What are the challenges of changing your horse half way through the race?
In their mid-forties, many people consider leaving secure salaries to switch careers or start their own venture.
Gordon Stockman, vice-president of Efficient Wealth Management, a financial planning company in Mississauga, sees many clients in their mid-forties trying to determine what they’re going to do with their future. He doesn’t see this age range as “a late career stage” because it’s still early enough to be able to start a great career.
But what should you look out for when making a midlife career change? Mr. Stockman was here to take your questions. The following is a transcript of the hour-long discussion.
Q: I've been trying to make a lateral career change into a new industry and have also moved recently to a new city. The career change has resulted in a series of short-term contracts over the last 2 years. This seems to be a concern in the interviews I've had. How do I counter-act this? I usually say it's the reason I moved. Any help would be appreciated, it's been a long, hard slog to find full-time work again.
Gordon Stockman: Well do not let them make it a concern. The reality is that many employers are using contracts to avoid not being able to downsize employees easily. Extol all varied experience you are getting and stress the accomplishments. Turn it to a positive because it is.
Q: I have a friend who just came back from South America. He is a teacher with a master's degree earned while he was in South America working as a pricnipal there. He has come back during a serious oversupply of teachers and tight job market. I had suggested consulting in development education might be an option, but he hasn't had calls back. Forgive me for the broad question, but do you have any suggestions for him?
Gordon Stockman: Teaching is local. Different situations from province/region to others. Cast wide and finely to find where there are shortages. Everyone looks at the big boards.
Q: I'm a newspaper reporter, so you can imagine how secure my job is. I'm confident about selling my skills, but how much does one reveal about the reasons for a career change? Is it safe to be up front about facing a layoff or is that a taboo subject to be avoided?
Gordon Stockman: Honesty really is always the best policy. Being forward acting and being prepared are two good attributes, but tell them you are contacting them specifically because if you are going to make a move it is to the “best” or whatever to let them know you are not just going to take what you can
Q: How would one go about trying to identify whether it's best to buy an existing business, a franchise or start one from scratch? Especially if you're trying to replace a 6-figure salary.
Gordon Stockman: Available resources need to be balanced against return on investment of each scenario. Three comparative business plans are needed to achieve this answer. One very important factor is the need for advertising. I t is almost impossible for a startup or small business to advertise effectively or build brand through advertising. Franchises of the advantage where ads are needed to drive customers. This is because of group buying and group ad placements. Starting your own can usually be the lowest up front cost, but the longest to stability. So again return on investment. Maybe little up front but no payback for years. Compare cash flows over first 5 years then stand back and ponder.
Q: Any suggestions on where to source resources to answer, or would you suggest working with an accountant, or other business professional?
Gordon Stockman: NEVER start without a business plan. So if you do not have the capability you must seek it. There are a number of incubators that can help - go online. There are also government programs to teach how to do a business plan and provide guidance. Check resources for the unemployed. If you have the cash you can buy the service, but DO NOT give over the digging or the thinking.
