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The last time I wrote an article for eFinancialCareers, I was thumping my chest on how the middle office was the new black. Within less than a fortnight of the article being published, I was shown the door at my middle office job.
At least this time it wasn’t the whole firm going bankrupt (though it came perilously close to that!), it was just my unit going through budget cuts. Being laid off from two bulge bracket firms within a span of six months requires some talent, and boy, do I have that in plenty.
My boss was worried at how well I took the news. I didn’t believe it then, but it looks like the whole Lehman episode has indeed made me stronger and significantly enhanced my threshold for disappointment. I decided I had given banking a fair shot. After Lehman came down, I took the first banking job I got, hoping it would give me a foot in the door. Sadly my foot only got jammed. It was time to move on. I had spent a good three years working towards a banking career that had lasted less than three months in both jobs put together. It was hard to stomach the disappointment, but I knew it wasn’t personal.
After taking a short break, I joined a small internet start-up nurtured by my friends from business school. My idea was to work for a month, understand the nuts and bolts of the company, and then decide if I wanted to do this full time.
The catch? I wouldn’t receive any salary. I would have an equity stake and will have to wait for the exit to see any money. The business is making cash profits, which is awesome, but like any start up all the cash generated is being ploughed back to grow the business. I enjoy working there, work hours are flexible, the work environment is collegial and the best part – I don’t have to get up at 6am or send/receive mundane daily reports.
However, as much as I like the job and the people, I am finding it difficult to stay the course. My business school loans are piling up and I need the cash to keep myself going. Lehman’s bankruptcy and the fact that my other position was on a contract position only, meant I received zero severance pay. Cash is king and I could definitely do with some of it in my life right now.
Sucks to be you
nice comment.. a real supportive one.
next time goldman sucks pls avoid it is better. no comment is better that yours
Joining a start up which is cash generative is fantastic! To the extent you can – keep ploughing away. Surely it won’t be long before you can claim a proper salary. By the time your banking opportunities come back – you could be in an enviable position of choosing between of a potential pot of gold with a cash generative start up or returning to a bank. The richest people in the free world are entrepreneurs with equity in a successful business – not bankers….
It is definately tough to balance the pragmatism of having a job which pays the bills and doing something interesting like working for a start-up. Its a big risk, as we both know Business School loans really are a massive commitment and I imagine defaulting on them and being bankrupt is not much fun.
This goes to show it is not good “thumping your chest too early”. I don’t mean to say things would be different if you had not written the article. Except that things can and do change (sometimes for the worse) and it is not too clever to assume a small sliver of hope will work out. Just make the most of your hand, since that is all you can do.
like most that post a comment on this site your views are those of someone that lacks maturity, common sense and business sense. why would any decent mo line manager reain the services of arrogant jnr like yourself who spent his time posting futile negative comments slagging off his business unit. out of lehman, out of the city for good one hopes. your ego is the problem here. no one cares about your “business school” costs. Get a grip.
Start-up sounds interesting. If has decent prospects you should go for it. Just find something to pay the bills – spreadbetting if you are good enough…or just get some bar work (cash in hand) if your hours are flexi. Very simple. Cowboy up and get on with it.
keep going and do anything to eke out a living on the side.If it works you will probably be alot happier than working in a Bank..possibly if i was younger and had no kids/dogs etc to frrd i would want to do the same..It has taken me a number of years but i have come to the conclusion that the vast majority of us hate our lives and would rather do anything than the moronic jobs that we do in the City..if only it wasnt for the money,,unfortunately most of us have trappings that need paying for and so we grind ourselves into the ground for them
People can be so cynical sometimes cutting tall poppies down when theres no need for it. Whats wrong with thumping your chest if you found a role where it can advance your career, albeit going bust later? Good luck mate, decision making couldnt have been easy to work at a start up with no salary. If all else fails, look up Henry’s top 10 money making ideas.
Don’t speak too soon for the wheel’s still in spin and there is no telling who that it’s naming..
Out of college, money spent
see no future, pay no rent
all the money’s gone, nowhere to go
(dum dum dum dum , dum dum dum dum)
To be honest, I remember reading your earlier article & thinking you were a prat. This time around I am happy to say I came to a much different conclusion.
It’s a bummer for you that you have had to go through so much upheaval of late but I would say, for what it’s worth, it seems that eating so much humble pie has at least had a positive impact on your personality & perspectve of the world.
As some wise-dead-doode once said: Do not judge a man by how he rides his horse, rather judge him by how he climbs back on after he has fallen off… Best of luck in getting back on.
Stick with the start up. If it is successful you can cash out and decide what to do then – you could become a business angel, join a VC partnership, create another start up. This is a depressing and exciting part of the business cycle: companies, like the start up you are working for, are being formed now (and some, like yours, generating profits, nice!), and if they survive the downturn, means they will likely be very successful when business conditions pick up. Banking will not return to what it was. Stick with the business.
Renegotiate your position with the start up.
Free up sometime to do some consulting to improve cashflow (target companies / industries which could become clients of the start up)
Offer to return full time once cashflow has improved (with a few nice contacts)
I hope, being a B school grad, I am telling you how to suck eggs and that you have considered this already
On a side note, I would be interested to know more about the start up
I can definitely empathise with that ! After my job at the BBC’s commercial agency ended, I took a couple of months off thinking it wouldn’t be too difficult to find another considering I have almost 10 years experience in the sector. I have been looking for a suitable role ever since, however I have been doing various temping roles within the organisation….though they end this Fri! Like you, I could do with the cash flow!
Hi,
Not all is doom and gloom.
Use your financial expertise to become a business broker.
turn your talents and knowledge to cash.
try http://www.sunbeltnetwork.co.uk
The biggest business brokerage in the world
I cannot fathom how low quality someone has to be to get fired from a middle office role. Beyond pathetic.
Bet your MBA cohorts who’re in the front office earning 200k are laughing.
Good luck to you! At least you’re learning entrepreneurship and mental toughness. Why not take an evening job around it or work it at nights to maintain an interest.
coz if you rap like me you dont get paid
and if you roll like me you dont get…
A message to SAGE… You are nasty.
Good Luck to you Mr ‘Out of Lehman’, I hope you find something that is
better, arn’t you glad you are out of the City at least you don’t
have to put up with nasty people like SAGE.
just curious to know what support ur b-school is providing? r they helping u by sharing contacts??i guess ur from either lbs,insead or iese
Keep it up and don’t get down. Avoid listening to the guys like Sage (talk about an arrogant call sign), who have still not understood the message on the wall.
Sounds like you are engaging in an exciting new project, that however requires a lot of committment and acceptance of risk. The life of an entrepreneur can be quite tough. If the idea is good (sounds like it as startups are rarely cash positive) then you will eventually see reward.
I think you should renegotiate some type of arrangement with your partners regarding them providing a salary sufficient to pay your MBA loans. If the firm is cash positive and they truly value your contribution, this should not be a problem and any VC will tell you that they want a team that is hungry, but also not distracted by their personal finances so that they can concentrate on generating value. (VC’s understand that if you live under a bridge the firm and their investment will likely not be a success). However, be aware that if your partners are not willing to offer you any sort of payment, then you are likely fooling yourself, as that would mean that they see no value in you either. In that case that startup is not the path.
No, I agree with Sage, anyone that decides to go around “thumping my chest on how the middle office was the new black” – deserves to be out of a job, recession or no recession. Consider yourself lucky that your business school chums have sorted you out with something, although the fact that they’re not going to pay you anything says enough really.
Lets get a couple of things straight. If you met me you would think I was a very nice guy – because in fact I am, ask my wife, children, friends and work colleauges and they back this up.
“The Sage” is actually meant to be a somewhat sarcastic strapline – looks like the irony has been lost on a couple of people reading this web site.
The reason for The Sage’s tone … well lets just say he is sick to the back teeth of unqualified / unemployed jnrs , who are yet to achieve anything in a business context, slagging off the support services offered by middle and back offices in the financial services community in London.
Willing to stick by my guns here and say that Out Of Lehman has tactically made a faux par by talking himself back out of the IB world as soon as he got back in.
No he’s not earning any money, working on the fringes …. getting back in will be harder than ever before to get back to where he once was.
Sometimes you have to be cruel to be kind.
It doesn’t sound like the start-up will help your cash flow issue. Success rate of start-ups even in good times is not great to be frank. You say you’ll have a equity stake, but I bet it is likely to be a very small one. If you are really short on cash, you can always take on extra work for cash. I know some people who are working as cab/mini-cab drivers, gardeners etc. (whatever that gets paid by the hour). The pay will seem pathetic, but it will pay your bills and put food on the table. Stop thinking about disappointment, your dreams etc and concentrate on making a living.
I think the last commentators name says it all
The OOL poster was saying he lacked cash. I pointed out that extra cash is not out of reach. There are others suffering more in this recession. He can survive and do better if his mind is focused. Too much crying over spilt milk.
My advice to you is simple and probably the most reliable you will ever get. Have you ever wondered why the recession seems to have somehow skipped the pockets and livelihood of some people….it all comes down to the Grace of God. We can have all the best business school knowledge and have the greatest potential should the opportunity arise, but all that is futile without dedicating your life to God and letting Jesus lead you through. Try it and you will wish you’d done it earlier but its never too late as long as you are breathing!!!