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CNN Live Saturday
Dollar Signs: Career Advice
Aired July 24, 2004 - 16:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Well, here's what's happening now in the news. A wave of new kidnappings in Iraq is causing concern international support in the region could crumble. An Iraqi official, an Egyptian official, and seven international truck drivers are all being held by insurgents. Speaking today, Iraq's interim Prime Minister Iyad Allawi said he hopes Egypt stands firm against the kidnappers.
The latest computer bug features Osama bin Laden. Computer experts say posts on Internet message boards claim CNN has proof the terror mastermind committed suicide. Well, it's a plot designed to get people to open a file containing a virus.
A cadaver dog at a Salt Lake City, Utah landfill has joined the search for Lori Hacking. The 27-year-old pregnant woman has been missing since Monday. Investigators say her husband Mark remains a person of interest, but is not considered a suspect.
Keeping you informed, CNN, the most trusted name in news. Straight ahead on DOLLAR SIGNS, changing careers or rebuilding your current one -- send you questions to us at DollarSigns@CNN.com, or you can call us at 1-800-807-2620. And we'll be right back.
(COMMERCIAL BREAK)
WHITFIELD: Well, welcome to DOLLAR SIGNS. Today, we're going to help you go after your dream job without breaking the bank. Changing careers can be frightening, but my guests help people do it all the time. Richard Castellini is the vice president of consumer marketing for CareerBuilder.com, and he joins us from Chicago. And Susan Wilson Solovic is in St. Louis, and she's the CEO of SBTV.com, America's only online TV network for small business marketplaces, and she's also the author of "Reinvent Your Career." Good to see both of you.
SUSAN WILSON SOLOVIC, AUTHOR "REINVENT YOUR CAREER": Thank you. It's our pleasure to be here.
WHITFIELD: All right, well, Susan, let me begin with you. How does it happen? People change careers, and then they get themselves into a financial hole?
SOLOVIC: Yes, that's very easy to do because they don't do the proper planning. Quite honestly, when you're thinking about changing careers, you need to really start looking at your family budget, and start looking at ways to cutback and build a little bit of a nest egg. The rule of thumb basically is about six months of living expenses that you can live on. But also, you have to remember you can't do this in a vacuum. You've got to talk to your family members and talk about ways that you can budget better and really think about cutting back, because it's going to be a decision that's going to impact the entire family.
WHITFIELD: So Richard, what's your recommendation on how far in advance people need to plan if they are considering a career change?
RICHARD CASTELLINI, CAREERBUILDER.COM: About six months is the appropriate amount of time. And I would encourage people to live on that cutback budget so, one, they can see what their lifestyle's going to be like when they aren't making as much money, and two, they can save some money, squirrel away a nest egg for when they actually make that transition.
WHITFIELD: All right. And sometimes, making that transition also means going back to school, trying to get some additional training, and sometimes, that can cost some money too. So Susan, is it best to hold onto your job while you are getting that additional training?
SOLOVIC: It's a good idea. One of the biggest mistakes I think a lot of people make is a number of large companies offer tuition reimbursement programs. That's like free money. And if you're not taking advantage of that, you're really losing out. My mother always used to tell me that education is something that no one can ever take away from you.
It's the most valuable asset that you can have, particularly in today's marketplace, where things are so complex, and the issues that we all face are very complex. So certainly, if you can take advantage of a program like that and get your education, even if your company doesn't offer that, go ahead and go back and take some night school classes.
I know it's a tremendous sacrifice, but it's a sacrifice that pays huge dividends in the future.
WHITFIELD: And we're taking emails at DollarSigns@CNN.com, and we're also taking your phone calls right now at 1-800-807-2620. And right now, Steve from Ohio is on the line, and he's got a question about some recommendations on IT training. Steve...
ON THE PHONE, STEVE, OHIO: Good afternoon. I'm an unemployed IT professional with a computer science degree, and I'm considering getting additional training or possibly undergoing a career change. My dilemma is this. The IT industry is supposedly declining, according to the industry. But the federal government says that it is increasing in employment. I'm interested in some of your suggestions on this.
WHITFIELD: Richard...
CASTELLINI: Yeah, the IT industry, obviously, was hard hit over the past four or so years. But it is rebounding, especially on the Coast -- and macro level that there will be economic and job gains in that area. So to continue your training and further your skills is probably the best advice you could have.
WHITFIELD: Susan, any advice for Steve?
SOLOVIC: Yes, I'd just like to add a couple of things. First of all, Steve, there are millions and millions of Americans who are now working in small businesses. A new home-based business opens every 11 seconds in this country. So while you're looking for that next great thing on your horizon, you might also want to think about consulting and working with small businesses in that arena.
And also, take a look at your core competencies, because oftentimes, the core competencies that we have in a particular industry, or the skills sets that we've learned and excelled in, are easily transferable to other industries. So keep your mind open.
WHITFIELD: All right. And Susan and Richard, we're going to take a short break right now. On the other side, we've got more emails and phone calls coming your way. And the number is 1-800-807- 2620, and you can send your emails to DollarSigns@CNN.com. We'll be right back.
(COMMERCIAL BREAK)
WHITFIELD: Well, it's not unusual to get antsy in your career and want to try something different -- nothing wrong with that. But our guests here today on DOLLAR SIGNS say, "Don't do it without a plan." Vice President of Consumer Marketing for CareerBuilder.com, Richard Castellini is with us, as well as Susan Wilson Solovic, who is the author of "Reinvent Your Career," and also the CEO of SBTV.com.
All right, our first email from John, in New Jersey, says, "I have 11 years of human resources experience, however, I've been contemplating a career change for several years. How do I market myself as something other than an HR professional, and how do I gain experience in another field?" Richard...
CASTELLINI: Well, don't sell the skills short that you learned in your HR background. You've had many different challenges that are applicable to your next position, and you should put those skills forward on your resume. And if you are interested in looking at a different career, I would suggest getting involved in, whether it be networking events in that different career, trade groups.
Any way to get your foot in the door is probably the best way to get yourself started on a new career.
WHITFIELD: All right, and Dora is on the telephone. She's a senior and wants some advice on, perhaps, getting back into the market of a job. Dora...
CALLER: Yes?
WHITFIELD: What's your question?
DORA: Oh, my question is, I would like some kind of part time job. You know, you can't wait until you become a senior, you know, to retire and the whole thing. But it's really not all it's cracked up to be, namely because, I mean, your income goes tremendously down. And I to have, you know, teaching skills.
And I don't know whether or not I can go back into that kind of a thing, but I would like to do something else that's maybe more lucrative to my age.
WHITFIELD: All right, Susan. That's a very common question and complaint. You know, what do you do when you're suddenly on a fixed income and you want to get back into the market?
SOLOVIC: Well, first of all, I just have to say to Dora there are many, many seniors that are enjoying fabulously successful second chapters of their lives. I call them the "revved up retirees." But certainly, with her skills, it sounds like possibly working with a non-profit group might be a wonderful experience for her.
They could certainly utilize someone who has a lot of years of experience and expertise, or also going back and working in some of the urban school systems. They're desperately in need of teachers and people who can help the underserved communities.
WHITFIELD: All right. And Richard and Susan, you both talk about planning, you know, making sure that you're financially set in order to make a career change, giving yourself six months to do some research, six months to have money in the bank. How do you assess the timing, the best timing in which to try to make that transition once you've got those, you know, ducks in order? Richard...
CASTELLINI: Well, you must make sure that you're ready to make that plunge. I mean, it is obviously a life-altering event. And the research that you have done, whether the business that you want to get into or the career that you want to get into is completely applicable. Your business plan is solid, you've talked to the many resources that you need to get your arms around.
But actually, that timing, it's sometimes a gut feel. Are you ready to take that plunge? And if you've done your homework and you feel in your heart of hearts you're ready, then that is the time.
WHITFIELD: OK. And Susan, we've got a caller from Utah on the line. What's your question, caller?
CALLER: Yeah, how are you doing today?
WHITFIELD: Good.
CALLER: Basically, I'm just trying to figure out a way to get started, get jumpstarted -- some of the things that would, you know, kind of get me going. The business field is something that I'm leaning towards. And basically, just where do I start, I guess?
WHITFIELD: Susan?
SOLOVIC: I think the first thing to start with is to sit down and make out a list of about 10 or 20 things that you would love to do with your life, regardless of any limitations -- so regardless of your age, or your education, or your physical limitations, without any of those in mind. And then, look at that list, and what is it about those things that you really love? What jazzes you up about those things?
And then, think about what career paths you could follow that would incorporate those feelings that you have about that list that you made. And also, just keep in mind that we spend so many hours working in our lives that really, whatever you choose, it should be something that you're very passionate about. It should be something that you love to do, so that work doesn't become a chore, or that dirty four-letter word, but something that you're really enjoying and that you're looking forward to getting up every day and working hard every day.
I think that's why so many people are going into their own businesses, is because they're passionate about what they do, they want to control their own destiny. And I know that they work harder and longer hours than people in corporate America often do, but they do it because they love it.
WHITFIELD: And Susan, you touched on something I want to talk about after this break -- starting your own business. Obviously, you've got to have a plan. When we come right back, we'll talk a little bit about that plan and what some of your options are. We'll be right back.
(COMMERCIAL BREAK)
WHITFIELD: Well, it's many people's dream to start their own business. But what risks are involved, particularly if you're leaving a steady job? Susan Solovic, author of "Reinvent Your Career," and Richard Castellini, vice president of consumer marketing for CareerBuilder.com are both with us now to give us an idea about the rewards and the risks of starting your own business, if you're considering that kind of career change.
So Susan, let me begin with you, pick up where we had left off. We know about some of the potential risks, so what kind of a plan do you need to put into place so that you can reap the benefits?
SOLOVIC: Well, you need to do a solid business plan. So that means you're going to have to do your homework. You're going to have to do research in terms of what is the industry like? Is there really a need for this product or service? And you can do that informally by talking to friends and neighbors. You can even go to, perhaps, a competitor's business and talk to them sometimes.
If it's a competitor in a different area of the country, they might be more than willing to share information that could be very helpful in helping to build that plan. But one thing to keep in mind when you are doing your research is most entrepreneurs underestimate how much it's going to cost to actually get that business started, and they overestimate what their annual revenues are going to be. So you do have to be prepared financially. The rule of thumb in starting a business is the first year, you're going to lose money. The second year, you hope to break even, and the third year, you're going to start to show a little bit of a profit. So you do have to be able to understand how you're going to sustain that during that period.
WHITFIELD: So maybe, Richard, instead of that six month padding of, you know, being financially set -- perhaps, if you're starting your own business, you'd better expect that a whole year you might not be making any money, so you'd better have something in savings or some kind of safety net.
CASTELLINI: Oh, certainly. I mean, your business is going to fail if you expect to be turning a profit on day one. Susan's point is well taken that you assume the first year you're going to lose money, the second year you hope to break even, and the third year that that's when you look for a profit.
But just to expound on what Susan said, other things that you need to consider are, make sure you talk to an accountant and an attorney, because there are a lot of legal hurdles and financial implications of starting your own business, and make sure that you have those squared away before you go out the door with your own company.
WHITFIELD: OK. Rahul, in Atlanta, writes in this email, "How does changing careers affect retirement?" Good question. Susan...
SOLOVIC: Actually, that's going to depend on each individual's circumstances. For example, if you're working for a company that has a 401k plan, some companies, you can keep that 401k plan right with that company. You can roll it over into another qualified plan. So it really depends on your own personal situation.
And then also, where are you going to go to next? Do you want to roll that over to the next company? Do you want to start reinvesting with another company? If you're going into your own business, as we were just discussing, then some people say, "Well, I'm going to use that retirement savings and investment it into my own business." And that's one of the things that I always caution people, you know, don't throw away the family farm here.
Particularly if you've been in a corporate environment for years, and years, and years, and you've never been in your own business, that's a very risky thing to do with your retirement. But on SBTV.com, we have a lot of information that can help entrepreneurs or would-be entrepreneurs make some of these decisions.
WHITFIELD: OK. And Irena, in North Carolina, is on the line, and she's been waiting very patiently. She's a teacher who wants to transition into counseling. Irena...
CALLER: Hello.
WHITFIELD: What's your question? IRENA: My question is, I would like to know if it's a bad thing to do to switch from being a teacher to being a counselor, because I would like to have my own business. And if I wanted to find out more about sociology and counseling, where and what Web site would I be able to do that?
WHITFIELD: Richard...
CASTELLINI: Well, that looks like a fairly easy transition. A lot of the skills that you have in teaching, whether it be the patients and the question development with people that you'll be easily able to move into counseling, the best places for you to look is, first, talk to people in the counseling field. If you're at a school, I'm pretty sure there's probably some counselors there.
Then look at your local community college and/or other universities in your area. And if you don't have those in your area, there are plenty of online universities that can give you some background and some information about the counseling profession.
WHITFIELD: All right. Thanks a lot, Irena. Now, you know, one risk that a lot of people consider is, when they leave a job, they might lose a lot of benefits, especially if they're trying to start out on their own. So Susan, what do you advise to folks about how to have that kind of safety net when it comes down to your health benefits, et cetera, if you're trying to make a transition?
SOLOVIC: Well, as I'm sure you know, we have a healthcare crisis in this country right now. Over 40 million Americans are without healthcare coverage in this country. So one of the things you could think about, if you are living in a household where both individuals are working, perhaps one person could then cover the person who is going to be transitioning. That's a possibility.
Certainly, there is also Cobra coverage, which carries you for a certain period of months after you leave a certain employer, although you do have to pay the premiums yourself, and it can be very expensive. Short of that, it's a very difficult situation. I would talk to other business owners in the area, find out what possibly they're going to be doing.
But definitely, do your research, and don't wait until you quit your job or your Cobra runs out and then say, "Oh, my gosh, what am I going to do now?" You've really got to give it some thought and do the research.
WHITFIELD: The key here for all of it, all of this potential transitioning, is planning. Susan Solovic, "Reinvent Your Career," the author of, and CEO of SBTV.com, and Richard Castellini, vice president of consumer marketing for CareerBuilder.com, joining us from Chicago. Thanks very much to both of you. We really appreciate it.
SOLOVIC: Thank you.
CASTELLINI: Thank you. WHITFIELD: Well, that's all we have time for right now. Stay with CNN. Up next on "PEOPLE IN THE NEWS," profiles of Teresa Heinz Kerry and John Edwards. Then at 6 Eastern on "CNN LIVE SATURDAY," he once treated the late President Ronald Reagan. Now, Dr. Ronald Peterson is on the forefront in the search for an Alzheimer's cure. We'll talk with him about the latest treatments.
And at 7 Eastern, the "CAPITAL GANG." And in case you missed it, here are a few of the Web sites we mentioned on DOLLAR SIGNS. And I'll be back after a quick break with today's top stories.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired July 24, 2004 - 16:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Well, here's what's happening now in the news. A wave of new kidnappings in Iraq is causing concern international support in the region could crumble. An Iraqi official, an Egyptian official, and seven international truck drivers are all being held by insurgents. Speaking today, Iraq's interim Prime Minister Iyad Allawi said he hopes Egypt stands firm against the kidnappers.
The latest computer bug features Osama bin Laden. Computer experts say posts on Internet message boards claim CNN has proof the terror mastermind committed suicide. Well, it's a plot designed to get people to open a file containing a virus.
A cadaver dog at a Salt Lake City, Utah landfill has joined the search for Lori Hacking. The 27-year-old pregnant woman has been missing since Monday. Investigators say her husband Mark remains a person of interest, but is not considered a suspect.
Keeping you informed, CNN, the most trusted name in news. Straight ahead on DOLLAR SIGNS, changing careers or rebuilding your current one -- send you questions to us at DollarSigns@CNN.com, or you can call us at 1-800-807-2620. And we'll be right back.
(COMMERCIAL BREAK)
WHITFIELD: Well, welcome to DOLLAR SIGNS. Today, we're going to help you go after your dream job without breaking the bank. Changing careers can be frightening, but my guests help people do it all the time. Richard Castellini is the vice president of consumer marketing for CareerBuilder.com, and he joins us from Chicago. And Susan Wilson Solovic is in St. Louis, and she's the CEO of SBTV.com, America's only online TV network for small business marketplaces, and she's also the author of "Reinvent Your Career." Good to see both of you.
SUSAN WILSON SOLOVIC, AUTHOR "REINVENT YOUR CAREER": Thank you. It's our pleasure to be here.
WHITFIELD: All right, well, Susan, let me begin with you. How does it happen? People change careers, and then they get themselves into a financial hole?
SOLOVIC: Yes, that's very easy to do because they don't do the proper planning. Quite honestly, when you're thinking about changing careers, you need to really start looking at your family budget, and start looking at ways to cutback and build a little bit of a nest egg. The rule of thumb basically is about six months of living expenses that you can live on. But also, you have to remember you can't do this in a vacuum. You've got to talk to your family members and talk about ways that you can budget better and really think about cutting back, because it's going to be a decision that's going to impact the entire family.
WHITFIELD: So Richard, what's your recommendation on how far in advance people need to plan if they are considering a career change?
RICHARD CASTELLINI, CAREERBUILDER.COM: About six months is the appropriate amount of time. And I would encourage people to live on that cutback budget so, one, they can see what their lifestyle's going to be like when they aren't making as much money, and two, they can save some money, squirrel away a nest egg for when they actually make that transition.
WHITFIELD: All right. And sometimes, making that transition also means going back to school, trying to get some additional training, and sometimes, that can cost some money too. So Susan, is it best to hold onto your job while you are getting that additional training?
SOLOVIC: It's a good idea. One of the biggest mistakes I think a lot of people make is a number of large companies offer tuition reimbursement programs. That's like free money. And if you're not taking advantage of that, you're really losing out. My mother always used to tell me that education is something that no one can ever take away from you.
It's the most valuable asset that you can have, particularly in today's marketplace, where things are so complex, and the issues that we all face are very complex. So certainly, if you can take advantage of a program like that and get your education, even if your company doesn't offer that, go ahead and go back and take some night school classes.
I know it's a tremendous sacrifice, but it's a sacrifice that pays huge dividends in the future.
WHITFIELD: And we're taking emails at DollarSigns@CNN.com, and we're also taking your phone calls right now at 1-800-807-2620. And right now, Steve from Ohio is on the line, and he's got a question about some recommendations on IT training. Steve...
ON THE PHONE, STEVE, OHIO: Good afternoon. I'm an unemployed IT professional with a computer science degree, and I'm considering getting additional training or possibly undergoing a career change. My dilemma is this. The IT industry is supposedly declining, according to the industry. But the federal government says that it is increasing in employment. I'm interested in some of your suggestions on this.
WHITFIELD: Richard...
CASTELLINI: Yeah, the IT industry, obviously, was hard hit over the past four or so years. But it is rebounding, especially on the Coast -- and macro level that there will be economic and job gains in that area. So to continue your training and further your skills is probably the best advice you could have.
WHITFIELD: Susan, any advice for Steve?
SOLOVIC: Yes, I'd just like to add a couple of things. First of all, Steve, there are millions and millions of Americans who are now working in small businesses. A new home-based business opens every 11 seconds in this country. So while you're looking for that next great thing on your horizon, you might also want to think about consulting and working with small businesses in that arena.
And also, take a look at your core competencies, because oftentimes, the core competencies that we have in a particular industry, or the skills sets that we've learned and excelled in, are easily transferable to other industries. So keep your mind open.
WHITFIELD: All right. And Susan and Richard, we're going to take a short break right now. On the other side, we've got more emails and phone calls coming your way. And the number is 1-800-807- 2620, and you can send your emails to DollarSigns@CNN.com. We'll be right back.
(COMMERCIAL BREAK)
WHITFIELD: Well, it's not unusual to get antsy in your career and want to try something different -- nothing wrong with that. But our guests here today on DOLLAR SIGNS say, "Don't do it without a plan." Vice President of Consumer Marketing for CareerBuilder.com, Richard Castellini is with us, as well as Susan Wilson Solovic, who is the author of "Reinvent Your Career," and also the CEO of SBTV.com.
All right, our first email from John, in New Jersey, says, "I have 11 years of human resources experience, however, I've been contemplating a career change for several years. How do I market myself as something other than an HR professional, and how do I gain experience in another field?" Richard...
CASTELLINI: Well, don't sell the skills short that you learned in your HR background. You've had many different challenges that are applicable to your next position, and you should put those skills forward on your resume. And if you are interested in looking at a different career, I would suggest getting involved in, whether it be networking events in that different career, trade groups.
Any way to get your foot in the door is probably the best way to get yourself started on a new career.
WHITFIELD: All right, and Dora is on the telephone. She's a senior and wants some advice on, perhaps, getting back into the market of a job. Dora...
CALLER: Yes?
WHITFIELD: What's your question?
DORA: Oh, my question is, I would like some kind of part time job. You know, you can't wait until you become a senior, you know, to retire and the whole thing. But it's really not all it's cracked up to be, namely because, I mean, your income goes tremendously down. And I to have, you know, teaching skills.
And I don't know whether or not I can go back into that kind of a thing, but I would like to do something else that's maybe more lucrative to my age.
WHITFIELD: All right, Susan. That's a very common question and complaint. You know, what do you do when you're suddenly on a fixed income and you want to get back into the market?
SOLOVIC: Well, first of all, I just have to say to Dora there are many, many seniors that are enjoying fabulously successful second chapters of their lives. I call them the "revved up retirees." But certainly, with her skills, it sounds like possibly working with a non-profit group might be a wonderful experience for her.
They could certainly utilize someone who has a lot of years of experience and expertise, or also going back and working in some of the urban school systems. They're desperately in need of teachers and people who can help the underserved communities.
WHITFIELD: All right. And Richard and Susan, you both talk about planning, you know, making sure that you're financially set in order to make a career change, giving yourself six months to do some research, six months to have money in the bank. How do you assess the timing, the best timing in which to try to make that transition once you've got those, you know, ducks in order? Richard...
CASTELLINI: Well, you must make sure that you're ready to make that plunge. I mean, it is obviously a life-altering event. And the research that you have done, whether the business that you want to get into or the career that you want to get into is completely applicable. Your business plan is solid, you've talked to the many resources that you need to get your arms around.
But actually, that timing, it's sometimes a gut feel. Are you ready to take that plunge? And if you've done your homework and you feel in your heart of hearts you're ready, then that is the time.
WHITFIELD: OK. And Susan, we've got a caller from Utah on the line. What's your question, caller?
CALLER: Yeah, how are you doing today?
WHITFIELD: Good.
CALLER: Basically, I'm just trying to figure out a way to get started, get jumpstarted -- some of the things that would, you know, kind of get me going. The business field is something that I'm leaning towards. And basically, just where do I start, I guess?
WHITFIELD: Susan?
SOLOVIC: I think the first thing to start with is to sit down and make out a list of about 10 or 20 things that you would love to do with your life, regardless of any limitations -- so regardless of your age, or your education, or your physical limitations, without any of those in mind. And then, look at that list, and what is it about those things that you really love? What jazzes you up about those things?
And then, think about what career paths you could follow that would incorporate those feelings that you have about that list that you made. And also, just keep in mind that we spend so many hours working in our lives that really, whatever you choose, it should be something that you're very passionate about. It should be something that you love to do, so that work doesn't become a chore, or that dirty four-letter word, but something that you're really enjoying and that you're looking forward to getting up every day and working hard every day.
I think that's why so many people are going into their own businesses, is because they're passionate about what they do, they want to control their own destiny. And I know that they work harder and longer hours than people in corporate America often do, but they do it because they love it.
WHITFIELD: And Susan, you touched on something I want to talk about after this break -- starting your own business. Obviously, you've got to have a plan. When we come right back, we'll talk a little bit about that plan and what some of your options are. We'll be right back.
(COMMERCIAL BREAK)
WHITFIELD: Well, it's many people's dream to start their own business. But what risks are involved, particularly if you're leaving a steady job? Susan Solovic, author of "Reinvent Your Career," and Richard Castellini, vice president of consumer marketing for CareerBuilder.com are both with us now to give us an idea about the rewards and the risks of starting your own business, if you're considering that kind of career change.
So Susan, let me begin with you, pick up where we had left off. We know about some of the potential risks, so what kind of a plan do you need to put into place so that you can reap the benefits?
SOLOVIC: Well, you need to do a solid business plan. So that means you're going to have to do your homework. You're going to have to do research in terms of what is the industry like? Is there really a need for this product or service? And you can do that informally by talking to friends and neighbors. You can even go to, perhaps, a competitor's business and talk to them sometimes.
If it's a competitor in a different area of the country, they might be more than willing to share information that could be very helpful in helping to build that plan. But one thing to keep in mind when you are doing your research is most entrepreneurs underestimate how much it's going to cost to actually get that business started, and they overestimate what their annual revenues are going to be. So you do have to be prepared financially. The rule of thumb in starting a business is the first year, you're going to lose money. The second year, you hope to break even, and the third year, you're going to start to show a little bit of a profit. So you do have to be able to understand how you're going to sustain that during that period.
WHITFIELD: So maybe, Richard, instead of that six month padding of, you know, being financially set -- perhaps, if you're starting your own business, you'd better expect that a whole year you might not be making any money, so you'd better have something in savings or some kind of safety net.
CASTELLINI: Oh, certainly. I mean, your business is going to fail if you expect to be turning a profit on day one. Susan's point is well taken that you assume the first year you're going to lose money, the second year you hope to break even, and the third year that that's when you look for a profit.
But just to expound on what Susan said, other things that you need to consider are, make sure you talk to an accountant and an attorney, because there are a lot of legal hurdles and financial implications of starting your own business, and make sure that you have those squared away before you go out the door with your own company.
WHITFIELD: OK. Rahul, in Atlanta, writes in this email, "How does changing careers affect retirement?" Good question. Susan...
SOLOVIC: Actually, that's going to depend on each individual's circumstances. For example, if you're working for a company that has a 401k plan, some companies, you can keep that 401k plan right with that company. You can roll it over into another qualified plan. So it really depends on your own personal situation.
And then also, where are you going to go to next? Do you want to roll that over to the next company? Do you want to start reinvesting with another company? If you're going into your own business, as we were just discussing, then some people say, "Well, I'm going to use that retirement savings and investment it into my own business." And that's one of the things that I always caution people, you know, don't throw away the family farm here.
Particularly if you've been in a corporate environment for years, and years, and years, and you've never been in your own business, that's a very risky thing to do with your retirement. But on SBTV.com, we have a lot of information that can help entrepreneurs or would-be entrepreneurs make some of these decisions.
WHITFIELD: OK. And Irena, in North Carolina, is on the line, and she's been waiting very patiently. She's a teacher who wants to transition into counseling. Irena...
CALLER: Hello.
WHITFIELD: What's your question? IRENA: My question is, I would like to know if it's a bad thing to do to switch from being a teacher to being a counselor, because I would like to have my own business. And if I wanted to find out more about sociology and counseling, where and what Web site would I be able to do that?
WHITFIELD: Richard...
CASTELLINI: Well, that looks like a fairly easy transition. A lot of the skills that you have in teaching, whether it be the patients and the question development with people that you'll be easily able to move into counseling, the best places for you to look is, first, talk to people in the counseling field. If you're at a school, I'm pretty sure there's probably some counselors there.
Then look at your local community college and/or other universities in your area. And if you don't have those in your area, there are plenty of online universities that can give you some background and some information about the counseling profession.
WHITFIELD: All right. Thanks a lot, Irena. Now, you know, one risk that a lot of people consider is, when they leave a job, they might lose a lot of benefits, especially if they're trying to start out on their own. So Susan, what do you advise to folks about how to have that kind of safety net when it comes down to your health benefits, et cetera, if you're trying to make a transition?
SOLOVIC: Well, as I'm sure you know, we have a healthcare crisis in this country right now. Over 40 million Americans are without healthcare coverage in this country. So one of the things you could think about, if you are living in a household where both individuals are working, perhaps one person could then cover the person who is going to be transitioning. That's a possibility.
Certainly, there is also Cobra coverage, which carries you for a certain period of months after you leave a certain employer, although you do have to pay the premiums yourself, and it can be very expensive. Short of that, it's a very difficult situation. I would talk to other business owners in the area, find out what possibly they're going to be doing.
But definitely, do your research, and don't wait until you quit your job or your Cobra runs out and then say, "Oh, my gosh, what am I going to do now?" You've really got to give it some thought and do the research.
WHITFIELD: The key here for all of it, all of this potential transitioning, is planning. Susan Solovic, "Reinvent Your Career," the author of, and CEO of SBTV.com, and Richard Castellini, vice president of consumer marketing for CareerBuilder.com, joining us from Chicago. Thanks very much to both of you. We really appreciate it.
SOLOVIC: Thank you.
CASTELLINI: Thank you. WHITFIELD: Well, that's all we have time for right now. Stay with CNN. Up next on "PEOPLE IN THE NEWS," profiles of Teresa Heinz Kerry and John Edwards. Then at 6 Eastern on "CNN LIVE SATURDAY," he once treated the late President Ronald Reagan. Now, Dr. Ronald Peterson is on the forefront in the search for an Alzheimer's cure. We'll talk with him about the latest treatments.
And at 7 Eastern, the "CAPITAL GANG." And in case you missed it, here are a few of the Web sites we mentioned on DOLLAR SIGNS. And I'll be back after a quick break with today's top stories.
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