Dealing with a Loss of Income

Justin,

I am really sorry to hear about this (I can’t tell how recent it was, I am assuming it is fairly recent just based on way you described it) it sounds like you were just the victim of some unfortunate circumstances.  However, I agree with your wife: based on everything I know about you from reading your blog and listening to your podcasts, you will absolutely replace all the income in no time and probably end up in a stronger, more diversified position.

I think anyone would be a little worried in this situation, but you seem extremely well-equipped to replace the income and just from what I read, it doesn’t like you live an extravagant lifestyle that now has to be slashed dramatically.

The law firm which I founded and which had two attorneys (including me) lost about 60% of its monthly revenue when our largest client filed for bankruptcy.  Although we knew the client was in trouble, we had no idea how quickly things would fall apart and how dramatically the work would go away (after the filing, all legal work was done by the bankruptcy attorneys).

I was frustrated, angry, scared desperate.  At the time, I was the sole source of income for my family (a wife, a son, a dog and of course of mortgage).  I hated telling my wife, but as it sounds like you experienced, she was less worried than I was.  She thought I could find new clients in a reasonable period of time.  What I did and none of it was easy was:

1.  Pray.  I am Christian and I tried to remind myself about God’s promises that apply regardless of the circumstances in my life (I still had some worry though . . .).
2.  Review our budget and what I could expect to bring home over the next fews months.
3.  We made some cuts in our household expenses.
4.  I looked at the areas I had the most experience in and started working to generate work from clients in those areas.
5.  I also to some extent spread the word that I was looking to build my practice and actively seeking new work.
6.  I was willing to work on some matters that while paying well, were not exactly my ideal work.

Within about 2 months of extremely hard work, I had most replaced the income and could restore my salary to the pre-collapse levels.  It was not easy nor comfortable at times, but the practice that emerged from this was more diverse and solid.  I also resolved to not let one client get over about 30% in a period of several months, without really good reasons.

I say all this believing that your marketing skills and business ability are far superior to mine so I expect that you are going to do great.  I know this kind of statements doesn’t eliminate all the fear and worry, but I hope it helps a bit.

Shawn Roberts

For sure, Marc. Thanks for the support. Christine has been incredible!

Justin, a battle too close to this story for comfort unfolded for us this spring. In many ways the story is still being told. As an entrepranuer I knew all too well that the path I have chosen will not always be home runs and celebration dinners. For me it seemed to come as a perfect storm. We had a house that would not sell. We tried then to rent it. Then as most businesses have seen since The new year, clients and partners have been delaying payments on invoices. We had tons of work but large contracts started to shrink into smaller ones. I wrote a little about this in a recent post but I think my stance toward life and calling helped when the reduction in income came. In the past I have always taken an employee stance. If the income did not show up then it was the bosses fault. Now there was no one to blame. Plus it was part of the environment. With success there will always be times of trial and great risk.

It sounds to me like both of our wives have been through the trails and have come out
on the other side with trust, toughness and love. They believe in us. That my friend is priceless!

Justin,  

You are an uber encourager to many and if I can encourage you just a little bit, then I am happy.

Shawn

Sorry to hear about that Justin.  Until this week, I was right there with you, being unemployed for 3 months.  The good news is I had a business to work on (as you do) but my business provides basically no income yet.  It is tough not to be able to provide for your family the way you want.  We work hard in our careers and businesses so things like this won’t happen and yet, they still do.

I know that having my business has helped me mentally and emotionally through these times as I’m sure yours have for you.  The best thing about a sudden drop in income like that is a desire not to ever be in that situation again.  I don’t know how other people go through something like this without a huge push to start your own business.  Good luck.

I know this isn’t easy or fun right now, but I’ll be honest – I’m pretty excited to see what you’ll do next! I’ve been hanging around since I guess about 2009 and have seen you morph several times. Each time it’s something even awesomer! Be sure and let me know if I can help you for a change

As a side note, this happens often in businesses as well. I’ve worked for a few startups now that would land a guerrilla of a client. That one client could be 70%-90% of revenue! Sure, it can propel to the future, but we always end up in some tough spots along the way. When they say “jump,” you pretty much have to say “how high,” even if it’s not on your roadmap.

Lifting u and family up J. I’ve been walking with two other guys for the past year in similar situations. Hey maybe u will have a little more time to visit the rendezvous crew . We meet every Wednesday at 12:30 EST. I will start sending u and John B. invites. Miss your guys presence there. Jack

You’ve inspired me by sharing this Justin. Love it. As you know…I’ve been at a loss of income for a while with this new biz transition. It’s daunting. Tiring. And my easy fix solution to pass on to you? No idea. Best thing I’ve heard on the topic is you being open with Christine, and now sharing the journey with everyone else. Thanks brother.

Wow – Thank you for sharing this, Justin!

When I met my bride-to-be, my business was humming along
nicely.  I was the “successful”
entrepreneur, and she was the salaried employee… By the time we said “I
Do” the business, and business partner, were sucking the life out of
me.  Naturally, the money slowed as well.

One day she said, “Why don’t you quit? You’re not
happy.”   Clearly she didn’t have a
grasp on reality, poor thing. But I did get free from that venture, painted my
house, and fed my soul.  It was humbling
to fail, and difficult to lean on my new bride. Slowly, I regained my
self-esteem and hope. Inspired ideas surfaced.

In hindsight, my wife saw my situation (OUR situation) as
it really was. I was the one who lost sight of reality – the life we said we
wanted to live. There were tremendous opportunities and adventures out there,
and I would have missed out on them, if not for this “bad” situation.
I thank God that business failed, because it was another step in me becoming
me.

I’m looking forward to seeing how God uses this event for
amazing goodness in your life and business, Justin!
 

I wanted to chime in to thank you for continuing your sharing and transparency on the ups and the downs of running a business. Especially with a post like this one. It is easy to get bogged down in trying to get one’s self established that it sometimes doesn’t dawn on you that the people you admire and try to emulate had problems getting started and still have problems keeping going.

It is especially cool to hear you continue to talk about your wife Christine and how less stressed she is about your business because of the personal faith she puts into you.

Praying  Philippians 4:19 for you. Here’s to the time when this will be an amazing story in growth for you. 

Thanks for sharing so candidly, Joe. I bet you felt like you were letting your new wife down. It’s awesome to hear how your hard work was rewarded.

Right on, Keith. I know you’ll do it.

Thanks for the encouraging words, Mike. You’re absolutely right and I’m looking forward to it as well.

Thank, Claudia. As entrepreneurs, we want the money to come all the time. But you’re right, that’s not how it works. We can dream though, right?

On the compassionate side of me, I’m sorry to hear about it.  I have been there.  Seen that.  Got the t-shirt.  It stinks.  No two ways about it.  Telling your wife was the hardest part.  I’ve just passed through the low-income drought and am earning more than I ever have in my life.  I’ll spend about 15 minutes singing the blues with ya and then I’m changing the topic.  In fact, I’d like to lead a change of tone in comments from empathy to excitement and anticipation.

You’re one of the sharpest and smartest working persons I know.  Your wife is a brilliant woman who sees this too.

You have a long list of satisfied clients, like myself, who would hire you again in a heartbeat.  We discussed a next phase of my project about a year ago that was put on hold.  It is moving forward again. I need your help.  Call me first.  I’d rather spend a few hundred bucks with you and not go out and waste thousands trying to figure it all out on my own.  There has to be 30+ guys like me out there.  That’s a few months work right there.

While I really think this was a sincere and honest post that many of us can relate to, I’m looking forward to the lemonade you’re about to serve.  Some things in life are predictable.  I’m calling this one.  There is a story to be told here.  If you took an 85% hit in income, that has to create a limited time opportunity for clients like me to get your attention on other projects.  I can’t wait to see how this turns out.  I know there’s going to be some creative and awesome story coming out of this along with some offer that creates killer value for your clients and helps replace some of that 85%.  I can’t wait. 

You obviously got handed some lemons.  I can bring the water.  Who’s got the ice?  Who’s bringing the sugar?

WOW!  That is a story that hits at the heart of every entrepreneurs…..I honor your willingness to share for the benefit of others and I echo many of the sentiments already expressed here—I trust that you and your family will emerge stronger, and even more financially secure, your gifts to others will return to you manyfold—-but what I really want to express is that I hear you.  I hear your story, and share your fears and questions; I feel the place inside where doubt resides.  I’m headed off to to my own radio show now, and your story is in my heart…..and just may come up during the broadcast.  Peace.

Thanks for sharing and the openess Justin. We are going through this right now. My wife lost her job at the end of last month, and with it, the health insurance for her and our kids. If she handles this in the right way, I know this can turn into a blessing. I just hope we can continue to handle these types of changes as well as you do. You are truly an inspiration to both of us.This has made me even more determined than ever to get my own business up and running.

Our prayers are with you and Christine.

Dave