If last year’s financial crisis has you tied in a knot and dreading the new year, don’t. You can have a good 2010 if you alter your thinking and see the new year as an opportunity to start fresh and accomplish dreams you never thought possible. If your finances got wrecked, you can start over. If you lost your job, take a chance and try something new. If your business is ailing, the new year is a great time to identify the cause and launch a new, improved enterprise. If your life has taken a turn for the worse, know that this is not the end, but it may be a new beginning. As long as you have breath, there’s a reason for you to be here. Your experiences and talents are needed to make a difference in the lives of others. Whatever crisis you’re dealing with, it’s just a point along the way to where you’re going. As we begin another year, take this time to reset, recharge, and reclaim yourself.
RECLAIM YOUR FINANCES
Last year, Angela Logan was months behind on her mortgage–she owed more than $15,000. After getting a home equity loan two years earlier to pay for renovations, her mortgage went up from $295,000 to $367,000. Monthly payments were now $3,085. Logan, 57, had lived in her Teaneck, New Jersey, home for 20 years but now faced foreclosure. An actress, Logan hadn’t been getting assignments, and her fiancée, a comedian, also lost his gig. Furthermore, Logan says the contractor botched the job, which cost thousands to correct. With little savings, she racked up $40,000 in credit card debt. “When the economy flipped, we flipped. We had to do something,†she says.
Logan contacted a credit counselor, who helped her devise a budget, cut spending, and find ways to generate income. The counselor also told Logan about the Making Home Affordable program. She qualified for a modification, reducing her monthly payments by $500. Then she had another idea: baking cakes. She sold a favorite family recipe, now dubbed Mortgage Apple Cake, for $40 each. She told people she was selling cakes to save her home, news outlets took notice, and orders poured in. Bake Me a Wish, a bakery and cake delivery company, offered to assist with production and shipment. The company has licensed her cakes and is mass producing them, giving Logan 10% of the profits.
The reinvention: By becoming cost-conscious and increasing her income, Logan gained a handle on her payments and says this crisis prompted her to re-evaluate the way she handles money. Now she sticks to a budget, pays down debt, and buys only what she can afford. “I watch everything now,†says Logan. “It’s important to look at what you’re spending and how you’re living.â€
If you’re recovering from a financial setback, here are five ways to reclaim your finances:
1. Get help. The first sign of trouble is reckless spending and creeping debt. “A red flag is when you don’t have control over your money,†says Aaron Smith, a registered investment adviser, or RIA, with A.W. Smith Financial Group Inc. in Glen Allen, Virginia. A financial planner can help you see and correct your errors. “We often overlook the areas a professional scrutinizes. But they can undermine you,†says James Richardson, a certified financial planner with Ameriprise Financial Advisors in Raleigh, North Carolina. If foreclosure or bankruptcy is looming, see a credit counselor first. An attorney can also offer guidance and alternatives.
2. Develop a plan. Your plan must be more than a list–it should encourage behavioral change. “Acting on a financial plan is what makes it living and effective,†says LaToya Parker, a certified financial planner with Infinity Financial L.L.C. in Atlanta. Include items that will prompt you to change bad habits. “It can be as simple as not buying a daily cup of coffee,†says Parker.
3. Leave home without it. Credit is not meant to bridge the gap when you can’t meet your financial needs. Pursue a cash-only lifestyle until your debt is under control. Don’t charge any item you can’t pay off by the end of the month.
4. Add income. “If cutting back isn’t working, the only way to get a handle on debt is to earn more money. Sometimes people cut living expenses to the bone. At this point, you need to add additional sources of income,†says Parker.
5. Find a money mentor. Habits–whether good or bad–are learned. Find someone who is good with money and ask him or her to mentor you. Ask this person to be your “money mentor,†Smith suggests, by showing you how to develop and maintain good financial habits.
–Sheiresa McRae
RECLAIM YOUR BUSINESS
In March 2004, Randy L. Moore founded RLMÂ Communications Inc. to provide communications support to government agencies. Draining his personal savings and 401(k), he spent $50,000 to start the business. But by 2006 RLM lagged behind its competitors. It was generating $1.5 million in revenues but the company wasn’t securing as many contracts as similar businesses.
“We were not diversified enough with our customer base. Our strategic plan for growth wasn’t focused or defined,†recalls Moore, president and CEO. “Everyone was working hard and wearing multiple hats. But I needed to clearly lay out each individual’s role and responsibility.†Moore realized he needed to reinvent his business when the market share of competitors expanded. Using $250,000 in profits and lines of credit, he implemented immediate changes.
The reinvention: RLM held business development strategy sessions to identify short-, mid-, and long-term goals, and hired staff with needed expertise such as program management. “We attended trade shows to gain a better understanding of the industry and to network so we could diversify our customer base. We also narrowed the company’s focus into specific sectors such as training and information assurance,†says Moore. Business nearly tripled to $5.3 million in 2007, more than doubled to $11.7 million in 2008, and reached roughly $20 million in 2009.
If your profits are declin
ing, you lack understanding of the latest trends in your industry, or you’re more focused on the day-to-day operation of the business than catering to your customer’s needs, our experts offer the following tips to help you get your business back on track.1. Recognize the need for change. There are several indicators that can alert you. You might be relying on your capabilities to provide a certain service or product, as opposed to the product’s relevance in the market. Or, you’ve become complacent or, worse, stagnant. “You don’t have an innovative growth plan for the short- and long-term. You’re out of touch with the needs of your customers. You’re busy working a business instead of building a brand,†says Melissa Dawn Johnson, president of Velvet Suite Marketing and Brand Me International.
2. Understand the trends in the market. Client preferences change over time. Learn how by doing targeted research. Figure out why your competitors are getting more business than you. “Know the trends in your industry. Go to association meetings and conventions,†says Andrew Morrison, president of Small Business Camp.
3. Realize that customer feedback is vital. Seeking the client’s opinion will help your business remain relevant. “Customers are the most valuable asset any company can have. It’s important that every business decision is made in light of the impact it will have on customers,†says Brent Leary, partner at CRM Essentials and co-author of Barack 2.0 (White Bullock Group Inc.; $39.95).
4. Incorporate a social media strategy. Utilize blogs, Webinars, podcasts, Websites, and various forms of social media to conduct research for a product or to advertise a service. “Many speak of the marketing potential, but a less discussed but just as relevant value is the opportunity to gauge unbiased opinions,†says Johnson.
5. Seek a different perspective. Take time to listen to constructive criticism. Enlist a business coach or mentor. “Business owners have to be open to changes and ideas that come from outside sources such as customers, employees, partners, and industry influencers,†says Leary.
–Leslie E. Royal
RECLAIM YOUR CAREER
Many people claim that books have literally changed their lives. Byron Sanders is now one of those people, having experienced a defining moment last January when he read the book One Month to Live by Kerry and Chris Shook (WaterBrook Press; $19.99).
After completing the book, Sanders knew he had to adjust his career path. “I asked myself, “If I had 30 days to live, would I be doing what I feel I was put here to do? “I couldn’t say ‘yes,’ so I knew I needed to make a change.â€
Sanders, 26, was employed at Pfizer at the time. He had remained in the pharmaceutical field because it offered him a high-paying job and he felt he was helping people. But his real passion involved helping to shape the minds of young people. In fact, as an undergrad at Southern Methodist University he and a classmate, Carl Dorvil, had created a group through which college students tutored and mentored high school students. “I moved on to a career in pharmaceutical sales, but Carl took it and ran with it. He connected with other people and created a company,†says Sanders.
The reinvention: Sanders took his sales and marketing skills and applied them to his passion. Last April the Dallas resident began working at Group Excellence, the educational services company Dorvil formed, where he is director of special projects, marketing, and sales. Sanders’ duties involve marketing the company brand as well as sales of the company’s online learning tool to schools and individuals. Although Sanders says he made the right choice, his new path was paved with sacrifice. He earned more than $80,000 at Pfizer, but took a 40% pay cut when he started his new job. “It wasn’t easy, but I don’t regret it at all. I’d do it again,†says Sanders.
If you’ve lost your passion for your job or don’t see room for growth, here are five tips to help you catapult your career in the right direction.
1. Prepare yourself. Career reinvention is an ongoing process and often requires having a job on the side as well as a willingness to move out of your comfort zone. “Make friends with your fear because it will be your constant companion throughout your reinvention,†offers Pamela Mitchell, founder and CEO of the Reinvention Institute (www.reinvention-institute.com).
2. Use what you’ve got. The first step toward reinvention is self-assessment. “Evaluate your strengths and weaknesses. Identify career fields that match your interests, values, and skills,†says Karen Nethersole Esq., CEO and founder of Full Circle NY (www.fullcircleny.com), a career development firm. You don’t have to give up your old skills–just transfer them.
3. Seek support. “Coaches see our blind spots and help us map out a plan of action to improve ourselves,†explains Keith Wyche, president of U.S. operations at Pitney Bowes Management Services Inc. and author of Good Is Not Enough: And Other Unwritten Rules for Minority Professionals (Portfolio Hardcover; $24.95). Also reach out to your alma mater’s career center or professional organizations.
4. Be a chameleon. According to Mitchell, every industry has its own language, but 95% of reinventors make the mistake of not translating their background into the language of the new industry they’re targeting. Learn the language by checking out industry trade publications and blogs, or attending industry-related events.
5. Keep reinventing. Reinvention doesn’t necessarily involve a drastic transformation. Take small steps. Take a class, go to an event you wouldn’t normally attend, or resurrect a rarely used skill.
–Sheiresa McRae & Brittany Hutson
RECLAIM YOUR SPIRIT
Francine Acevedo knows about starting over. She has been through many storms; her battle with depression is one of them. Overwhelming feelings of sadness led to several suicide attempts. Now 57, Acevedo has developed physical health problems, and she has recently lost several close relatives. Her most devastating loss was that of her son, Jermaine, who committed suicide in 2007 at the age of 29. Acevedo says this loss nearly killed her, but she turned to her faith for sustenance. “God’s grace and mercy have helped me,†she says.
The reinvention: Acevedo dealt with her grief
by focusing on the needs of others. Through prayer and volunteer work, Acevedo works through the pain. A Bronx, New York, resident, she now sits on a local community board and runs a nonprofit, Amore House, which she created to help disabled and low-income people in her neighborhood. A professional hair stylist, Acevedo also offers complementary hair services through a local salon to women in need. She works with several organizations, including Dress for Success.“Every time I was down on my back, I was resurrected. I got my second wind and I was back at it,†Acevedo says. “Blows can be low. You catch yourself, get back up, and keep going. You only fail when you get a blow and don’t get back up.â€
If life has dealt you a blow that has you feeling like you’re down for the count, use these tips to help you get back up.
1. Let go of the past. “Stop giving your past permission to speak,†says Darnyelle A. Jervey, life coach and CEO of Incredible One Enterprises L.L.C. in Newark, Delaware. Assess your strengths, especially those that will help you reach your goal. Dr. Pamela Everett Thompson, psychologist and founder of Atlanta-based Building Bridges to Better Lives, suggests fact finding. Researching your goal allows you to feel empowered, Thompson says, and helps you to know the steps needed to take action.
2. Work your plan. Create a time-sensitive plan, broken down into parts. Enlist the help of a “mastermind group,†three people who can be a source of additional support and resources, says Dr. Alduan Tartt, psychologist, motivational speaker, and owner-CEO of Atlanta-based Visionary Minds Inc. Create an “intention contract,†which outlines your goal in detail. After you’ve created your contract, give it to one person who can check in with you periodically. And negative friends–let them go.
3. Think, speak, and write it. Visualize your goal and then write it down, placing it where you can see it every day. As you change your thoughts, also change your speech. “Stop saying ‘I’m going to try’ and ‘I hope.’ Say ‘I am.’ Speak as if your goal is in the present rather than the future. Change your mindset, change your life,†says Jervey.
4. Expect roadblocks. Staying positive allows you to remain focused on the big picture, instead of being derailed by details. Tartt recommends looking at the obstacle as a problem that absolutely has to be solved and then becoming a problem solver, rather than dwelling on the situation. “Everyone hits a bump and only those that see it as a process toward their success make it,†says Tartt.
5. Be prepared. Opportunity can knock at any time, so be ready for that breakthrough moment. Reinventing yourself is a journey–it doesn’t happen overnight. Remember to celebrate the small victories and to learn from the roadblocks along the way, says Thompson. And remember, you’re the only thing stopping you.
–Tamara Best
This article originally appeared in the January 2010 issue of Black Enterprise magazine.