Be careful with your redundancy cash
Don’t gamble away your funds
It is a sad fact that the current situation created from the Covid19 pandemic will lead to businesses making staff redundant.
For those of you who are are unfortunate to be made redundant, I’d like to share some personal experiences and learnings that will hopefully help you make better choices — and avoid some of the mistakes I made with my redundancy payout.
So, let’s set the scene; after many years of successfully rising up through the ranks of corporate jobs, I was totally surprised to find out that my job was at risk. How could this happen to me? I thought I was needed.
Well, as it turns out, my job wasn’t required in the new plans of the company. I will share my feelings about my redundancy in another, separate, article.
After the emotional roller-coaster ride of waiting for a few weeks to find out if my job was saved, I was called to ‘the’ meeting with HR and a senior partner of the company. Before I was called in, I sat in the waiting area along with a few others from my team; with all sorts of thoughts running through my mind. My team members were convinced that I would be staying. I was not expecting a positive result. Company takeover; get rid of the previous management team… and I was right.
The meeting was professional and to the point. I was to receive a significant payout for my services. I could leave right away if I wanted to. I left that afternoon. I would easily get another job elsewhere, and the payout would be a great bonus.
Suffice to say, I didn’t find another job. I eventually started my own business.
This was not before I had laid out a significant amount of my redundancy cash to a bunch of companies that ‘help’ the recently redundant.
Some details of my unnecessary expenditures
Firstly, I paid out to a company that help with executive CVs. They promised to help me produce a ‘knock em dead’ CV that would, given my experience, make sure I got to the interview stage, at least. Well, it didn’t even get a response to the nearly 60 applications I made. Even after a review and re-write; Nope not a whisper. This swallowed up over £4000. What a waste! I don’t blame them; it was my decision to do this.
Next, I started working with a company that would help develop and enhance my leadership and management skills. This was also around the same amount as the other group. This didn’t work out either. Again, it was ultimately down to me.
There followed another couple of expenditures, not quite in the realm of the other costs, but a significant chunk of my dwindling funds.
You might say I was being naive, but as time went on, I was becoming desperate.
At this point I was struggling and becoming depressed. I needed to do something to earn a suitable income. I then started to lower my expectations. That didn’t result in a job either.
The next comment is painful to admit; Until I was well down on my cash, I’d been spending at a rate only just below the income level I had been receiving prior to my redundancy. Looking at it now, how could I been so daft? It’s called ‘being in denial’.
Fortunately, before I totally ran out of cash, I started my own company. I went back to an early skill base and created a business making and installing bespoke garden structures and decking. I still had enough funds to invest in the tools and start-up costs. Within the industry, I was quite successful. Things were looking up.
The mistake I made at this point was not to make it into a proper business. After so many years of managing and leading people, I didn’t want that responsibility any more. Therefore, my investment didn’t grow beyond a one man band. The lesson learned here for me was ‘you don’t know what you don't know!’ I didn’t have a clue at the time how to build a company.
After a few years, earning enough to cover life, I realised I needed to make more of my business skills. I made a significant investment in a Business Coaching franchise. One of my better decisions. After around 5 years, I went independent. I now have a successful business as an International Business Coach, Mentor, Speaker, Trusted Advisor and Life Saver.
Key points: Be careful on what, and with whom, you ‘invest’; change your spending habits to a minimum until you are properly back on your feet; Take advice from someone you can trust — there are plenty of good business networks and groups that can help. A useful place to start is your local Citizens Advice. Even banks are now offering advice; Make a proper plan and work out the potential financial returns for any job/work you are looking to do.
And finally, leave your ego at the door. It is better to be in a steady job with an income, prior to making progress. If you can step into another similar job, and you don’t want to change what you are doing, then go for it. If you have been waiting for that opportunity to start your dream business, then absolutely go for it. Make sure you invest properly and investigate the opportunity fully before taking the plunge.
If you are facing redundancy, or are already in this position, I’m happy to have a chat and share some further pointers — feel free to message me.
