Itching to launch a second career but afraid it won’t be the stuff of business magazine covers?
Not every attorney hits on a restaurant idea that today generates $665 million in annual revenues, as Larry Flax and Richard Rosenfield did when they gave up law in the mid-1980s to start the California Pizza Kitchen restaurant chain.
Even so, you can boost your chances of success, even in a tough job market, if you avoid the five biggest mistakes many career-shifters make in their second acts:
1. Flying blind. Sometimes the urge to dump a current job becomes so overwhelming that you refuse to network internally or consider pieces of your job that you could turn into a second career you actually enjoy.
Big mistake, said Daniel Gilbert, a Harvard University psychologist who spoke recently at a Merrill Lynch webcast on trends in work after traditional retirement.
Older workers craving a fresh start shouldn’t reach to compete directly with young talent, said Gilbert, author of “Stumbling on Happiness.” Rather, they should look for jobs that leverage experience.
Once his kids’ college tuition was behind him, telecommunications sales executive Tim Will took a corporate buyout and got his teaching certificate. A job teaching high school history soon followed after he ran into a principal whose school he had helped wire with equipment years earlier.
Then, after a move to rural Rutherfordton, N.C., teaching jobs were scarce. So Will took a staff job with a local nonprofit technology center. That was four years ago and today, at 62, he’s the center’s executive director.
In both of his second careers, Will relied on previous business contacts or experience to nail the job, even though neither had much resemblance to his former career.
2. Money focus. Another frequent mistake is locking yourself into a must-have salary figure, experts said.
“A lot of older workers who lose jobs keep their lifestyle going, but you have to cut it to the bone,” said John Nelson, author of “What Color Is Your Parachute? for Retirement.”
Of course, having a flush emergency fund can buy you time to do a more thoughtful job search. But even without one, you can start today to consider some major lifestyle adjustments that reflect a more realistic view of what you’ll earn, he said. And if a second career doesn’t pan out, you’ll need to adjust spending in retirement anyway.
3. Limiting your horizons. If your second career coincides with a spouse’s retirement or the kids leaving home, consider a broader geographic canvas for targeting your job search, said Kerry Hannon, author of “What’s Next?” a book that explores second careers.
That goes for targeting your market, too, if you’re considering running a business of your own. Your idea may play better in Plano than Peoria, she said.
4. Overspending. A lot of second-career hopefuls move too quickly to spend on advanced degrees or pricey resume services before really thinking through their next steps, said Hannon.
If possible, take some classes while your current employer is still offering tuition reimbursement (though be sure to investigate whether there is a pay-back requirement if you leave the firm). And check out gratis career services from your alma mater.
5. Betting the farm. Of all the mistakes older workers make in launching second careers, this is probably the worst, Hannon said.
Would-be entrepreneurs aren’t necessarily raiding retirement accounts to launch businesses, she said, but they are using home equity and other savings, and that has obvious implications for retirement security.
Remember, it’s a brutal job market out there, so try to avoid becoming jaded if you’re trying all the right things and still seemingly getting nowhere.
Have a retirement question? Write to yourmoney@tribune.com or via mail at Your Money, Chicago Tribune, 435 N. Michigan Ave., Room 400, Chicago, IL 60611
