Maybe You Shouldn’t Be An Entrepreneur

 Big Picture Stuff, Careers  7 Responses »
Nov 282011
 

Most people have at least one of the following dreams:

1. Travel the world

2. Become their own boss

3. Threesome with two attractive chicks

Unfortunately, even though I may seem like a ladies man, I cannot help you with number 3. You’re on your own with that one. I will suggest alcohol, and lots of it.

Instead, we’re going to talk about becoming an entrepreneur. But, like I usually do, I’m going to put a little twist on it. That’ll come in a little bit. Oh, I’m such a tease.

(Looks back up at the title) Oh, you already know?

Who hasn’t had the dream? You’re at work, minding your own business, just doing your job, when your boss bursts in. Somebody has pissed in his Corn Flakes this morning, so he’s mad. You’ve been working hard on the ninja report, but it just isn’t done yet. He wants it, so you give him the bad news. Since he’s so angry, he tears a strip off you, leaving you practically in tears because you’re sensitive, dammit.

Screw this you say to yourself. I don’t need this. If I went out on my own, I could charge more, and not have to put up with the whims of my boss. This would be the greatest thing ever. So, right after you finish the ninja report, you allow yourself a few minutes to dream. Just don’t go acting on this dream just yet, because it might just turn into a NIGHTMARE.

Ooh, scary. You almost wet your pants there, didn’t you?

Regular readers will know I spent some time as a mortgage broker. Even though I worked under a brokerage, I was responsible for getting all my own business. As in, if I didn’t do some mortgages, I didn’t get paid. There were various things I did in an attempt to drum up business- an ad in the local paper, mailing out flyers, among others- but they weren’t ultimately very successful. The reason? They were too passive.

In any sales related field, the business goes to whoever is the most aggressive in asking for it. And there I was, in a sales position, as a guy who didn’t want to be that aggressive. I hate that proverbial used car salesman stereotype, and didn’t want myself coming anywhere close to it. So I intentionally became less aggressive. In that industry, you can imagine how badly I was shooting myself in the foot. After a couple very mediocre years, I was ready to throw up my hands and get a real job again.

The point of my story is simple. There are certain businesses that require a great deal of sales skills in order to get ahead. In the mortgage business, you’re always looking for the next deal. Even repeat customers will only darken your door every couple of years, since you can only buy houses so fast. Your knowledge of the business becomes almost secondary to your ability to generate leads. If you suck at doing that kind of work, maybe entrepreneurship isn’t for you.

And then there’s time management.

How often do you sit down with the intent of accomplishing something, and then realize an hour later you’ve pissed away the last 45 minutes watching cute kitty videos on Youtube? If you’ve never done this at least a few times you’re either not human or a liar. I’m just as guilty of it as the rest of you, except I watch stuff that doesn’t suck.

It’s human nature to avoid tasks we find unpleasant. Personally, I do the stuff I want to do the least first, getting it over with. Sometimes though, I’ll procrastinate because the job is just so unpleasant, like I do every year with my taxes. How many of you have stayed in a relationship you knew wasn’t going to work because the thought of breaking up with just so horrible?

As an entrepreneur, the buck doesn’t just stop with you, it also begins with you. That very freedom that you craved can be your worst enemy if you can’t just buckle down and get to work. Procrastination will kill any entrepreneur, including me. I would spend hours avoiding tasks I didn’t want to do, instead doing the most pointless of crap to avoid what was important.

You will have to work harder as an entrepreneur than you ever did as an employee. Sure, you have the freedom to do that work at 2am, or on a beach somewhere (depending on the nature of your business) but you still need to get off your ass and do it. If, like a lot of employees, your primary motivation is fear of your employer, I’m not liking your chances of going without a boss. Motivating yourself isn’t nearly as easy as you think it is.

This post isn’t to discourage any dreams you have of going out on your own. I’d still encourage anyone to start a side hustle. And even though fear can be a great motivator, I’d recommend against just up and quitting your job. Instead, wade into the ocean of entrepreneurship. Start freelancing. Spend a couple nights a week on some sort of sideline business. Instead of drinking too much on Friday night, spend it working on something that can grow into something bigger.

You’ll accomplish two things by approaching entrepreneurship this way. Firstly, as you gain traction and get busier, you’ll be forced to learn time management, because your time is limited by your day job. Secondly, you have a safety net just in case your new business isn’t the road to riches you first thought. You can pick yourself up and try something new without having to risk starving.

You might have the means to make it self employed. Or, more likely, you won’t. Instead of taking a huge risk to find this out, why not be cautious about it? Calculated risks are the best risks of all.

 Posted by Nelson Smith at 4:20 am

Performance Reviews Are Useless And Should Go Away

 Careers  5 Responses »
Aug 122011
 

Since I’m too lazy to come up with a real post today, I’m going to republish a guest post I wrote for Five Cent Nickel a few months ago. There are some interesting comments on the guest post, so go check those out.

Let me begin this post with a story about two consecutive yearly performance reviews, one given to me by a supervisor who liked me and the other given to me by a supervisor who felt I was after his job.

The first performance review was great. I met or exceeded expectations in all eight categories. In the comments section at the bottom of the review my boss stated what a pleasure I was to work with everyday, complimenting my work ethic and disposition. To this day, I have yet to get a performance review as glowing as that one. I used the review as my main ammunition when I asked for a raise a short time later, getting every penny I asked for.

Fast forward to the next year. I had a different boss, but I was in the same position. Out of eight categories, I only met expectations in three, meaning I needed improvement in five. It became apparent very early on in the review that my manager was nitpicking, finding fairly specific things I had done wrong recently and basing my whole yearly performance on them.

Outraged, I set up a meeting with his boss. To paraphrase, I was told the organization still held me in a very positive light, my immediate boss just didn’t like me. It was implied to me if I just stuck around long enough, he’d either get promoted or he’d move on and I’d get his job. I left within 6 months, a big reason why was dissatisfaction with my supervisor.

Bosses Have Biases

I cringe every time a performance review is referred to as “objective”. The fact is, bosses have subordinates that they like, tolerate or despise. If a boss likes the worker, the performance review is likely to be better than the employee deserves. It’s the exact opposite with an employee the boss doesn’t like, no matter how good that employee’s work ethic is. So rather than an objective review of the employee’s performance, we get a report filled with the reviewer’s biases, which almost never gives an accurate representation.

Even if you get several people contributing to the review, the biases will still be there. Supervisors talk among themselves, and human nature dictates we value the opinions of our peers. If every other supervisor in an organization hates someone, that will inevitably change the opinion of the person who likes them.

Both Parties Are Looking For Different Things

As an employee, the purpose of the performance evaluation is simple. They want a good review, partially to feel good about themselves and their performance, but mostly so they can leverage that into a pay raise.

The supervisor usually has been given pressure by management to not be too positive on reviews. Management knows if they have a bunch of staff that get great reviews then they’ll have a bunch of staff pressuring them for nice pay raises. Obviously management doesn’t want this, so reviews just about always follow a “employee A did this good BUT…” format. Often managers nit pick on some little wrongdoing during review time, just so they can find something negative to put in the review. How is that in anybody’s best interest?

They Really Don’t Care If You Improve

In every workplace I’ve been part of, the review never offers any concrete ways to improve an employee’s performance. If the review identifies a weakness in a certain area, the review should also outline a step by step process to improve the employee’s performance. At the end of the day performance reviews are presented, discussed and then filed away until next year, when the reviewer cracks them out to see what they said last year.

If management was serious about employees really improving themselves, they’d revisit reviews on a regular basis throughout the year, working with the employee to improve their deficiencies.  A review could be a great opportunity to show an employee that the employer is serious about their personal growth in the organization. This opportunity is just about always squandered by management.

The Boss Has All The Power

Every organization likes to tout teamwork. We’re all a team they say, we all work together. This may be the case sometimes, but it definitely isn’t the case at review time. The boss has all the power. The employee can object to the review until they’re blue in the face, but they’re not going to change it. In fact, objecting to the review just gives the reviewer further ammunition next year, they can add “doesn’t take criticism well” to their list of beefs. It’s either the supervisor’s way or the highway, which is a contradiction of the whole teamwork and working together mantras.

Can They Go Away Please?

I’m not sure what the ideal solution is for giving feedback to employees, but it’s obvious the performance review isn’t it.

If I ran an organization, I’d give employees a handful of goals to work on at the beginning of the year, working with them throughout the year to accomplish those goals. After the year, I’d go over the goals with the employee. If there was success, then a raise is in order. The greater the success rate, then the greater raise I’d give. And if someone didn’t accomplish much, then perhaps they need to be transferred to a different department or even let go.

That’s just one solution. Certain organizations are starting to come up with some innovative ones of their own.

What’s your take? As an employee (or boss) what would you like to see in a performance review? How can the process be improved?

 Posted by Nelson Smith at 4:20 am

The Case Against College

 Big Picture Stuff, Careers  22 Responses »
May 162011
 

Exactly 10 years ago, I was in the final weeks of grade 12, anxious for school to be over so I could be done with high school for good. Like many of us at that age, I was excited at the almost limitless possibilities that lay ahead of me. I could go to college, enter into some sort of apprenticeship program, or just go out and get a job somewhere. I could take a year off and then go back to school, which is what I publicly told people I was doing, even though I knew that college wasn’t right for me, especially at that point in my life.

Plus, I couldn’t talk to girls. What? They have boobs. Those can get distracting.

I don’t regret missing out on college. In fact, I think one of the biggest failings of our educational system is pushing the college or bust mentality. Here’s why:

It’s Not For Everyone

A well quoted statistic about college is the dropout rate. When I took the mortgage broker’s course, half the class dropped out before the course was completed, matching the average everyone hears about. And that was an easy 3 week course.

Naturally, people assume they’ll beat the odds. They won’t drop out, because they’re more dedicated, smart, attractive, or nice smelling than everyone else. People tend to overestimate their own abilities and underestimate everyone else’s. This overconfidence is the downfall of many of us.

So many people are pushed into college who have absolutely no business being there. People who are hoping general studies will inspire them into a major and a career would be better off staying home and working. So would those people who have problems with math or reading. It’s the same with the people who go to major in partying. Stay at home, live in your parent’s basement, and get drunk there.

If someone knows they want to be a teacher, nurse, architect or lawyer, then they should go to college. College is an awful expensive way to find one’s calling.

Debt Can Cripple A Graduate

Countless PF blogs have wrote about either the evils of student loan debt or ways to dig out of it. This blog won’t spend time on either, with the exception of noting that graduating college without student loan debt is becoming more and more unlikely.

In Canada, the average university grad has over $16,000 in student loans when they graduate, which has been growing at 4% a year since the beginning of the century. Interest rates are either prime + 2.5% (on a floating rate) or prime + 5% (on a fixed rate).

If a student got a 16,000 loan today and prime remained at 3%, they would have to pay back $305 every month for 5 years (ignoring the grace period to keep things simple). If the degree works out for the grad, this is all fine and good. But what if it doesn’t?

Here’s another scenario: what if the person who didn’t go to college saved $300 every month for 9 years- 4 college years and 5 years to pay back the loan. They would have $32,400, not including a nickel of interest. If they managed to earn the 5.5% interest rate the college grad would pay, they’d end up with savings of $41,677.

The college grad would have to save $794 every month after they graduated to end up with the same size of nest egg at the same age. They’d have to do this on top of paying back a student loan.

I Don’t Buy The Higher Wage Argument

I’m sure you’ve all got the same argument on the tip of your tongue. But Uproar, don’t you know? College graduates make more money than non-grads. Any moron knows that.

That may be true, but those studies don’t tell the whole story. Do college graduates make more than dropouts because they went to college? Or do they make more money because they’re smarter/more ambitious/harder working than non-grads? It’s a chicken vs. egg argument.

Just how much value does attending college add? We will never know, unless you find a way to clone yourself.

When Krystal made her impassioned argument for her communications degree, it got me thinking. Is she (or any college graduate who has a degree that some consider, shall we say, flaky) successful because of that degree? Or is the degree a result of the good qualities that were already there long before they stepped on a college campus?

The Entitlement Of College

There are all sorts of whiny, self indulgent, snot nosed douchebag kids at college.

These are the kids who are there just putting in time until they get their degree. They whine about the amount of reading they have to do. They whine if they get a C on an assignment. They either get the smart kids to do their papers or download them on the internet.

Once these kids get their degree, they go out and finance a new car, buy a bunch of other crap on credit, and become good little consumers. Then guys like me can lend them money. Is this really what we want to encourage?

An Alternate Plan

Here’s what I did when I younger. And since I’m the man, you should rush out and do exactly what I did.

I worked, lived in my parents basement, and put away every spare dollar I could. I worked nights intentionally, so I would have no life and no excuse to spend money. I had no car, I walked to and from work every day. I had only one purpose in mind- to save money.

I probably saved 80% of my income for the first few working years. It took a lot of sacrifice, but I did it.

Yes, my example is extreme. I don’t expect most people to save that much right out of school. Then again, I don’t expect most people will ever get wealthy either.

 

 

 Posted by Nelson Smith at 12:13 am

5 Unconventional Ways To Get Ahead At Work

 Careers  4 Responses »
May 092011
 

Even though the economy has recovered from the 2009 lows, it’s not exactly sunshine and rainbows out there. Job numbers are getting better, but there are still a lot of people who are either underemployed or haven’t found a job yet. Competition for new jobs is still fierce, and standing out at work has become harder than ever. If you don’t perform, the company can easily replace you with one of the many people looking.

Getting ahead at work is relatively easy, providing that the employee is willing to put in the effort. Showing up early and staying late is a good start. Working harder than everyone else is a must too. No long coffee breaks or conversations at the water cooler for you. As the saying goes, you’ve got to dress for the position you want, rather than the one you have. You’ll probably have to miss little Johnny’s t-ball game on Saturday, since you’ll be at the office putting the finishing touches on some project. All the hard work will be worth it though, once you get that elusive promotion and the raise that comes with it.

There’s just one little problem with working harder than everyone else. It’s hard. It’s, like, really hard. I try to avoid hard work just for that reason. Staying late sucks, especially when you’d rather be doing, well, anything really.

Hard work is for suckers. Here are 5 ways for the lazy person to get ahead at work.

Kiss Lots Of Keester

The first trick is the oldest trick in the book. Plant your lips squarely on your boss’ ass and don’t pull away until you’re promoted.

Compliment your boss on anything and everything. Tell him how great his new tie looks. Comment on her weight loss, even when it’s obvious she hasn’t lost a pound. Don’t just stop at your immediate supervisor either. Your boss’ boss should be an equal candidate for brown nosing.

You’ll have to be careful in doing this though, since nobody likes a kiss ass. The secret is to not come on too strong sucking up. That’s why you have to spread the love around. If you suck up to 3 or 4 supervisors, then you won’t overwhelm just 1 of them with your incessant brown nosing.

Your co-workers will not care for your sucking up. Ignore this, since you’ll soon be their boss. Once you are, feel free to laugh at them from atop your metaphorical perch.

Blackmail

Blackmail has been a staple for the vigorous young go-getter for many a year, and is something everyone should consider adding to their career skills.

A smartphone with a decent camera is a must for the would-be blackmailer. You don’t want to be caught unprepared when the magical time comes, so be ready for the opportunity.

The company Christmas party is usually the best opportunity to catch someone doing something stupid, so you’ll want to be ready. Encourage your boss to drink large amounts of alcohol, and be at the ready for when they inevitably hit on the cute blond from accounting.

Or, you could become friends with your boss and hang out with him outside of work. I’d again suggest too much alcohol for the occasion, and then let your imagination run with it. I’d say drugs and hookers are musts for the occasion. Just have that camera phone ready to catch the magic.

Date The CEO’s Kid

You don’t have to aim as high as the CEO, but aim high if you’re going to try this one. At least a vice president of something, possibly higher if you can pull it off. The janitor’s daughter may be hot, but she’s not going to get you that corner office.

Hopefully the opportunity to meet the boss’ hot daughter comes up during your sucking up, but it might not, so you’ve gotta be prepared.

Tread lightly when you finally get the chance. You DO NOT want to get her drunk and sleep with her. That would be quite bad. You have to take it slow, treat her with the utmost respect. You want her to tell Daddy what a great guy you are.

Of course, this plan comes with one major downfall. What happens if you have to break up with the boss’ kid? You can handle that situation as gently as possible, and still have it blow up in your face. Hopefully you’ve gotten your promotion by then, or else you’re screwed.

Sleep With Your Boss

This suggestion will be much more effective if you’re a lady, since we all know guys are suckers for a girl in a tight top.

Again, the higher you can place your target, the better off you’ll be with this strategy. Ladies will have an abundance of targets, while the fellas will probably be limited to one or two women in upper management.

Most likely, your target will be married. You’ll have to just put your morals aside, we’re trying to move up the corporate ladder here! Or, find someone newly divorced. Recent divorcees are usually up for anything to cure their crippling loneliness.

Make Other People Quit

Look, I don’t care how you do it. You can focus all your attention to one guy. Or, you can be passive aggressive to everybody. The key to the strategy though, is to do NOTHING that can be traced back to you.

Maybe your adversary is very particular about the way his desk is arranged. Your job is to screw things up just enough that he gets irritated, without getting caught. Take credit for any achievement you can, especially during a group effort. Browse weird porn on his computer, then inform HR about your co-worker’s kinky fetish. Call his house at two in the morning from a payphone and mumble about the damn Belgians. Imagination is your friend with this plan.

There you have it. 5 ways to get ahead at work without going to any extra effort. Well, uh, except for the effort put into any of these plans. Crap. Maybe you’ll just have to work hard.

 

 Posted by Nelson Smith at 12:15 am

My Advice To New Grads Looking For A Job

 Careers  4 Responses »
May 022011
 

Spring is finally in the air, at least where I live. The grass is starting to turn green, the weather is warming up and I’m going to consume my weight in barbecued steak over the next few months, eating most of it while sitting in my covered patio, which is easily the best part of my house. Since I have access to all the free chips I could ever want, this is probably going to be the best summer ever. I will get fat again, yet regret nothing.

What was the point of this post again?

Another sign of spring is the waves of college and university grads, throwing off the shackles of education to finally join the rest us in the world of the employed. A whole lifetime of work lay ahead of them, a fortune in wages is just waiting for them to earn it.

All they have to do is find a job first.

Based on numerous scientific studies by all sorts of smart people, (read: a five minute conversation with a friend) I’ve figured out that jobs are kind of scarce out there. Apparently there’s been some sort of economic slowdown or something. This is the first I’m hearing about it too.

My Advice

Seriously for a minute, my advice to new grads is pretty straightforward. Instead of looking for the best job now, look for the job with the most opportunity. The job with the highest ceiling is the job a grad should be focusing their attention on, rather than the one with the highest current salary.

In a way I can’t believe I’m giving this advice. I’m working on my 4th job since high school graduation a decade ago. If there was a competing chip company offering me more money, I would drop everything and switch alliances instantly, providing the company was as good as the company I’m with now. In the age of layoffs and retirement benefits being cut left and right, why would I propose a grad to start at the bottom of a company and work their way up?

The first reason is learning the lessons of humility and patience. Starting at the bottom and working up the ladder teaches all sorts of skills that many graduates haven’t yet mastered. Today’s youth are almost too happy to switch jobs or cities when they grow tired of their position. By sticking it out for more than a couple years, a new employee shows their employer that they’re around for the long haul. Who would you promote, the flash in the pan or the steady long term performer?

Knowing the risk of this paragraph turning into a “damn kids these days” rant, I’m going to type it anyway. Kids are babied by overprotective parents even through university these days. Everything from their after school activities to their Facebook page is supervised by the keen eye of their protective parents. Then they finally get out into the real world, end up at some job that’s good EXCEPT for one little thing, and they pout until they quit. I know a lot of recent grads who could learn a thing or two about adversity and how to take it like a grown up.

How About Entrepreneurship?

For most new grads, the answer is no.

There will be a select few who will go out and start their own business fresh after graduation. Out of those, an even smaller few will actually succeed at it. That’s reason number one why new grads shouldn’t attempt to start a business right out of school. If they thought university had a high failure rate, they ain’t seen nothing yet.

The other reason new grads shouldn’t try their hand at starting a business is because they don’t have the experience yet. How does someone know they’ll hate working for someone if they’ve only done it for a few months at a time? It’s better to get a few years experience in a chosen field before deciding to branch out on your own. Plus, increased knowledge of the industry will be a necessity to any entrepreneur.

Don’t Be Afraid To Quit

Even though it’s almost contradictory to the advice I gave above, I urge new employees to not spend too much time at a job they truly hate.

If a work environment is really toxic, then no one should be wasting time there. If a job isn’t challenging or contributing to your professional growth in any way, it’s time to quit that job.

What’s challenging for everybody is determining whether a workplace funk is because of external factors, or whether it’s because you’re truly unhappy. If you’re stuck in a job you’ve fallen out of love with, give it a few months. If you continue to be unhappy, just quit. Failure is always an option.

Longevity Will Be Rewarded

In today’s world, employees are just as disloyal to their employers as companies are to their workers. How many of you know someone who’ll go work at a competitor for an extra dollar? By sticking it out, you’ll reap the rewards. Sticking it out becomes difficult because someone never knows when the next opportunity will come along.

This is why a new grad needs to find the best company for them. For some, it will be a new startup. For others, it’ll be the stability of a large corporation. Depending on the type of person you are, either can be the right fit. Just remember to look at more than the number on the employment offer.

 Posted by Nelson Smith at 12:14 am
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