Laid off & need to buy a job?

[hakrjak]

Big Disclaimer: This thread is SLOWLANE. But sometimes even when you're in the FastLane, it's helpful to ponder things like this for fun...

I was moved to start this thread after having a conversation with some co-workers at the office. It seems like with the economy the way it is, nobody is even thinking of trying to find another JOB if they get laid off. The talk of the day was of everyone starting their own businesses, or really just becoming "Self-Employed" if the whole outhouse burns down and they end up out on the street soon.

So here's the focus / question for you:

You are 30 years old, and you are debt free with $100,000 in your checking account. You find out that you've been laid off from work and need to replace an $80,000 a year income as quickly as possible. How do you do it?​

(Examples: Franchises? Buy a truck & trailer and become a long haul trucker? Purchase a house and become a flipper? Somehow become a Plumber or other skilled tradesman? Buy an existing business? Buy a Taxi and become an owner/operator Taxi driver? Do you parlay your $100k into an apartment complex or a self-storage facility? (How??)) --- Remember that the focus here is to replace your income QUICKLY... So please refrain from businesses that might take over 24 months to begin receiving good income from.

The world is your Oyster... let's hear your ideas!!!!!!!!

:fastlane::fastlane::fastlane::fastlane::fastlane::fastlane::fastlane::fastlane:
- Hakrjak

 

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[hakrjak]

Here's one idea I have, I'm sure I'll post others soon:

I would try to take my Flipping business full time, if I could find a banker willing to loan to me. I may have to use hard money lenders, etc -- but I think I could do it. 4 houses a year at $20k a pop would replace the $80k of income, but just incase I wasn't able to do 4 -- and needed to cover expenses in the meantime, I'd slap some magnetic signs on the sides and tailgate of my pickup truck and start a moving service in the meantime. I figure that would be good cash income that would help fill in the gaps a little bit, and you could probably conservatively make around $500 a week helping people move if you get a few jobs a week. Of course the entire time I'd be doing this, I'd be collecting unemployment until it ran out -- So that money would all go towards helping my business get off the ground, and supporting us until that first flip sale came through. As I got money coming in, I'd funnel the excess into more SFR rentals that I could hold & cashflow for the long term, hopefully bringing in bits of cashflow here and there that I could slowly replace my flipping & moving company income.

Cheers,

- Hakrjak

 

[kurtyordy]

once a year, put 100k on black and (this is the key here) win. That will more than replace the 80k a year

 

[jaytrader43]

I would take $200 of that 100k and go buy some forex trading books. Then, I would start trading on demo accounts for about a week to test some theories, and start doing trades with about $500 of my money per trade, 1:100 leverage, and keep going.

OR

I would take $200 of that 100k and buy some books on C++ and Objective C. I would then create some iPhone applications and put them on the Apple Application Store. I'd use some of the other money to market the app and wait for the sales.

OR

Facebook application

In fact, I think I should develop a FB app.

 

[jaytrader43]

lol @ kurty.

 

[rcardin]

Car stereo/ Rim and tire shop in an urban neighborhood. There is a certain part of our population that pays cash for these items. Economy doesn't really matter.

 

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[hatterasguy]

I'd go out and do whatever would make me money so I could keep paying my bills.

 

[hakrjak]

The key also is that you should be starting a business that is somewhat recession proof....

I like the idea of developing a Facebook application because they are cheap and are in demand, but the odds that someone could pick up a book and code an App out of thin area is kind of unbelievable to me. Maybe you outsource the programming to India and come up with the idea for the app? Use some of your $100k for development?

Here's another couple ideas I came up with:

- Get licensed to be a Home Inspector, and then start billing people $300-400 a pop for inspections right away.
- Get licenses as an Appraiser, and begin charging people $300-$500 for appraisals.
- Get licensed as a Realtor and start building your business while on Unemployment

I'm not sure you could replace your $80k a year income with any of these businesses, but they would be good income while self-employed and flipping on the side.

Keep those ideas coming -- love the creativity!

- Hakrjak

 

[hatterasguy]

All the home inspectors, Realtors, and appraisors I know are all hurting really bad now. I wouldn't plan on making much money starting to do one of those things in the next 24 months.

The only thing thats pretty recession proof is public works, utilities, government jobs, and military.

In the most recent spending bill they plan on increasing the size of the Marine Corps this year, if you are in your early 20's and have a college degree you might have what it takes to be an officer. This would be a recession proof job, and a fantastic career.

The government plans on building a lot of new roads in the next few years, so utilities should be hiring.

Certain parts of the defense industry are doing OK, Sikorsky for example. As long as the sand keeps ruining parts this shouldn't change.

I'm kicking myself for not going to Mass Maritime, I probably could have gotten an $80k+ a year job crewing on tankers for an oil company or something like that right out of school. Good merchant marine officers are always in high demand.

 

[RonRiktor]

I would take $200 of that 100k and buy some books on C++ and Objective C. I would then create some iPhone applications and put them on the Apple Application Store. I'd use some of the other money to market the app and wait for the sales.

OR

Facebook application

In fact, I think I should develop a FB app.

That's not a bad idea, actually.

This thread sounds exactly like my current situation, minus the 100k I'm afraid. I'm a developer of over 10 years in virtually every language. If anybody wants to back the marketing and team up, I'll build it, plan, and get a buzz going!

 

[365]

Become a job/career/startup consultant:smxB:

 

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[365]

Sell shovels to the gold diggers (on the other hand, there's no real gold rush out there) 😀

 

[NoMoneyDown]

Buy or start a discount clothing/furniture/etc business. BTW, I wonder how Goodwill (and the Salvation Army store, etc) are doing these days?

 

[hakrjak]

Come on guys, with the exception of a couple -- these ideas are pretty poor. haha... I expected a bit more from this group. It sounds like 80% of you would starve to death if you found yourselves in this situation, or end up having to take another day job for less money somewhere else

Hmmm, NMD -- I kinda like your idea. Maybe buy furniture in mass off of Craigslist or something for pennies on the dollar and resell it in a retail store that also lists the stuff online? Might be attractive in this economy, but I dunno how much you could make doing it. How about combining the used furniture store with the moving business? haha You've got the truck anyway for deliveries, might as well utilize it for both!

- Hakrjak

 

[hakrjak]

Here's another idea: If you have an IT background, how about a mobile IT consulting service? Kind of like Geek Squad or Geeks on Call, but maybe a little cheaper (Because you won't have all their advertising & franchise overhead), and faster. Advertise that you can be to someone's from door in 2 hours most of the time, etc. Charge $95 an hour with a 2 hour minimum, and offer service plans for people to buy yearly. Maybe someone can pay $50 per month and get unlimited phone support for the year, and 3 onsite visits, etc.... You'd be hoping for "breakage" here, and that the people would buy these plans, but not use them to their max potential. If you could sell a few of these to small business, you could really see the profits pile up.

Keep those wheels turning!

- Hakrjak

 

[kimberland]

First, if you don't have the contact list to find another job
at the ripe ol' age of 30,
you likely don't have the skill set to start a business
(because businesses are built on connections).
Jobs are out there.
They simply don't need to be advertised.

Second, I'd walk into a recession friendly business
and offer to sell on commission.
Ask a handful of companies
and you will be working.
Guaranteed.

With the $100,000, I personally would invest it in the market,
likely trading some relatively flat dividend paying stock with the rallies.

Or if I wanted to build an S business,
I'd work location gaps.
I'd buy U.S. only goods and sell them in Canada.
Or I'd deliver groceries.
Or I'd supply home baked cookies to college kids
(pay for by their parents).
Something like that.

 

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[hakrjak]

First, if you don't have the contact list to find another job
at the ripe ol' age of 30,
you likely don't have the skill set to start a business
(because businesses are built on connections).
Jobs are out there.
They simply don't need to be advertised.

A quick explanation is necessary, per your post: --

Our market is kind of unique, which is what brought on the conversation in my office. Colorado Springs used to be a huge Technology center with a dozen or so big Tech companies located here and thousands of IT related jobs, but over the past 9 years, the Tech companies that all located here in the late 90's have slowly left town, taking their high paying jobs with them. The people I was talking to that prompted me to start this thread are all based here, and don't forsee the remote posibility of ever finding another Tech job in this area that pays anything near what they are making today, so that's why they were discussing starting their own S businesses after getting laid off in the predicted future.

The other half of it is that most of them are just plain burned out. After enduring rounds of layoff again and again, and pay cuts again and again with no end in sight -- it's not a career field that many want to remain in for the future, but they need to find a way to replace their approx $80k /yr incomes if they are going to be able to exit.

Cheers,

- Hakrjak

 

[hakrjak]

Here's another quick idea I had:

To replace an income of $80k, you'd need to make $6666 per month. If you can make a conservative $200 cashflow per SFR, then that will be 33.33 SFR's you'd need in your portfolio to be able to exit the Rat Race and replace your income. Even 1/2 of that which would be 16.66 SFR's would generate enough for you to "survive" on if you were able to live frugally on 1/2 of your income.

SFR's are sounding like a much better way to go than running an S business... Although some people would be scared of the risk of mass vacancy, but in my market I think that there is going to actually be a rental shortage in the near term with all the troops coming home, so I'm not afraid of that what-so-ever.

- Hakrjak

 

[jaytrader43]

I would also probably buy some foreclosures and flip em, should be nice.

 

[Manofprinciple]

PM me for another solution. NO Hype, just honest results.

 

[RonRiktor]

Here's another idea: If you have an IT background, how about a mobile IT consulting service? Kind of like Geek Squad or Geeks on Call, but maybe a little cheaper (Because you won't have all their advertising & franchise overhead), and faster. Advertise that you can be to someone's from door in 2 hours most of the time, etc. Charge $95 an hour with a 2 hour minimum, and offer service plans for people to buy yearly. Maybe someone can pay $50 per month and get unlimited phone support for the year, and 3 onsite visits, etc.... You'd be hoping for "breakage" here, and that the people would buy these plans, but not use them to their max potential. If you could sell a few of these to small business, you could really see the profits pile up.

Keep those wheels turning!

- Hakrjak

Nice idea, but do you think $95/hr in this economy would fly? Not sure if it would get much business around here... But then, Michigan is hit pretty bad in most areas.

 

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[hakrjak]

Nice idea, but do you think $95/hr in this economy would fly? Not sure if it would get much business around here... But then, Michigan is hit pretty bad in most areas.

Do people in Michigan even have computers? I thought they spent all their money on booze, cigs, and ammo? haha

I kid!!! I kid!!!! LOL

You can say that again though -- Some parts of the country are definitely hit far worse than others. If I lived in a depressed area I would relocate to somewhere I could succeed easier, certainly.

- Hakrjak

 

[RonRiktor]

Do people in Michigan even have computers? I thought they spent all their money on booze, cigs, and ammo? haha
- Hakrjak

You're not far from the truth. There's a few of us stuck here that don't! And you are absolutely right! I'll be making the jump to NYC soon.

 

[Boo Blizzi]

That's not a bad idea, actually.

This thread sounds exactly like my current situation, minus the 100k I'm afraid. I'm a developer of over 10 years in virtually every language. If anybody wants to back the marketing and team up, I'll build it, plan, and get a buzz going!

i read this post when i was a guest and i actually joined just to respond to your post...what kind of apps can you develop and does it just have to be for iphone or facebook?...i would be interested in pursuing an e-biz.

fftopic:...i would take about 5-10k and start buying used cars and put them on consignment lots or craigslist, cars.com and other sites...i would research about 10 of the hottest selling models and try to purchase them from private owners well below market rates and sell them for just below market to move them fast...the initial work will be in learning how to assess a car's condition, negotiating with sellers and buyers, and the most effective ways to market the vehicles...once its all set up you just purchase cars and wait for a call from interested buyers...rinse and repeat...if it starts getting really lucrative...get your dealers license and make it an established business.

 

[Bobo]

This isn't too hypothetical for me. 18 months ago i had been out of my field for 7 years. I looked at the market and found where the 'boom' was and took a training class ($5k) and got the $140K job a couple months later.

There are some skills and technologies that will bring you 80K very quickly if you have some experience. If I can do it, ...well, you don't need to be a rocket surgeon.

Problem is that I bought a job and someone else owns my arse again. I need to get back to being a "B", I hate 'E' and 'S' did not work for me because I could not effectively manage $10-15/hr employees.

Over twenty years I've become convinced that you can't save your way to wealth or work your way to it nearly as quickly as you can by innovating your way to it the 'B' route.

 

[RonRiktor]

i read this post when i was a guest and i actually joined just to respond to your post...what kind of apps can you develop and does it just have to be for iphone or facebook?...i would be interested in pursuing an e-biz.

Hi Boo. Welcome to the forum!

My business partner and I are actually about to break ground on development for an internet business idea I have that we are CRAZY excited about. Imho, it's simply phenomenal! Low cost to start and maintain, huge demand, large target market, massive profit. The 'secret sauce' hinges on a system I am developng that allows us to totally crush the competition by leaps and bounds in delivery time and cost.

I don't want to say too much in detail just yet until we have a few last details hashed out, but fyi to all forum users, we are going to detail our project and blog our progress soon! I haven't decided whether I want to make this public or only to members of this forum. Any thoughts guys?

Boo, feel free to PM me. We can definitely discuss it further! I'd be open to any ideas you have, and would love to share with you what we're doing now to see what we can accomplish together. Right now we are looking to bring on a couple of folks who can bring some small investment or good contacts/marketing ability into the mix.

Cheers,
Ron

:fastlane:

 

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[StiG]

iPhone apps are killing it right now. Just look at that ishoot game. 600k+ and the guy quit his job. All it takes is one great idea. Myspace and facebook apps also have potential but the ratio of apps that make REALLY GOOD money to apps period is fairly low. I am also currently jobless and no where to go, I really want to get my own thing going but it's just hard. Anything seems better than 9-5 at this point. I've been looking at some properties and analyzing the ROI potential. Thing is it's not that easy to get a loan nowadays....I think I may join the local REIA and just network. It's good to have knowledge but it helps to know people. I was going to post an article seems I can't post links yet

 

[AroundTheWorld]

Buy my motel.

 

[hakrjak]

Buy my motel.

LOL

I've been waiting for you to post a serious reply to this one Very curious to see what you'd have to say. Now get back to me, will ya?

-Hakrjak

 

[hakrjak]

This isn't too hypothetical for me. 18 months ago i had been out of my field for 7 years. I looked at the market and found where the 'boom' was and took a training class ($5k) and got the $140K job a couple months later.

There are some skills and technologies that will bring you 80K very quickly if you have some experience. If I can do it, ...well, you don't need to be a rocket surgeon.

Problem is that I bought a job and someone else owns my arse again. I need to get back to being a "B", I hate 'E' and 'S' did not work for me because I could not effectively manage $10-15/hr employees.

Over twenty years I've become convinced that you can't save your way to wealth or work your way to it nearly as quickly as you can by innovating your way to it the 'B' route.

Mind sharing what field you went into for the quick $140k a year job?

Cheers,

- Hakrjak