Author Topic: Preparing for my job to disappear  (Read 6700 times)

bittheory

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Preparing for my job to disappear
« on: August 08, 2017, 03:59:53 PM »
Yesterday my boss informed me that our biggest client ended our contract, which unless is replaced in a month (highly doubtful) means my company will dissolve. There is a good and bad about this situation and thanks for mustacianism, my "good" list is likely longer than my co-workers. Wondering if fellow mustachians have experienced a similar situation and how they handled the transition especially regarding health insurance, unemployment benefits, general stress, etc.

THE GOOD
-My e-fund is large enough to live on for 1 year thanks to thrifty living & discovering mustachianism. Won't have to touch the stache.
-Finally and excuse to try freelance full-time (a mini dream of mine lately)
-My industry/skills easily allow me to freelance (a current side hustle)
-Opens up some serious family time opportunities in the near future (1 and 4 year old at home)

THE BAD
-Love my job, very invested in the company and culture here
-Losing our primary income as a one-income household
-No more SIMPLE IRA & HSA maxing
-General stress about lack of health insurance and inconsistent freelance income

Smokystache

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Re: Preparing for my job to disappear
« Reply #1 on: August 08, 2017, 04:48:56 PM »
Can you provide a few details about your situation?
- What kind of freelancing do you do?
- What is your industry/field?
- Significant others? (and do they provide income? benefits? etc.)

Even in a good position, this can be scary. But it sounds like you're ready for a transition anyway. It can help to think about the long list of people (including more well-known examples like Pat Flynn, etc.) who went from being downsized to taking the reins, creating their own business/opportunities, and kicking tail. If you don't already, you may want to check out the Entrepreneurship https://forum.mrmoneymustache.com/entrepreneurship/ board too.

Best of luck. It's scary, but you got this.

bittheory

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Re: Preparing for my job to disappear
« Reply #2 on: August 08, 2017, 04:58:50 PM »
Can you provide a few details about your situation?
- What kind of freelancing do you do?
- What is your industry/field?
- Significant others? (and do they provide income? benefits? etc.)

Even in a good position, this can be scary. But it sounds like you're ready for a transition anyway. It can help to think about the long list of people (including more well-known examples like Pat Flynn, etc.) who went from being downsized to taking the reins, creating their own business/opportunities, and kicking tail. If you don't already, you may want to check out the Entrepreneurship https://forum.mrmoneymustache.com/entrepreneurship/ board too.

Best of luck. It's scary, but you got this.

Thanks for the words of encouragement. I see this an opportunity more than anything, albeit a scary one.

To answer your questions.

- What kind of freelancing do you do?
Advertising creative/copywriting for everything from site content to full fledged advertising campaigns. Currently my freelance clients consist of a real estate branding firm and a technology company. The mostly need content for email blasts and websites.

- What is your industry/field?
Advertising/creative industry.

- Significant others? (and do they provide income? benefits? etc.)
I am married. My wife stays at home with our two kids, so no income. My 4 year old will be starting 3-day a week pre-school in a month. It has always been a goal of hers to stay home in the early years of our kid's lives and thanks to our frugality and a fairly sizable income, that has been easily achieved. She is looking at some part-time opportunities because of this current situation, ideally ones with health insurance :)




marshdesign

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Re: Preparing for my job to disappear
« Reply #3 on: August 08, 2017, 05:06:41 PM »
I think this can be a blessing in disguise. I went freelance 10 years ago and have not stopped since. I am also in the Ad business doing the design side, and pretty much everything else that falls under the word marketing. You can make good money and not have to spend 40 hours a week working. It does take some time to build your client base, took me 18 months. If you have any questions about freelancing let me know. I teach now on the subject. Sorry to hear about the job though, still sucks to loose that without too much warning

bittheory

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Re: Preparing for my job to disappear
« Reply #4 on: August 08, 2017, 08:50:07 PM »
I think this can be a blessing in disguise. I went freelance 10 years ago and have not stopped since. I am also in the Ad business doing the design side, and pretty much everything else that falls under the word marketing. You can make good money and not have to spend 40 hours a week working. It does take some time to build your client base, took me 18 months. If you have any questions about freelancing let me know. I teach now on the subject. Sorry to hear about the job though, still sucks to loose that without too much warning

True. Many friends and colleagues of mine have had wildly successful freelance careers in this business. Hoping I'm one of them. Will take you up on some freelance questions when the time is right. Thanks.

bittheory

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Re: Preparing for my job to disappear
« Reply #5 on: August 08, 2017, 08:52:26 PM »
What will happen to the other, smaller clients your company supports? Could you take over any of those contracts?

Unlikely. Between signing a non-compete and the fact that they would need more of a full service than what I can provide, it most likely won't play out that way. Which is okay, that was never an intention of mine. Plus I don't plan on burning any kinds of bridges with my current boss, as I'm unsure what his plans are if things truly go south.

JLee

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Re: Preparing for my job to disappear
« Reply #6 on: August 08, 2017, 09:04:26 PM »
What will happen to the other, smaller clients your company supports? Could you take over any of those contracts?

Unlikely. Between signing a non-compete and the fact that they would need more of a full service than what I can provide, it most likely won't play out that way. Which is okay, that was never an intention of mine. Plus I don't plan on burning any kinds of bridges with my current boss, as I'm unsure what his plans are if things truly go south.

A non-compete can't be enforceable if your employer goes under...

sequoia

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Re: Preparing for my job to disappear
« Reply #7 on: August 08, 2017, 09:42:33 PM »
What will happen to the other, smaller clients your company supports? Could you take over any of those contracts?

Unlikely. Between signing a non-compete and the fact that they would need more of a full service than what I can provide, it most likely won't play out that way. Which is okay, that was never an intention of mine. Plus I don't plan on burning any kinds of bridges with my current boss, as I'm unsure what his plans are if things truly go south.

A non-compete can't be enforceable if your employer goes under...

Just want to chime in here, but I am not in advertising creative/copywriting field, so maybe this does not apply at all:

- I agree who is going to enforce non-compete if that company dissolves.
- If these smaller clients need more that you can provide, is there a chance you and some of your coworker band together and continue to provide service to the smaller clients? Personally I would quietly find out what are these smaller clients would do if your company dissolves. They still need someone to do their advertising right? I said quietly because I am sure your company competition may already started trying to get these clients.

RE financial, you probably have done this. I would suggest make a spreadsheet, figure out what expenses that you can cut down. You will be able to see quickly how long your fund will last. Assume the worse, incase you can not find any job longer than 1 year. Sorry to hear this. I was out of job when the economy took a downturn in 2008, so I can relate. It can be very scary.



bittheory

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Re: Preparing for my job to disappear
« Reply #8 on: August 09, 2017, 02:48:43 PM »
What will happen to the other, smaller clients your company supports? Could you take over any of those contracts?

Unlikely. Between signing a non-compete and the fact that they would need more of a full service than what I can provide, it most likely won't play out that way. Which is okay, that was never an intention of mine. Plus I don't plan on burning any kinds of bridges with my current boss, as I'm unsure what his plans are if things truly go south.

A non-compete can't be enforceable if your employer goes under...

Just want to chime in here, but I am not in advertising creative/copywriting field, so maybe this does not apply at all:

- I agree who is going to enforce non-compete if that company dissolves.
- If these smaller clients need more that you can provide, is there a chance you and some of your coworker band together and continue to provide service to the smaller clients? Personally I would quietly find out what are these smaller clients would do if your company dissolves. They still need someone to do their advertising right? I said quietly because I am sure your company competition may already started trying to get these clients.

RE financial, you probably have done this. I would suggest make a spreadsheet, figure out what expenses that you can cut down. You will be able to see quickly how long your fund will last. Assume the worse, incase you can not find any job longer than 1 year. Sorry to hear this. I was out of job when the economy took a downturn in 2008, so I can relate. It can be very scary.

This is all true. If the company dissolves, then yes, non-compete is a non-issue. It is unclear whether the company will truly dissolve, however. My boss might keep some kind of small operation. We will see.

And yes, this may be a strategy going forward regarding current clients.

COEE

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Re: Preparing for my job to disappear
« Reply #9 on: August 10, 2017, 01:47:51 AM »
- Significant others? (and do they provide income? benefits? etc.)
I am married. My wife stays at home with our two kids, so no income. My 4 year old will be starting 3-day a week pre-school in a month. It has always been a goal of hers to stay home in the early years of our kid's lives and thanks to our frugality and a fairly sizable income, that has been easily achieved. She is looking at some part-time opportunities because of this current situation, ideally ones with health insurance :)

Congratulations on having great priorities!  Having your wife at home with the kids in their early years is a very positive thing that many people don't get the opportunity to do.  It may be time for your wife to enter the workforce if you don't find something quickly - and you get to become Mr. Mom.  Having 1 year emergency fund will help you immensely.  You will find that the money stretches as you tighten your suspenders.

I was recently laid off with a 2 week severance package.  I'm collecting unemployment.  I knew that a layoff was a risk in the small company that I was working with so I had a 6 month cash stash.  I had counted on a much bigger severance, but with my PTO, severance, and wife's small income, I haven't had to dip into my 6 month stash yet, and it's been 3 months.

https://www.youneedabudget.com/ can be very helpful in times like this to understand your overall financial picture if you don't already budget.

Look into unemployment in your state - it will help financially, but beware... it comes with hooks.  I recently had to sit through a 2 hour mandatory 'orientation' meeting that was pretty much useless for me.  Ask questions about health insurance.  Part of me wishes I had held off getting on unemployment as long as I could - just because there's so many damn hooks.  I was fortunate that I was able to jump on my wife's insurance - but you don't have that option - so I can't help you there. 

It's a scary feeling being laid off.  I'm convinced that it's harder to find work when you've been laid off - regardless if it's because of your skills or not.  So start looking ASAP if you know your job is in danger.  Ask your boss for a positive letter of reference before things get funny - because they WILL get funny.

I have tried to start a company - but have found more dead ends than clients in my industry.

Finally - do something - maybe starting a company is a good thing for you to do.  Sitting around and worrying about these things is NOT a good thing to do - especially when you have your savings.  Don't be afraid to spend some money on things that have a high payback rate.  I've kept my fishing license and rec center membership active.  The rec center is expensive but I find a lot of joy in both.  I've also done a little work on the cars and the house.  It's a little bit pricey, but it's not horrible and saves a bit once I do have a job in not having to outsource labor because I won't have the time.

Becoming involuntary unemployed is a very humbling experience.  Best of luck!

bittheory

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Re: Preparing for my job to disappear
« Reply #10 on: August 14, 2017, 03:39:12 PM »
- Significant others? (and do they provide income? benefits? etc.)
I am married. My wife stays at home with our two kids, so no income. My 4 year old will be starting 3-day a week pre-school in a month. It has always been a goal of hers to stay home in the early years of our kid's lives and thanks to our frugality and a fairly sizable income, that has been easily achieved. She is looking at some part-time opportunities because of this current situation, ideally ones with health insurance :)

Congratulations on having great priorities!  Having your wife at home with the kids in their early years is a very positive thing that many people don't get the opportunity to do.  It may be time for your wife to enter the workforce if you don't find something quickly - and you get to become Mr. Mom.  Having 1 year emergency fund will help you immensely.  You will find that the money stretches as you tighten your suspenders.

I was recently laid off with a 2 week severance package.  I'm collecting unemployment.  I knew that a layoff was a risk in the small company that I was working with so I had a 6 month cash stash.  I had counted on a much bigger severance, but with my PTO, severance, and wife's small income, I haven't had to dip into my 6 month stash yet, and it's been 3 months.

https://www.youneedabudget.com/ can be very helpful in times like this to understand your overall financial picture if you don't already budget.

Look into unemployment in your state - it will help financially, but beware... it comes with hooks.  I recently had to sit through a 2 hour mandatory 'orientation' meeting that was pretty much useless for me.  Ask questions about health insurance.  Part of me wishes I had held off getting on unemployment as long as I could - just because there's so many damn hooks.  I was fortunate that I was able to jump on my wife's insurance - but you don't have that option - so I can't help you there. 

It's a scary feeling being laid off.  I'm convinced that it's harder to find work when you've been laid off - regardless if it's because of your skills or not.  So start looking ASAP if you know your job is in danger.  Ask your boss for a positive letter of reference before things get funny - because they WILL get funny.

I have tried to start a company - but have found more dead ends than clients in my industry.

Finally - do something - maybe starting a company is a good thing for you to do.  Sitting around and worrying about these things is NOT a good thing to do - especially when you have your savings.  Don't be afraid to spend some money on things that have a high payback rate.  I've kept my fishing license and rec center membership active.  The rec center is expensive but I find a lot of joy in both.  I've also done a little work on the cars and the house.  It's a little bit pricey, but it's not horrible and saves a bit once I do have a job in not having to outsource labor because I won't have the time.

Becoming involuntary unemployed is a very humbling experience.  Best of luck!

Thanks for the response. I'm curious what some of the other "hooks" you experienced with unemployment were. Mind sharing?

runewell

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Re: Preparing for my job to disappear
« Reply #11 on: August 14, 2017, 05:52:00 PM »

Finally - do something

Becoming involuntary unemployed is a very humbling experience.  Best of luck!

I found myself unemployed October 2007, and was out of work for exactly two months.  I suggest you consider that a chunk of your time is spent job searching, but that a chunk of your time is also spent enjoying the time off.  Think of it as temporary retirement. 

You should find another job at some point, even if it's a step backwards.  You may have some fears and doubts.  I suggest you use your new-found freedom to do what you would do if you had a lot of time off from work, because you do.

COEE

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Re: Preparing for my job to disappear
« Reply #12 on: August 14, 2017, 08:52:38 PM »
Thanks for the response. I'm curious what some of the other "hooks" you experienced with unemployment were. Mind sharing?

This post is going to sound a bit complainy pants.  I realize that.  I was unemployed for about 2 months before I started my application for unemployment insurance (UI).  During that 2 months I continued to pursue work - but was not drawing any unemployment benefits.  I could have been getting paid, but I didn't want the additional burden - and I didn't need the money - and I still don't.  I am completely different than most of the people in the unemployment line in this regard - including a couple of my previous coworkers.  As time went on, my dad convinced me that I was already meeting the UI requirements so I should apply and at least get paid for the work I was doing.  After all, the money does help me extend the amount of time I have until I'm desperate for a job - or need to sell my house.

I wish I had waited until about now (starting my 4th month) to file.  I would not have lost any potential benefit until the end of September, and by then my child would have been in school.  So the money could have still helped me if I still didn't have a job at that time.

So that's some background to my situation: here is the 'hoops' I've been jumping through.
  • Once I had a mandatory orientation meeting that lasted all of two hours.  It was just a 'check up on COEE and see if he's fulfilling requirements' type thing.  They didn't offer any help, and when I asked for a resume review the lady refused.  Complete waste of time.
  • There was initially a bit of paperwork to fill out and time spent on hold on the phone for like 3 hours once.  The people at the UI office don't all know what their doing and you don't always get the same answers if you call twice.
  • Every two weeks I have to request payment again.  It's all online and takes all of five minutes, but it's a pain remembering.
  • In CO you have to make 5 job contacts a week.  I was able to get that reduced to 2 because of my occupation, but it is still time consuming to have to make those contacts - especially when you don't really want the job.  But you have to take the job if it's offered to you.
  • I'm pursuing direct and contract work at the same time to see which gets more momentum first.  The Unemployment office has no rules on when I have to take work and when I don't that I can find because I used to be a salary employee.
  • They continue to remind me that I can be audited for up to two years after my claim was started.  Beating me while I'm down.  Scare tactics really.  I know people take advantage of the system, but I most certainly am not.  But since unemployment is so low, I also have a greater probability of being audited.
  • I have to be AVAILABLE if I receive a job offer for work - which means no travel.

If I hadn't applied I wouldn't have to worry about any of these things, I could continue to work on my business and pursue only the work that interested me.  Having my total number of contacts reduced to 2 makes it much easier though.

What sucks about this is that my former company went belly up.  Now I I'm competing with 5 or 6 of my friends for jobs in the area.  It hurts when you see a former coworker get a job that you think you would have been a great fit for and that you really wanted, but your phone never even rang.

These are the things you think about when you're on unemployment - you've got nothing else better to do.  That's why it's so important to be doing something.

YMMV