Monday is Officially "Quit Your Job and Start a Company Day"

I've been doing a lot of thinking over this holiday break. Thinking about life, work, kids, parenting, friends,  our relationship with material items and the global situation our country finds it in (or the Bush administration drove us into).

I'll let others, like my friends Roger Ehrenberg and Howard Lindzon and Fred Wilson, talk about the macro situation. Maybe it's the fact that I have 3 young kids, but I am focused very much on the micro. Specifically, how can we as individuals control our own destiny and live the life we want to live despite the cards (personal and global) we are dealt?

These are the main themes of The Last Lecture and Deadwood that I mentioned yesterday in my "2008: Get Some Perspective People" post and probably why I can't get them out of my head.

The only way you can control your own destiny and live the life you want is to quit your job Monday and start a company or do something that you absolutely love. OK, maybe not Monday based on your circumstances. But you get the idea.

If you fail to act and protect yourself, you're being delusional and, worse, if you have kids and a family, negligent, mortgaging your and their future for short-term gain (a fleeting paycheck).

The "security" society is over. Social security is bankrupt. We know that. The program, like many others in the US, is a GIANT PONZI SCHEME! The money I pay today for social security goes right out the door to pay for benefits of others. Sounds very Madoffish to me. Madoff was only taking a page out of the American playbook.

Job security, forget about it. Assume you will be laid off, no matter what industry you're in. Expect it to happen sooner than later if you're in retail, an associate at any service firm (law firm, acccounting firm, architecture, etc.), if you work on Wall Street, if the primary medium your media company delivers its content in is dead trees or anything that has analog in its name.  Even the healthiest companies with too much cash, technology companies, will be shedding employees.

Unemployment, COBRA, the EPA, FEMA, SEC, TARP and most other government safety blankets and protectors are irrelevant. It's not that the good people (in most cases) who work there are all ignorant and don't mean well. We've seen over and over again that government protections don't work. It doesn't matter if you are poor in post-Katrina New Orleans or formerly rich, like millionaire Robert Chew and his family who were wiped out by Madoff or like my many friends who made real money on Wall Street only to find their jobs, their entire industry actually, gone forever. You won't be protected or made whole.

Government security is over. Job security is over. Financial security is over. Sit with it. Feel it. Be with it. And start acting.

Now that you know that you're going to be laid off, perhaps very soon, or, worse, allowed to work feverishly for years and then let go, let me tell you why it makes financial sense to start your own business - even if you continue to get your paycheck, you're paying 40 percent to the local, state and federal government. So the real opportunity cost is the after tax money, the in your pocket money.

I'd argue that investing that money in your future is a better investment than investing 10 hours a day, and probably many weekends, trying to make someone else money, someone who may lay you off very soon.

OK. Here's the match. Say you make $120,000 per year. Now that's a lot of money. But it's probably typical of many of the visitors here. $48,000 goes right out the door. So your in "your pocket pay" is really $72,000, or $6,000/mo. That's the investment you'll be making in your future, it's your opportunity cost. It's a lot of money but definitely not enough to build any sort of real cushion or wealth, specially if you live in any city.
Now the old model was to slave away at a company earning enough to "survive" and support your family in hopes that you'd move up and make the big money in a decade (or two). Well, now that golden payday has been crushed. You'll be laid off well before that payday comes and you'll be forced to take a lower salary (or same salary) and be no closer to real money.

So the question you need to ask is simple: is your annual take home pay, after taxes, really enough for you to justify the status, albeit it potentially fleeting, quo? I'd argue for many of you that the answer is NO by a long shot. And you taking your paycheck and deluding yourself to think that this too will pass is dangerous and short-sighted.

Starting a company provides you two main benefits: flexibility and a prosperous future where you'll control your own destiny. You'll also have learned the financial survival skills necessary to thrive in any environment without sitting at your desk worrying about whether you're on the chopping block. What I love most about starting companies is being able to show up to Myles' chess class at 2 pm just because I want to.

In 2009 I promise to help as many people as I can get off the ground and start their own businesses. I love doing it and plan to devote more time to doing it. Call me or email if you want to get together and need help.

As for those who don't feel comfortable starting a company, I'd suggest two things. First, quit your job at a large company and go work at a start up. Take a lower paycheck in exchange for equity. Second, if business is not your thing, go do something that you think you'll love and can probably do for a long time. Teach, volunteer, work for a non profit, become a nurse. You may not have the financial upside, but you'll be living the life you want to live.

So let's start a movement. It's only Wednesday, the day before a New Year and a New You! Forward this link, post it to FB and Twitter. Let's help everyone we can control their own destiny and ween themselves off of the security blankets of the past.

Let's officially make Monday Quit Your Job and Start a Company Day!!!!

Comments

[Melanie Notkin]

Incredibly inspiring. Starting my own company was the smartest thing I ever did!

[Rob Mapstead]

The tough part is monetizing your business/passion/interests, etc.

Still got to eat!

[jeremy]

i hope that a lot of college seniors read this post

[karl s]

Great post. I especially appreciated the importance you place on starting a business so that you can spend time with your kids. Look forward to future posts.

[Don]

Terrific post. Took the leap last February. Has been the best decision of my life both financially and professionally. Great advice.

[Adam Loving]

Wow, strong words. Even if the end of security as we know isn't over (it probably is), a good reminder not to take anything for granted. Love it!

[Nick O'Neill]

Definitely agree ... I can't say the initial struggle is worth it for everyone but most people reading this site probably should be running their own business.

If they don't start one, they should come work for me in 2009 :)

[Steve Boese]

Great freaking post. I have been on the fence for a while, but this may have been the last nudge I needed to make the leap.

[Michael Lazerow]

Do it! You won't regret it. Send me an email at michael at lazerow dot com if you need advice.

[mj]

cool, the whole quitting your job thing is catching on. QYJD is actually Sept 8th
http://www.quityourjobday.com/
So if you could just hang on til then...

[bobbie mcmorrow]

Great Post! Observations; I take on a number of budding entrepreneurs in my own "pro bono" biz activities and love it! Like mike, I recommend quit and move, at this time with some caveats: Montezing is tough, as someone above wrote, but NOT the toughest. The daunting assignment is to get CLEAR, who you are, what you have to offer the marketplace in terms of innovation, enthusiasm, how to see YOURSELF as your greatest asset and then leverage that invaluable asset. The real enemy of change and inspiration is fear, it drives us back into past patterns of fear of failure, fear of success,etc. (the etc's go on FOREVER!) Face the Fear and don't get trapped by anyone else's sh.. about who or what you are or how to show up.
"This is the time of things falling apart," it's NOT a time to retreat but to move boldly into a future you create. thanks, Mike for letting us play with you! B

[Gary Branger]

I'm a bit short of breath reading this. Not because I'm really really excited or because I think it is bad advice. I believe it is fantastic advice and believe everyone who hasn't followed it should. I am just unbelievably frightened right now. Seriously. Here's why.

I found out I will be losing my job (first time ever in 24 years of working) and will have some financial security for a few months. As I hammer my network looking for potential opportunities, I heard back from one of my former interns who works at a recruiting firm out of NYC now. He of course is doing his best to help me land in a new spot.

However, he sends me a follow-up note asking me why I don't start my own thing now. "Seems like the right time..." He even throws back my words from an email I sent him - This is what you said to me back on my birthday in May, just showing you again to keep you motivated:
"Hoping to start something on my own before I work for someone else. The closer you get to the people who are making the real money the more you realize you should be the one doing it."-

Horrified. Three kids, big mortgage, more debt than we'd like... Then there is the question of what it is you start. I'm bought in on the idea.

I'm really afraid because you could have started your post - "Hey Gary"

I need to figure out next steps. Truly one of those moments in life. I want to say thanks. Hopefully I will next year.

[Michael Lazerow]

Gary-

Listen, you're not alone in being laid off. Better now than in a year or two when more time passes. Change is good. Mourn your old life as a "worker" and start planning your next life as an "owner." Nowhere in my post did I say that starting stuff is easy or painful. Just ask Nick and Melanie above, who have gone out on their own and know the pain. But look at your expenses, cut where possible and invest in your future.

We're living in a really challenging time. There's going to be a lot of pain. Those that can survive on the financial streets on their own will do the best.

MML

[John Lewis]

You're a little late for creating the holiday, but I love the motivation. Nice to see you again Michael. I started this holiday a few years back. I hope you don't mind if I plug it here.

People do spend to much time working for others. The rewards to self employment are many and the major downside is normally only fear. Getting past that can be hard, but you've got nothing to lose in this economy.

So go quit your jobs.

[Nate Westheimer]

How many employees do you expect to still have on Monday? ;-P

[David Honig]

Great Post Michael, I did this in 2008 and it was the best career decision to date. There is no Risk when you believe in yourself and your product!

Happy New Year

Dh

[Michael Lazerow]

Nate-

I'd support any of my employees/colleagues who wanted to start their own business. I can't guarantee them a job forever. Things are going well now but if we hit a rough patch I can't rule out layoffs. We have created a great work environment and every employee is an owner. So I'd argue that working at Buddy Media is a great middle ground between a "real" job and starting something. Let's do pong soon.

MML

[Frederic Guarino]

Happy New Year Mike and let me say you're on a roll !

Great inspirational post and all things that are on my mind right now (let's chat about it soon) ! I'd welcome your insights and advice.

[Dennis Yu]

Michael,

Your advice couldn't be any truer! When everyone else is contemplating their navels, now is a great time to go start your own business. Recognize that you'll work harder than ever and probably make a fraction of your corporate cushy job before. But if entrepreneurship is in your blood, you'll love it and the freedom that comes with it. I had a couple senior positions at Fortune 500 companies and had my income go from 6 figures to almost nothing. Same for a few folks that are also along for the ride. But the crazy experiences we've had with Social Media and affiliate marketing-- wouldn't trade that adventure for the world.

Count me in to help coach folks who want to take that leap. The water is fine.

Dennis

[Anon]

Great advice ... except for the fairly obvious fact that probably 90+% of the population can't afford to live without a paycheck for long enough to get a startup off the ground. Duh! (And even more so here in an expensive area like NYC.)

Man, there's just nothing more amusing than hearing out-of-touch millionaires dishing out advice like this from on high. It's even more amusing that they actually believe it!

Puh-LEASE, dude. I'd love to watch you try to start a startup - while still putting food on the table for your family, paying your mortgage, etc. - on zero salary and $10-20K of savings in the bank. What a laugh.

[Michael Lazerow]

Anon-

If you can't swing it, you can't swing it. I understand that. Every case is unique. But that doesn't change the fact that you may be in a worse position if you're unprepared for your future layoff, downsizing, etc. By quitting, cutting your personal expenses and getting your own gig off the ground, or doing something that you love and can do forever, you control your destiny. I'm well aware of the fact that 99% of the people will need to stay in their job. And to make another obvious point, most millionaires wouldn't be millionaires if they had stayed in their current job.

MML