Preparing for the New Career Economy
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The document discusses the challenges facing American workers in today's changing job market and economy. It summarizes that traditional jobs and career paths no longer guarantee financial security, and unemployment is expected to rise significantly. It encourages exploring alternative career options like business ownership and franchising to take control of one's future and protect one's family.
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Preparing for the New Career Economy
- 1. The Career and Economy Dilemma! Preparing yourself for the New Career Economy ® Prepared by Empire Research Group for TES © Copyright 2009 TES Franchise, LLC
- 3. American workers face a downward spiral The job market is changing. Worker’s face an uncertain future. The time is now to explore your options.
- 8. The quest for the good life
- 22. Looking the other way is no longer an option Source: www.breitbart.com. United States of Angst: Americans stressed, depressed, polls show. 28 Dec 2005. http://www.breitbart.com. Ret 25 Mar 2006. Denial won’t make the problems go away Prepared by Empire Research Group for TES © Copyright 2009 TES Franchise, LLC
- 31. Small Business Births and Deaths Prepared by Empire Research Group for TES © Copyright 2009 TES Franchise, LLC
- 32. Annual Growth Rages: Prepared by Empire Research Group for TES © Copyright 2009 TES Franchise, LLC
- 33. Who will lead us to a better future? Prepared by Empire Research Group for TES © Copyright 2009 TES Franchise, LLC
- 40. Take the next step towards protecting your future… today! Visit www.EsourceCoach.com/samell www.FranchiseMatch.com/samell URL to learn more or call: 813-971-9411 This is an informational seminar only and should not be considered a franchise offering. Thank you for your time!
Editor's Notes
- Welcome Introduce yourself Introduce your background and credentials
- Review agenda Congratulate attendees for taking the time and interest to explore alternative career options outside of traditional employment.
- Ask questions: How many of you are currently in a employee/employer relationship or have been within the last ten years? Over the past decade, and specifically in the last year, how many of you have seen changes in the job market that may have caused you to make adjustments in your career path that you were not expecting? We all recognize that things are changing... As the saying goes, change is the only constant. This certainly isn’t the same job market our parents and grandparents knew – we can all agree. But rather than just leave it at that, The Entrepreneur's Source commissioned a third party market research firm to take a closer look at the trends over the past decade, and to try to quantify the things that are contributing to the changing job market. We’ve specifically spent some time studying the recent events of this economic roller coaster and have some important news to share. Our purpose? To better define the kinds of options you have for securing your family’s financial future in light of the conditions in which we now live.
- Today we are going to be taking a close look into the "New Career Economy ® ". So what do we mean when we say "New" Career Economy ® ? It’s "New" so it must be better right? Wrong. When we talk about the New Career Economy ® in comparison with the “traditional” career economy of the past we have found that the days of working for a single employer and retiring with a pension and a gold watch is a thing of the past. Think about the recent events. Companies like Lehman Brothers who have survived 150 years and two world wars…gone. (Tell a story here) For example: My father-in-law is the poster boy for success in the traditional job market. After high school at 19 he took a job a Garrett Air Research as a welder. He worked there until he turned 60 and retired with a pension, health care benefits and a gold watch. The “New” Career Economy ® no longer offers the security and financial rewards during retirement that our parents and grandparents depended on. There are unique market issues today that threaten workers’ stability. Pension funds and Social Security can no longer be depended upon. Savings are down and stress has never been higher. Let’s take a closer look at today’s job market and why alternative career options need to be explored.
- So why look at these things? Simple. It comes down to the quest for the good life – the American dream. How many of you here today are looking to improve your quality of life – not only today, but also with an eye toward how you’re going to maintain your lifestyle during retirement? All of us, right? OK... So, let’s take a closer look at why the “good life” is quickly becoming out of reach for the average American.
- No need to answer out loud, just ask yourself... Four in ten consumers live paycheck to paycheck. And its getting worse. A recent Survey by CareerBuilder.com says nearly half of all workers say they always or usually live paycheck to paycheck. “ In October of 2008 Kiplinger said, “In this economic climate, more of us are struggling to pay the bills, buy groceries and fill our gas tanks. Paying off the mortgage, putting the kids through college without financial aid and amassing $1 million for retirement seems out of the question now. Just having cash left over at the end of the month would be nice.” Most jobs today only cover the “basic necessities”, but how many of you want more?
- How many of you were born wealthy? How many of you have gotten lucky and won the lottery? How many of you still have to WORK for a living? But can working a job give you what you want out of life? The fact of the matter is that for many people a reliable career in America is becoming a thing of the past. Let’s find out why…
- “ I never thought it would happen to me.” According to the government's latest surveys, the layoff rate from 2006-2008 continues to climb. Some experts estimate monthly unemployment will top 700k per month in 2009. The security of working for a large organization is a thing of the past. Let’s look at who’s in the news today…
- Recognize any of these organizations? All household names that are in danger of going bankrupt or already have! A friend’s wife works for Campbell’s Soup – they just unloaded Godiva / hundreds of jobs are gone! How is this affecting the experienced middle manager who has forgone self employment opportunity for the “security” of working for a large organization? What examples do you see in your own community of big companies downsizing or going away? Let’s take a look…
- If you’ve achieved a certain level of so-called corporate “success” the risks are even greater. ExecutiveTalent.net reports that unemployed senior executives spend twice as much time (up to 8 months) looking for replacement jobs than their younger counterparts. And the reward? Lower pay; on average 18% lower. And needless to say, the longer an interruption in employment goes, the more savings dwindle and the more your debt begins to pile up! Heaven forbid you encounter a health care crisis.
- Employed or not, the cost of health care is skyrocketing. (Tell a story here) Example: Earlier in this presentation I spoke about my father-in-law and his success in the traditional career economy. During his employment part of his income was medical and dental coverage for himself, his wife and three children. But today companies are shifting the cost of health care back to the employee. This has resulted in 45 million or 1 in 7 people being left without health care. A recent Kaiser Foundation study found that nearly workers contributions for health care have increased by over 117% in the last 10 years. The Houston Chronicle reports that 72% of U.S. citizens work for an employer who does not pay their full medical insurance. With all of this in mind, it only makes sense to ask yourself, with the cost of health care increasing – where will the money come from to pay for health care for you and your family? Not just today, but as you near retirement... Worst case scenario, maybe you’ll tap into your 401K or cash out some stocks?
- How many of you participate in “re-active” investments such as stocks, mutual funds or 401k programs? These are called “re-active investments” because they all depend upon the performance of corporate America. Now here’s the scary part: Bet you didn’t know that 90% of ALL companies do not make their forecasted revenue figures in any given quarter. You wouldn’t know that from the smiling faces on CNBC, would you? It’s the Grand Illusion of Wall Street. The default rate for issuers of U.S. corporate junk bonds — bonds that Standard & Poor’s rates BB+ and below — is expected to “catapult” to an all-time high of 13.9% by December 2009, S&P reported in January “ Confidence in corporate America is fading. AIG corporate executives were partying in style just 2 weeks after the bailout.
- Let’s talk about pension plans. When you retire, the monthly pension check that shows up in your mailbox each month is going to allow you to maintain your current lifestyle. Right? Well not exactly. According to the American Benefits Council, 50% of the pension plans in this country have been eliminated over the past decade. The collapse of the stock market last year (2008) left corporate pension plans at the largest companies underfunded by $409 billion, reversing a $60 billion pension surplus at the end of 2007, according to a study released by Mercer in January of 2009. Though shoring up pension funds is supposed to increase employees' financial security, it could involve such tradeoffs as reductions in wages, benefits and jobs. Again, not good news. Remember what we’re talking about today, The New Career Economy ® . Like I said earlier - and I’m sure you’re seeing for yourself - “new” isn’t always “improved,” and what we call “progress” isn’t always a good thing. That’s especially true for today’s typical W-2 employee...
- Look, there has been a lot of progress in the last decade – e-mail – cell phones – laptops – technology like the tool we’re using right now. And a lot of ordinary people are taking advantage of these tools to generate income, build wealth, and create an incredible lifestyle for themselves – and you can too – but the reward of all this progress for the typical W-2 employee adds up to just one thing - longer work hours, and less time for the things we really value. As the chart above illustrates, average combined hours of work for husbands and wives have increased by almost 20% over the past three decades.
- Lawrence Johnson, who is the chief economist for the International Labor Organization – a man who analyzes the world economy – said, "Workers in the United States are putting in more hours than anyone else in the industrialized world” WHY? Ultimately, it’s all to BUILD SOMEONE ELSE’S WEALTH! Whether we want to admit it or not, that’s essentially what the W-2 worker today is doing...
- Let’s talk about what “career” really means for a W-2 wage earner today. On average, workers can expect to change jobs within a chosen profession 6-8 times AND completely change working professions at least 3 times in their lifetime. On average, 2 out of every 10 retirement dollars are cashed out when workers switch jobs. And even those who don’t cash out are usually are unable to pick up their retirement savings plan right where they left off. The bottom line is that W-2 workers can expect to make multiple changes, and every time you change direction, you fall farther and farther behind; behind in your savings... behind in your plans for the future... But at least there’s Social Security, right?
- What about Social Security? International Communications Research did a study and found that 70% of Americans believe that Social Security eventually will go bankrupt, even if Congress takes action now. And for good reason. We’ve all heard stories about the nightmares some seniors run in to when it’s time to collect. [Tell a story here] For example: My neighbor retired last year after working her entire life and contributing 100% to Social Security. But when it came time to collect, the Social Security Administration “adjusted” her benefits, meaning they drastically reduced them. Why? Because she was smart enough to contribute to a voluntary retirement plan for about ten years before she retiring. If that’s not bad enough, they totally took away the funds she was entitled to from her deceased husband. The net amount she receives each month from Social Security is a whopping $37 a month. Not even enough to cover one of her monthly prescriptions. According to the Trustees’ Report Summary 2008 on the Social Security website, “T he financial condition of the Social Security and Medicare programs remains problematic. Projected long run program costs are not sustainable under current financing arrangements. Social Security's current annual surpluses of tax income over expenditures will begin to decline in 2011 and then turn into rapidly growing deficits as the baby boom generation retires.” “ The trustees also said Medicare’s hospital insurance trust fund would pay out more in benefits than it receives in taxes and other dedicated revenues this year. Social Security costs will exceed tax revenues starting in 2017, they said. The government will then have to draw on assets of the Social Security trust fund – special government bonds – to meet its obligations to retirees.” Not exactly a pie in the sky American dream is it?
- The storm is on the horizon: Let’s recap what we’ve learned so far: Colossal Consumer Debt: 63% of households are in credit card debt. Company Downsizing: GM – Ford – HP – Campbell’s – AOL Lengthy lay-offs – 37% of employable people have been out of work for six months or longer. The elimination of benefits: 1 in 7 people do not have medical insurance and 72% of Americans work for employers that do NOT pay for their full medical insurance. Longer work hours – less money. Enormous corporate bankruptcies are looming – 90% of all companies do not make their forecasted figures Massive Pension deficits – 50% of pension plans have been eliminated over the past decade and those that do exist are nearly Half a Trillion Dollars under funded Social Security – 70% of all Americans believe social security will go bankrupt. So, what’s the bottom line?
- This is kind of an amusing graphic, but it illustrates a very serious point – looking the other way just isn’t longer a option. There’s no denying it – the dangers faced by today’s working families are real, and they aren’t going away anytime soon. If you’re serious about securing your family’s future – and I’m sure you are because you’re here – it’s time to get educated about how you’re going to take control of your destiny. I’m sure you agree, we owe that much to ourselves and our family.
- Whether you’re 25 or 65 or somewhere in between, the clock really is ticking… Since we know that traditional options are unreliable, the question is, how will you take control of your financial future to get from where you are to where you want be? Listen... We’ve spent a decent amount of time today discussing the cold hard reality of the New Career Economy, but that’s only half the story. The great news is that this really IS the land of opportunity. The American dream is alive and well, we just have to come to grips with reality; stare it down, and figure out how to create our own American dream. Ordinary people are doing every single day. The first step is deciding to take action. The fact that you’re here means you’ve started the process. Now it’s time to look beyond your circumstances and discover WHAT SUCCESSFUL PEOPLE ALREADY KNOW…
- How many of you would like to steer your own ship? All of you, right? Yet it’s amazing how few of us actually do. The biggest mistake most people make in creating their lifestyle is failing to learn about their options. It’s truly the ONLY way to discover what’s possible. The simplest, most direct route to controlling your own destiny and your financial future is simply to observe how others are doing it, and then learning what your options for doing the same. For most of you that means working for yourself and not for somebody else.
- Maybe it’s time to start your own business. You might say, “that sounds great, but I don’t know how to do that.” Others might respond very honestly and admit that just the thought of being self employed scares them. Remember, the biggest mistake you can make is not exploring your options. So, what are your options for becoming self-sufficient? Come up with an idea and build a business from scratch Search for a work-at-home opportunity If you have a specialty area, you could be a consultant Whatever option you consider, you’ll need to ask yourself, “Will this particular business deliver the financial and personal rewards I’m looking for?” Some may, others may not. It’s important to get educated while you explore your options...
- Being your own boss sounds great, but most independently-owned small businesses don’t make it. Why? I highly recommend the book you see on the slide right now, “The E Myth Revisited.” Michael Gerber is a world renowned expert on business and coaching. He researched the plight of small business owners to discover exactly what makes so many fail and what it takes to make them succeed. More importantly, he set about discovering how business owners can find not just financial fulfillment, but PERSONAL fulfillment as well. You may not be able to see it in the graphic, but the banner on the book’s cover reads, “What Every Successful Entrepreneur Knows.” Naturally, here at The Entrepreneur’s Source, we make good use of Gerber’s research in helping people explore their options. Here’s what he found... There are some common “Fatal Assumptions” that people make when they consider going into business: Fatal assumption #1: if you understand the technical work of a business, you understand a business that does that technical work. That’s not always true. For example, a good electrician may not necessarily know a thing about how to run an electrical contracting business. Fatal assumption #2: owning a business will automatically bring you personal freedom. All too often, a business can actually enslave the person who owns it. These assumptions can lead to what Gerber calls the Fatal Problem: Suddenly the job you knew how to do so well, and maybe even enjoyed, is overshadowed by a dozen or so other responsibilities that you don’t know how to do at all… This charts the course from Grand Opening to Liquidation, and it’s a course followed by many business owners who try to go it alone.
- Our latest research from the U.S. Bureau of Labor Statistics shows that, across all sectors, 45% percent of new independent business failures happen within their first 2 years. You could call it The two year guillotine. The main reasons? Lack of capital and poor cash flow management Unrealistic expectations on the time it takes to be successful Lack of a executable business model
- When considering your options many of you will have to contend with some “F” words... things that can hold you back if you’re not careful. This is especially true if you don’t have the input of a good mentor or coach: Frustration Fear of failure Financial constraints And yes, sometimes even family and friends When you’re exploring your options, it easy to get distracted from the most important F-words of all – Financial Freedom. Thankfully, you don’t have to go it alone; there are alternatives.
- We’ve all read that small businesses are the backbone of the U.S. economy. It seems logical to assume that the small business market must shrink during a recession. In fact, the opposite is true. These are the types of misconceptions that marketers to small businesses must expose in boardrooms and budget meetings to be successful during a recession. During downturn economies, not only does the net number of small businesses grow, but the number of start-ups actually increases vs. previous years. Trouble in the corporate sector tends to serve as a launching pad for would-be entrepreneurs. Where do all of the smart, aggressive, educated, A-type personalities at Lehman Brothers, Goldman Sachs, and AIG go when their firms make massive layoffs or cease to exist? Many of them start their own business. If history serves as a guide, the number of new businesses spikes as recessions get deeper.
- Not only does the small business market offer continued growth during a recession, it also offers relative stability. Take a look at the growth rate of the small business market vs. that of consumer spending. Consumer spending sports impressive growth rates during the best of times, but also suffers wild swings during recessions. Conversely, the small business market offers a more stable source of revenue through good and bad economies. Year-over-year peak-to-trough changes in the small business growth rate are less than a third of the drops seen in discretionary consumer spending. The small business market is not only an important source of diversification for enterprise companies, but also a relative safe haven for investment during recessions.
- Polling firm Zogby International conducted a joint interactive poll with WeMedia, asking the question: “Who will lead us to a better future?” Americans put entrepreneurs and small businesses at the top of the list, with 63% of Americans saying entrepreneurs and small businesses would lead the way. Next were science and technology leaders, with 52% of Americans having confidence they would lead us forward. Here’s the chart:
- Let’s talk about your alternatives to going it alone. How many of you have ever heard the saying “self made millionaire”? The truth of the matter is, millionaires never become millionaires on their own. They’re “team made”. Henry Ford is famous for admitting that the one thing he knew best was how to surround himself with good people. He built a strong team, and now he’s a household name. OK, but who should you have on your team? Taking a look at what successful people have done and are doing, a good team should include: Mentors who act as active coaches Like-minded, supportive, wealth builders and visionaries Where can you find people like this?
- The answer? In a Business Coach. Coaches make excellent team partners. Over the past ten years, coaching has gradually risen to a $1 billion industry; outpacing the growth of the consulting business. Clearly, there’s a real need and a real demand for coaching. There are more than 40,000 coaches worldwide, in virtually every industry. In fact, there are coaches for almost every area of business: Leadership Coaching Sales Coaching Turnaround Coaching Personal Coaching Business to Business Coaching Career Coaching In fact, according to Right Management Consultants survey, about 47% of organizations see coaching as essential to their executive decision-making process. OK, fine, you may say, but where can ordinary people like me find a coach and a mentor? That brings us to one more F-word, FRANCHISING.
- Let’s take a look at the “Power of Franchising” here are some compelling statistics: According to a study by PricewaterhouseCoopers: There are 760,000 franchised businesses in the US, generating over $1.53 trillion in revenue Franchising is the #2 industry sector for employing people, second only to manufacturing Although only 8% of business outlets are franchised, they will generate 44% of the total gross business revenue. You do the math… That’s a testament to the efficiency and productivity of the team concept we discussed earlier. No wonder franchised businesses – from hardware stores to restaurants – can be found in pretty much every community in the country.
- What are your Goals, Needs and Expectations and how do you intend on getting there? Here are four steps to getting where you want to go: Define your goals – determine the destination... Know where you want to go. Map out your course – know how you’re going to get there. Surround yourself with a knowledgeable team – coaches, mentors, successful people who know the way – very often a franchise is the best way to assemble such a team. Explore your options - Identify those opportunities that will be your vehicle to financial freedom.
- Here’s a brief overview of what we’ve learned today: There are many dangers in the New Career Economy ® that are affecting you and your family today – dangers that make the status quo untenable. At the VERY LEAST, you need to educate yourself and explore alternative career options outside of traditional employment. Knowledge is power – having the right information and access to a team of knowledgeable, successful supporters is crucial to your own success. Franchising is one of the time-tested models of success that can provide people with a proven road map to success. Partnering with a coach is essential to helping you discover possibilities and options that you may NEVER have discovered on your own.
- Next Steps The fact that you’ve taken the time to join us today tells me that something inside is urging you to take control of your destiny. Don’t silence that voice! Remember – knowledge is power. It literally costs nothing to explore your options and to consider the possibilities for your future. But the cost of NOT exploring your options could very well be all of your dreams for your family’s future. You have many opportunities and choices – The “New Career Economy ® ” doesn’t offer us the same assurances our parents and grandparents enjoyed. But opportunities abound. We just have to look for them. Follow-up with the person who invited you today. Make use of their knowledge. Keep in mind the benefit of a coach. Business coaches specialize in multiple options and have the benefit of the inside track. A coach isn’t a salesperson, rather they can help you in a DISCOVERY process that helps you to see what options can take you to where YOU want to go. With that in mind, maybe coaching others is a career option that’s right for you. If you enjoy helping others and want a flexible lifestyle and the financial reward that comes from providing a valuable service that’s in high demand, this might be the vehicle you’re looking for. ESOURCE BRANDS. [our little plug] Low investment, flexible lifestyle, wealth and equity business models TES: The Entrepreneur brands are a host of franchise options one-stop, one-source entrepreneurial center committed to supporting you in your search and success in business. Share what they can expect in two discovery events (webinar, VT). Indicate a Mtg.1 and follow up are included. After the virtual tour, "we will share the business model in more detail, our 5-point marketing agenda for obtaining clients, revenue streams, and example client engagements."
- Thank you for joining me today. You will get a follow up call. REMEMBER, you owe it to yourself! We are flexible and committed