Story of my strife: What I learned when my company went bankrupt

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More people and companies declare bankruptcy in January than in any other month, and certainly this year will be no exception. Many more people will not technically declare bankruptcy, but they will feel financially battered.

There is hope, though. There are tricks to being in a financial hole. I know because I've been there. In fact, you could say I fell off a financial cliff.

My stampede toward that cliff began when I got funding for an Internet company and cashed out of that company in the span of about five months. I started another company, and feeling like I was the most brilliant businessperson on earth, I invested my own money. I got a round of funding and paid myself (and my friends) extremely well.

Then the Internet bubble exploded, and my company was one at the epicenter. The first thing I did was tried to protect the people at my company. I gave as much notice as possible, so they could save money, and I helped everyone update their resumes as a last, hopeful act.

Then I was on my own. No more cushy, jet-set salary. No more juicy stack of stock options. I lost the pile of money I made, and I was lucky to get away with a portion of my savings intact.

I spent a lot of time getting out of financial commitments: the personal assistant, the BMW, the trips to Europe. And no more investing in friends' companies.

But financial ruin is like death, and I spent a good amount of time in the denial stage. So I didn't cut all the obvious expenses right away. It was gradual. As in, I gradually ruined myself even more, and then I cut down my expenses to a sustainable level.

I spent a lot of time with lawyers, which was a stupid idea because they did nothing for me except listen to me bitch about bankruptcy law. One lawyer could see that, more than legal advice, I needed life advice. He said, “Almost all business owners fail once or twice. The people who make it big are the people who can bounce back and do something new.”

But I was not in a position to be a good listener. I was thinking about if he would charge me for the time he was giving unsolicited advice.

I spent a lot of time with friends — eating cheap sandwiches. Some of my friends dumped me when my company went bankrupt. Okay, they weren't really my friends if they dumped me for that, but still, I felt embarrassed and isolated. My remaining friends were sympathetic for a while, but soon they said, “Okay, it's over. You failed. But you can start something new.”

This is when the lawyer's advice came back to me — suddenly sounding like it was worth $200 an hour. I thought a lot about what sort of life I wanted to lead. How much money I really needed. And it turned out that I didn't need as much as I had thought. So I cut down my expenses drastically while I thought about what I really wanted to do.

I took swing-dancing lessons. I danced every night for a year while I thought about what to do next. Friends would call and I'd say, “Sorry, I can't talk. The band goes on in a half-hour.” My friends thought I was crazy, but you need to do something a little crazy in order to gain distance from your failure. If you go right back to the life you were leading, it's hard to find perspective.

When I went back to corporate life, I tried a few things at once: I accepted a job in a new industry, I investigated starting a new company, and I did freelance writing. As it turns out, the freelance writing is what was best for my next step. But this is a step I would never have taken if my company had not gone belly-up.

The saying that failure breeds opportunity is true. First you have to sulk. Then you have to explore. But you will find something that excites you, and you will try again. And maybe you will fall off a financial cliff again in your life. But the next time, you'll be an expert.

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Most jobs are creative, if you are creative

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Even though it's not cool to complain about your job in a recession, people do. And one of the most common complaints I hear is that the job “isn't creative enough.” But most of the lack of creativity people pin on their jobs really comes from inside themselves.

Creative thinkers approach whatever they do – painting, sculpture or business — with innovative ideas. Are you really as creative as you say you are? Here's a quick checklist: creative people have high standards, inherent intensity, and an obsession with coming up with something new. If you are a creative person who complains about being stifled in the business world, unleash your creativity on business problems, and you are likely to be happier in your job and promoted more often.

Business building is inherently creative, and people who get to the top are people who consistently think of creative solutions for business problems. Think of your favorite strategy games — they all involve creative thinking. Business is just like those games; if you approach a problem in a different way from your competitors, you are more likely to pull ahead. Think about Bill Gates — he realized that he could take other peoples' products and market the products more creatively than the original producer. Or how about David Neeleman at Jet Blue? He approached customer satisfaction differently than all the other airlines, and surprise: People want leather seats more than they want bad airline food.

But don't forget to be practical in your creative thinking. If you don't want to be practical, you should be a visual artist. But let me tell you something — you get paid a hell of a lot more for creativity in the business world than you do in the art world. The good thing is that the two are very closely linked.

The current exhibit at the Plus Ultra gallery in New York is a great example of this link. The economy is bad, and the art world is hit hard because when there's recession you focus on your mortgage not your art dealer. So this gallery is showing works by the Jani Leinonen. He has developed his own business model for the art world: Pay per view. Each painting is covered with a specially treated frosted glass. You put your money in the vending machine slot next to the painting and then the frost dissipates and you see the art.

If Leinonen were in corporate America, his boss would praise him for using technology to develop a new business model for a stale market. Think of yourself as an artist at the office; notice that each business problem begs for creativity. And be happy that you have health benefits and vacation days, which you wouldn't if you showed your solutions in galleries instead of conference rooms.

Some people will say, “My boss doesn't want any creativity.” Before you say that, consider that maybe what your boss doesn't like is outlandish, shoot-from-the-hip suggestions for difficult problems — or worse yet, risky solutions to unimportant problems. But maybe it is true, that your boss does not appreciate creativity. It's probably because he is scared of risk and change. And that fear is the first problem you must solve with your new, creative approach to your job.

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10 Ways to improve your job

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You can make sure next year is a good year for your career by taking charge of the areas you can control. Here are ten things you should plan to do in 2007 to help you meet your goals.

1. Make a ten-year plan
Then break it down. What ten things need to happen for your ten-year plan? Do the first thing this year. The ten-year plan takes more than ten minutes to make. It might even require a few sessions with a career coach. But if you don't form a path for the next ten years, you will go exactly where you plan to go: nowhere.

2. Find a mentor
You can get to the top a lot faster if someone is helping you. Lucky for you, people love to help, as long as you take their advice. So find a mentor. Explain your goals, and ask her for advice on how to get there. Take her out to lunch at nice restaurants — it's a tax deduction. (Doh! A boss is not a mentor. A boss is the person your mentor helps you to impress.)

3. Get seven hours of sleep a night
Studies show that sleep deprivation has the same effect on your brain as alcohol. If you're getting four hours of sleep a night you are no better than an alcoholic at work. Your thinking is slow, your patience is low, and your co-workers know you have no control over your life. A good manager can manage everything well. Start with yourself.

4. Hire someone you'd never hang out with
Diversity is a proven factor in corporate success. If you want your team to stand out in terms of productivity, you need to hire a diverse team. Diversity isn't five guys from five different fraternities. Diversity is hiring someone who scares you because she sees things so differently than you do and she will challenge you.

5. Take a public speaking lesson
You might say, “I don't have to give speeches.”

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Use workplace skills to improve Thanksgiving dinner

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Beware of Thanksgiving. It is the holiday of disaster. It is the only national holiday when everyone in the whole country gets in a car or plane at the same time. It is the only national holiday where family members meet from far away places and do not placate each other with presents. And it is the only holiday that makes people a wreck at the workplace.

All other work holidays are a treat because order starts to disintegrate a little before the holiday, providing a sort of bonus holiday. For example, when July 4th is on a Wednesday, forget Monday and Tuesday. Those are beach days. And you can't expect United States workers to show up the week before Labor Day when all of Europe got the whole month off.

But Thanksgiving, that's something else. Unless you are in customer service, your job takes a hiatus between Thanksgiving and Christmas. This is not an official hiatus — everyone shows up for work as if they care. In fact, some people do care, but not enough people care about work during the time to accomplish anything. This makes for a completely frantic three days before Thanksgiving. The real cause of Thanksgiving disaster is a short fuse from a long week.

You can solve a lot of problems by not bringing work stress to the turkey table. This is not something you can will. You must take action. Do yoga, get a massage, read a book. Thanksgiving is vacation time; use Wednesday night to create a break between work time and vacation time. Thanksgiving is short, so if you are a person who takes four days to unwind you will miss the whole thing. Which is lame, because when you have to answer, “Why do I work?” surely part of the answer is so that you can enjoy your family and friends. So here you are. This is it. If you can't calm down from the stress of your job in order to enjoy this workweek break, then what is the point of working?

As an overworked worker contributing the Thanksgiving improvement plan, the only thing you have to do well at Thanksgiving is contribute to good dinner table conversation. Fortunately, you have practiced being a good listener at work. You can't talk over your boss without getting fired, so somewhere, somehow, you have trained yourself to not interrupt people. Use that skill at the dinner table. Surprise your little brother by letting him finish a sentence. He might be so touched that he'll say something nice about you. Besides, if you don't practice good listening in all aspects of your life then you're likely to be lazy about it at work, too.

And one more thing about conversation – Don't ask the unemployed people at the table how their job-hunt is. Because here's the answer: it sucks. If you have to talk jobs, don't make suggestions on how to get one. Really, the unemployed person has tried everything. And even if he hasn't tried everything, he doesn't want to have to talk about it at Thanksgiving, in front of aunts and uncles who lived through the depression and are like, “Why can't you just be a tailor?”

So do your best, but don't despair when things go poorly. Everyone needs a good “My Thanksgiving was so bad that” story to tell at work on Monday. After all, that’s the day work stops and the month-long conversation-at-the-cooler begins.

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Slowing down a career to have kids

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Here are the great myths about pregnancy: Women can put it off until they establish themselves in their career. Women can control the reproductive system. Women can make a grand plan. Forget it. I'm pregnant now, and I know.

I'm pregnant now, and I waited until I had established myself in my career. I climbed up the Fortune 500 ladder. I started two of my own companies. I told myself the whole way up, Thank god I don't have kids, and I worked long, long hours.

I didn't get married until after my second company went under, and I could leave Los Angles and live with my husband in New York. I told myself I would get settled in a new job, and then have a baby. And just as I got settled, I got laid off. So after fifteen years of carefully planning my career and my family life I was old enough to be in the high-risk pregnancy category (35), and out of work in a recession.

To get back to where I wanted to be in my career before I had a baby, I would have to find a job (average six months) get settled (let's say six months) and get pregnant (at my age — average six months). But that would mean having my first child at age 37 — if I had average luck with pregnancy and the job hunt. If anything went wrong — 38, 39, who knows. Let me tell you about the risks of having a baby at 35: 1 in 169 chance the baby has Down's syndrome; 1 in 200 chance that the test for Down's syndrome kills the baby. And the odds get worse every day I get older. People did not tell me these odds when I started a company at age 32 in LA instead of getting married in NY. People said, “You have time, you have time.”

Now, fearing that I might wait too long to be able to carry a child, for the first time in my life, I risked my career for my family. And wouldn't you know it, blowing away all statistical odds, I got pregnant in a week. I felt lucky, I felt excited, but I also felt scared: I was laid off and pregnant, facing a six-month job hunt, where I would get a job, work three months, and then take maternity leave. Needless to say prospects are looking dim.

What I want to tell you is that my grand plan didn't work. I grew up thinking that women had everything: I had access to education, I had access to the pill, I had access to money and jobs. I felt that society easily accepted my choices to be single, to focus on my career. Everyone told me “don't worry about kids, you'll have time.” I thought I was in control, making choices, but there are so many factors that I could never have controlled. I thought I was so smart, so organized and driven for waiting. But I'm not sure if waiting got me all that much except a high-risk pregnancy.

I will have a pause in my career. I think it might take me a while to get back on the fast track after I have a child. Maybe two. I am not sure why a pause in my career now would have been any different than a pause in my career at any other, earlier point in my career. However I am sure that the pregnancy would have been easier if I had done it earlier. I am not sure what a solution is, but I am sure that the way women today meticulously plan their families and their careers means that women leave themselves open to the inherent unpredictability of volatile markets and high-risk pregnancies.

Don't get me wrong. I'm really excited to be having a baby. But as the first generation of women who had access to career planning and family planning, I'm here to tell you that nothing came out like I planned.

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