Should You Start a Business While You Still Have a Job?

I’ve heard people say that they want to quit their jobs and start a business so often it has almost become a cliché.  The truth, though, is that the process of becoming an entrepreneur is not one that happens overnight.

Most self-employed individuals, myself included, remain gainfully employed at another job while taking one step at a time to launch a new business.

As you might imagine, this is easier said than done, for you don’t want to ruin your reputation at your existing job as a hard worker.  It’s only fair to your current employer that you efficiently do the job you’re being paid to do.  Therefore, you should take care to avoid scheduling meetings or calls for your business during while you’re on the clock, and don’t use company technology or supplies for your new venture either.

Benefits of a Gradual Transition

Setting ground rules like these will probably mean longer hours and substantial juggling for a while, but starting a business while you’re still employed has its benefits.  I’m fond of saying that not everyone is cut out for the risky and stressful lifestyle of an entrepreneur, and dipping your toe in is a good way to determine whether it’s really and truly for you.

Furthermore, if you take away the financial pressure of needing your business to make money right away, you will be more likely to have a successful venture in the long-run because you will be able to take your time with market research, real consumer trials, and consults with local, small business development centers.

Know When It’s Time to Leave

At some point, it will probably make sense for you to make your new business your full-time job.  How do you know?  A good sign is that your side gig’s revenue has now surpassed your annual salary, or that you are now able to support your family without the income from your day job.

This post was originally published on Intuit's Quickbase blog.

Comments

[Cameron Plommer]

Not only is this path to entrepreneurship safer and less risky, it's much more likely that a lot of people will become entrepreneurs this way.

Not a lot of people are going to just quit their nice comfy job and do something really hard, like start a business. But if they work on the side even just 10 hours a week then they can slowly become less dependent on someone else to sustain their livelihood.

I truly believe that if more people were more entrepreneurial and thus more independent this past recession would not have hit so hard. Our economy needs more self-reliance.

[Jay Philips]

I don't think a person should quit their current place of employment to start a business unless it's a conflict of interest. Once the new business adventure is a conflict and/or gets off the ground then the person should quit. (That's what I did)

[Tim Gordon]

I think starting a business while being in a job is a good thing really. This is a good preparation if ever you lose your current job.

[webmaster]

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[gl hoffman]

Hi Alexandra...perfect advice and well timed. Far too many people jump over to startup land before they have any real action in their new field. If any of your readers want a free pdf of STARTUP, 100 Tips To Get Your Business Going (www.startup100tips.com), I am happy to send them one on y our behalf.

[Alexandra Levit]

@GL: Thanks for the reminder, readers will be familiar with your book! How has it been doing?

@Webmaster: Appreciate the recognition, thanks!

@Tim: I agree, and thanks for reading!

@Jay: This approach makes sense to me.

@Cameron: While I don't know if entrepreneurship is safer and less risky, I love your point about people being more self-reliant. Complacence is deadly in any kind of career.

[Trav Hurst]

i think you should only because i am still working at my previous job while i am trying to start a franchise. It will help you get more money to put into your business

[Mr. Makingusmile]

Never start a new business and quit your job. I have heard many horror stories. In this recession it is to dangerous. Building a solid foundation will help you feel secure about making the transition.

[employment genius]

If you can manage your time why not start your own business. One of which would be in internet marketing. Just outsource your employers to do some work that you don't have time to do it.

[Mehrun]

I am looking to start a ladruny service/laundromat in my hometown. I have a superb business plan and location(location is everything!) for this business. The problem is MONEY! $250,000 to be exact. Of the 5 aspects banks/investors look for, I only have 3. 1. Experience I have been a store manager in the retailsector for 4 years, and have handled P L businesses quite well.2. Credit Score My credit is around 7703. Business Plan- Amazing business plan for the ladruny business (have read books, websites, join memberships over the last 3 months to gain better insight of ladruny service).4. Equity-NONE. Just had a baby with my ex-girlfriend which drained all my savings.5. Collateral-NONE. Not too many 24 year olds have enough collateral at this point. My family members have all owned their own businesses. I know what it takes to run your own business. I know that if banks/investors could see my work ethic and enthusiasm they would help me. CAN YOU?