by Rieva Lesonsky / September, 9 2014 0 comment
The study, Should I Quit My Day Job: A Hybrid Path to Entrepreneurship, presents some theories as to why “hybrid” startups enjoy more success:
- People who are more cautious are more likely to start their businesses in stages.
- Cautious entrepreneurs may lay the groundwork for start up better than those who are more impulsive.
- Starting a business in stages lets you gain experience that gives your business a better chance at success once you do go full-time.
- Thanks to technology, business startup is faster, less labor-intensive and less expensive than it used to be, which makes it much easier to run a business while holding down a full-time job.
So should you quit your job to start your business?
Of course, there are plenty of people who do this and make a go of it.
Everyone’s situation is different, so as you mull the decision, here are some factors to consider:
- How long will it take for your business to break even and to make a profit? (You’ll need to create a solid business plan and financial projections to gauge this.)
- Do you have alternative sources of income, such as a spouse’s salary or personal savings, to tide you over until that time?
- Does your job provide benefits, such as health insurance and retirement plans, that you don’t want to lose or that would cost you too much to replace with equivalents?
- Do you have the necessary time and energy outside of your job to devote to your startup? If your job is truly 9-to-5, giving up TV and hobbies and working nights and weekends can get your business rolling. However, if you’re in an industry like financial services or technology where 60- or 80-hour weeks are common, you realistically don’t have the time or brainpower to start a business without quitting your job.
- Could part of your salary bankroll a business partner to do the day-to-day work and get the startup going; then you can join in later?
- What does your spouse or partner think of your quitting (or starting a hybrid business)? Neither option is easy, and you will need his or her buy-in for either one to work without creating resentment.
Clearly, there’s a lot to consider. It always helps to get impartial advice about an important step like this from an advisor like a SCORE mentor. If you don’t have a mentor, visit www.score.org to get matched with one and get on the road to your startup dreams.