person got laid off or fired and then, instead of going out and getting a J-O-B, they started their own business.

They usually have a twinkle in their eyes when they recount the story. They refer to a “weight being lifted” from their shoulders. They feel like they’ve “come alive.” Most say they make more money now then when they were back at their corporate gigs.

One of the most popular posts on this blog is from my friend Amber Khan who has one of those success stories.

Why Wait to be Fired?

Then I got to thinking. Why do so many people wait until they’re fired or laid off before they launch their own business? Why didn’t they quit that job they hated and fire their boss?

I know that fear is an obvious answer. But I think it’s more than that. Some people just don’t know how to quit. To them, quitting seems overwhelming because they’ve not taken the steps to be ready for it.

You Should Quit At Least Once in Your Life

Unless you’re one of those rare few who’ve never had a job (I’m looking at you, Chris Guillabeau), you’ve likely found yourself in some miserable position that sucks the life out you like a teenage vampire named Edward. Maybe you’re there right now.

I found myself there a few times. Too often though, I tried to stick it out. I rationalized that things would “get better when _______________.” Unfortunately, “when” never came.

The reality is that even if it did get better, it will never become great. You make the mistake that better than crappy is good enough since it’s an improvement. You settle.

Don’t ever settle. Why?

Quitting Can Make You Happier and Wealthier

This may surprise you, but unhappy people generally have less fun and make less money. Let that sink in.

Happiness and wealth don’t follow miserable people around begging for a chance to sulk with them. They actually don’t follow people around. Happiness and wealth have to be pursued.

It’s difficult to pursue happiness and wealth when you make a habit of settling for crappy positions that you hope will improve.

3 Steps to Firing Your Boss

So what do you need to do to fire your boss so that you can pursue something that fulfills you? Here’s a quick-start guide:

Step 1: Prepare

Prepare for the change in income. If you’re going to open that consultancy you’ve been dreaming about or start that home-based business, find ways to lay the groundwork before you quit.

When you’re laid off, you often don’t have this luxury. However, those who are gainfully (even if miserably) employed can do some initial prep-work before launching full time. Here are some recommendations to get you started:

Start the Business on Your Nights, Weekends and Lunch Breaks
Tell everyone you know (that can’t get you fired) what you’re doing. Get some initial clients and work out those startup kinks. This is a great way to test the waters and find out if you even like the work.

You’ll hear some people talk about trying to get their side business income to the level of their current position before they quit. While this is a fine goal, don’t be surprised if it proves to be more difficult than you planned. Time and energy are finite and certain businesses can only grow so large with part-time effort.

If you find that your nights, weekends, and lunch breaks have you to 40-50% of your salary, it may be time to quit. Ask yourself if you think a full-time focus on your business could get you up near (or above) 100% in a month or two.

Get Out of Debt and Build Up Your Savings

“Opening a business with debt is like trying to run a marathon with a loaded backpack on.” – Dave Ramsey

If you want to be successful at running your own business, you must learn to say “no” to yourself. Debt comes from saying “yes” too often. Climbing out of debt will give you the discipline you need to run a business on a budget.

Also, make sure you can survive through those lean months with a nice cushion built up in savings. Dave Ramsey recommends 3-6 months and I agree with him.

Step 2: Uncover Your Passion

Part of the reason we end up in positions we hate is because we chase money rather than pursue our passion. Money is important – but it’s not the only thing that should determine what you do with your life.

Use this foundation-laying time to discover what makes you come alive. What are your interests? Which activities do you participate in that cause time to fly at work?

There are great resources that can help you get started. I recommend the StrengthsFinder series along with Dan Miller’s book 48 Days to the Work You Love. They will get you thinking differently about your career path.

Step 3: Pull the Trigger (In a Non-Postal Way)

If you’ve taken the two steps above, you’re ready to pull the trigger. Here’s a tip: try not to burn bridges. I’ve watched people quit in over-the-top fashion just because they could.

Sure, it may make you an internet celebrity for a week, but remember that your reputation as a person of character is much more important. No matter how bad it was at the company, be gracious and look for win-win opportunities.

You’re about to leave them with a void in their team and this can be an opportunity for you. I was able to contract back to previous employers for varying lengths which helped smooth transitions for me financially.

Share Your Thoughts

If you’ve ever quit a job that sucked the life out of you, how did you feel after you made the decision? What tips would you offer to those who are thinking of doing the same?

If you’re stuck in a rut or a job you don’t love, what steps are you having the most difficulty with? Why are you staying put?

I’d love to get your thoughts below.

Photo credit: maisonbisson

“Hey, you’re the same age as Jesus was when he died!”

Yesterday was my 33rd birthday and the person who said that to me got me thinking about what turning “Jesus’ age” means.

No, there’s no mid-life crisis and I haven’t raced out to buy a convertible Corvette. But it’s sometimes good to think about what we’ve learned over the course of a lifetime.

I like to think about what I would tell myself if I could travel back in time to when I was in my early 20’s. Here are three lessons I would give myself.

Lesson #1: Bad Goals Are Always Disguised as Good Goals

If you set a goal for your life, you generally do so with the best of intentions. But good intentions don’t always lead to good goals. In fact, they can lead to just the opposite.

When I was in my early 20’s, I set a goal for myself that I would be a millionaire by 30. On the surface, this sounds like a good goal. After all, doing so would require me to work hard, make smart decisions with our money, live below our means, and to do all of the other things becoming a millionaire requires.

So what’s bad about this goal?

• It puts the emphasis on the wrong side of the equation. Because my focus was on the money, I ended up making bad decisions during that period of my life.
• I chose a career based on money rather than passion. I hated so much of my 20’s because I dreaded going to work each day. I was burning out very quickly.
• I became a workaholic. I spent too many years working 80+ hours each week. I neglected my wife Lisa, our family, and our friendships. As a result, I nearly lost my marriage.
• I didn’t take care of my health. By the time I was 26, my cholesterol was 351 (very bad), I was overweight, and I developed shingles due to stress. The final straw was when (at 31) I developed a severe case of vasculitis.

So how can you ensure that your goals are actually good for you? You evaluate the underlying assumptions.

I assumed that becoming a millionaire by 30 would make my life better than doing it by 35, 40 or even 50. Becoming a millionaire is a fine goal. However, the minute I put the “by 30” timeframe on it, I forced myself to make short-term sacrifices that would harm me in the long-run.

What good is being a 30-year-old millionaire if you’re overweight, burnt-out, and divorced?

If your goals require you to sacrifice things that you know are good for something you think might be good, it’s a bad goal.

Lesson #2: Life Moves Quickly, But This Isn’t a Race
When I was 6, Christmas took forever to roll around. A week was like a month. Now, I look up and it’s the end of August. It seems like just yesterday that I was freezing my butt off in January.

I know I sound like an old fart with this one, but I don’t care. It’s true. The more life advances, the more quickly it moves.

This can lead to the feeling that we need to hurry up: “Time is running out and I need to get a move on with my goals and my plans and my future. After all, look at the Jones’ over there – they already have 2.5 kids, a BMW, and a 5 bedroom house mortgage.”

The feeling like you’re in a race against time with your life is based on the assumption that certain things are “supposed to happen” at certain times.

• I should be married by 28
• I should own a home by 30
• I should have 2 kids by 35
• My 30s are my “earning years”
• I want to retire by 50

And on it goes. But all of those make false assumptions of how life should work that aren’t based in anything other than tradition and the expectations of others.

This isn’t to say that you should lazily meander through life. On the contrary, you need to set goals and pursue your dreams.

But, if you race through life always trying to get to the next level, you’re going to wake up one day and realize that it was all in vain and you won’t be able to get any of the time back. And that’s what you’ll get if you chase arbitrary, cultural targets.

Generally, our biggest regrets in life don’t come from doing things we shouldn’t have done. They come from not doing the things we know we should have.

Lesson #3: Never Settle

Too many people settle for a mediocre existence rather than pursue a meaningful life.

How do I know? Because the average American watches 4 hours of TV per day. If you’re settling for a life of mediocre existence, you will find ways to distract yourself from that awful feeling deep down inside of you that your life lacks true meaning and purpose. You will want to disconnect from the “real world.”

Instead of pursing our passions, we watch reality shows like American Idol and So You Think You Can Dance where we can sit on the sidelines of life and live vicariously through others who are doing what we’re afraid to.

If you only learn one thing before you turn 33, please learn this one: never settle. Never stop dreaming.

I’ve found my meaning through my faith, my family, my friends and my pursuit of my passion.

Share Your Lessons

If you could travel back in time, what lessons would you give to yourself?

There are a lot of people who talk about “one day” owning their own business. Yet, very few people actually end up even trying it. Why?

Usually it’s because they’ve chosen to believe one or more lies about starting a business. There are 7 common lies that people are telling themselves right now that will keep them from changing their dream of entrepreneurship into a set of goals they can accomplish.

Lie #1 – It’s Too Risky In Today’s Economy

Without a doubt, our current economic situation sucks. However, that doesn’t mean you shouldn’t start a business. In fact, starting a business during an economic downturn may be one of the best things you can do.

Why?

• Your job is likely not as safe as you think it is. After all, layoffs increase during times of economic uncertainty. Right? Why not put yourself in the driver’s seat rather than depend on someone else for a paycheck?
• It will force you to prioritize your spending. If you can operate a profitable business in an economic downturn, you can do it during times of economic boom.
• Competition decreases during crappy economic times. It’s sad but true. A lot of companies go out of business in a downturn. Regardless of the reason, this creates opportunity for someone who is talented and willing to work hard to take on clients from failing companies.
• It’s cheaper to start a business during a downturn. With so many businesses going under right now, it’s a great time to pick up needed items at an auction or on Craigslist. You can also negotiate better deals with potential vendors right now.

Here’s a fun fact: roughly half of the Dow Jones 30 were started during a recession. Now may be a great time to start that business you’ve been talking about.

Lie #2 – I Don’t Have Enough Time

How was last night’s episode of Gossip Girl? How insane was that Yankees game? OMG…did you see the preview for the next episode of Glee?

• The average American watches nearly 4 hours of TV per day.
• 49% of Americans say they watch too much TV.
• 98% of households in the US have at least 1 TV.
• 34% have 2.

You have the time. You just have to claim it from the other distractions in your life. If TV isn’t the problem, you may be working too many hours for someone else doing something you hate. This was my problem for too many years. I made a lot of money doing work I didn’t enjoy so that I could buy stuff I didn’t need.

Lie #3 – I Can’t Afford To Quit My Job

Who said you have to quit your job to start a business? Most businesses are started during nights and weekends. Feel like you don’t have enough time on nights and weekends? See Lie #2 above.

Oftentimes, it’s not an income problem that people have – it’s a spending problem. Their cost of living has risen to – or more likely above- their income.

So how can you prepare for being able to quit your job? Here are some things you can do to get ready:

• Save up 6 months of living expenses in a money market account.
• Create a budget for both the business and your household. Figure out how much money your business will need to make in order for you to survive.
• Get out of debt and stay out of debt. It’s a lot easier to start a business if you don’t have to worry about creditors knocking down your door.
• Practice living on less before you have to start living on less. It’s a habit you have to learn. There is not magic “live within my means” pill.

Lie #4 – It Takes Too Much Money To Start a Business

There are a lot of businesses that can be started on less than $1,000, $5,000 or even $10,000 dollars. You just have to start thinking differently about how you’re going to do it.

First, start small and then scale up. You don’t need to go lease a storefront just because you want to own “the best hotdog joint in town.” Instead, start by renting a cart and setting up shop on a busy street in the financial district downtown. Try out different recipes while minimizing exposure. Figure out if people even like your hotdogs.

Then, if things are going well, begin planning for expansion into a bigger market. Figure out how much money it will take to purchase your own cart. Start saving to buy one without financing it. Once you own your own cart, begin socking money away to buy another cart (in cash) and hire an employee to run it. Keep up this process until you own enough carts that you’re making enough money to open your storefront without going into debt.

Too many people use borrowed money such as credit cards, home equity, and personal loans to finance the opening and/or growth of their business. This is stupid. Figure out how to start smaller with less exposure and risk. It will keep you making smarter decisions because you won’t be able to buy things you can’t afford.

Lie #5 – I Don’t Know Anything About Running a Business

Neither do a lot of people when they start a business and it shouldn’t stop you from starting one.

Don’t get me wrong – you need to learn about running a business. But there are a lot of free or low-cost resources available to you:

• Ask friends and family who have started a business to act as advisors and mentors.
• Contact SCORE. They offer free small business advice and mentoring in-person and online.
• Visit your local library and become and avid reader of business books.
• Find and read blogs on business development, sales, marketing, freelancing, etc.

If you’re starting small and part-time as I suggest, you’ll have time to learn about running a business as you do it. It will take a lot of the pressure off of having to know it all up-front.

Lie #6 – I’ll Go Out on My Own When …

…my kids are out of the house.
…I retire.
…I blah, blah, blah.

No. You most likely won’t. Excuses like these are generally made out of fear. Starting a business can be a frightening thought. So rather than admit the fear and confront it, people mask it behind “sensible” statements such as these. They tell themselves that it would be unwise to do it right now.

These statements meet two needs:

• We don’t want to admit we’re scared, so we tell ourselves and others that we’re going to do it…just…down the road. It keeps the dream alive – even if only on life support.
• It makes us sound reasonable in our fear. After all, who doesn’t want to sound reasonable? Nobody wants to be seen as rash or foolish. This type of excuse enables us to lie to ourselves and others while maintaining a bit of self-respect.

Lie #7 – I Don’t Know What Kind of Business to Start

I think that most people have an idea of what kind of business they would start, they just don’t want to admit it in any other capacity than as a fantasy.

What do I mean by that?

Have you ever played the game with friends where you answer the question “What would you do if money weren’t an object?” Of course. We’ve all done it. And it’s fun because it’s “safe.” It’s all fantasy because, of course, money is an object. So we talk about our fantasy of starting our own sports memorabilia store, wedding photography business, bakery, PR agency, non-profit, etc.

The problem is that when we relegate our passions to the world of fantasy, we no longer see them as potentially viable businesses. We assume that something we’re passionate about can’t possibly make money. It just seems too good to be true that we could actually do something we love and provide for our families.

If you know how to answer that question in a cocktail party setting, then you know what kind of business to start. Now, granted, the business may take on a different form than in your money-is-no-object fantasy. But that doesn’t mean you shouldn’t take the above steps to make it happen.

Share Your Thoughts

Are any of these lies stopping you from starting a business?

If you’ve already started your business, which lie did you struggle with the most? Should I have added additional lies to the list?

I’d love to hear your experiences in the comments below.

Do you remember the first job you applied for as a young adult? Chances are it was for some entry-level position that merely required you to be half as intelligent as you were, show up on time, and not be drunk.

Yet some genius in HR decided it was a good idea to put “1-3 years of previous experience required” in the ad for the position. To me, that always felt like asking a rookie-year baseball player to have “1-3 years of major league experience.”

Yesterday, The Grasshopper Group published an interesting info graphic titled “The Harsh Realities of Starting a Small Business”. I spent some time reviewing the data and a few things struck me as interesting. But I want to focus on one of them today:

According the U.S. Small Business Administration, the number one reason businesses fail is due to lack of experience.

Lack of Experience Isn’t the Problem

If you’re starting your first business, how much experience do you have starting a business? (The answer is “none” for those still waking up.) So how do you gain experience? You start a business.

The bad news is that, statistically, you’re going to fail. The good news is that it won’t be your lack of experience and it can be prevented. After all, plenty of first-time entrepreneurs succeed.

So if lack of experience isn’t the reason most businesses fail, then what is? I’d argue that it’s pride.

The Path to Entrepreneurship

Why did you start your company? Or, if you’re not there yet, why do you want to start your own business? It’s probably because you believe that you can run a business and that you’d be happier working for yourself. Maybe you’re fed up with your job or your boss. Maybe you hate having to ask for permission to take a vacation. Maybe it’s been a dream since you were a kid.

Whatever the reason, the path to starting a business always begins with the idea that you have the ability to run a company. In his book The E-Myth Revisited, Michael Gerber wrote the following:

Inside your mind it sounded something like this: “What am I doing this for? Why am I working for this guy? Hell, I know as much about this as he does. If it weren’t for me, he wouldn’t have a business. Any dummy can run a business. I’m working for one.”

Whether this is confidence, pride, or a little bit of both is a moot point. It’s what happens next that’s the problem.

When Pride Replaces Confidence

If you’re inexperienced, you should at least have confidence in your ability to learn, grow, and adapt if you want to start a business. Confidence is not a bad thing. However, if you’re not careful, your confidence can easily morph into pride.

• Confidence says, “I can learn how to do this.” Pride says, “I know how to do this.”
• Confidence says, “I can bond around my weaknesses.” Pride says, “If you want something done right, you have to do it yourself.”
• Confidence says, “I made a mistake.” Pride says, “She screwed up.”
• Confidence asks, “Can you help me?” Pride says, “I don’t need his advice.”
• Confidence says, “I will earn this.” Pride says, “I deserve this.”
• Confidence says, “I don’t know.” Pride says, “He doesn’t know.”

Lacking something – anything – is never the problem. Not doing anything to gain what you lack is the problem. Pride will prevent you from taking the steps you need to take to gain what you’re missing. I can’t guarantee that you’ll be successful on your first business if you check your pride at the door. However, you’ll increase the likelihood of your success because you’ll grow, learn and adapt.

Don’t let your lack of experience keep you from starting a business. Instead, let your lack of experience drive you toward those who can help you, teach you, and counsel you. Bond around your inexperience with experience. Hire people who are experts. Seek advice from people who’ve done what you’re trying to do. Read every business book you can get your hands on. Never think you’ve learned it all and never stop learning.

Do you want to know what one of my least favorite beginnings to a sentence is?

“I’m going to…”

Those three words tend to say a lot about a person in that moment:

• They tell me that you’re probably never short on ideas.
• They tell me that you’re not currently doing whatever it is you’re “going to” do.
• They tell me that you might be someone who makes excuses because those words are usually followed with an excuse as to why you’re not doing that thing you’re “going to” do. (Did that make sense?)
• They tell me that you may not be truly committed to your idea.
• They tell me that you may lack the confidence to execute on your idea.
• They tell me you may not be proud of what you’re currently doing so you have to tell me what you “might” be doing.

The people who are changing lives (including their own) are the people that are doing – not the people that are going to do. They don’t talk about it as being in the future. They talk about what they’re doing right now to make a difference.

So. Don’t tell me what you’re going to do. Tell me what you’re doing. And if you don’t want to talk about what you’re doing, stop doing it. Because it probably doesn’t matter anyway.

About a month ago, I read a post by Justin Kownacki that discussed the challenges inherent in being a freelancer and why we need people we’re not in business with to hold us accountable.

As someone who’s self-employed, you’ll inevitably face bouts of crappy productivity and you’ll feel like banging your head against a wall. In my own life, those times generally occur when I let others set my priorities for me. When that happens, I’m extremely busy but not necessarily effective. The goal then is to proactively set your priorities and let the rest fall where it may.

Unfortunately, this is easier said than done. So I took Kownacki’s advice and contacted a friend of mine (Justin Davis) who lives in the area and asked if he wanted to meet every Monday for coffee to set goals, challenge each other and provide a level of business accountability.

Thankfully he agreed and the experience has been more beneficial than I could have imagined. I really enjoy and look forward to this time each week – a sure sign that it’s working. Not to mention you’re reading this post because he forced me to get back on track with my blogging.

Here are five modifications we’ve made to Kownacki’s accountability idea and why they’ve been important in our success.

Share the Same Core Values

I can’t stress how important it’s been for us that we share certain core values. Now, you don’t need to be clones of one another. In fact, you shouldn’t be. You want differing opinions and approaches. However, you want to know the advice your getting is generally going to be aligned with your beliefs about life and business. I don’t want someone who’s a workaholic giving me advice on my work/life balance.

Be On the Same Level

I think mentors are great. Everyone should have at least one mentor in their life. However, this is not that. This is accountability. This is learning from and pushing each other while in the trenches. Justin is not my mentor and I am not his. We each give and take advice equally in our meetings. We banter, dialogue and share victories and frustrations without getting preachy. Neither of us want to be the teacher or the student during this time.

Don’t Rush the Meeting

Originally, I proposed an hour for the meeting “to be respectful of time.” To my surprise, Justin suggested two hours. It was a great suggestion. We generally only spend about 15-20 minutes reviewing and discussing our goals. The rest of the time is spent sharing and encouraging each other. The extra time allows us to fully explore topics without feeling pressured to cut it short. As is usually the case, the most insightful and impacting parts of the conversation occur beyond the 1-hour mark as the conversation builds on itself. It’s like an avalanche. What starts small builds into something powerful.

This is Not Water Cooler Time

If you want to talk about your favorite sports team or American Idol, go somewhere else. The entire point of this time is to talk about business. That’s it. If you’re self-employed, there will always be plenty to discuss. You’ll always have challenges. You’ll always have opportunities. Be willing to refocus the conversation if a tangent forms.

Learn Together

In the second meeting, Justin and I decided to read a book together and discuss how to apply what we’re reading. The reading plan isn’t intense – a chapter a week. We’re focused on depth. We each respond to different things in the book and we’ve found ways to help each other as a result. Rotate who picks the book each time as you’ll likely learn something new as a result.

Bonus Thought: Be About Each Other’s Success

As I was wrapping up, I thought of this last point. This time isn’t about what I can get out of it. It’s about what I can give. I want to help Justin and he wants to help me. We share ideas. We want to help each others’ businesses grow. This isn’t a zero-sum game. If anyone in the group can’t be excited and supportive of another’s success, give them the boot. I don’t want that negativity and unhealthy competition in my life. Cheer each other on and celebrate each other’s victories.

We’ve discussed bringing others into the meeting. Whether we do or not hasn’t been decided. Neither of us want it to get diluted and any additions have to be 100% agreed on. The small size allows for intense focus. However, another person or two could add benefit through additional perspectives, backgrounds and connections without having to sacrifice much.

Questions: Do you have people to keep you accountable? If so, share in the comments what works. If not, what’s holding you back?