The Career andEconomy Dilemma!

The Career andEconomy Dilemma!co o y e aco o y e a

Preparing yourself for the p g y‘New Career Economy’

Presented by the Entrepreneur’s Source, in conjunction with AdviCoach – professional alternative career coaches.

AgendaAgenda

• Today’s Job Market• Preparing for your family’s future• Protecting yourself in the New Career Economy• Alternative Career Optionsp• The Power of Franchising

American workers face a downward spiral

American workers face a downward spiral a do a d sp aa do a d sp a

The job market is changing.Worker’s face an uncertain future.

The time is now to explore your options.

Areas CoveredAreas Covered

• C t k t i th t th t• Current market issues that threaten your family’s security

• Eroding pension funds, SocialEroding pension funds, Social Security, reactive investments

• Today’s job market: higher stress, d i dli idwindling savings,

Alternative career options need to be explored

The quest for the good lifeThe quest for the good life

What’s left at the end of the month?What’s left at the end of the month?

Roper Center Public Opinion Poll:

• Does your income provide for all of your family’s true needs?

• Do you spend nearly all of your income on just basic necessities?

• How long can your family stay afloat if you lost your job? Source: www.businessgrouphealth.org, 2005.

• Inflation is outgrowing wages;for the first time in over a decade!

Source: DeGraff, John. Affluenza: The All-Consuming Epidemic. San Francisco: Berrett-Koehler Publishers. 2003.

Can working a job give you the life you want?Can working a job give you the life you want?you the life you want? you the life you want?

• N l ll f t k• Nearly all of us must work for a living

• What are your dreams?

• Can working a job finance your family’s dreams?y y

For most, a reliable career in America is becoming a thing of the pastis becoming a thing of the past.

Why?

“I never thought it would happen to me” “I never thought it would happen to me” pppp

• Millions of Americans are “downsized” and “outsourced” every year

• The number of job cuts is jgrowing at an alarming rate

“The second steepest contraction in jobs since the Great Depression.”since the Great Depression.

- The latest government survey

Source: Bourne, J. You Are More Likely To Be Laid-Off Now, Than Anytime Since the Great Depression. 24 Aug 2004.

Employment decay begins to spread across the countryEmployment decay begins to spread across the countryp yp y

• GM & Ford: cutting 60,000+ union jobs in North A i l (22% d ti ) t 3America alone (22% reduction) over next 3 years

• Hewlett Packard cut 14,500 American workers in 2005 • Pfi l t t 12 000 f it 122 000• Pfizer plans to cut as many as 12,000 of its 122,000

member workforce

Is your company next in line?

Source: 1www.money.cnn.com. 21 Nov 2005. 2www.cbronline.com 20 Jul 2005. 3www.billingsgazette.com. 11 Feb 2005.

Lengthy unemployment can add to the uncertainty Lengthy unemployment can add to the uncertainty yy

• Unemployed senior executives among the hardest hitamong the hardest hit

• Over one-third of employableOver one-third of employable people have been out of work 6 months or longer

• Replacement work is now taking l t fi dlonger to find

A d th l it th th bill il !And the longer it goes, the more the bills pile up!

Source: Albietta, S. Unemployment rate and long-term unemployment continue to diverge. 18 May 2005. www.epi.org. Ret 22 Mar 2006.

Companies continue to slash health care benefits Companies continue to slash health care benefits

• 1 in 7 Americans have noIncreases in health plan premiums compared to

increases in overall inflation and worker's earnings, 1996-2005.1 in 7 Americans have no

health care benefitsg ,

12

1416

18OverallInflation

• The majority of those who do are paying more

24

68

10 Worker'sEarnings

HealthInsurancePremiums

• Fully paid medical benefits are rare

0

219

9619

9719

9819

9920

0020

0120

0220

0320

0420

05

Premiums

Source:KaiserFamily Foundation Health research & Educational Trust, 2005.

Where will the extra money come from to pay for good health care?to pay for good health care?

Source: Aeppel, T. Skyrocketing Health Costs Pit. Colleagues Against Each Other. Wall Street Journal Online. www.careerjournal.com. Ret 26 Mar 2006.

Still believe in corporate America?Still believe in corporate America?

• Only 10% of all companies meetOnly 10% of all companies meet forecasts in any given quarter

O $88 billi i t• Over $88 billion in corporate debt nears “junk bond” status

• Once debt is downgraded, companies rarely recover

Source: Salas, C. Hertz, Clear Channel Among $88 Billion Falling Into Junk Market. Bloomberg. 15 Oct 2005. http://quote.bloomberg.com. Ret 15 Mar 2006.

Pensions plans are becoming extinct Pensions plans are becoming extinct

• Pension plans are under-funded:Pension plans are under-funded: a $450 Billion shortfall

• 50% of all pension plans have$5,000

$15,000

Pension Benefit Guaranty Corporations Annual Net Gain/Loss ($ in Millions), 1995-2005

• 50% of all pension plans have been lost in the past decade

-$25,000

-$15,000

-$5,000 AnnualGain/Loss

CumulativeGain/Loss

• “The American pension system is heading for a crisis, or maybe two.” – Ellen Simon, AP Senior Business Correspondent Source: www.chartingtheeconomy.com, 2006.

-$45,000

-$35,000

1995 1997 1999 2001 2003 2005

Business Correspondent g y ,

Are pensions something only

Source: Isidore, C. / How plans took a hit, and the changes being proposed; is your money at risk? 17 Mar 2006. http://money.cnn.com. Ret 17 Mar 2006.

Are pensions something only our grandparents could rely on?

The reward of progress? The reward of progress?

More work hours = LESS:80

Combined work hours of husbands and wives

• Leisure time 40

50

60

70

196919791989• Paid vacation

• Sick leave 0

10

20

30

40 198920002004

• Sick leave

• Time with loved ones Source: American Time-Use Survey, BLS, 2004.

0All married

couplesMarried coupleswith no children

Married coupleswith childrenunder age 18

Longer work days. And for what?

Source: Anderson, P. Study: U.S. employees put in most hours. CNN.com 31 Aug 2001. http://archives.cnn.com. Ret 15 Mar 2006.

Building someone else’s wealth?Building someone else’s wealth?

American workers labor longer hours than anyone else in the

industrialized worldindustrialized world. For what?

Are we out of our minds?Are we out of our minds?

“Careers” in the New Career Economy?“Careers” in the New Career Economy?yy

The lifetime of a typical W-2 wage earner:

– 6 to 8 job changes

– at least 3 changes in professionprofession

With every change you fallWith every change, you fall farther and farther behind!

Source: Dept. of Labor Statistics, 2000 ; USA Today, 2/9/04

Maybe they should call it Social INSECURITY?Maybe they should call it Social INSECURITY?

• Th S i l S it t• The Social Security system: is it heading for bankruptcy?

• Experts estimate Social Security unable to meet b fit l 2018!benefits as early as 2018!

Source: www.masoncontractors.org, 2006. g,

Will Social Security be there for you?

Source: www.icr.com. Social Security System In Trouble, Say Americans. 16 Feb 2005. www.icrsurvey.com. Ret 22 Mar 2006.

Will Social Security be there for you?

What’s your long term forecast? What’s your long term forecast?

• Threats to your family’s future that are l t l t f t lcompletely out of your control

Colossal consumer debt Longer work,

less moneyless money

Company downsizing

Enormous corporate

bankruptcies

Lengthy lay-offsMassive pension deficits

The elimination S i l S itThe elimination of benefits

Social Security insolvency

There could be a storm on your horizonThere could be a storm on your horizon

Looking the other way is no longer an optionLooking the other way is no longer an optionan option an option

Denial won’t make the problems go away

Source: www.breitbart.com. United States of Angst: Americans stressed, depressed, polls show. 28 Dec 2005. http://www.breitbart.com. Ret 25 Mar 2006.

p g y

Look beyond your circumstancesLook beyond your circumstances

• Traditional jobs can’t deliver the American DDream

• Th l k i ti ki• The clock is ticking -how long will you wait?

CONTROLING YOUR OWN DESTINY IS KEY!CONTROLING YOUR OWN DESTINY IS KEY!

Everyone wants to steer their own shipEveryone wants to steer their own shippp

• K OPTIONS!• Know your OPTIONS!

• Break free from the traditional employer- employee relationship

• Learn what successful people are doing

Successful people DO steer their own ship

Perhaps it’s time to consider your own business?Perhaps it’s time to consider your own business?your own business? your own business?

• Successful people work to build their own future,

t l ’not someone else’s

• Wh t ti f• What are your options for self-sufficiency?

Source: Campbell, A. Business Failure Rates Highest in First Two Years. 7 Jul 2005. www.smallbiztrends.com. Ret 19 Mar 2006.

Why most independently-owned small businesses don’t workWhy most independently-owned small businesses don’t work

• Fatal assumptions lead to fatal problemsfatal problems

• Common wisdom says doCommon wisdom says do what you know, love and enjoy

• The fast track from Grand Opening to LiquidationOpening to Liquidation

Source: Michael E. Gerber. The E Myth Revisited.June 2001.

The reality of going it alone: The 2-year guillotineThe reality of going it alone: The 2-year guillotineThe 2 year guillotineThe 2 year guillotine

The 3 top reasons:

• Under funding / cash flow

• Unrealistic expectations“I H d N Id

• Lack of an executable business model

“I-Had-No-Idea-How-Hard-It-Would-Be” survival rates of businesses according to M I T business model according to M.I.T. business expert David Birch:

Source: Campbell, A. Business Failure Rates Highest in First Two Years. 7 Jul 2005. www.smallbiztrends.com. Ret 19 Mar 2006.

Source: USA Today, 2004.

Some “F” words to keep in mindSome “F” words to keep in mind

• Frustration• Fear of Failure

Fi i l t i t• Financial constraints• Family & Friends

Keep your eye on the prize:FINANCIAL FREEDOMFINANCIAL FREEDOM

Which “F” word will you base your future on?

The alternative to going it alone:find a TEAM to support you The alternative to going it alone:find a TEAM to support you pp ypp y

• Milli i ll "t• Millionaires are usually "team-made"

• A good wealth team should consist of the following key lplayers:– Mentors who act as active coaches– Like-minded, supportive, wealth , pp ,

builders and visionaries

Where can you go to find such a team?

Source: Langemeier, L. If You Want to Become Wealthy, You Need a Good Wealth Team. 17 Jan 2006.http://searchwarp.com. Ret 25 Mar 2006.

Business coaches make excellent team partnersBusiness coaches make excellent team partnersexcellent team partners excellent team partners

• L d hi C hi• Leadership Coaching• Sales Coaching• Turnaround CoachingTurnaround Coaching• Personal Coaching• Business to Business

CoachingCoaching• Career Coaching

Source: 1Zarhosky, D. 10 Best Small Business Opportunities For 2005. / 2Gonzalez, A. Business leaders choosing coaching to gain an edge. 2 Aug 2005..

Franchising:the trillion dollar business optionFranchising:the trillion dollar business optionthe trillion dollar business option the trillion dollar business option

The team concept in action

EMPLOYMENT BY ECONOMIC SECTOR

Number of jobs j

Durable Good Manufacturing 10,335.000

Franchised Businesses 9 797 000Franchised Businesses 9,797,000Financial Activities

Consultants 7,807,000

Construction 6,826,000

Information 3,629,000

Source: Green Sheet Publications. Industry Update: Bottom Lines. www.greensheet.com. Ret 2 Apr 2006.

Source: The International Franchise Association , 2005.

Meeting your goals, needs & expectationsMeeting your goals, needs & expectations

Four crucial steps:

• Define your goalsDefine your goals• Map your course• Build a winning team• Build a winning team• Explore your options

Your business is the vehicle that will take you there.

Summary Summary

• There many dangers and threats to your family’s security• We can no longer just look the other wayWe can no longer just look the other way• You owe it to yourself to explore your options – TODAY!• Information is one of the keys to your future • Franchising manages the risk of business ownership• Partnering with a coach is critical

Next Steps Next Steps

Thank you for allowing us to share this information with you.y g y

• Continue the process of exploring your options

• Follow-up with whomever invited you to the presentation

• Take some time to consider your Goals, Needs and Expectations

Thank you for your time! y y

Take the next step towards protecting your future… today!

Take the next step towards protecting your future… today!p o ec g you u u e odayp o ec g you u u e oday

Visit www.theesource.com/personal URL to learn more or call:to learn more or call:

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This is an informational seminar only and should not be considered a franchise offering.